[Federal Register Volume 62, Number 94 (Thursday, May 15, 1997)]
[Notices]
[Pages 26832-26833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12749]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38590; File No. SR-CHX-97-08]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to Trading in Sixteenths
May 9, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 7, 1997 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to add interpretation and policy .01 to Rule
22 of Article XX of the Exchange's Rules.
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
As described below, the purpose of the proposed rule change is to
provide for bids and offers to be made in a minimum variation of one-
sixteenth of $1.00 for securities dually traded on the Exchange and on
the American Stock Exchange, Inc. (``Amex'') that are priced above
$0.25.
On March 14, 1997, the Amex submitted a proposed rule change to the
Commission requesting approval to trade Amex securities that are priced
$10 and higher in minimum fractional changes of \1/16\ of $1.00 per
share.\2\ The Commission has already approved these changes for Amex
securities selling under $10 and above $0.25.\3\
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\2\ Securities Exchange Act Release No. 38437 (Mar. 25, 1997),
62 FR 15552 (Apr. 1, 1997) (publishing notice of File No. SR-Amex-
97-14).
\3\ Securities Exchange Act Release No. 31118 (Aug. 28, 1992),
57 FR 40484 (Sept. 3, 1992) (approving File No. SR-Amex-91-07);
Securities Exchange Act Release No. 35537 (Mar. 27, 1995), 60 FR
16894 (Apr. 3, 1995) (approving File No. SR-Amex-95-02).
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Unlike the Amex's minimum fractional change rule, the Exchange's
Minimum Fractional Changes rule (Art. XX, Rule 22) provides that, for
most securities, the minimum fractional change for bids and offers is
\1/8\ of $1.00 per share. This rule also gives the Exchange's Committee
on Floor Procedure the authority to fix minimum variations of less than
this amount for bids and offers in specific securities or classes of
securities. Pursuant to this authority, the Exchange proposes to change
its minimum variation to \1/16\ of $1.00 per share, for securities
traded on both the CHX and the Amex that are selling above $0.25. This
change will become effective upon the Commission's approval and
implementation of SR-Amex-97-14.\4\
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\4\ The Commission notes that it approved the Amex's proposal on
May 5, 1997, and the Amex began trading Amex-listed securities
priced at or above $10 in sixteenths on May 7, 1997. Securities
Exchange Act Release No. 38571 (May 5, 1997).
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2. Statutory Basis
The Exchange believes 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.\5\
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\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes 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
The foregoing rule change constitutes a state policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the Exchange pursuant to Section
19(b)(3)(A) of the Act \6\ and subparagraph (e) of Rule 19b-4
thereunder.\7\ At any time within sixty 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 or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4.
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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
[[Page 26833]]
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 Room, 450 Fifth Street, N.W., Washington,
D.C. 20549. Copies of such filing also will be available for inspection
and copying at the principal office of the CHX. All submissions should
refer to File No. SR-CHX-97-08 and should be submitted by June 5, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-12749 Filed 5-14-97; 8:45 am]
BILLING CODE 8010-01-M
