[Federal Register: August 18, 2005 (Volume 70, Number 159)]
[Notices]
[Page 48610-48611]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18au05-82]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52248; File No. SR-CHX-2004-25]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing of Amendment No. 3 to a Proposed Rule Change Relating
to a Prohibition on Using a Layoff Service Unless the Service Provides
Required Information to the Exchange
August 12, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on August 12, 2005, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') Amendment No. 3 to a proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
CHX. The proposed rule change was originally filed on August 31, 2004
and was amended by Amendment No. 1, filed on June 7, 2005, and
Amendment No. 2, filed on June 27, 2005. The proposed rule change, as
amended by Amendment Nos. 1 and 2, was published for notice and comment
in the Federal Register on July 12, 2005.\3\ The Commission is
publishing this notice to solicit comments on the proposed rule change,
as amended by Amendment No. 3, from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 51967 (July 1,
2005), 70 FR 40086 (July 12, 2005) (``First Notice'').
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is amending its proposal to prohibit Exchange
Participants from using any communications means to send orders to
another market for execution (a ``layoff service'') unless that layoff
service has established a process for providing the Exchange with
specific information about the orders and the executions that
participants receive. This amendment changes the proposed effective
date contained in the proposed rule text from August 1, 2005 to
September 30, 2005.
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 CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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 Changes
1. Purpose
As noted in the original filing, the Exchange is proposing to amend
its rule relating to communications from the trading floor to provide
the Exchange with the layoff service information that it needs to
enhance its surveillance programs. Through this Amendment No. 3, the
Exchange is seeking to revise the proposed effective date of its
proposed rule to September 30, 2005. The Exchange believes that this
later effective date will better allow all of its Participants and
their layoff vendors to be able to comply with the proposed rule in a
timely manner on its effective date.
2. Statutory Basis
The CHX believes the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder that are applicable
to a national securities exchange, and, in particular, with the
requirements of Section 6(b) of the Act.\4\ The CHX believes the
proposal is consistent with Section 6(b)(5) of the Act \5\ in that it
is designed to promote just and equitable principles of trade, to
remove impediments, 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 by permitting the Exchange to require
its participants (or their layoff service providers) to provide the
Exchange with data necessary to conduct appropriate surveillance of its
participants' trading activities.
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\4\ 15 U.S.C. 78(f)(b).
\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement of Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition.
[[Page 48611]]
C. Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Changes Received From Members, Participants or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such other 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 Exchange consents, the Commission will:
(A) By order approve the proposed rule change, as amended, or
(B) Institute proceedings to determine whether the proposed rule
change, as amended, should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as amended by Amendment No. 3, is consistent with the Act.
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CHX-2004-25 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File No. SR-CHX-2004-25. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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 changes 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 Room. Copies of such
filing will also be available for inspection and copying at the
principal office of the CHX. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-CHX-2004-25 and should be submitted on or before September
8, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4509 Filed 8-17-05; 8:45 am]
BILLING CODE 8010-01-P