[Federal Register Volume 61, Number 164 (Thursday, August 22, 1996)]
[Notices]
[Pages 43393-43394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21371]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37576; File No. SR-CHX-96-23]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by The Chicago Stock Exchange,
Incorporated Relating to Limited Partnership Rollups, Depository
Eligibility Requirements and Nasdaq/NM Securities
August 15, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on August 9, 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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CHX proposes to amend Rule 7(J), Article XXVIII of its rules,
regarding the listing of securities related to limited partnership
rollups and the depository eligibility requirement for issuers of
domestic securities. The rule change also proposes to amend the
following rules each relating to the trading of Nasdaq/NM Securities
(i) Article XX, Rule 2, (ii) Article XX, Rule 37(a), interpretations
and policies, .01, (iii) Article XX, Rule 43, (iv) Article XXVIII, Rule
18(b), (v) Article XXX, Rule 1, interpretations and policies .02, .03,
(vi) Article XXX, Rule 23, interpretations and policies .01, (vii)
Article XXXI, Rule 5, interpretations and policies .01, and (viii)
Article XXXI, Rule 9(b).
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
[[Page 43394]]
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
On December 16, 1994, the Commission approved a proposed change to
Exchange Rule 7, Article XXVIII relating to the listing of securities
related to limited partnership rollups.\2\ One purpose of this proposal
is to update a citation referred to in this limited partnership rollup
transaction rule. Specifically, because the NASD has overhauled its
rules and has adopted a new numbering system, the NASD rule cited in
the Exchange's limited partnership rollup transaction rule, Section 34
of Article III of the NASD's Rules of Fair Practice, should be replaced
with its new cite, NASD Rule 2810.
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\2\ Securities Exchange Act Release No. 35111 (Dec. 16, 1994),
59 FR 66388 (Dec. 23, 1994) (order approving File No. SR-CHX-94-24).
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On June 1, 1996, the Commission approved another proposed change to
Rule 7, Article XXVIII of the Exchange's rules relating to the
depository eligibility requirement for issuers who desire to list their
securities on the Exchange.\3\
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\3\ Securities Exchange Act Release No. 35798 (June 1, 1995), 60
FR 30909 (June 12, 1995) (order approving File No. SR-CHX-95-12).
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Another purpose of this proposed rule change is to renumber the
limited partnership rollup rule as Rule 1(f) of Article XXVIII and the
depository eligibility rule as Rule 1(g) of Article XXVIII.
Specifically, because the Exchange has recently overhauled Article
XXVIII in the process of creating Tier I and Tier II securities listing
standards, the rules should be renumbered and placed appropriately
within the new listing requirements.\4\
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\4\ Securities Exchange Act Release No. 37481 (July 26, 1996),
61 FR 40270 (Aug. 1, 1996) (order approving File No. SR-CHX-95-26).
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Finally, in response to a Commission request,\5\ an additional
purpose of the rule change is to update several of the citations in the
Exchange's rule to NASDAQ/NMS Securities, with its new term Nasdaq/NM
Securities. Because the Exchange currently has several proposed rule
changes on file with the SEC relating to Nasdaq/NM Securities, the text
of those rule filings should be deemed to be amended to reflect this
new terminology.\6\
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\5\ See, Securities Exchange Act Release Nos. 37327 (June 19,
1995), 61 FR 32870 (June 25, 1996) (notice of File No. SR-CHX-96-
15), and 37369 (June 25, 1996), 61 FR 34462 (July 2, 1996) (notice
of File No. SR-CHX-96-16).
\6\ Id.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\7\ in general and furthers the objectives of Section 6(b)(5) \8\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices and to perfect the mechanism of a free
and open market.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed 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 stated 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 and Rule 19b-4(e) thereunder.\9\
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\9\ 17 CFR 240.19b-4(e).
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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. All submissions should refer to File No. SR-CHX-96-23 and
should be submitted by September 12, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-21371 Filed 8-21-96; 8:45 am]
BILLING CODE 8010-01-M
