[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30259]
[[Page Unknown]]
[Federal Register: December 9, 1994]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35048; File No. SR-CHX-94-23]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by Chicago Stock Exchange, Inc. Relating to the Odd-Lot
Transactions
December 2, 1994.
Pursuant to Section 19(b)(1;) of the Securities Exchange Act of
1934 (``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that
on November 10, 1994, 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. The Commission is publishing this notice to solicit
comments 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 CHX proposes to amend Rule 9 of Article XXXI of the Exchange's
Rules as follows, with italics representing language to be added:
Article XXXI
Rule 9 * * *
(d) Notwithstanding anything in this Rule to the contrary, if so
determined by the Committee on Floor Procedure, a differential may be
charged for (i) an odd-lot ``seller's option'' trade (as that is
defined in Article XX, Rule 9(c)), (ii) an odd-lot order for cash or
``next day'' delivery, (iii) an odd-lot order for additional settlement
periods, and (iv) an odd-lot order in an issue in which a differential
is charged in the primary market.
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 statement 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 give the Committee on
Floor Procedure (``FPC'') flexibility with respect to the Exchange's
odd-lot execution rules. Currently the rule provides that all odd-lots
shall be executed at the best bid or offer, similar to round lot
executions. The new rule will allow the FPC to allow differentials to
be charged for non-regular way trades. For example, the new rule
permits the Committee on Floor Procedure to allow differentials to be
charged for odd-lot seller's option trades, ``next day'' delivery
trades and orders in issues for which a differential is charged in the
primary market.
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 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 written comments were 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 other 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. 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 at the CHX. All
submissions should refer to File No. SR-CHX-94-23 and should be
submitted by December 30, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-30259 Filed 12-8-94; 8:45 am]
BILLING CODE 8010-01-M
