[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Notices]
[Pages 71049-71050]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27881]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58966; File No. SR-CHX-2008-15]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Participant Fees and Assessments
November 17, 2008.
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 November 7, 2008, the Chicago Stock Exchange, Inc. (``CHX'' or the
``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 CHX. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CHX proposes to amend its Schedule of Participant Fees and
Assessments (the ``Fee Schedule'') to alter the take/provide charges
for Tape B securities. The text of this proposed rule change is
available on the Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm, at the principal office of the Exchange, and in
the Commission's Public Reference Room.
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 change 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
Through this filing, the Exchange would amend its Fee Schedule to
discontinue the existing program setting forth a higher provide credit
of $0.0036/share for transactions in Tape B securities if certain
volume thresholds had been met. Moreover, the transaction fee for
liquidity takers in Tape B securities is being raised to $0.0030/share
from the current level of $0.0029/share. All liquidity providers in
Tape B securities would qualify for a credit of $0.0032/share,
regardless of its average daily trading volume. The Exchange believes
that these proposed fee changes are more consistent with its long-term
goals of incenting firms to trade using our facilities at rates which
do not expose the Exchange to potential losses or capital outlays.
2. Statutory Basis
The Exchange believes that the rule changes proposed in this
submission are 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). The proposed rule change is consistent with Section
6(b)(4) of the Act in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its Participants. The
proposed increase in the liquidity takers fee in Tape B securities is
of $0.0001/share, which is a relatively modest amount. The increased
revenue will be used to fund the Exchange's existing operations, which
may in turn benefit its Participants. Finally, the discontinuance of
the two-tiered fee structure for liquidity providers in Tape B
securities fee streamlines the Exchange's Fee Schedule and related
billing structure, as well as eliminates a program which potentially
exposed the Exchange to large and costly rebates to Participant firms.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition.
[[Page 71050]]
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 Changes and Timing for
Commission Action
The foregoing rule change establishes or changes a due, fee or
other charge imposed by the Exchange and therefore has become effective
pursuant to Section 19(B)(3)(A) of the Act \3\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\4\ At any time within 60 days of the filing
of such 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 purpose of the Act.
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\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change 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-2008-15 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2008-15. 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 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 Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. 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 Number SR-CHX-2008-15 and should be
submitted on or before December 15, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27881 Filed 11-21-08; 8:45 am]
BILLING CODE 8011-01-P