Federal Register / Vol. 61, No. 126 / Friday, June 28, 1996 / Notices 33787

trading in securities on the Exchange shall halt (a

‘‘Rule 117 halt’’) and not reopen for one hour if the

Dow Jones Industrial Average (‘‘DJIA’’) falls 250

points or more below its closing value on the

previous trading day. The rule provides further that

trading on the Exchange shall halt for two hours if

the DJIA falls 400 points or more on that same day.

Rule 117 was approved by the Commission on a

pilot basis on October 19, 1988 and has been

extended annually since then. See Securities

Exchange Act Release No. 36414 (Oct. 25, 1995), 60

FR 55630 (Nov. 1, 1995) (Commission’s most recent

order extending temporary approval of Rule 117).

The Amex has filed a proposal to amend Rule 117

to reduce from one hour to thirty minutes the time

period during which trading is halted due to a

decline in the DJIA of 250 points below its closing

value on the previous trading day, and to reduce

from two hours to one hour the time period for a

halt due to a 400 points decline in the DJIA. See

Securities Exchange Act Release No. 37146 (April

26, 1996), 61 FR 19650 May 2, 1996). The

Commission has not yet completed its review of

this proposed amendment.

4The Exchange notes that the proposed criteria

are identical to those currently in place at the New

York Stock Exchange (‘‘NYSE’’) in connection with

circuit breaker halts under NYSE Rule 80B. See

Securities Exchange Act Release No. 26419 (January

5, 1989), 54 FR 1041 (January 11, 1989).

5 17 CFR 200.30–3(a)(12).

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

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 Exchange proposes to implement

guidelines for the mandatory

dissemination of indications to the

consolidated tape in connection with

the resumption of trading following a

circuit breaker halt pursuant to its Rule

117. The purposes of the proposed

criteria is to provide guidance to the

Exchange’s specialists as to the specific

circumstances under which they are

required to disseminate indications if a

significant decline in the price of a stock

from the previous last sale on the

Exchange is anticipated when trading

resumes following a circuit breaker halt.

The Exchange proposes to implement

the following guidelines:

• Dissemination of an indication shall

be mandatory prior to the reopening of

trading if such reopening will result in

a price change constituting the lesser of

10% or three points from the last sale

reported on the Amex, or five points if

the previous reported last sale is $100

or higher. No indications would be

required if the price change is less than

one point.

• If, on any day that a Rule 117 halt

is in effect, trading in a security has not

reopened by one-half hour after the

resumption of trading on the Exchange,

the matter should be treated as a

delayed opening, and would require an

indication as well as a Floor Official’s

supervision.

The Exchange has existing procedures

which require dissemination of

indications prior to delayed openings

and reopenings following regulatory or

non-regulatory halts in individual

securities. The Exchange will continue

to require dissemination of indications

in those situations.4

2. Statutory Basis

The basis under the Act for this

proposed rule change is the requirement

under Section 6(b)(5) that an exchange

have rules that are designed to prevent

fraudulent and manipulative acts and

practices, to promote just and equitable

principles of trade, to foster cooperation

and coordination with persons engaged

in regulating, clearing, settling,

processing information with respect to,

and facilitating transactions in

securities, to remove impediments to

protect 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.

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-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 Amex. All submissions

should refer to File No. SR–Amex–96–

21 and should be submitted by July 19,

1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16574 Filed 6–27–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37349; File No. SR–CBOE–

96–38]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated Relating to the Definition

of Expiration Month for Purposes of

Determining Log-On Obligations for

RAES in SPX Options

June 21, 1996.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

June 20, 1996, the Chicago Board

Options Exchange, Incorporated

(‘‘CBOE’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and
33788 Federal Register / Vol. 61, No. 126 / Friday, June 28, 1996 / Notices

2 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1) (1988).

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 37078

(April 5, 1996), 61 FR 16514.

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 Organizations

Statement of the Terms of Substance of

the Proposed Rule Change

The CBOE proposes to amend the

definition of an expiration month for

purposes of determining compliance

with the Retail Automatic Execution

System (‘‘RAES’’) log-on requirement for

market makers of Standard & Poor’s 500

Stock Index (‘‘SPX’’) options as detailed

in Rule 24.16.

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

The purpose of the proposed rule

change is to amend the definition of an

expiration month for purposes of

determining compliance with the RAES

log-on requirement for market makers of

SPX options as detailed in Rule 24.16.

According to CBOE Rule 24.16, once a

market maker logs onto SPX RAES at

any time during an expiration month, he

or she must continue to do so each time

he or she is present in the SPX trading

crowd until the next expiration. For this

purpose, an expiration month currently

is defined as the period from the

Monday immediately following an

expiration Saturday through the Friday

immediately preceding the next

successive expiration Saturday. In

consideration of the fact that expiring

SPX option contracts cease trading at

the close of business on the Thursday

immediately preceding an expiration

and that the new near-term series

becomes the RAES eligible series on that

Friday, the Exchange has determined to

redefine the expiration month for SPX

RAES log-on obligations. Commencing

on Friday, May 17, 1996, an expiration

month for SPX RAES log-on obligation

purposes will be defined as the period

from the Friday immediately preceding

an expiration Saturday through the

Thursday immediately preceding the

next successive expiration Saturday.

The expiration month for SPX RAES

log-on obligation purposes will be

defined in this manner for each

expiration thereafter.

Because the proposed rule change is

meant to conform more precisely the

definition of SPX market makers’

obligations with the expiration cycle for

SPX options, the Exchange believes that

the proposed rule change is consistent

with Section 6 of the Act in general and

with Section 6(b)(5) in particular in that

it is designed to promote just and

equitable principles of trade, to foster

cooperation with persons engaged in

facilitating and clearing transactions in

securities, and to protect investors and

the public interest.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The CBOE believes that the proposed

rule change will impose no burden on

competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments on the proposed

rule change were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the proposed rule change

constitutes a stated interpretation with

respect to the meaning, administration,

or enforcement of an existing rule, it has

become effective pursuant to Section

19(b)(3)(A) of the Act and subparagraph

(e) of Rule 19b–4 thereunder. At any

time within 60 days of the filing of such

proposed 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 purposes of the

Act.

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 in

the Commission’s Public Reference

Section, 450 Fifth Street, N.W.,

Washington, D.C. Copies of such filing

will also be available for inspection and

copying at the principal office of the

above-mentioned self-regulatory

organization. All submissions should

refer to File No. SR–CBOE–96–38 and

should be submitted by July 19, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16520 Filed 6–27–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37348; File No. SR–CBOE–

96–19]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Inc.; Order Approving Proposed Rule

Change and Notice of Filing and Order

Granting Accelerated Approval of

Amendment Thereto Relating to

Eligibility Requirements for

Participation on the RAES System in

SPX Options

June 21, 1996.

I. Introduction

On March 18, 1996, the Chicago

Board Options Exchange, Inc. (‘‘CBOE’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’), pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’) 1 and Rule

19b–4 thereunder, 2 a proposal to

amend one of the Rule 24.16

requirements market makers in

Standard & Poor’s 500 Stock Index

(‘‘SPX’’) options must meet to qualify

for participation in the Retail Automatic

Execution System (‘‘RAES’’). The

proposed rule change was published for

comment and appeared in the Federal

Register on April 15, 1996.3 No

comments were received regarding the

proposal. On March 27, 1996, the CBOE