[Federal Register Volume 69, Number 6 (Friday, January 9, 2004)]
[Notices]
[Pages 1609-1610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-405]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49012; File No. SR-CHX-2003-23]


Self-Regulatory Organizations; Order Granting Accelerated 
Approval to Proposed Rule Change and Amendment No. 1 Thereto by the 
Chicago Stock Exchange, Incorporated To Amend Article XX, Rule 37(a)(4) 
Relating to the Definition of Preopening Order

December 31, 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 amend CHX Article XX, Rule 
37(a)(4) to modify the definition of ``preopening order'' to provide 
that preopening orders for Nasdaq/NM securities must be received at or 
prior to 8:20 a.m. (CT), instead of the 8:25 (CT) deadline currently 
set forth in the rule. The Exchange submitted an amendment to the 
proposed rule change on November 6, 2003.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Kathleen M. Boege, Associate General 
Counsel, CHX, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation, Commission, dated November 4, 2003 (``Amendment 
No. 1'').
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    The proposed rule change and Amendment No. 1 were published for 
comment in the Federal Register on December 8, 2003.\4\ The Commission 
received no comments on the proposal and Amendment No. 1. This order 
grants accelerated approval to the Exchange's proposed rule change, as 
amended.
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    \4\ See Securities Exchange Act Release No. 48859 (December 1, 
2003), 68 FR 68434. The 15-day comment period ran through December 
23, 2003.
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    The CHX requested that the Commission grant accelerated approval to 
the proposed rule change, as amended, pursuant to Section 19(b)(2) of 
the Act.\5\ After careful review, the Commission finds that the 
proposed rule change, as amended, is consistent with the requirements 
of the Act and the rules and the regulations thereunder applicable to a 
national securities exchange.\6\ Specifically, the Commission believes 
that the proposal is consistent with Section 6 of the Act

[[Page 1610]]

in general,\7\ and Section 6(b)(5) of the Act in particular,\8\ in that 
it is designed to promote just and equitable principles of trade, to 
remove impediments to and 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 believes that an 
earlier deadline for preopening orders may operate to reduce the 
aggregate amount of preopening orders received by a CHX specialist and 
may thereby better enable the CHX specialist to manage his position and 
fulfill his specialist duties by giving him time to fully evaluate his 
position and to make a professional price assessment that would inform 
his executions once trading commences for the day. Furthermore, the 
Commission believes that an 8:20 (CT) deadline for CHX preopening 
orders may better enable CHX specialists to comply with SuperMontage 
rules and procedures governing the ``trade or move'' functionality.
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposal's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    The Commission finds good cause for approving the proposed rule 
change and Amendment No. 1 before the 30th day after the date of 
publication of notice of filing thereof in the Federal Register. The 
Commission believes that accelerated approval will allow the Exchange 
to immediately provide specialists with a greater ability to manage 
their risks.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\9\, that the proposed rule change and Amendment No. 1 (SR-CHX-2003-23) 
be and hereby are approved on an accelerated basis.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 04-405 Filed 1-8-04; 8:45 am]
BILLING CODE 8010-01-P