24988 Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Notices

1 17 CFR 200.30–3(a) (12).

1See Letter from David Rusoff, Attorney, Foley &

Lardner, to Ivette Lopez, Assistant Director,

Division of Market Regulation, SEC, dated May 9,

1996 (‘‘Amendment No. 1’’). Amendment No. 1

added amendments to Article IX, Rule 10(b); Article

XX, Rule 1; and Article XXI, Rule 1 to the proposed

rule change. Amendment No. 1 also added two

paragraphs to the end of Section II.A.1 of the

original filing in order to describe the amendments

to the proposed rule change contained in

Amendment No. 1, and corrected the text of Exhibit

A to the original filing. For a more detailed

description of Amendment No. 1, see text

accompanying notes 6–8.

2Trading in the Chicago Basket, currently

conducted on the Floor of the Exchange from 8:30

a.m. to 3:15 p.m., central time, will be unaffected

by the proposed rule change.

3The CHX represents that ITS will be available

for both inbound and outbound trades during the

PPS to the extent that other market centers (e.g., the

Pacific Stock Exchange, Incorporated and the

Philadelphia Stock Exchange, Inc.) are open for

trading. The CHX also represents the PPS will be

surveilled in the same manner and using the same

techniques as those used to surveil the Primary

Trading Session. To facilitate the surveillance of the

PPS, CHX’s surveillance staff will remain on-site

during the PPS and for any necessary additional

time period after the close of the PPS. See Letter

from David T. Rusoff, Attorney, Foley & Lardner, to

Ivette Lopez, Assistant Director, Division of Market

Regulation, SEC, dated May 9, 1996 (‘‘ITS/

Surveillance Letter’’).

4The Exchange will require order tickets of PPSeligible orders to include an ‘‘E’’ designator, which

will indicate that the order is eligible for execution

during the PPS. See ITS/Surveillance Letter, supra

note 3.

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 longer 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, 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 CBOE. All submissions

should refer to File No. SR–CBOE–96–

24 and should be submitted by June 7,

1996.

For the Commission, by the division of

Market Regulation, pursuant to delegated

authority.1

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12388 Filed 5–16–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37204; File No. SR–CHX–

96–13]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Stock Exchange,

Incorporated, Relating to the

Modification of the Hours of the

Exchange’s Primary Trading Session

and the Establishment of a PostPrimary Trading Session

May 13, 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 April 9, 1996, 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. On May 10, 1996, the

Exchange submitted to the Commission

Amendment No. 1 to the proposed rule

change.1 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 amend

Rule 10(b) of Article IX, Rule 1 of

Article XX, several interpretations and

policies under Rule 37 of Article XX,

and Rule 1 of Article XXI in order to

modify the Exchange’s trading hours for

each traded security to track the trading

hours of the security’s primary market

and to add a new Post-Primary Trading

Session.

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

Currently, the Exchange’s Primary

Trading Session runs from 8:30 a.m. to

3 p.m., central time, Monday through

Friday. One purpose of the proposed

rule change is to amend Article XX,

Rule 10(b) to conform the Exchange’s

Primary Trading Session hours for each

traded security to the trading hours

during which the security is traded on

its primary market. If a security’s

primary market is the CHS, the trading

hours will be from 8:30 a.m. to 3:30

p.m., central time.2

The proposed rule change would also

add a Post-Primary Trading Session

(‘‘PPS’’) on the trading floor.3 The PPS

for orders and securities designated as

eligible for the PPS would be for onehalf hour after the close of the regular

trading session on the security’s primary

market. Securities in which the CHX is

the primary market will not be eligible

for the PPS.

Only orders designated as eligible for

the PPS would be eligible for execution

during the PPS.4 Market, limit and

contingent order types currently

acceptable would be accepted for PPS if

so designated. In this regard, GTX

orders would only be accepted if

specifically designated as PPS-eligible.

The Exchange’s MAX System will not

be available as an automated execution

system or as an automated routing

system during the PPS. As a result,

order sending firms must contact a floor
Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Notices 24989

5As part of the proposed rule change, the

Exchange has moved existing Interpretation and

Policies .01–.03 of Rule 37(a), Article XX, currently

found at the end of subparagraph (a) of Rule 37, to

the end of Rule 37, and renumbered existing

Interpretation and Policy .01 of Rule 37 as

Interpretation and Policy .04.

6See Amendment No. 1, supra note 1.

Article XX of the CHX Rules contains the

Exchange’s trading rules. Article XX, Rule 1

currently states that the rules contained in Article

XX have general applicability to Exchange

Contracts made on the Exchange during the Primary

Trading Session, and, to the extent determined by

the Exchange, to Exchange Contracts not made on

the Exchange.

Article XXI, Rule 1 currently requires each

Exchange member to promptly advise the Exchange

of each of his or her transactions that are executed

on the Floor of the Exchange during the Primary

Trading Session or through the Portfolio Trading

System.

7For a description of operation of the Exchange’s

Secondary Trading Session, see Securities Exchange

Act Release No. 33991 (May 2, 1994), 59 FR 23904

(May 9, 1994) (File No. SR–CHX–93–23).

8See Amendment No. 1, supra note 1.

9 15 U.S.C. 78f(b)(5).

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

2Letter from Anthony H. Davidson, Attorney,

MBSCC, to Michele Bianco, Division of Market

Regulation (‘‘Division’’), Commission (November 1,

1995).

3Securities Exchange Act Release No. 36557

(December 6, 1995), 60 FR 64083.

4Letters from Anthony H. Davidson, Attorney,

MBSCC, to Michele Bianco, Division, Commission

(January 30, 1996) and to Jerry Carpenter, Associate

[sic] Director, Division, Commission (April 12,

1996). The January 30, 1996, amendment adds a

definition of related participant to MBSCC’s

Procedures consistent with language in MBSCC’s

original filing. The April 15, 1996, amendment

provides that a participant requesting a waiver from

the eligibility requirements must provide MBSCC

with certain assurances. The amendments were

technical amendments that did not require

republication of notice.

5 ‘‘Related participant’’ is any affiliate (as defined

in Rule 12b–2 of the Act) or entity that is used or

intended to be used in whole or in part to

Continued

broker in order to send an order to the

CHX during the PPS. Because the PPS

will be an extension of the Exchange’s

daily auction market, all the Exchange’s

rules applicable to floor trading during

the Exchange’s Primary Trading

Session, as modified by proposed

Interpretation and Policy .05 of Rule 37,

Article XX, will continue to be

applicable.5 For example, specialists

will be required to quote markets and

trading will occur based on real-time

price and quote changes.

To accomplish the foregoing, the

Exchange is amending Article XX, Rule

1 and Article XXI, Rule 1 to make it

clear that these rules also apply to the

PPS.6 The Exchange is also amending

Interpretation and Policy .02 of Rule 37,

Article XX to make it clear that although

GTX orders are executable after the

close of the PPS (i.e., in the Exchange’s

Secondary Trading Session), they are

executed based on trading that occurs in

a security in a primary market’s afterhours closing price trading session, at

that closing price, and are not

executable based on trading in, or the

closing price established in, the PPS.7

Finally, the Exchange is also

amending Article IX, Rule 10(b) to

provide that if trading on the Exchange

is halted during the Primary Trading

Session pursuant to Article XX, Rule

10A, and such trading halt is still in

effect at the close of the Primary Trading

Session, the PPS scheduled for that day

will be cancelled.8

2. Statutory Basis

The proposed rule change is

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

Act 9 in that it is designed to promote

just and equitable principals 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

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 either

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 longer 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-regualtory 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, N.W.,

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, N.W.,

Washington, DC 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–96–13

and should be submitted June 7, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12467 Filed 5–16–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37205; File No. SR–

MBSCC–95–08]

Self-Regulatory Organizations; MBS

Clearing Corporation; Order Approving

Proposed Rule Change Relating to

Eligibility Changes for Settlement

Balance Order Settlement

May 13, 1996.

On October 17, 1995, MBS Clearing

Corporation (‘‘MBSCC’’) filed a

proposed rule change (File No. SR–

MBSCC–95–08) with the Securities and

Exchange Commission (‘‘Commission’’)

pursuant to Section 19(b) of the

Securities Exchange Act of 1934 (‘‘Act’’)

relating to eligibility changes for

Settlement Balance Order (‘‘SBO’’)

settlement.1 On November 1, 1995,

MBSCC filed an amendment to the

proposed rule change.2 Notice of the

proposal was published in the Federal

Register on December 13, 1995, to

solicit comments from interested

persons.3 On January 30, 1996, and

April 15, 1996 MBSCC filed additional

amendments to the proposed rule

change.4 No comments were received.

As discussed below, this order approves

the proposed rule change.

I. Description

The proposed rule change modifies

MBSCC’s procedures to provide that

MBSCC will reject trades destined for

SBO settlement between multiple

accounts of a participant as well as

between a participant’s account and an

account of a related participant.5 As a