[Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18961]
[[Page Unknown]]
[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