[Federal Register Volume 60, Number 198 (Friday, October 13, 1995)]
[Notices]
[Page 53446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25446]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36347; File No. SR-CHX-95-21]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to the Amendment of Modified Versions of the
SuperMAX System on a Pilot Basis
October 6, 1995.
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
September 18, 1995, the Chicago Stock Exchange, Incorporated (``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. The Commission is publishing this notice to solicit
comment on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange, pursuant to Rule 19b-4 of the Act, proposes to amend
Rule 37(e) of Article XX, relating to its Enhanced SuperMAX program.\1\
\1\ The Enhanced SuperMAX program is an optional feature of the
Exchange's automated execution (``MAX'') system. This program is
designed to provide a possibility of price improvement under certain
circumstances.
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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
On July 27, 1995, the Commission approved a proposed rule change of
the CHX that added rules for the Enhanced SuperMAX program into CHX
Article XX, Rule 37(e).\2\ That approval order contemplated that the
CHX would file with the Commission a codification of its procedures
with respect to a specialist's ability to make a security eligible for
Enhanced SuperMAX and Timed Enhanced SuperMAX.\3\
\2\ See Securities Exchange Act Release No. 36027 (July 27,
1995), 60 FR 39465 (August 2, 1995) (File No. SR-CHX-95-15).
\3\ The Timed Exchange SuperMAX program is found in CHX Article
XX, Rule 37(f). The program operates in a manner identical to
Enhanced SuperMAX, with the modification that the specialist pre-
selects a time period, which may be no less than 30 seconds and may
be changed only once a month, during which the possibility of price
improvement will be available. Because Rule 37(f) incorporates by
reference that portion of Rule 37(e) being amended herein, the
propose rule change also has the effect of codifying the procedures
with respect to a specialist's ability to make a security eligible
for Timed Enhanced SuperMAX.
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The purpose of the proposed rule change is to codify those
procedures. Specifically, a specialist will be permitted to engage and
disengage Enhanced SuperMAX and Timed Enhanced SuperMAX for a given
stock only on one given day each month, as determined from time to time
by the Exchange.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act \4\ 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.
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose a 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
The foregoing rule change constitutes a stated policy, practice or
interpretation with respect to the meaning, administration or
enforcement of an existing rule of the Exchange and therefore has
become effective pursuant to Section 19(b)(3)(A) of the Act \5\ and
subparagraph (e) of Rule 19b-4 thereunder.\6\ At any time within 60
days of the filing of such proposed rule change, the Commission may
summarily abrogate such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(e).
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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, D.C. 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 Section, 450 Fifth Street NW.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submissions should refer to File No. SR-CHX-95-21 and should be
submitted by November 3, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 95-25446 Filed 10-12-95; 8:45 am]
BILLING CODE 8010-01-M
