94-18961. Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by Chicago Stock Exchange, Inc. Relating to Changes in the Chicago Basket  

  • [Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
    [Unknown Section]
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    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-18961]
    
    
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    [Federal Register: August 4, 1994]
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    
    [Release No. 34-34462; File No. SR-CHX-94-18]
    
     
    
    Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
    Change by Chicago Stock Exchange, Inc. Relating to Changes in the 
    Chicago Basket
    
    July 28, 1994.
        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
    (``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on July 22, 
    1994, the Chicago Stock Exchange, Inc. (``CHX'' or ``Exchange'') filed 
    with the Securities and Exchange Commission (``Commission'' or ``SEC'') 
    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.
    
    I. Self-Regulatory Organization's Statement of the Terms of Substance 
    of the Proposed Rule Change
    
        The Exchange submits the following proposed rule change to amend 
    the first paragraph of Interpretation and Policy .01 of Rule 3 of 
    Article XXXVI. The remainder of Interpretation and Policy .01 would 
    remain unchanged. Specifically, the changed language is as follows:
    
    Additions are italicized; deletions [bracketed]
    .01  The Chicago Basket (CXM)
    
        The Exchange will trade a basket of stocks based upon the Chicago 
    Mercantile Exchange's stock index XMI futures contract (the ``Merc 
    Futures Contract''). The CXM will consist of the stocks included in the 
    Merc Futures Contract in a fixed quantity of [25] 5 shares of each of 
    the stocks included in the futures contract.
    
    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
        The purpose of the proposed change is to reduce the size of the 
    Chicago Basket (``CXM'') from 25 shares of each component stock to 5 
    shares of each component stock, in order to permit more entities and 
    persons to be able to trade the CXM basket. The rules that permit the 
    CXM basket to be traded on the Exchange were submitted for Commission 
    approval and were approved on October 15, 1993.\1\
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        \1\See Securities Exchange Act Release No. 33053 (October 15, 
    1993), 58 FR 54610 (October 22, 1993) (File No. SR-CHX-93-18).
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        The CXM basket would not be comprised of a new fixed quantity of 
    shares (5 instead of 25) of each of the stocks included in a futures 
    contract traded on the Chicago Mercantile Exchange. This XMI futures 
    contract is based on the American Stock Exchange's Major Market Index 
    (``MMI''). The MMI is a broad-based, price-weighted index currently 
    based on 20 stocks listed on the New York Stock Exchange.
    2. Statutory Basis
        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 to 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.
    
    B. Self-Regulatory Organization's Statement on Burden on Competition
    
        The Exchange does not believe that the proposed rule change will 
    impose a 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.
    
    III. Date of Effectiveness of the Proposed Rule Change and Timing for 
    Commission Action
    
        Within 35 days of the publication of this notice in the Federal 
    Register or within such other 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 the 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 at 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 CHX. All 
    submissions should refer to File No. SR-CHX-94-18 and should be 
    submitted by August 25, 1994.
    
        For the Commission, by the Division of Market Regulation, 
    pursuant to delegated authority.
    Margaret H. McFarland,
    Deputy Secretary.
    [FR Doc. 94-18961 Filed 8-3-94; 8:45 am]
    BILLING CODE 8010-01-M
    
    
    

Document Information

Published:
08/04/1994
Department:
Securities and Exchange Commission
Entry Type:
Uncategorized Document
Document Number:
94-18961
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 4, 1994, Release No. 34-34462, File No. SR-CHX-94-18