[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Pages 55619-55620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27133]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36420; File No. SR-CBOE-95-66]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Board Options
Exchange, Incorporated, Relating to the Increase in the Retail
Automatic Execution System Order Size Limit for Performance Systems
International, Inc.
October 26, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 26, 1995, the Chicago Board Options Exchange, Incorporated
(``CBOE'' 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
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
\1\15 U.S.C. 78s(b)(1).
\2\17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to increase the size of orders eligible for
entry into its Retail Automatic Execution System (``RAES'') for all
classes in Performance Systems International, Inc. This action was
recommended by the Exchange's Equity Floor Procedure Committee
(``EFPC'') in order to match the size of orders eligible for entry into
the Philadelphia Stock Exchange's automatic execution system for the
same option classes. The text of the proposed rule change is available
at the Office of the Secretary, the Exchange, and at the Commission.
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 Exchange included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Section (A), (B), and (C) below, of the most significant aspects of
such statements.
(A) Self-Regulatory Organization's Statememt of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
As of October 26, 1995, the Exchange and the Philadelphia Stock
Exchange, Inc. (``Phlx'') will begin trading equity options on
Performance Systems International, Inc. The NASDAQ stock symbol for
Performance Systems International is ``PSIX'' and the option symbol is
``SQP.''
The Phlx will impose a twenty-five (25) contract order size limit
for orders that are eligible for entry into its automatic execution
system, Auto-EX.\3\ CBOE Rule 6.8 permits the CBOE's EFPC to set an
order size limit of up to twenty (20) contracts. However, CBOE Rule
6.8, Interpretation .01 allows the EFPC to set a limit higher than
twenty to the extent necessary to match the order size eligible for
entry into the automatic execution system of any other options exchange
on which the multiply traded option is traded, provided that notice of
the increase has been filed with the Commission pursuant to Section
19(b)(3)(A) of the Act. In order to better compete with Phlx for orders
in SQP, the EFPC has recommended to the Exchange that it make this
filing to increase the order size eligible for entry in RAES for equity
options in SQP to twenty-five (25) contracts. The CBOE believes that it
has more than adequate system capacity and market-making capacity to
handle the increase in the eligible RAES order size for Performance
Systems International, Inc. options.
\3\See Securities Exchange Act Release No. 32906 (September 15,
1993) 58 FR 49345 (September 22, 1993) (order approving Phlx's
proposal to expand the order eligibility size of Auto-EX to twenty-
five (25) contracts for all equity options).
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The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act in general and furthers the objectives of
Section 6(b)(5) in particular in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of change, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change 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 written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change constitutes a stated
interpretation with respect to the meaning, administration, or
enforcement of an existing rule, it has become effective pursuant to
Section 19(b)(3)(A), and Rule 19b-4 thereunder. At any time within 60
days of the filing of the 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.
[[Page 55620]]
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, N.W., 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. Sec. 552, will be available for inspection and copying at
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the CBOE. All
submissions should refer to SR-CBOE-95-66 and should be submitted by
November 22, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\4\
\4\17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27133 Filed 10-31-95; 8:45 am]
BILLING CODE 8010-10-M
