[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Notices]
[Pages 3000-3001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1171]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42329; File No. SR-CHX-99-29]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Restating and Amending Membership Dues and Fees Schedule

January 11, 2000.
    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 December 27, 1999, the Chicago Stock Exchange, Incorporated (``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. The 
Exchange has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the CHX under Section 
19(b)(3)(A)(ii) of the Act,\3\ 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)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to restate and amend its membership dues and 
fees schedule (``Schedule'') to better organize and define the charges 
included in the Schedule; delete references to obsolete charges and 
confirm specific charges rebilled to members and member firms; and 
continue, through March 1, 2000, the waiver of all transaction, order 
processing and floor broker fees for transactions that occur during the 
Exchange's after-hours trading session (``E-Session''). The text of the 
proposed rule change is available upon request from the CHX or the 
Commission.

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 Exchange 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 Exchange 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 proposed rule change restates and amends the Schedule. The 
proposal primarily reorganizes individual items by grouping them under 
more descriptive and more appropriate headings, and changes 
descriptions to better define the charges assessed or rebilled by the 
Exchange. The proposed changes to the Schedule also delete references 
to obsolete charges and identify specific charges rebilled to members 
and member firms by the Exchange. Finally, the proposal includes 
provisions to eliminate, through March 1, 2000, order processing, 
transaction and floor broker fees for transactions that occur during 
the E-Session.\4\ This last portion of the proposal is designed to 
allow CHX members to participate in the E-Session without incurring the 
fees normally associated with their CHX transactions.\5\
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    \4\ The Commission approved, on a pilot basis, the 
implementation of the Exchange's E-Session. See Securities Exchange 
Act Release No. 42004 (October 13, 1999), 64 FR 56548 (October 20, 
1999), (SR-CHX-99-16). The E-Session takes place from 3:30 p.m. to 
5:30 p.m., Central Time, Monday through Friday. The E-Session is 
approved to continue through March 1, 2000.
    \5\ According to the Exchange, the vast majority of the vast 
majority of the securities that trade during the E-Session are 
already subject to order processing and transaction fee waivers 
under the current fee schedule because they are either NASDAQ/NMS 
issues or issues within the S&P 500. Waiving fees on the very few 
remaining securities and on floor broker transactions in all 
securities simplifies the Exchange's fee-related communications with 
its members.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b)(4) of the Act \6\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its 
members.
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    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement of Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate burden on competition.

[[Page 3001]]

C. Self-Regulatory Organization's Statement of 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 proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\8\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the 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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii)
    \8\ 17 CFR 240.19b-4(f)(2).
    \9\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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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 proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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. Copies of such filing will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to file number SR-CHX-99-29, and should be 
submitted by February 9, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secrtary.
[FR Doc. 00-1171 Filed 1-18-00; 8:45 am]
BILLING CODE 8010-01-M