19222 Federal Register / Vol. 72, No. 73 / Tuesday, April 17, 2007 / Notices 

8 15 U.S.C. 78f(b)(7) and 78f(d)(1). 

9 17 CFR 240.19d–1(c)(2). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 240.19d–1(c)(2). 

12 17 CFR 200.30–3(a)(12); 17 CFR 200.30–

3(a)(44). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 54550 

(September 29, 2006); 71 FR 59563 (October 10, 

2006) (SR–CHX–2006–05) (approving rules for the 

new trading model). 

4See, e.g., Section E(8) of the Fee Schedule 

(confirming that ‘‘these fees will continue to be 

charged as the Exchange transitions to its new 

trading model, but will be eliminated as each issue 

transitions to the new trading model’’); see also 

Section F(4) of the Fee Schedule (noting that it is 

in effect through October 31, 2006). 

5For example, an additional network/ 

connectivity fee credit was available to institutional 

brokers until the completion of the new trading 

model rollout. See Section F(2) of the Fee Schedule. 

Similarly, with the transition to the new trading 

model, the CHX no longer operates a physical 

trading floor; as a result, the space and equipment 

charges are no longer charged to participants 

pursuant to the Fee Schedule, but are instead part 

of separate agreements between the Exchange and 

any firms that sublease space on the Exchange’s 

former trading floor. See Sections L and M of the 

Fee Schedule. 

XVIII provides procedural rights to 

contest the fine imposed pursuant to the 

BOX MRVP and permits disciplinary 

proceedings on the matter, the 

Commission believes that BOX Rule 

Chapter X, as amended by this proposal, 

provides a fair procedure for the 

disciplining of members and persons 

associated with members, consistent 

with Sections 6(b)(7) and 6(d)(1) of the 

Act.8

Finally, the Commission finds that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act, as required by Rule 19d–

1(c)(2) under the Act 9 which governs 

minor rule violation plans. The 

Commission believes that the proposed 

rule change would strengthen the 

Exchange’s ability to carry out its 

oversight and enforcement 

responsibilities as a self-regulatory 

organization in cases where full 

disciplinary proceedings are unsuitable 

in view of the minor nature of the 

particular violation. 

In approving this proposed rule 

change the Commission in no way 

minimizes the importance of 

compliance with BOX rules and all 

other rules subject to the imposition of 

fines under the BOX MRVP. The 

Commission believes that the violation 

of any self-regulatory organization’s 

rules, as well as Commission rules, is a 

serious matter. However, the BOX 

MRVP provides a reasonable means of 

addressing rule violations that do not 

rise to the level of requiring formal 

disciplinary proceedings, while 

providing greater flexibility in handling 

certain violations. The Commission 

expects that BSE would continue to 

conduct surveillance with due diligence 

and make a determination based on its 

findings, on a case-by-case basis, 

whether a fine of more or less than the 

recommended amount is appropriate for 

a violation under the BOX MRVP or 

whether a violation requires formal 

disciplinary action under BSE Rule 

Chapter XXX. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 10 and Rule 

19d–1(c)(2) under the Act,11 that the 

proposed rule change (SR–BSE–2006–

11), as modified by Amendments No. 1 

and 2, be, and hereby is, approved and 

declared effective. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7225 Filed 4–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55613; File No. SR–CHX–

2007–11] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

Participant Fees and Credits 

April 10, 2007. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 22, 

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 

substantially prepared by the CHX. On 

April 10, 2007, the CHX filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

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 Credits 

(the ‘‘Fee Schedule’’) to remove 

provisions that are no longer in effect 

due to the roll-out of the Exchange’s 

new trading model. The text of this 

proposed rule change is available at the 

CHX, on the Exchange’s Web site at 

http://www.chx.com/rules/ 

proposed_rules.htm, 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 on 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 

On January 26, 2007, the CHX 

completed the transition to its new 

trading model.3 The Exchange now 

proposes to amend its Fee Schedule to 

delete several provisions that are no 

longer in effect as a result of that 

transition. The provisions of the Fee 

Schedule that would be deleted through 

this filing include: (1) Section E(8) 

(Transaction and Order Processing Fees 

Associated with Securities Not Yet 

Traded in the Matching System); (2) 

Parts of Section F(2) (Institutional 

Broker Credits); (3) Section F(4) (TwoSided Quote Providers); (4) Section L 

(Space Charges); and (5) Section M 

(Equipment, Information Services and 

Technology Charges). Each of these 

provisions currently contains an 

introductory note confirming that it is 

only in effect until the transition to the 

new trading model or contains an 

effective date that has been exceeded.4

Because of the transition to the new 

trading model, these fees are no longer 

in effect for the Exchange’s 

participants.5


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 73 / Tuesday, April 17, 2007 / Notices 19223 

6 15 U.S.C. 78f(b)(4). 

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

8 17 CFR 240.19b–4(f)(2). 

9For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, the Commission considers 

the period to commence on April 10, 2007, the date 

on which the CHX filed Amendment No. 1. See 15 

U.S.C. 78s(b)(3)(C). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(3). 

2. Statutory Basis 

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. 

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 

Because the foregoing proposed rule 

change establishes or changes a member 

due, fee or other charge imposed by the 

Exchange, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 7 and subparagraph (f)(2) of Rule 

19b–4 thereunder.8 At any time within 

60 days of the filing of such 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

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–2007–11 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–CHX–2007–11. 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 such filing also will be 

available for inspection and copying at 

the principal office of the CHX. 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–2007–11 and should 

be submitted on or before May 8, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7223 Filed 4–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55617; File No. SR–NASD–

2007–022] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make Technical 

Amendments to the Code of Mediation 

Procedure 

April 11, 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 March 16, 

2007, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), 

through its wholly owned subsidiary, 

NASD Dispute Resolution, Inc. (‘‘NASD 

Dispute Resolution’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by NASD Dispute Resolution. 

NASD has designated the proposed rule 

change as concerned solely with the 

administration of the self-regulatory 

organization under Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(3) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASD Dispute Resolution is 

proposing to amend the Code of 

Mediation Procedure to re-number 

Rules 10401 through 10410 and update 

cross references within the re-numbered 

rules. The text of the proposed rule 

change is available on NASD’s Web site 

(http://www.nasd.com), at NASD’s 

principal office, and at 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, 

NASD 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. NASD 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 

In 1998, the SEC launched an 

initiative to encourage issuers and selfregulatory organizations to use ‘‘plain 

English’’ in disclosure documents and 

other materials used by investors. In 

response, NASD undertook to rewrite 

the NASD Code of Arbitration 

Procedure (‘‘old Code’’) in ‘‘plain 


sroberts on PROD1PC70 with NOTICES