[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Notices]
[Pages 14173-14174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7392]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38413; File No. SR-CSE-97-05]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange, 
Inc. Relating to Regulatory Data Submissions

March 18, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on March 6, 1997, as amended on March 14, 1997,\3\ The Cincinnati 
Stock Exchange, Incorporated (``CSE'' or ``Exchange'') filed with the 
Securities and Exchange Commission the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the CSE. The Commission is publishing this notice to solicit 
comments on the proposed rule change form interested persons.
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    \1\ 15 U.S.C. Sec. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On March 14, 1997, the CSE filed Amendment No. 1 to its 
proposal with the Commission. The amendment redesignates the 
proposal as a ``noncontroversial'' rule filing under Rule 19b-
4(e)(6) under the Act rather than a filing under Rule 19b-4(e). See 
Letter from Adam Gurwitz, Vice President Legal and Secretary, CSE, 
to Elaine Darroch, Attorney-Adviser, Division of Market Regulation, 
dated March 14, 1997.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CSE hereby proposes to amend Rule 4.2 to add Interpretation .02 
to clarify CSE members' obligation to provide regulatory information 
routinely to the Exchange. The text of the proposed rule change is 
available at the office of the Secretary, CSE and at the Commission.

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 CSE 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 CSE 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 the 
Statutory Basis for, the Proposed Rule Change

(1) Purpose
    In December, 1995, in an attempt to improve the quality and 
quantity of available regulatory data, the Exchange requested that 
members submit certain regulatory data to CSE on a daily basis. Members 
were informed of this requirement by Regulatory Circular #95-04, dated 
December 22, 1995. As part of its ongoing attempt to enhance its 
examination and surveillance programs, the Exchange now proposes to 
codify this data submission requirement by adding Interpretation .02 to 
Rule 4.2, Furnishing of Records.

[[Page 14174]]

    Pursuant to Regulatory Circular #95-04, members are currently 
required to submit certain data pertaining to agency orders and 
proprietary trades. The Exchange recognizes, however, that the types of 
data it requires will likely change as CSE's regulatory program 
evolves. The proposed rule change will therefore impose a general 
regulatory data submission requirement that will refer members to the 
current Regulatory Circular delineating order, market, and transaction 
submission requirements. In this way, the Exchange will retain the 
flexibility necessary for effective regulatory surveillance and 
enforcement efforts.
(2) Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \4\ in general and furthers the objectives 
of Section 6(b)(5) \5\ in particular in that it is designed to promote 
just and equitable principles of trade, and to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system.
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    \4\ 15 U.S.C. Sec. 78f(b).
    \5\ 15 U.S.C. Sec. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CSE does not believe that the proposed rule change will impose 
any inappropriate 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 with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
(3) was provided to the Commission for its review at least five days 
prior to the filing date; \6\ and (4) does not become operative for 30 
days from March 14, 1997,\7\ the rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(e)(6) \9\ 
thereunder. In particular, the Commission believes the proposal 
qualifies as a ``noncontroversial filing'' in that the proposed 
standards do not significantly affect the protection of investors or 
the public interest and do not impose any significant burden on 
competition. At any time within 60 days of the filing of the proposed 
rule change,\10\ 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 the furtherance of the purposed of the Act.
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    \6\ The Commission waived the five-day prefiling requirement, 
because the Commission had the opportunity to review the proposal 
when it was filed as SR-CSE-97-04, pursuant to Section 19(b)(2) of 
the Act. The previous proposal was withdrawn on March 6, 1997 and 
refiled pursuant to Section 19(b)(3)(A) of the Act.
    \7\ Although the proposal was originally filed with the 
Commission on March 6, 1997, the Commission notes that any 
substantive amendment to a proposed rule change filed under Rule 
19b-4(e)(6) causes the 30-day delayed implementation period to be 
restarted from the date of the filing of the amendment. See 
Securities Exchange Act Release No. 35123 (Dec. 20, 1994), 59 FR 
66692 (Dec. 28, 1994).
    \8\ 15 U.S.C. Sec. 78s(b)(3).
    \9\ 17 CFR 240.19b-4(e)(6).
    \10\ The 60 day abrogation period commences from March 14, 1997, 
the date of the submission of the substantive amendment.
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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 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 in 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 CSE. All 
submissions should refer to File No. SR-CSE-97-05 and should be 
submitted by April 15, 1997.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 97-7392 Filed 3-24-97; 8:45 am]
BILLING CODE 8010-01-M