[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Notices]
[Pages 59918-59919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30025]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37964; File No. SR-CHX-96-28]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Chicago Stock Exchange, Incorporated Relating to Clearing
the Post.
November 19, 1996.
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 November 4, 1996, 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
comments on the proposed rule change from interested persons.
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\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 Chicago Stock Exchange, Incorporated (``CHX'' or ``Exchange'')
proposed to amend Article XX, Rule 10, interpretations and policies
.01.
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 May 30, 1996 the Securities and exchange Commission approved a
proposed rule change that established a minor rule violation plan (the
``Plan''.\3\ A violation of the Exchange's clearing the past rule
(Article XX, Rule 10) is included within the plan.\4\ Under current
procedures, violators may be fined either by the Minor Rule Violation
Panel or by the Exchange's Committee on Floor Procedure but not
both.\5\ If a violation is handled under the Plan, violators may be
fined not less than $100 nor more than $2,500 per violation.
Alternatively, the exchange's Committee on Floor Procedure currently
has the authority to impose a $50 fine for violations of the clearing
the post rule.\6\ the Exchange believes, however, that minor violations
of the clearing the post rule are better handled through the Plan
rather than by the Committee on Floor Procedure. The Exchange believes
that using the Plan as the lone summary fine procedure will achieve a
uniform procedure for imposing fines for violations of this Exchange
rule.
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\3\ See Securities Exchange Act Release No. 37255 (May 30,
1996), 61 FR 28918 (approving File No. SR-CHX-95-25).
\4\ See supra note 3.
\5\ The Minor Rule Violation Panel is appointed by the President
of the Exchange and consists of three floor members (one member of
the Committee on Floor Procedure, one member of the Committee's
Rules Subcommittee, and one member not on the Committee or any of
its subcommittees.) See supra note 3.
\6\ CHX Article XX, Rule 10, Interpretations and Policies .10.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Act in that it is designed to prevent fraudulent and manipulative acts
and practices and to perfect the mechanism of a free and open market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
[[Page 59919]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the 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 publishes 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, 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. 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 Exchange. All
submissions should refer to File No. SR-CHX-96-28 and should be
submitted by December 16, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-30025 Filed 11-22-96; 8:45 am]
BILLING CODE 8010-01-M
