[Federal Register Volume 59, Number 19 (Friday, January 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1811]
[Federal Register: January 28, 1994]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33499; File No. SR-CHX-93-33]
Self-Regulatory Organizations; Filing of Proposed Rule Change by
the Chicago Stock Exchange, Inc. (``CHX'') Relating to the Filing of
Form U-5
January 21, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on December
23, 1993, the Chicago Stock Exchange, Inc. (``CHX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the self-regulatory organization. On
January 21, 1994, the Exchange submitted to the Commission Amendment
No. 1 to the proposed rule change.\1\ The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\See letter from David T. Rusoff, Attorney, Foley & Lardner,
to Louis A. Randazzo, Attorney, Branch of Exchange Regulation,
Commission, dated January 21, 1994. Amendment No. 1 made certain
clarifying amendments to the proposal.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add interpretation and policy .03 to Rule
3, Article VI of the Exchange's rules and relates to the filing of a
Uniform Termination Notice for Securities Industry Registration (``Form
U-5'').\2\
---------------------------------------------------------------------------
\2\The Form U-5 is employed in connection with the National
Association of Securities Dealers, Inc. (``NASD'') Central
Registration Depository (``CRD'') system and is used by the various
securities self-regulatory organizations (``SROs'') as part of their
registration and oversight of member organization personnel. Form U-
5 contains information relating to the circumstances surrounding the
termination of an applicant's prior employment.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to require certain
members of the Exchange to file Form U-5 termination notices with the
Exchange.\3\ The Form U-5 is used by a broker-dealer to give official
notice that it has terminated a registered employee. Requiring the
filing of the Form U-5 with the Exchange is consistent with the rules
of other SROs and will allow the Exchange to more precisely monitor the
authority of registered persons to act on behalf of member firms and
monitor the reasons for termination.\4\
---------------------------------------------------------------------------
\3\Proposed Interpretation and Policy .03 to Rule 3 of Article
VI would apply to member organizations for which the Exchange is the
Designated Examining Authority (``DEA'') and to registered persons
of any other member organization (for whom the CHX is not the DEA)
that are active on the CHX trading floor.
\4\Proposed Interpretation and Policy .03 to Rule 3 of Article
VI states that following the termination of a person associated with
a member in a registered capacity, such member shall promptly, but
in no event later than thirty (30) calendar days after such
termination, give written notice of such termination to the Exchange
on Form U-5, and concurrently provide a copy of such notice to the
person whose association has been terminated. This requirement shall
only apply to member organizations for which the Exchange is the DEA
and to registered persons of other member organizations active on
the CHX trading floor.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act 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.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule will impose
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No comments were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and published its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying at the
Commission's Public Reference Room, 450 Fifth Street, NW., Washington,
DC 20549. Copies of the filing will also be available for inspection
and copying at the principal office of the CHX. All submissions should
refer to File No. SR-CHX-93-33 and should be submitted by February 18,
1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-1811 Filed 1-27-94; 8:45 am]
BILLING CODE 8010-01-M
