[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Notices]
[Pages 12261-12262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6419]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38371; File No. SR-CHX-97-04]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to SEC Transaction Fees

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on 
February 18, 1997, 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 CHX 
has designated this proposal as one constituting a change to a due, 
fee, or other charge under Section 19(b)(3)(A) of the Act, which 
renders the rule effective upon receipt of this filing. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.

I. Self-Regulatory Organizations Statement of the Terms of Substance of 
the Proposed Rule Change

    The Exchange proposes to codify in its fee schedule the CHX's 
collection of SEC transaction fees assessed pursuant

[[Page 12262]]

to Section 31 of the Act,\1\ as authorized by CHX Article XV, Rule 4.
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    \1\ 15 U.S.C. 78ee.
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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 statement 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
    Congress recently enacted the National Securities Markets 
Improvement Act of 1996 (``Improvement Act'') and the Omnibus 
Consolidated Appropriations Act for Fiscal Year 1997 (``Appropriations 
Act''), which together require national securities associations to pay 
SEC transaction fees for transactions in certain OTC securities.
    As a result of the Improvement Act and Appropriations Act, the SEC 
has amended Rule 31-1 \2\ to eliminate the current exemption from SEC 
transaction fees for transactions in OTC securities occurring on the 
CHX (as a national securities exchange) that are either listed on the 
CHX or are traded on the CHX pursuant to unlisted trading privileges 
(``OTC/UTP Securities''). Thus, effective January 1, 1997, the CHX is 
required to pay to the Commission a transaction fee for sales of OTC/
UTP Securities transacted on the CHX.\3\ Additionally, pursuant to the 
Improvement Act, effective October 1, 1997, these fees, as well as the 
traditional SEC transaction fees on exchange-registered securities that 
are not OTC/UTP Securities, will become payable to the SEC twice a 
year, as opposed to once a year as required by existing Section 31 of 
the Act.
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    \2\ 17 CFR 240.31-1.
    \3\ See Securities Exchange Act Release No. 38073 (December 23, 
1996), 61 FR 68590 (December 30, 1996).
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    The purpose of the proposed rule change is to codify the imposition 
of SEC transaction fees in the Exchange's fee schedule.
2. Statutory Basis
    The CHX believes that the proposed rule change is consistent with 
Section 6(b)(4) of the Act \4\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and issuers and persons using its facilities.
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    \4\ 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

    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 rule change establishes 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 and subparagraph (e) of Rule 
19b-4 thereunder. At any time within 60 days of the filing of such 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. Persons making written submission 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 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 in the 
Commission's Public Reference Room, 450 Fifth Street, N.W., Washington 
D.C. Copies of such filing also will be available for inspection and 
copying at the Exchange. All submissions should refer to file number 
SR-CHX-97-04 and should be submitted by April 4, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-6419 Filed 3-13-97; 8:45 am]
BILLING CODE 8010-01-M