[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Notices]
[Pages 14173-14174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7392]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38413; File No. SR-CSE-97-05]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange,
Inc. Relating to Regulatory Data Submissions
March 18, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on March 6, 1997, as amended on March 14, 1997,\3\ The Cincinnati
Stock Exchange, Incorporated (``CSE'' or ``Exchange'') filed with the
Securities and Exchange Commission the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the CSE. The Commission is publishing this notice to solicit
comments on the proposed rule change form interested persons.
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\1\ 15 U.S.C. Sec. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ On March 14, 1997, the CSE filed Amendment No. 1 to its
proposal with the Commission. The amendment redesignates the
proposal as a ``noncontroversial'' rule filing under Rule 19b-
4(e)(6) under the Act rather than a filing under Rule 19b-4(e). See
Letter from Adam Gurwitz, Vice President Legal and Secretary, CSE,
to Elaine Darroch, Attorney-Adviser, Division of Market Regulation,
dated March 14, 1997.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CSE hereby proposes to amend Rule 4.2 to add Interpretation .02
to clarify CSE members' obligation to provide regulatory information
routinely to the Exchange. The text of the proposed rule change is
available at the office of the Secretary, CSE 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 CSE 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 CSE 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 the
Statutory Basis for, the Proposed Rule Change
(1) Purpose
In December, 1995, in an attempt to improve the quality and
quantity of available regulatory data, the Exchange requested that
members submit certain regulatory data to CSE on a daily basis. Members
were informed of this requirement by Regulatory Circular #95-04, dated
December 22, 1995. As part of its ongoing attempt to enhance its
examination and surveillance programs, the Exchange now proposes to
codify this data submission requirement by adding Interpretation .02 to
Rule 4.2, Furnishing of Records.
[[Page 14174]]
Pursuant to Regulatory Circular #95-04, members are currently
required to submit certain data pertaining to agency orders and
proprietary trades. The Exchange recognizes, however, that the types of
data it requires will likely change as CSE's regulatory program
evolves. The proposed rule change will therefore impose a general
regulatory data submission requirement that will refer members to the
current Regulatory Circular delineating order, market, and transaction
submission requirements. In this way, the Exchange will retain the
flexibility necessary for effective regulatory surveillance and
enforcement efforts.
(2) Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \4\ in general and furthers the objectives
of Section 6(b)(5) \5\ in particular in that it is designed to promote
just and equitable principles of trade, and to remove impediments to
and perfect the mechanism of a free and open market and a national
market system.
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\4\ 15 U.S.C. Sec. 78f(b).
\5\ 15 U.S.C. Sec. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The CSE 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 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 proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
(3) was provided to the Commission for its review at least five days
prior to the filing date; \6\ and (4) does not become operative for 30
days from March 14, 1997,\7\ the rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(e)(6) \9\
thereunder. In particular, the Commission believes the proposal
qualifies as a ``noncontroversial filing'' in that the proposed
standards do not significantly affect the protection of investors or
the public interest and do not impose any significant burden on
competition. At any time within 60 days of the filing of the proposed
rule change,\10\ 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 the furtherance of the purposed of the Act.
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\6\ The Commission waived the five-day prefiling requirement,
because the Commission had the opportunity to review the proposal
when it was filed as SR-CSE-97-04, pursuant to Section 19(b)(2) of
the Act. The previous proposal was withdrawn on March 6, 1997 and
refiled pursuant to Section 19(b)(3)(A) of the Act.
\7\ Although the proposal was originally filed with the
Commission on March 6, 1997, the Commission notes that any
substantive amendment to a proposed rule change filed under Rule
19b-4(e)(6) causes the 30-day delayed implementation period to be
restarted from the date of the filing of the amendment. See
Securities Exchange Act Release No. 35123 (Dec. 20, 1994), 59 FR
66692 (Dec. 28, 1994).
\8\ 15 U.S.C. Sec. 78s(b)(3).
\9\ 17 CFR 240.19b-4(e)(6).
\10\ The 60 day abrogation period commences from March 14, 1997,
the date of the submission of the substantive amendment.
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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, NW., Washington, DC 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 in the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the CSE. All
submissions should refer to File No. SR-CSE-97-05 and should be
submitted by April 15, 1997.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-7392 Filed 3-24-97; 8:45 am]
BILLING CODE 8010-01-M
