[Federal Register Volume 62, Number 246 (Tuesday, December 23, 1997)]
[Notices]
[Pages 67103-67104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33403]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39450; File No. SR-CHX-97-31]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Inc. Relating to a Rebate to Members of Dues and Certain Fees

December 15, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 11, 1997, 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 self-regulatory organization.\2\ 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\ See letter from J. Craig Long, Attorney, Foley & Lardner, to 
Katherine England, Assistant Director, Division of Market 
Regulation, Commission, dated December 10, 1997 (``Amendment No. 
1''). The Exchange initially submitted the proposal on December 8, 
1997. However, at the Commission's request, the Exchange filed 
Amendment No. 1 to the proposed rule change on December 11, 1997 to 
provide the reasoning for rebating the dues and fees.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to rebate to members (1) an amount equal to 
six months of membership dues and (2) an amount equal to twelve months 
of floor telephone booth and/or post space charges applicable to them, 
as set forth in the Exchange's Membership Dues and Fees Schedule.

[[Page 67104]]

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 self-regulatory organization 
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 self-regulatory organization 
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 purpose of the proposed rule change is to rebate to members an 
amount equal to six months of membership dues and an amount equal to 
twelve months of floor telephone booth and/or post space charges 
applicable to them because the Exchange has already adequately covered 
its costs for the year.
    The Exchange's Finance Committee has determined that the proposed 
rebates would be consistent with the general guidelines adopted by the 
Committee with respect to the appropriate level of capital and retained 
earnings that the Exchange should possess at any given time. 
Furthermore, the Committee has focused on the Exchange's capitalization 
and determined that even after the proposed rebate, the Exchange will 
have ample capital and resources to continue to fulfill its proscribed 
duties in its capacity as a self-regulator and as a registered national 
securities exchange.\3\
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    \3\ See Amendment No. 1.
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2. Statutory Basis

    The Exchange represents that proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Section 6(b)(4) \5\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among the Exchange's members and other persons using its 
facilities
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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 inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change constitutes or changes a due, fee, or 
other charge imposed by the Exchange and, therefore, has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and 
subparagraph (e) of Rule 19b-4 thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4.
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    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. Soliciation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, DC. 20549. 
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 at the 
Commission's Public Reference Room. Copies of the filing also will be 
available for inspection and copying at the principal office of the 
Chicago Stock Exchange, Inc. All submissions should refer to File No. 
SR-CHX-97-31 and should be submitted by January 13, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 97-33403 Filed 12-22-97; 8:45 am]
BILLING CODE 8010-01-M