[Federal Register Volume 62, Number 229 (Friday, November 28, 1997)]
[Notices]
[Pages 63404-63405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31240]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39341; File No. SR-CHX-97-28]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the Chicago Stock Exchange, Incorporated Amending the
Exchange's Clearing the Post Policy for Cabinet Securities
November 21, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 23, 1997, the
Chicago Stock Exchange, Incorporated (``CHX'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes, for a six-month pilot period, to amend
interpretation and policy .02 of Rule 10 of Article XX and amend Rule
11 of Article XX relating to clearing the post for cabinet securities.
The text of the proposed rule change is available at the Office of the
Secretary, the CHX, 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 self-regulatory organization
included statements concerning the purpose of and basis for the period
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 amend the Exchange's
existing clearing the post policy for cabinet securities for a six-
month pilot period. The clearing the post policy is contained in
interpretation and policy .02 of CHX Article XX, Rule 10.\2\ The
Exchange's clearing the post policies were previously contained in
several Notices to Members which had been approved by the
Commission.\3\ These Notices to Members, and their corresponding
Approval Orders, explain the Exchange's clearing the post requirements.
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\2\ See Securities Exchange Act Release No. 39337 (November 19,
1997) granting immediate effectiveness to SR-CHX-97-30.
\3\ Securities Exchange Act Release No. 33806 (March 23, 1994)
59 FR 15248 (Notice of Filing and Immediate Effectiveness of File
No. SR-CHX-94-03); Securities Exchange Act Release No. 17766 (May 8,
1981) 46 FR 25745 (Order approving SR-MSE-81-3 and SR-MSE-81-5); and
Securities Exchange Act Release No. 28638 (November 30, 1990) 55 FR
49731 (Order approving SR-MSE- 90-7).
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In general, the clearing the post policy requires a floor broker or
market maker to clear the post by his or her physical presence at the
post. The purpose of this
[[Page 63405]]
proposed rule change is to permit a floor broker or market maker to
clear the post in cabinet securities by phone. The bids and offers made
to clear the post by phone will be audibly announced at the cabinet
post through a speaker system maintained by the Exchange. This new
policy will be effective for a six-month pilot period to permit the
Exchange to determine the effectiveness of the new policy before
implementing it on a permanent basis.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) \4\ 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.
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\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 any inappropriate 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 either 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 publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve such 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 submissions, 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. 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-97-28 and
should be submitted by December 19, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-31240 Filed 11-26-97; 8:45 am]
BILLING CODE 8010-01-M
