11068 Federal Register / Vol. 72, No. 47 / Monday, March 12, 2007 / Notices 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55070 

(January 9, 2007), 72 FR 2049 (January 17, 2007) 

(SR–CHX–2006–37). 

4Thus, the credit for November 2006 is $25,000; 

the credit for December 2006 is $50,000; and the 

credit for January 2007 is $25,000. 

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 with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A)(ii) of the Act 7 and 

Rule 19b–4(f)(2) thereunder 8 because it 

establishes or changes a due, fee, or 

other charge applicable only to 

Exchange members. 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. 

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 rulecomments@sec.gov. Please include File 

No. SR–CBOE–2007–25 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2007–25. 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 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 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–CBOE–2007–25 and should 

be submitted on or before April 2, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4292 Filed 3–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55408; File No. SR–CHX–

2007–02] 

Self-Regulatory Organizations; The 

Chicago Stock Exchange, Inc.; Notice 

of Filing of Proposed Rule Change To 

Amend the CHX Fee Schedule on a 

Retroactive Basis to Clarify the 

Application of a Credit Against 

Specialist Fixed Fees 

March 6, 2007. 

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 February 

12, 2007, 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 substantially by the 

CHX. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Schedule of Participant Fees and Credits 

(‘‘Schedule’’), on a retroactive basis, to 

clarify application of a monthly 

specialist fixed fee credit. The text of 

the proposed rule change is available at 

the Exchange, http://www.chx.com/ 

rules/proposed_rules.htm, and 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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change. 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 

The Exchange seeks to amend the 

Schedule on a retroactive basis to clarify 

application of a monthly specialist fixed 

fee credit. 

On November 21, 2006, the Exchange 

amended the Schedule, providing for a 

monthly specialist fixed fee credit of 

$25,000, to be in effect while the 

Exchange completed implementation of 

its new trading model and issues were 

transitioned from being traded by CHX 

specialists to a market maker model.3

At that time, the Exchange envisioned 

that the credit would be applied on a 

cumulative basis for November and 

December of 2006, so that the November 

credit would be $25,000 and the 

December credit would be $50,000. 

Subsequently, at the December 12, 2006 

meeting of its Board of Directors, the 

Exchange determined that it would 

make the credit available for the month 

of January 2007, but that the credit for 

January would be reduced to $25,000. 

The proposed rule language in the 

instant proposed rule change clarifies 

the total amount of the credit available 

for each month.4


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 47 / Monday, March 12, 2007 / Notices 11069 

5For example, if a specialist firm’s monthly fixed 

fee liability for November 2006 was $32,000, the 

CHX would apply the $25,000 credit and the firm 

would be billed for the remaining balance of $7,000 

in net fixed fees. If a specialist firm’s fixed fee 

liability was $10,000, the CHX would apply a credit 

of $10,000, offsetting the entire liability, and the 

CHX would not bill the specialist firm for any fixed 

fees. The CHX would not issue a refund of $15,000 

to the specialist firm on account of the unused 

portion of the available credit and the unused 

portion would not be available to offset fixed fee 

liabilities in future months. 

6 15 U.S.C. 78f(b). 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

The monthly credit is applied against 

the first $25,000 (or $50,000, in the case 

of December 2006) in monthly specialist 

fixed fees otherwise due the CHX from 

a participant firm. If the participant 

firm’s fixed fee liability is less than the 

credit amount, the CHX would apply a 

credit equal to the amount of the fixed 

fee liability, but would not issue a 

refund to such participant firm for the 

remaining balance of the credit, nor 

would the CHX carry forward the 

balance of the credit for application to 

future fixed fee liabilities.5

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).6 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 the Exchange’s 

members and will result in an 

additional credit for CHX specialist 

firms impacted by the Exchange’s 

transition to its new trading model. The 

proposed rule change is consistent with 

Section 6(b)(5) of the Act because it 

would promote just and equitable 

principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest by permitting the Exchange to 

provide incentives for its specialist 

firms to support the transition to new 

technology that will result in fully 

automated executions. 

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. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer 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 such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

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 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 rulecomments@sec.gov. Please include File 

Number SR–CHX–2007–02 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CHX–2007–02. 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. Copies of the filing also will be 

available for inspection and copying at 

the principal offices 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–2007–02 and should 

be submitted on or before March 27, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4325 Filed 3–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55405; File No. SR–

NASDAQ–2007–020] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change to Establish a 

Directed Order Type 

March 6, 2007. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on March 2, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘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 

substantially prepared by the Exchange. 

Nasdaq has designated this proposal as 

non-controversial under Section 

19(b)(3)(A) of the Act 4 and Rule 19b–

4(f)(6) thereunder.5 The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to amend Nasdaq 

Rule 4611 to update and codify the 

requirements applicable to Nasdaq 

members that provide sponsored access 

to other firms and customers to the 

Nasdaq execution system. 

The text of the proposed rule change 

is below. Proposed new language is 


pwalker on PROD1PC71 with NOTICES