Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Notices 26909

8 15 U.S.C. 78f(b)(5) (1988).

9The BSE competing specialist program is

limited by the following: (1) a competing specialist

may preference up to a maximum of 20 stocks; (2)

the number of competitors in any given stock is

limited to three (one regular specialist and two

competing specialists); (3) no payment for order

flow; and (4) no index arbitrage. The Commission

also notes that prior to the original approval order

the BSE represented that, during the pilot program,

the total number of stocks subject to competition

will not exceed 360. See Securities Exchange Act

Release No. 34078 (May 18, 1994), 59 FR 27082

(May 25, 1994).

10See Securities Exchange Act Release No. 34078

(May 18, 1994), 59 FR 27082 (May 25, 1995).

11See, File No. SR–CSE–95–03, Securities

Exchange Act Release No. 35448 (March 7, 1995),

60 FR 13493 (March 13, 1995). The comments

received on this proposal are available from the CSE

or the Commission. (See Section III, supra.)

12 15 U.S.C. 78s(b)(2) (1988).

13 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1994).

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 BSE. All submissions

should refer to File No. SR–BSE–95–07

and should be submitted by [insert date

21 days of publication].

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the BSE’s

proposal to extend its preferencing pilot

program to October 2, 1995 is consistent

with the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

finds that the proposed rule change is

consistent with Section 6(b)(5) of the

Act 8 in that it will promote just and

equitable principles of trade and remove

impediments to and perfect the

mechanism of a free and open market

and a national market system. The pilot

is extended under the same conditions

set out in the original pilot approval

order.9

The Commission notes that pursuant

to its original pilot approval order, the

BSE was required to submit quarterly

data reports and a report analyzing such

data.10 The BSE has submitted data to

the Commission. In addition, the

Commission has received extensive

commentary on the Cincinnati Stock

Exchange’s (‘‘CSE’’) request for

permanent approval of its preferencing

pilot 11 that present issues similar to

those raised by the BSE pilot. In sum,

the Commission is reviewing the

comments and data submitted thus far,

and believes that due to the complexity

of the issues, and significant amount of

data, the preferencing pilot should be

extended to provide the Commission

with adequate time to more thoroughly

evaluate the data and the issues

involved in the filing for permanent

approval.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing thereof

in the Federal Register. The

Commission believes that accelerated

approval of the proposal is appropriate

in order to avoid an unnecessary

interruption to the pilot while allowing

the Commission to continue to evaluate

the data.

It is therefore ordered, pursuant to

Section 19(b)(2) 12 that the proposed

rule change is hereby approved, and the

competing specialist pilot is extended

through October 2, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12312 Filed 5–18–95; 8:45 am]

BILLING CODE 8010–01–M

SECURITY AND EXCHANGE

COMMISSION

[Release No. 34–35717; File No. SR–CSE–

95–06]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Cincinnati Stock

Exchange, Inc. Relating to the

Preferencing of Public Agency Market

and Marketable Limit Orders by

Approved Dealers and Other

Proprietary Members

May 15, 1995.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 1,

1995, the Cincinnati Stock Exchange,

Inc. (‘‘CSE’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I and II 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 Cincinnati Stock Exchange, Inc.

(‘‘CSE’’ or ‘‘Exchange’’) hereby proposes

to extend the CSE’s pilot program

regarding preferencing until October 2,

1995. The pilot was initially approved

by the Commission on February 7, 1991

and is currently extended until May 18,

1995. (Securities Exchange Act Release

No. 28866).

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 III 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 rule filing is to

extend the existing pilot program of the

Exchange relating to the preferencing of

public agency market and marketable

limit orders by approved dealers and

other proprietary members until October

2, 1995. The Commission originally

approved the pilot on February 7, 1991,

(Securities Exchange Act Release No.

28866, 56 FR 5854 (Feb. 13, 1991)). The

Commission has subsequently extended

the pilot several times. (Securities

Exchange Act Release Nos. 29524 (Aug.

5, 1991), 56 FR 38160; 30353 (Feb. 7,

1992), 57 FR 5918; 31011 (Aug. 7, 1992),

57 FR 38704; 32280 (May 7, 1993), 58

FR 28422; 33975 (April 28, 1994), 59 FR

23243 and 34493 (Aug. 5, 1994)). The

Commission staff has requested the

Exchange seek a limited extension until

the October date.
26910 Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Notices

3 15 U.S.C. 78f(b)(5) (1988).

4The CSE preferencing program is limited by the

following: (1) A designated dealer may preference

up to a maximum of 350 stocks; (2) no payment for

order flow; (3) no index arbitage. See letter from

Fredrick Moss, Chairman of the Board of Trustees,

CSE, to Richard G. Ketchum, Director, Division of

Market Regulation, Commission, dated November

14, 1990.

5See Securities Exchange Act Release No. 34493

(Aug. 5, 1994), 59 FR 41531 (Aug. 12, 1995).

6See, File No. SR–CSE–95–03, Securities

Exchange Act Release No. 35448 (March 7, 1995),

60 FR 13493 (March 13, 1995). The comments

received on this proposal are available from the CSE

or the Commission. (See Section III, supra.)

7 15 U.S.C. 78s(b)(2) (1988).

8 17 CFR 200.30–3(a)(12) (1994).

1Securities Exchange Act Release No. 35543

(March 28, 1995), 60 FR 16901.

2A description of the new procedure was

included in the Notice of Filing of Amendment (see,

note 1, supra), and is incorporated by reference

herein.

2. Statutory Basis

The exchange believes that the

proposed rule change is consistent with

Sections 6(b) of the Act in general and

furthers the objectives of Section 6(b)(5)

in particular in that it will promote just

and equitable principles of trade and

remove impediments to and perfect the

mechanisms of a free and open market

and a national market system.

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

The CSE solicited comments on the

filing from other Intermarket Trading

System participants. None were

received.

III. 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 CSE. All submissions

should refer to File No. SR–CSE–95–06

and should be submitted by [insert date

21 days from date of publication].

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the CSE’s

proposal to extend its preferencing pilot

program to October 2, 1995 is consistent

with the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

finds that the proposed rule change is

consistent with Section 6(b)(5) of the

Act 3 in that it will promote just and

equitable principles of trade and remove

impediments to and perfect the

mechanism of a free and open market

and a national market system. The pilot

is extended under the same conditions

set out in the prior pilot approval

orders.4

The pilot modifies CSE’s priority

rules in order to permit one designated

dealer to step ahead of another, at the

same or better price, when trading with

its own customer order. Public orders in

the CSE book continue to have priority

over all preferencing interest.

The Commission notes that pursuant

to its most recent pilot extension

approval order, the CSE was required to

submit quarterly data reports and a

report analyzing such data.5 The CSE

has submitted data to the Commission.

In addition, the Commission has

received extensive commentary on the

CSE’s request for permanent approval of

its preferencing pilot, noticed for

comment on March 13, 1995.6 The

Commission is currently reviewing the

comments and data submitted thus far,

and believes that due to the complexity

of the issues, the extensive comment

letters, and the significant amount of

data, the preferencing pilot should be

extended to provide the Commission

with adequate time to more thoroughly

evaluate the data and the issues

involved in the filing for permanent

approval.

The Commission finds good cause for

approving the proposed rule change

prior the thirtieth day after the date of

publication of notice of filing thereof in

the Federal Register. The Commission

believes that accelerated approval of the

proposal is appropriate in order to avoid

an unnecessary interruption to the

existing pilot, while allowing the

Commission to continue to evaluate the

data and comments submitted in

response to the solicitation of comments

published in March.

It is therefore ordered, pursuant to

Section 19(b)(2) 7 that the proposed rule

change is hereby approved, and the

preferencing pilot is extended through

October 2, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12313 Filed 5–18–95; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35715; File No. S7–27–93]

Consolidated Tape Association; Order

Granting Approval of Seventeenth

Substantive Amendment to the

Restated Consolidated Tape

Association Plan and Twenty-First

Substantive Amendment to the

Consolidated Quotation Plan

May 12, 1995.

I. Introduction

On March 9, 1995, the Consolidated

Tape Association (‘‘CTA’’) and

consolidated Quotation (‘‘CQ’’) Plan

Participants filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) amendments

to the Restated CTA Plan and CQ Plan

pursuant to Rule 11Aa3–2 of the

Securities Exchange Act of 1934

(‘‘Act’’). Notice of the filing appeared in

the Federal Register on April 3, 1994.1

No comment letters were received in

response to the Notice. For the reasons

discussed below, the Commission has

determined to approve the filing.

II. Description

The amendments change the

procedure for allocating high speed line

access fee revenues between ‘‘Network

A’’ and ‘‘Network B’’ under each plan.

Under the new procedure,2 the

participants will apply ‘‘relative

message usage percentages’’ to the

allocation of high speed line revenues

between networks retroactively,

beginning with the period commencing

January 1, 1994.

The amendments also eliminate the

requirements that the participants set

the high speed line access fee at a level

designed to recover the costs of making

the high speed line available, and set

indirect high speed line access fees at a

level that equals one-half of the direct