[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)] [Notices] [Pages 7840-7841] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-4664] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-36869; File No. SR-CHX-96-06] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, Incorporated Relating to the Correction of Possible Ambiguities in the Exchange's GTX Rules February 22, 1996. 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 February 5, 1995, 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. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify Article XX, Rule 37(a) of the CHX's Rules and Interpretation and Policy .02 thereto, relating to the primary market protection of limit orders designated as good until canceled, executable in the afternoon session (``GTX orders'').\1\ \1\ The Exchange is open for business for two trading sessions during each business day. The CHX's regular auction market trading session is conducted on the floor of the Exchange from 8:30 a.m. to 3 p.m. (3:15 p.m. for trading in Chicago Basket), Central time, Monday through Friday. The second, or afternoon, session is conducted through the Portfolio Trading System from 3:30 p.m. to 5 p.m., Central time, Monday through Friday. The floor of the Exchange is closed during the afternoon session. See CHX Article IX, Rule 10. --------------------------------------------------------------------------- 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. [[Page 7841]] A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose In Securities Exchange Act Release No. 29297 (June 13, 1991), 56 FR 28191 (June 19, 1991) (File No. SR-MSE-91-11), the Commission approved on a pilot basis rules relating to the CHX's program to provide primary market protection to limit orders designated as GTX orders.\2\ Those rules included Article XX, Rule 37(a) and Interpretation and Policy .02 thereto. In Securities Exchange Act Release No. 33991 (May 2, 1994), 59 FR 23904 (May 9, 1994) (File No. SR-CHX-93-23), the Commission permanently approved the CHX's program. The purpose of the proposed rule change is to correct possible ambiguities in the current text of Rule 37(a) and Interpretation and Policy .02 without making any substantive alterations to the program. \2\ The CHX's program requires that Exchange specialists provide primary market protection for GTX orders in securities listed on either the New York Stock Exchange or American Stock Exchange and traded during these exchanges' after-hours closing-price trading sessions. Specifically, the responsible CHX specialist is required to fill GTVVX orders at such closing price, based on the volume that prints in the primary market during its closing-price session. GTX orders may be entered only during the Exchange's regular trading session. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b)(5) of the Act \3\ in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. \3\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that proposed rule change will impose any burden on competition. 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 and therefore has become effective pursuant to Section 19((b)(3)(A) of the Act \4\ and subparagraph (e)(1) of Rule 19b-4 thereunder.\5\ At any time within 60 days of the filing of such 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 purpose of the Act. \4\ 15 U.S.C. 78s(b)(3)(4). \5\ 17 CFR 240.19b-4(e)(1). --------------------------------------------------------------------------- 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, 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. 552, will be available for inspection and copying at the Commission's Public Reference Section, 450 Fifth Street, N.W., Washington, D.C. 20549. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All submissions should refer to File No. SR-CHX-96-06 and should be submitted by March 21, 1996. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. Margaret H. McFarland, Deputy Secretary. [FR Doc. 96-4664 Filed 2-28-96; 8:45 am] BILLING CODE 8010-01-M