[Federal Register Volume 60, Number 57 (Friday, March 24, 1995)]
[Notices]
[Pages 15613-15614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7237]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35505; File No. SR-CHX-95-09]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange
Incorporated Relating to Order Identifiers
March 17, 1995.
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
March 10, 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
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 Article XX, Rule 37(b) of the CHX's Rules
to add an order designator on the Exchange's MAX System.\1\
\1\``MAX'' is the CHX's order routing and execution system. See
Article XX, Rule 37(b) of the CHX's Rules for a complete description
of the MAX system.
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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
Article XX, Rule 37(b)(9) of the CHX's Rules requires orders sent
via the MAX System to include account identifiers. When the MAX rules
were codified, the ``Z'' designator was inadvertently excluded.\2\ The
``Z'' designator allows [[Page 15614]] order sending firms to receive
automatic executions of professional market orders based on the CHX's
BEST Rule.\3\ Limit orders sent with the ``Z'' designator will be
represented on the specialist's book as professional orders. The ``Z''
designator can only be used by a firm after it negotiates with the
specialist, and the specialist agrees to accept the firm's professional
orders for automatic execution on MAX.
\2\The MAX Rules were codified in Securities Exchange Act
Release No. 35010 (November 28, 1994), 59 FR 62767 (December 6,
1994).
\3\See Article XX, Rule 37(a) of the CHX's Rules.
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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 designated to promote just and equitable principles
of trade, to remove impediments to 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
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\4\ and
subparagraph (e) of Commission Rule 19b-4.\5\ 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 of appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
\4\15 U.S.C. 78s(b)(3)(A) (1988).
\5\Rule 19b-4(e), 17 CFR 240.19b-4(e), provides that a proposed
rule change may take effect upon filing with the Commission pursuant
to Section 19(b)(3)(A) of the Act if, among other things, it effects
a change in an existing order entry or trading system.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the forgoing. 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 CHX. All
submissions should refer to File No. SR-CHX-95-09 and should be
submitted by April 14, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-7237 Filed 3-23-95; 8:45 am]
BILLING CODE 8010-01-M
