[Federal Register Volume 76, Number 183 (Wednesday, September 21, 2011)]
[Notices]
[Pages 58553-58555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24174]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65342; File No. SR-CHX-2011-28]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Retroactively Waive Its Order Cancellation Fee for the Period of
September 1 to September 9, 2011 (Inclusive)
September 14, 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 September 12, 2011, 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 and
II below, which Items have been prepared by the CHX. CHX has filed this
proposal pursuant to Exchange Act Rule 19b-4(f)(6) \3\ which is
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\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CHX proposes to amend its Fee Schedule to retroactively waive its
order cancellation fee for a limited duration. The text of this
proposed rule change is available on the Exchange's Web site at (http://www.chx.com) 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 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.
[[Page 58554]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Through this proposal, the Exchange seeks to retroactively waive
the order cancellation fees as provided in Section E.8. of its Schedule
of Fees and Assessments (``Fee Schedule'') for the period of September
1 to September 9, 2011, inclusive. On August 25, 2011, the Exchange
filed a proposal to amend its Fee Schedule to replace the prior order
cancellation fee with a new version, effective September 1, 2011.\4\
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\4\ Securities Exchange Act Rel. No. 34-65268 (Aug. 25, 2011),
76 FR 56246 (SR-CHX-2011-25).
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The Exchange submitted a filing to the Commission on August 25,
2011 to make these changes with a proposed effective date of September
1, 2011. The Exchange posted a Legal Notice dated August 26, 2011
detailing the proposed changes to the cancellation fee and posted it to
its public Web site.\5\ The Exchange also included the Legal Notice in
its Weekly Bulletin to Participants dated September 2, 2011 which is
also posted to its Web site.\6\ Finally, the Exchange posted the rule
filing requesting the change to its Web site.
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\5\ Legal Notice L-2011-26 (Aug. 26, 2011).
\6\ CHX Weekly Bulletin, Issue 2011-35 (Sept. 2, 2011).
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The Commission published the Notice of Filing and Immediate
Effectiveness of the proposed cancellation fee change on its public Web
site on September 6, 2011. Pursuant to Commission rules, the Exchange
updated the Fee Schedule to reflect the changes in the calculation of
the order cancellation fee on its Web site on September 8, 2011. Since
the Fee Schedule was not updated until after the September 1st
effective date, however, the Exchange believes that certain
Participants may not have received actual notice of the changes.\7\
Such Participants may have incurred cancellation fee charges which they
otherwise may have avoided by, for example, limiting the number of
cancellation requests. Given the potential that Participants might have
incurred charges which they did not anticipate, the Exchange seeks to
waive the cancellation fees as to all Participants through the close of
business on Friday, September 9, 2011. Beginning on Monday, September
12, 2011, order and cancellation activity would give rise to
cancellation fees if the criteria defined in the Fee Schedule are met.
The Exchange believes that this proposal recognizes that certain
Participants may not have received actual notice of the cancellation
fee changes or fully understood and appreciated the potential impact
and magnitude of those changes to their firms.
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\7\ The Exchange also believes that disruptions to Participants
and their personnel as a result of the recent Hurricane Irene may
have contributed to the failure to effectively communicate the
impact of the cancellation fee changes to some Participants.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act in general,\8\ and furthers the objectives
of Section 6(b)(5) in particular,\9\ in that it is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transaction in
securities, to remove impediments and perfect the mechanisms of a free
and open market, and, in general, to protect investors and the public
interest by retroactively waiving the Exchange's order cancellation fee
for a limited period of time to ensure that all Participants
effectively received actual notice of the recent changes to those fees.
Depending on the nature of the order and cancellation request activity
of a Participant, the proposed changes could significantly increase the
cancellation fees imposed upon Participants such that a limited waiver
is appropriate under these particular circumstances.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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The Exchange also believes that the proposed rule change is
consistent with Section 6(b) of the Act \10\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \11\ 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. The proposed waiver is
fair and non-discriminatory since it would apply equally to all
Participants and negates the imposition of fees (as opposed to imposing
a fee) for prior activity where some Participants may not have fully
appreciated the substantial nature of the changes to the order
cancellation fees.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(4).
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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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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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-2011-28 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-2011-28. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your
[[Page 58555]]
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 Web site 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 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-2011-28 and should be submitted on or before October
12, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-24174 Filed 9-20-11; 8:45 am]
BILLING CODE 8011-01-P