[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Notices]
[Pages 41853-41854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17793]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64850; File No. SR-CHX-2011-16]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Alter Its Fee Schedule To Increase its SRO, DEA and Off-Exchange Trader
Fees
July 11, 2011.
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 June 30, 2011, the Chicago Stock Exchange, Inc. (``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 Exchange. CHX has
filed the proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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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''), effective July 1, 2011, to alter
its schedule of fees for Participants relating to its SRO, Off-Exchange
trader and DEA fees. The text of this proposed rule change is available
on the Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm and in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549.
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 Change
1. Purpose
Through this filing, the Exchange proposes to amend its Schedule of
Participant Fees and Assessments (the ``Fee Schedule''), effective July
1, 2011, to amend its existing SRO, Off-Exchange trader and DEA fees.
These fee changes are being proposed in response to the increased
importance and expense of the Exchange's regulatory efforts and
competitive pricing pressures.
The Exchange proposes to increase both its SRO and DEA fees to
reflect increased current and planned expenses related to the
Exchange's regulatory responsibilities. Currently, the Exchange's SRO
fee is $500 per month for each Participant firm and its DEA fee is $800
per month for each firm for which the Exchange is its DEA. Through this
filing, the Exchange proposes increasing the SRO fee to $600 per month
for each Participant firm and the DEA fee to $1,000 per month.
Additionally, the Exchange currently charges each off-Exchange
Participant firm, that is solely involved in proprietary securities
trading and for which the CHX is DEA, a $500 annual fee for each
trader. Through this filing, the Exchange proposes to amend its Fee
Schedule to allow off-Exchange Participant firms to register two
traders at no charge while capping the total annual trader fees payable
by each off-Exchange Participant firm at $70,000. The Exchange is
proposing this
[[Page 41854]]
amendment to lower total registration fees for off-Exchange traders to
respond to competitive pressures. The Exchange believes that these
changes will further encourage firms of all sizes to utilize its
facilities and services.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \5\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \6\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and other persons using any facility or
system which the Exchange operates or controls. Among other things,
these changes to the fee schedule would equitably allocate fees among
Participants by increasing fees overall to reflect higher regulatory
costs among all Participants as well as allocating the increased costs
associated with the Exchange's DEA service among those Participants
which utilize the service. In addition, the proposed changes to the
Off-Exchange trader registration fee will allow the Exchange to respond
to competitive pressures by lowering trader fees for all off-Exchange
proprietary trading firms for which CHX is DEA while encouraging firms
of all sizes to utilize the Exchange's facilities and services.\7\
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
\7\ See email from James G. Ongena, Vice President and Associate
General Counsel, Exchange, to Christopher W. Chow, Special Counsel,
Commission, dated July 8, 2011.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder \9\ because it establishes or changes a due, fee or other
charge applicable to the Exchange's members and non-members, which
renders the proposed rule change effective upon filing.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii)
\9\ 17 CFR 240.19b-4(f)(2)
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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, 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 [email protected]. Please include
File Number SR-CHX-2011-16 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2011-16. 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 website viewing and
printing 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 such filing will also 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 No. SR-CHX-2011-16 and should be
submitted on or before August 5, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17793 Filed 7-14-11; 8:45 am]
BILLING CODE 8011-01-P