[Federal Register Volume 68, Number 207 (Monday, October 27, 2003)]
[Notices]
[Page 61239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-27008]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48658; File No. SR-CHX-2003-12]


Self-Regulatory Organizations; Order Granting Approval of 
Proposed Rule Change, and Amendment No. 1 Thereto, by the Chicago Stock 
Exchange, Incorporated Relating to Automatic Execution of Partial 
Orders

October 20, 2003.
    On August 1, 2003, the Chicago Stock Exchange, Incorporated 
(``CHX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission''), pursuant to section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to add an Interpretation and 
Policy providing that a CHX specialist may voluntarily elect to 
activate the functionality that allows automatic execution of partial 
orders on its Midwest Automatic Execution (``MAX'') System at any point 
during a regular trading session. On September 5, 2003, the Exchange 
amended the proposed rule change.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Letter from Kathleen Boege, Associate General Counsel, 
CHX, to Nancy Sanow, Assistant Director, Division of Market 
Regulation, Commission, dated September 5, 2003 (``Amendment No. 
1'').
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    The proposed rule change was published for comment in the Federal 
Register on September 15, 2003.\4\ The Commission received no comments 
on the proposal. This order approves the proposed rule change, as 
amended.
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    \4\ See Securities Exchange Act Release No. 48454 (September 5, 
2003), 68 FR 54032.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\5\ In 
particular, the Commission believes that the proposed rule change is 
consistent with section 6(b)(5) of the Act \6\ in that it is designed 
to promote just and equitable principles of trade, to remove 
impediments, and to perfect the mechanism of, a free and open market 
and a national market system, and, in general, to protect investors and 
the public interest. The Commission finds that the proposed rule 
change, as amended, is reasonably designed to accomplish these ends by 
providing clarity to the CHX Rules by specifying the ability of CHX 
specialists to disable or enable the auto-partials functionality of the 
Exchange's MAX System on a voluntary basis.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change, as amended, (SR-CHX-2003-12) be, 
and it hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-27008 Filed 10-24-03; 8:45 am]
BILLING CODE 8010-01-P