[Federal Register Volume 61, Number 79 (Tuesday, April 23, 1996)]
[Notices]
[Pages 17932-17936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9893]
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OFFICE OF MANAGEMENT AND BUDGET
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37121; International Series Release No. 969; File No.
SR-CHX-96-12]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change and Amendment No. 1 Thereto by the Chicago Stock Exchange, Inc.
Relating to Listing Standards for Investment Company Units
April 17, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, 15 U.S.C. 78s(b)(1) (``Act''), notice is hereby given that on
March 27, 1996, the Chicago Stock Exchange, Inc. (``CHX'' 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 self-regulatory organization. On April
12, 1996, the Exchange filed Amendment No. 1 to its proposal.\1\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ Amendment No. 1 serves to supersede entirely the Exchange's
initial rule filing. Therefore, this notice incorporates Amendment
No. 1 in its entirety. Letter from Charles R. Haywood, Foley &
Lardner, to Francois Mazur, Attorney, Division of Market Regulation,
Commission, dated April 11, 1996 (``Amendment No. 1'').
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Article XXVIII of its Rules
governing the listing requirements of securities on the CHX, as well as
Article XXX of the CHX's Rules governing specialists.
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
The Exchange is proposing listing standards for units of trading
(``Units'') that represent an interest in a registered investment
company (``Investment Company'') that could be organized as a unit
investment trust (``UIT''), an open-end management investment company,
or a similar entity. The investment company would hold securities
comprising, or otherwise based on or representing an investment in, an
index or portfolio of securities. The investment company could either
hold the securities directly or could hold another security
representing the index or portfolio of securities (such as shares of a
UIT that holds shares of an open-end investment company).
Under the proposed rules, the Investment Company would be required
either to: (i) hold securities comprising or otherwise based on or
representing and interest in an index or portfolio of securities, or
(ii) hold securities in another registered investment company.\2\ The
Investment Company would then issue Units in a specified aggregate
number in return for a deposit of either: (i) shares of securities
[[Page 17933]]
comprising or otherwise based on the relevant index or portfolio, or
(ii) shares of a registered investment company. In addition or instead
of the ``in-kind'' deposit, the Investment Company might require a cash
deposit. Thus, Units could be structured as series of an open-end
management investment company investing in a portfolio of securities
(``Fund-only structure''). Alternatively, Units could be structured as
UITs that have as their assets shares of an open-end investment company
holding a portfolio of securities (``Fund/UIT structure''). Unit
holders would receive periodic cash payments corresponding to the
regular cash dividends or distributions declared with respect to the
securities held by the Investment Company (after subtracting applicable
expenses and charges).
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\2\ Telephone Conversation between David T. Rusoff, Foley &
Lardner, and Francois Mazur, Office of Market Supervision, Division
of Market Regulation, on April 12, 1996.
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Units would be distributed in ``Creation Transactions.'' To effect
a Creation Transaction in a Fund-only structure, an entity would buy
shares from the investment company (``Fund'') in ``Creation Unit'' size
aggregations in exchange for a deposit of a basket of securities
reflecting the securities underlying the Fund and/or cash deposit. To
effect a Creation Transaction in a Fund/UIT structure, an entity would
buy a Fund share with a similar deposit and exchange it for a Creation
Unit.\3\ The owner of a Creation Unit could then subdivide the Creation
Unit into a specific number of identical fractional non-redeemable sub-
units, the Units, that would constitute securities traded. Units could
be recombined into Creation Unit aggregations, and redeemed for the
securities underlying the Fund and/or an amount of cash, either
directly, or indirectly, depending on the structure chosen. The
securities would not be redeemable other than in Creation Unit
aggregations.\4\
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\3\ Id.
\4\ Id.
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Dealing in Units on the Exchange will be conducted pursuant to the
Exchange's general agency-auction trading rules. The Exchange's general
dealing and settlement rules would apply, including its rules on
clearance and settlement of securities transactions and its equity
margin rules. Other generally applicable Exchange equity rules and
procedures also would apply. Unless the prospectus for a specific
security states otherwise, the Units trading on the Exchange will have
one vote per share; however, as with other securities issued by
registered investment companies, there will not be a ``pass-through''
of the voting rights on the actual index securities held by a fund or
directly or indirectly by a trust.
With respect to specialist dealings, Article XXX, Rule 23(a) of the
Exchange's Rules precludes certain business relationships between an
issuer of an ``exclusive issue'' and the specialist in that exclusive
issue.\5\ Rule 23(a) could be interpreted when listing certain types of
Units to prevent a specialist from engaging in Creation Transactions
with the issuer. The Exchange believes, however, that such market
activities could enhance liquidity in the Units and facilitate the
specialist's market-making responsibilities. In addition, since the
specialist will be able to engage in Creation Transactions and
redemptions only according to the same terms and conditions as every
other investor (and only at net asset value), the Exchange believes
that there is no potential for abuse.
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\5\ Interpretation and Policy .01 of Article XXX, Rule 23
defines ``exclusive issue'' as the stock of any company traded on
the Exchange no otherwise traded on the NYSE, American Stock
Exchange, or NASDAQ/NMS, and, where there exists another market for
such issue, the Exchange has executed 15% or more of the volume in
the issue during the three previous months.
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Therfore, the Exchange proposes amending Article XXX, Rule 23(a) to
permit specialists to engage in these types of transactions if such
transactions would facilitate the maintenance of a fair and orderly
market in the Security. Any Creation Transactions in which the
specialist engages, however, will have to be effected through the
Distributor (as defined herein), and not directly with the issuer. This
requirement will make clear that the specialist is purchasing Units in
Creation Unit-size aggregations only to facilitate normal specialist
trading activity.
With respect to investor disclosure, the Exchange notes that,
pursuant to the requirements of the Securities Act of 1933 (``1933
Act''), all investors in Units will receive a prospectus regarding the
Units. Because the Units will be in continuous distribution, the
prospectus delivery requirements of the 1933 Act will apply to all
investors in Units. It is possible, however, that an exemption from the
prospectus delivery requirement may be obtained at some point in the
future with respect to Units listed or traded on the Exchange. In the
event of such an exemption, the Exchange will discuss with Commission
staff the appropriate level of disclosure that should be required with
respect to the Units being listed or traded, as appropriate, and will
file any necessary rule change to provide for such disclosure.
Upon the initial listing of any class of Units or trading of such
Units pursuant to unlisted trading privileges, the Exchange will issue
a circular to its membership explaining the unique characteristics and
risks of this type of security. The circular will, among other things,
inform member organizations of their responsibility to deliver a
prospectus to investors.
With respect to trading halts, the trading of Units would be
halted, along with the trading of all other listed stocks, in the event
the ``circuit breaker'' thresholds of Article IX, Rule 10A of the
Exchange's Rules are reached.
The Exchange proposes that Units trade either in certificated form
or solely through the use of a global certificate. Permitting the use
of global certificates would be consistent with expediting the
processing of transactions in Units and would minimize the costs of
engaging in transactions in these securities.
One existing form of Units are CountryBasket securities
(``Securities''),\6\ Which are created pursuant to a Fund-only
structure. The New York Stock Exchange (``NYSE'') has received
permission to list and trade CountryBaskets.\7\ CHX is not asking
permission to list CountryBaskets at this time, but rather will trade
CountryBaskets pursuant to unlisted trading privileges (``UTP'') once
the generic listing standards set forth herein are approved.
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\6\ CHX understands that ``CountryBaskets'' and ``The
CountryBaskets Index Fund'' are service marks of Deutsche Morgan
Grenfell/C.J. Lawrence, Inc. (``DMG''), the investment advisor to
the fund.
\7\ Securities Exchange Act Release No. 36923 (March 5, 1996),
61 FR 10410.
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Pursuant to Rule 12f-5 under the Act,\8\ prior to trading a
particular class or type of security pursuant to UTP, CHX must have
listing standards comparable to those of the primary exchange on which
the security is listed. The NYSE has adopted listing standards for
investment company units, and CHX's proposed rule change is designed to
create similar standards for investment company unit listing and/or
trading on CHX. As stated above, CHX propose to trade CountryBaskets
pursuant to UTP upon approval of this rule filing.
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\8\ 17 CFR 240.12f-5 (1995).
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The remainder of this section of the filing merely provides
background information on CountryBaskets. The information, taken from
File No. SR-NYSE-95-23, describes the structure and mechanics of
CountryBaskets.
CountryBasket securities are issued as series of an open-end
management investment company that will invest in a portfolio of
securities (``Index Securities'') included in a corresponding index.
Each series of the
[[Page 17934]]
investment company is designed to provide investment results that
substantially correspond to the price and yield performance of a
corresponding FT/S&P-Actuaries World Index (``Index'' or ``FT/
S&P'').\9\ The initial nine series of Funds will be based on the
following Indices: Australia, France, Germany, Hong Kong, Italy, Japan,
South Africa, United Kingdom, and the United States.
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\9\ According to Amendment No. 1 to SR-NYSE-95-23, the Indices
are a continuation of the FT-Actuaries World Indices, which were
jointly founded by The Financial Times Limited (``FT''), Goldman,
Sachs & Co. (``Goldman''), and NatWest Securities Limited
(``NatWest,'' and each a ``Founding Member''). In May 1995, Standard
& Poor's (``S&P''), a division of The McGraw-Hill Companies, Inc.,
joined FT and Goldman as co-publishers of the predecessor to the
Indices. As part of the new arrangement, NatWest withdrew from the
management of those indices, but continues to be recognized as a
Founding Member. The Indices are now jointly owned by S&P, FT and
Goldman. Following a transition period, FT and S&P will jointly
calculate the Indices. In November 1995, FT transferred its
ownership rights in the Indices to FT-SE International, a new
company jointly owned by the FT and the London Stock Exchange. By
the end of 1996, it is expected that FT-SE International will assume
responsibility for calculating the European and Asia-Pacific Indices
and S&P will calculate the U.S. Index.
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Distribution of the Securities
The Securities are distributed in transactions with the Fund
through Creation Transactions. To effect a Creation Transaction, a
person would buy Fund shares from the Fund at their net asset value
(``NAV'') next computed. The sales will be in Creation Unit-size
aggregations in exchange for a deposit (``Deposit'') of Index
Securities (a ``Fund Basket'') and a specified amount of cash
sufficient to equal the NAV of such shares.
Securites in Creation Unit-size aggregations may be redeemed, at
NAV, generally for an in-kind distribution of Index Securities
comprising the Fund shares, plus a cash payment. A Creation Unit-size
of Fund shares will represent securities with approximately $2 to $9.5
million in market value. The Creation Unit would be disaggregated into
the individual Securities that would trade on the Exchange.\10\ For the
nine initial CountryBasket securities, there would be the following
number of Securities per Creation Unit:
\10\ If a Fund/UIT structure instead had been used, a
``Redeemable Unit'' would represent the functional equivalent of the
Creation Unit. The owner of a Redeemable Unit could separate it into
a specific number of identical fractional non-redeemable sub-units
that would constitute the Securities traded on the Exchange. In the
case of the Germany CountryBasket series, for example, there would
be 100,000 Securities per Redeemable Unit. These Securities could be
recombined into Redeemable Units and then redeemed, at NAV, for the
appropriate number of Fund shares. In turn, the Fund shares could be
redeemed for the Index Securities and cash. The Securities would not
be redeemable other than in the Creation Unit aggregations.
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Australia--100,000
France--100,000
Germany--100,000
Hong Kong--100,000
Italy--100,000
Japan--250,000
South Africa--100,000
United Kingdom--100,000
United States--100,000
There may be an initial distribution period of Fund shares lasting
from one to a few weeks. During this period, the principal underwriter
or distributor (``Distributor'') directly or through soliciting dealers
would accept subscriptions to purchase Fund shares.
Exchange Trading of Units
The proposed listing criteria provide flexible standards for the
listing of Units. Before commencing trading, the Exchange will require
that there be at least 300,000 tradeable Units outstanding,
representing, for the nine series encompassed by this filing, at least
three Creation Units (except for the Japan CountryBasket). The Exchange
will consider the suspension of trading and the delisting of a series
of Units if:
After the first year of trading, there are fewer than
50 record or beneficial holders of the Units for 30 or more
consecutive trading days;
The value of the underlying index or portfolio of
securities is no longer calculated or available; or
There occurs another event that makes further dealings
in the Units on the Exchange inadvisable.
The FT/S&P-Actuaries World Indices
Deutsche Bank Securities Corporation, formerly investment adviser
to the Funds, provided the NYSE with certain information describing the
FT/S&P-Actuaries World Indices, contained within NYSE filing SR-NYSE-
95-23, as amended. The following combines information from the initial
filing and Amendment Nos. 1 and 2 to that filing.
Establishing an Index
The FT/S&P are jointly compiled by the Financial Times Limited,
Goldman, Sachs & Co., and Standard & Poor's, a division of The McGraw-
Hill Companies, Inc., in conjunction with the Institute of Actuaries
(together, the ``consortium'').\11\ The aim of the Consortium is to
create and maintain a series of high quality equity indices for use by
the global investment community. Specifically, the Consortium seeks to
establish and maintain the FT/S&P so that the respect to their
corresponding markets, they are comprehensive, consistent, flexible,
accurate, investible, and representative.
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\11\ In Amendment No. 1 to SR-NYSE-95-23, the NYSE stated that
certain modifications had occurred to the indices. The Chicago Stock
Exchange's filing has incorporated the additional information, and
operates under the assumption that the original information detailed
in SR-NYSE-95-23 continues to be accurate to the extent not modified
by the NYSE's amendment.
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The World Index Policy Committee (``WIPC'') makes all policy
decisions concerning the FT/S&P, including objectives, selection
criteria, liquidity requirements, calculation methodologies, and the
timing and disclosure of additions and deletions. The WIPC makes those
decisions in a manner that is consistent with the stated aims and
objectives of the Consortium. In general, the WIPC aims for a minimum
of 70 percent coverage of the aggregate value of all domestic exchange-
listed stocks in every country, region and sector in which it maintains
an index.
The WIPC consists of one representative of each Consortium member,
one member nominated by each of the parties as representing an actual
or prospective main user group of the World Indices, a Chairman and
additional member who are members of the Institute of Actuaries of the
Facility of Actuaries.
A country must satisfy the following criteria for the WIPC to
include it in the FT/S&P-Actuaries World Indices: (1) Direct equity
investment by non-nationals must be permitted, (2) accurate and timely
data must be available; (3) no significant exchange controls should
exist that would prevent the timely repatriation of capital or
dividends; (4) significant international investor interest in the local
equity market must have been demonstrated; and (5) adequate liquidity
must exist.
Securities in the FT/S&P are subject to the following
``investibility screens'': (1) Securities comprising the bottom five
percent of any market's capitalization are excluded; (2) securities
must be eligible to be owned by foreign investors; (3) 25 percent or
more of the full capitalization of eligible securities must be publicly
available for investment and not in the hands of a single party or
parties ``acting in concert''; and (4) securities that fail to trade
for more than 15 business days within each of two consecutive quarters
are excluded.
The WIPC seeks to select constituent stocks that capture 85 percent
of the equity that remains in any market (known as the ``investible
universe'') after applying the investibility screens. Securities are
selected with regard to economic sector and market
[[Page 17935]]
capitalization to make a given FT/S&P highly representative of the
overall economic sector make-up and market capitalization distribution
of the investible universe of a market.
Maintaining an Index
The WIPC may add securities to the FT/S&P for any of the following
reasons: (1) The addition would make the economic sector make-up and
market capitalization distribution of the FT/S&P component more
representative of its investible universe; (2) a non-constituent
security has gained in importance and replaces an existing constituent
security under the rules of review established by the WIPC; (3) the FT/
S&P component represents less than its targeted percentage of the
capitalization of its investible universe (usually in cases where the
investible universe has grown faster than the corresponding FT/S&P);
(4) a new, eligible security becomes available whose total
capitalization is one percent or more of the current capitalization of
the relevant FT/S&P; (5) an existing constituent ``spins off'' a part
of its business and issues new equity to the existing shareholders; or
(6) changes in investibility factors lead to a stock becoming eligible
for inclusion and that stock now qualifies on other grounds.
The WIPC may adjust the FT/S&P for any of the following reasons:
(1) The component comprises too high a percentage of its representative
universe; (2) a review by the WIPC shows that a constituent security
has declined in importance and should be replaced by a non-constituent
security; (3) the deletion of a security that has declined in
importance would make the FT/S&P more representative of the economic
make-up of its investible universe; (4) circumstances regarding
investibility and free float change, causing the constituent security
to fail the FT/S&P screening criteria; (5) and existing constituent
security is acquired by another entity; or (6) the stock has been
suspended from trading for a period of more than ten working days.
Generally, but not in all cases, changes resulting from review by the
WIPC occur at the end of a calendar quarter. Changes resulting from
merger or ``spin-off'' activity will be effectuated as soon as
practicable.
Dissemination of Changes to the Constituent Stocks in the Indices
Changes to an Index made during a calendar quarter are noted at the
foot of the tables containing the Indices that are published daily in
the ET. Consistent with the FT publication policy, these changes also
are shown prior to the actual day of implementation (unless for reasons
beyond the control of FT this is not possible). Decisions regarding the
addition of new eligible constituent stocks that are unrelated to
existing stocks in an Index, or weighting changes to existing
constituent stocks, are announced in the FT at least four working days
before they are implemented. Monday editions of the FT also show all
constituent changes made during the previous week, together with base
values for each Index. Changes to be made in an Index at the end of a
calendar quarter are published as soon as is practicable following the
quarterly meeting of the World Indices Policy Committee, but before the
quarter-end.
Calculation and Dissemination of an Index
The FT/S&P are calculated through widely accepted mathematical
formulae, with the effect that the Indices are weighted arithmetic
averages of the price relatives of the constituents--as produced solely
by changes in the marketplace--adjusted for intervening capital
changes. The FT/S&P are base-weighted aggregates of the initial market
capitalization, the price of each issue being weighted by the number of
shares outstanding, modified to reflect only those shares outstanding
that are eligible to be owned by foreign investors.
For each constituent security, the implied annual dividend is
divided by 260 (an accepted approximation for the number of business
days in a calendar year). This dividend is then reinvested daily
according to standard actuarial calculations. Distributions affect
adjustments to the base capital or the price per share in accordance
with prescribed FT/S&P standards. The indices' values and related
performance figures for various periods of time are calculated daily
and are disseminated to the public.
The FT/S&P are valued in terms of local currency, U.S. dollars, and
U.K. pounds sterling, thereby allowing the effect of currency value on
the Index value to be measured. Changes to the indices are announced as
soon as possible, and on Mondays the Financial Times publishes a list
of changes to each index implemented during the previous week, if any.
The FT/S&P are calculated once a day on weekdays when one or more of
the constituent markets are open; the indices are syndicated and
published in the financial sections of several newspapers worldwide.
FT/S&P data also may be purchased electronically.
Recognizing the importance of having current information on the
value of the Indices, DMG has arranged for Telesphere Corporation
(formerly Telekurs (North America) Inc.) (``Telesphere'') to calculate
``indicative values'' for the nine Indices on which CountryBaskets are
based on a more frequent basis. CHX understands that the NYSE will
provide for the dissemination of these indicative values through the
facilities of the Consolidated Tape Association (``CTA'').
In calculating ``indicative values,'' Telesphere will use the most
currently available stock price information for the constituent stocks
in an Index (based on home currency prices) and prevailing currency
exchange rates to translate the Index value into U.S. dollars.
Telesphere will also use the same pricing algorithm and methodology as
the Index calculators in calculating the indicative values. These
values will be disseminated every 30 seconds by the NYSE during regular
trading hours of 9:30 A.M. to 4:00 P.M. Eastern time. Due to the
differences in trading hours in the markets for the stocks underlying
the Indices, the calculation of the indicative values will be
implemented as follows:
Pacific Rim. Australia, Hong Kong, and Japan. There is
no overlap between the NYSE trading hours and the home-country
trading hours. Thus, the indicative values will always reflect the
closing prices of the underlying securities on the most recently
completed trading day, but will be updated every 30 seconds to
reflect changes in exchange rates.
Europe. France, Germany, Italy, and the United Kingdom.
There is some overlap between NYSE trading hours and home-country
trading hours. Thus, the 30-second updates for these Indices will
reflect changes in both current stock price information and currency
exchange rates while the relevant market is open; it will reflect
only changes in exchange rates once the home-market closes.
United States. Each 30-second update will reflect the
current price of U.S. component stocks.
South Africa. During Eastern Standard Time there is no
overlap between NYSE and South African trading hours. During Eastern
Daylight Savings Time there is a half-hour overlap. Thus, during
Standard Time, the disseminated Index values will reflect the
closing South African prices. During Daylight Savings Time, there
will be a real-time feed of stock prices from the Johannesburg Stock
Exchange and there will be a real-time calculation of the indicative
value of the Index at 30-second intervals during the half-hour
overlap.
While these indicative values will not be the official values of
the Indices (which will continue to be calculated and disseminated once
each day), the
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Exchange believes that these values will provide investors with
accurate, timely information on the values of the Indices. Of course,
it cannot be guaranteed that the indicative value will at all times be
a completely accurate reflection of the value of the underlying index.
This also will provide all investors with equal access to information
concerning the values of the Indices. While some market participants
may be able to perform these calculations for their own trading
purposes during the business day, many participants lack sufficient
resources to do so. Providing standardized information through CTA
facilities will help ensure that all investors have equal access to
this market information.\12\
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\12\ In the unlikely event that Telesphere determines that it no
longer will calculate the indicative values of the Indices,
according to the NYSE DMG will seek to find another entity to
provide such values on substantially the same basis as Telesphere.
if this were to occur, the NYSE has represented that it will consult
with the staff of the Division of Market Regulation to ensure that
the staff finds any proposed new arrangements acceptable, including
the possibility of ending trading in the securities.
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Although the Chicago Stock Exchange operates under Central Time,
its trading hours are timed to coincide with those of the NYSE.
Therefore, the time zone difference will not affect the ability to
trade CountryBaskets on the CHX with full price information.
Telesphere is providing the indicative values subject to
substantially the following terms regarding its liability:
The values are representative, unofficial, and indicative
estimates of the FT/S&P-Actuaries World Indices (``FT/S&P'')
calculated by Telesphere Corporation (``Telesphere''). Although they
are provided with permission under a licensing agreement with
Deutsche Morgan Grenfell/C.J. Lawrence Inc. (``Subscriber''), they
are not, and should not be considered as, official FT/S&P index
values. They are provided as an information service to benefit the
investment community. Neither Telesphere nor Subscriber, The
Financial Times Ltd., Standard & Poor's, Goldman, Sachs & Co., or
their partners, affiliates employees and Agents, shall have any
liability contingent or otherwise, to third parties for the
completeness, or interruption in the delivery of the indicative
indices. In no event will any such party be liable for any special,
indirect, incidental, or consequential damages.
The Exchange believes that its proposal is consistent with Section
6(b)(5) of the Act in that the proposal fosters cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, removes impediments to and perfects the mechanism of a
free and open market and a national market system and protects
investors and the public interest.
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 1934 Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
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, 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 above-mentioned
self-regulatory organization. All submissions should refer to File No.
SR-CHX-96-12 and should be submitted by May 14, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-9893 Filed 4-22-96; 8:45 am]
BILLING CODE 8010-01-M
