[Federal Register Volume 61, Number 46 (Thursday, March 7, 1996)]
[Notices]
[Pages 9215-9216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5303]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36911; File No. SR-CHX-96-07]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to the Posting of Sales and Transfers of
Memberships
February 29, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 7, 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).
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[[Page 9216]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 5(c), Rule 12, Rule 13 and
interpretation and policy .01 of Rule 10 of Article I of the Exchange's
Rules, all of which relate, directly or indirectly, to the time period
of posting proposed sales or transfers of memberships. The Exchange
also proposes to amend Rule 6 of Article I. Among other matters, Rule 6
provides a period during which an applicant for membership may file a
written response to an objection to such applicant's election to
membership.
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
Currently, before an application for membership on the Exchange is
approved, Rule 5(c) of Article I of the Exchange's Rules requires that
the name of the applicant, the name of the member or member
organization from which the membership is to be transferred and the
sponsor's names must be posted on the bulletin board on the Floor of
the Exchange for fifteen days and notice of posting mailed to all
members. This fifteen day notice period, however, sometimes expires on
a Saturday or Sunday. The purpose of the proposed rule change is to
change this posting requirement to ten business days to ensure that the
notice period expires on a day when the Exchange is open for business.
Conforming changes are also being made to interpretation and policy .01
of Rule 10, and Rules 12 and 13.\2\
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\2\ Interpretation and policy .01 of Rule 10 provides that all
contracts for the sale of a membership must remain in force during
the fifteen day posting period. Rule 12 generally prohibits a
transferring member or member organization from entering into any
contract on the Exchange for settlement after the fifteen day
posting period. Rule 13 generally requires all open Exchange
contracts of a transferring member or member organization to mature
on the full business day preceding the expiration of the fifteen day
posting period. The proposed rule change would change the operative
period in each of the above rules from fifteen days to ten business
days.
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Similarly, Rule 6 of Article I currently provides that during the
posting period any member may file an objection to the election of the
applicant to membership, that the applicant shall be sent a statement
of reasons for such objection, and may file a written response within
fifteen days of the receipt thereof. The proposed rule change would
change the response period to ten business days.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\3\ in general and furthers the objectives of Section 6(b)(5) \4\ 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.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
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) does not become operative for 30 days from February 7, 1996, the
date on which it was filed, and the Exchange provided the Commission
with written notice of its intent to file the proposed rule change at
least five business days prior to the filing date, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(e)(6) thereunder.\5\
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\5\ 17 CFR 240.19b-4(e)(6) (1994).
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At any time within 60 days of the filing of the proposed rule
change, 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 furtherance of the purposes of the Act.
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 at the
Commission's Public Reference Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal office of The Chicago Stock
Exchange, Incorporated. All submissions should refer to File No. SR-
CHX-96-07 and should be submitted by March 28, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-5303 Filed 3-6-96; 8:45 am]
BILLING CODE 8010-01-M
