32828 Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Notices 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 240.19b–4(f)(2). 

16 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. 61954 

(April 21, 2010), 75 FR 22663 (‘‘Notice’’). 

4Commentary .02 to NYSE Arca Equities Rule 

8.200 applies to Trust Issued Receipts that invest 

in ‘‘Financial Instruments.’’ The term ‘‘Financial 

Instruments,’’ as defined in Commentary .02(b)(4) to 

NYSE Arca Equities Rule 8.200, means any 

combination of investments, including cash; 

securities; options on securities and indices; futures 

contracts; options on futures contracts; forward 

contracts; equity caps, collars and floors; and swap 

agreements. 

5See Amendment No. 3 to the Registration 

Statement on Form S–1 for the Trust, dated March 

29, 2010 (File No. 333–162033) (‘‘Registration 

Statement’’). 

6Corn Futures Contracts traded on CBOT expire 

on a specified day in five different months: March, 

May, July, September, and December. In terms of 

the Benchmark, in June of a given year, the nextto-expire or ‘‘spot month’’ Corn Futures Contract 

will expire in July of that year, and the Benchmark 

Component Futures Contracts will be the contracts 

expiring in September of that year (the second-toexpire contract), December of that year (the thirdto-expire contract), and December of the following 

year. In November of a given year, the Benchmark 

Component Futures Contracts will be the contracts 

expiring in March, May, and December of the 

following year. 

7Corn futures volume on CBOT for 2008 and 

2009 (through November 30, 2009) was 59,934,739 

contracts and 47,754,866 contracts, respectively. As 

of March 16, 2010, CBOT open interest for corn 

futures was 1,118,103 contracts, and open interest 

for near-month futures was 447,554 contracts. The 

19(b)(3)(A)(ii) of the Act 14 and 

paragraph (f)(2) of Rule 19b–4 15

thereunder. 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 

Number SR–Phlx–2010–73 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2010–73. 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 Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such 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 

publicly available. All submissions 

should refer to File Number SR–Phlx– 

2010–73 and should be submitted on or 

before June 30, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–13827 Filed 6–8–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62213; File No. SR– 

NYSEArca–2010–22] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

Proposed Rule Change Relating to 

Listing of the Teucrium Corn Fund 

June 3, 2010. 

I. Introduction 

On March 31, 2010, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares of the 

Teucrium Corn Fund under NYSE Arca 

Equities Rule 8.200. The proposed rule 

change was published for comment in 

the Federal Register on April 29, 2010.3

The Commission received no comments 

on the proposal. This order grants 

approval of the proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) of the Teucrium 

Corn Fund (‘‘Fund’’) pursuant to NYSE 

Arca Equities Rule 8.200. NYSE Arca 

Equities Rule 8.200, Commentary .02, 

permits the trading of Trust Issued 

Receipts either by listing or pursuant to 

unlisted trading privileges.4

The Shares represent beneficial 

ownership interests in the Fund, which 

is a commodity pool that is a series of 

the Teucrium Commodity Trust 

(‘‘Trust’’), a Delaware statutory trust.5

The Fund is managed and controlled by 

Teucrium Trading, LLC (‘‘Sponsor’’). 

The Sponsor is a Delaware limited 

liability company that is registered as a 

commodity pool operator with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and is a member 

of the National Futures Association. 

The investment objective of the Fund 

is to have the daily changes in 

percentage terms of the Fund’s net asset 

value (‘‘NAV’’) per Share reflect the 

daily changes in percentage terms of a 

weighted average of the closing 

settlement prices for three futures 

contracts for corn (‘‘Corn Futures 

Contracts’’) that are traded on the 

Chicago Board of Trade (‘‘CBOT’’): (1) 

The second-to-expire CBOT Corn 

Futures Contract, weighted 35%; (2) the 

third-to-expire CBOT Corn Futures 

Contract, weighted 30%; and (3) the 

CBOT Corn Futures Contract expiring in 

the December following the expiration 

month of the third-to-expire contract, 

weighted 35%, less the Fund’s 

expenses. This weighted average of the 

three referenced Corn Futures Contracts 

is referred to herein as the ‘‘Benchmark,’’ 

and the three Corn Futures Contracts 

that at any given time make up the 

Benchmark are referred to herein as the 

‘‘Benchmark Component Futures 

Contracts.’’ 6

The Fund seeks to achieve its 

investment objective by investing under 

normal market conditions in Benchmark 

Component Futures Contracts or, in 

certain circumstances, in other Corn 

Futures Contracts traded on CBOT or on 

foreign exchanges.7 In addition, and to 


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Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Notices 32829 

contract price was $18,337.50 ($3.6675 per bushel 

and 5,000 bushels per contract). The approximate 

value of all outstanding contracts was $20.5 billion. 

The position limits for all months is 22,000 

contracts, and the total value of contracts if position 

limits were reached would be approximately $403.5 

million (based on the $18,337.50 contract price). As 

of March 16, 2010, open interest in corn swaps 

cleared on CBOT was approximately 2,100 

contracts, with an approximate value of $38.5 

million. Corn futures and options are also traded on 

NYSE Liffe, and corn futures are traded on the 

Tokyo Grain Exchange. 

8See infra note 21. 

9The Sponsor represents that the Fund will 

invest in Corn Interests in a manner consistent with 

the Fund’s investment objective and not to achieve 

additional leverage. 

10 17 CFR 240.10A–3. 

11 17 CFR 240.10A–3(c)(7). 

a limited extent, the Fund also may 

invest in corn-based swap agreements 

that are cleared through CBOT or its 

affiliated provider of clearing services 

(‘‘Cleared Corn Swaps’’) in furtherance 

of the Fund’s investment objective. 

Once position limits in Corn Futures 

Contracts are applicable,8 the Fund’s 

intention is to invest first in Cleared 

Corn Swaps to the extent permitted by 

the position limits applicable to Cleared 

Corn Swaps and appropriate in light of 

the liquidity in the Cleared Corn Swap 

market, and then in contracts and 

instruments such as cash-settled options 

on Corn Futures Contracts and forward 

contracts, swaps other than Cleared 

Corn Swaps, and other over-the-counter 

transactions that are based on the price 

of corn and Corn Futures Contracts 

(collectively, ‘‘Other Corn Interests,’’ and 

together with Corn Futures Contracts 

and Cleared Corn Swaps, ‘‘Corn 

Interests’’). By utilizing certain or all of 

these investments, the Sponsor will 

endeavor to cause the Fund’s 

performance, before taking Fund 

expenses and any interest income from 

the cash, cash equivalents, and Treasury 

Securities (as defined herein) held by 

the Fund into account, to closely track 

that of the Benchmark. 

The Fund’s positions in Corn Interests 

will be changed, or ‘‘rolled,’’ on a regular 

basis in order to track the changing 

nature of the Benchmark. For example, 

five times a year (on the date on which 

a Corn Futures Contract expires), the 

second-to-expire Corn Futures Contract 

will become the next-to-expire Corn 

Futures Contract and will no longer be 

a Benchmark Component Futures 

Contract, and the Fund’s investments 

will have to be changed accordingly. In 

order that the Fund’s trading does not 

cause unwanted market movements and 

to make it more difficult for third parties 

to profit by trading based on such 

expected market movements, the Fund’s 

investments typically will not be rolled 

entirely on that day, but rather will 

typically be rolled over a period of 

several days. 

The Fund will invest in Corn Interests 

to the fullest extent possible without 

being leveraged or unable to satisfy its 

expected current or potential margin or 

collateral obligations with respect to its 

investments in Corn Interests.9 After 

fulfilling such margin and collateral 

requirements, the Fund will invest the 

remainder of its proceeds from the sale 

of baskets in short-term obligations of 

the United States government (‘‘Treasury 

Securities’’) or cash equivalents, and/or 

merely hold such assets in cash 

(generally in interest-bearing accounts). 

Therefore, the focus of the Sponsor in 

managing the Fund is investing in Corn 

Interests and in Treasury Securities, 

cash, and/or cash equivalents. The Fund 

will earn interest income from the 

Treasury Securities and/or cash 

equivalents that it purchases and on the 

cash it holds through the Fund’s 

custodian, the Bank of New York 

Mellon. 

The Sponsor will employ a ‘‘neutral’’ 

investment strategy intended to track 

the changes in the Benchmark 

regardless of whether the Benchmark 

goes up or goes down and will endeavor 

to place the Fund’s trades in Corn 

Interests and otherwise manage the 

Fund’s investments so that the Fund’s 

average daily tracking error against the 

Benchmark will be less than 10 percent 

over any period of 30 trading days. More 

specifically, the Sponsor will endeavor 

to manage the Fund so that A will be 

within plus/minus 10 percent of B, 

where A is the average daily change in 

the Fund’s NAV for any period of 30 

successive valuation days, i.e., any 

trading day as of which the Fund 

calculates its NAV, and B is the average 

daily change in the Benchmark over the 

same period. 

The Sponsor believes that market 

arbitrage opportunities will cause the 

Fund’s Share price on the NYSE Arca to 

closely track the Fund’s NAV per share 

and that the net effect of this expected 

relationship and the expected 

relationship between the Fund’s NAV 

and the Benchmark will be that the 

changes in the price of the Fund’s 

Shares on NYSE Arca will closely track, 

in percentage terms, changes in the 

Benchmark, less the Fund’s expenses. 

The CFTC and U.S. designated 

contract markets such as CBOT may 

establish position limits on the 

maximum net long or net short futures 

contracts in commodity interests that 

any person or group of persons under 

common trading control (other than as 

a hedge) may hold, own, or control. For 

example, the current position limits for 

investments at any one time in the Corn 

Futures Contracts traded on CBOT are 

600 spot month contracts, 13,500 

contracts expiring in any other single 

month, and 22,000 total for all months. 

These position limits are fixed ceilings 

that the Fund would not be able to 

exceed without specific CFTC 

authorization. 

In addition to position limits, the 

futures exchanges set daily price 

fluctuation limits on futures contracts. 

The daily price fluctuation limit 

establishes the maximum amount that 

the price of futures contracts may vary 

either up or down from the previous 

day’s settlement price. Once the daily 

price fluctuation limit has been reached 

in a particular futures contract, no 

trades may be made at a price beyond 

that limit. 

The Fund does not intend to limit the 

size of the offering and will attempt to 

utilize substantially all of its proceeds to 

purchase Corn Interests. If the Fund 

encounters position limits, 

accountability levels, or price 

fluctuation limits for Corn Futures 

Contracts on CBOT, it may then, if 

permitted under applicable regulatory 

requirements, purchase Other Corn 

Interests and/or Corn Futures Contracts 

listed on foreign exchanges. The Corn 

Futures Contracts available on such 

foreign exchanges may have different 

underlying sizes, deliveries, and prices. 

In addition, the Corn Futures Contracts 

available on these exchanges may be 

subject to their own position limits and 

accountability levels. In certain 

circumstances, however, position limits 

could force the Fund to limit the 

number of creation baskets that it sells. 

The Exchange represents that the 

Fund will meet the initial and 

continued listing requirements 

applicable to Trust Issued Receipts in 

NYSE Arca Equities Rule 8.200 and 

Commentary .02 thereto. With respect to 

application of Rule 10A–3 under the 

Act,10 the Trust will rely on the 

exception contained in Rule 10A– 

3(c)(7).11 A minimum of 100,000 Shares 

will be outstanding as of the start of 

trading on the Exchange. 

Additional details regarding the 

trading policies of the Fund, creations 

and redemptions of the Shares, Corn 

Interests and other aspects of the corn 

and Corn Interest markets, investment 

risks, Benchmark performance, NAV 

calculation, the dissemination and 

availability of information about the 

underlying assets, trading halts, 

applicable trading rules, surveillance, 

and the Information Bulletin, among 

other things, can be found in the Notice 


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32830 Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Notices 

12See supra notes 3 and 5. 

13 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

14 15 U.S.C. 78f(b)(5). 

15 15 U.S.C. 78k–1(a)(1)(C)(iii). 

16The normal trading hours for Corn Futures 

Contracts on CBOT are 10:30 a.m. to 2:15 p.m. E.T. 

The ITV will not be updated, and, therefore, a static 

ITV will be disseminated, between the close of 

trading on CBOT of Corn Futures Contracts and the 

close of the NYSE Arca Core Trading Session. The 

value of a Share may be influenced by nonconcurrent trading hours between NYSE Arca and 

CBOT when the Shares are traded on NYSE Arca 

after normal trading hours of Corn Futures 

Contracts on CBOT. 

17See supra note 4. 

18See NYSE Arca Equities Rule 1.1(n) (defining 

ETP Holder). 

19See NYSE Arca Equities Rule 1.1(u) (defining 

Market Maker). 

and/or the Registration Statement, as 

applicable.12

III. Discussion and Commission’s 

Findings 

After careful consideration, the 

Commission finds that the proposed 

rule change to list and trade the Shares 

of the Fund is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.13 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with the requirements of Section 6(b)(5) 

of the Act,14 which requires, among 

other things, that the Exchange’s rules 

be designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

The Commission finds that the 

proposal to list and trade the Shares on 

the Exchange is also consistent with 

Section 11A(a)(1)(C)(iii) of the Act,15

which sets forth Congress’ finding that 

it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets to assure the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for, and transactions in, 

securities. Quotation and last-sale 

information regarding the Shares will be 

disseminated through the facilities of 

the Consolidated Tape Association 

(‘‘CTA’’), and the Benchmark will be 

disseminated by one or more major 

market data vendors every 15 seconds 

during the NYSE Arca Core Trading 

Session of 9:30 a.m. to 4 p.m. Eastern 

Time (‘‘E.T.’’). In addition, the Indicative 

Trust Value (‘‘ITV’’) will be 

disseminated on a per-Share basis by 

one or more major market data vendors 

every 15 seconds during the NYSE Arca 

Core Trading Session.16 The Fund will 

provide Web site disclosure of portfolio 

holdings daily and will include, as 

applicable, the names, quantity, price, 

and market value of Financial 

Instruments 17 and the characteristics of 

such instruments and cash equivalents, 

and amount of cash held in the portfolio 

of the Fund. The closing price and 

settlement prices of the Corn Futures 

Contracts are readily available from 

CBOT, automated quotation systems, 

published or other public sources, or 

on-line information services such as 

Bloomberg or Reuters, and the spot 

price of corn also is available on a 24- 

hour basis from major market data 

vendors. The NAV for the Fund will be 

calculated by the Administrator once a 

day and will be disseminated daily to 

all market participants at the same time, 

and the Web site for the Fund (http:// 

www.teucriumcornfund.com) and/or the 

Exchange will contain the prospectus 

and additional data relating to NAV and 

other applicable quantitative 

information. 

The Commission further believes that 

the proposal to list and trade the Shares 

is reasonably designed to promote fair 

disclosure of information that may be 

necessary to price the Shares 

appropriately and to prevent trading 

when a reasonable degree of 

transparency cannot be assured. If the 

Exchange becomes aware that the NAV 

with respect to the Shares is not 

disseminated to all market participants 

at the same time, it will halt trading in 

the Shares until such time as the NAV 

is available to all market participants. 

Further, the Exchange represents that it 

may halt trading during the day in 

which an interruption to the 

dissemination of the ITV or the value of 

the underlying futures contracts occurs. 

If the interruption to the dissemination 

of the ITV or the value of the underlying 

futures contracts persists past the 

trading day in which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. In addition, 

the Web site disclosure of the portfolio 

composition of the Fund will occur at 

the same time as the disclosure by the 

Sponsor of the portfolio composition to 

Authorized Purchasers (as defined in 

the Registration Statement) so that all 

market participants are provided 

portfolio composition information at the 

same time. Therefore, the same portfolio 

information will be provided on the 

public Web site as well as in electronic 

files provided to Authorized Purchasers. 

Accordingly, each investor will have 

access to the current portfolio 

composition of the Fund through the 

Fund’s Web site. Lastly, the trading of 

the Shares will be subject to NYSE Arca 

Equities Rule 8.200, Commentary .02(e), 

which sets forth certain restrictions on 

ETP Holders18 acting as registered 

Market Makers19 in Trust Issued 

Receipts to facilitate surveillance. 

The Exchange has represented that 

the Shares are deemed equity securities 

subject to the Exchange’s rules 

governing the trading of equity 

securities. In support of this proposal, 

the Exchange has made representations, 

including the following: 

(1) The Fund will meet the initial and 

continued listing requirements 

applicable to Trust Issued Receipts in 

NYSE Arca Equities Rule 8.200 and 

Commentary .02 thereto. 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) The Exchange’s surveillance 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules and 

applicable Federal securities laws. 

(4) With respect to Fund assets traded 

on exchanges, not more than 10% of the 

weight of such assets in the aggregate 

shall consist of components whose 

principal trading market is not a 

member of the Intermarket Surveillance 

Group or is a market with which the 

Exchange does not have a 

comprehensive surveillance sharing 

agreement. 

(5) Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Bulletin 

will discuss the following: (a) The risks 

involved in trading the Shares during 

the Opening and Late Trading Sessions 

when an updated ITV will not be 

calculated or publicly disseminated; (b) 

the procedures for purchases and 

redemptions of Shares (and that Shares 

are not individually redeemable); (c) 

NYSE Arca Equities Rule 9.2(a), which 

imposes a duty of due diligence on its 

ETP Holders to learn the essential facts 

relating to every customer prior to 

trading the Shares; (d) how information 

regarding the ITV is disseminated; (e) 

the requirement that ETP Holders 

deliver a prospectus to investors 

purchasing newly issued Shares prior to 

or concurrently with the confirmation of 


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Federal Register / Vol. 75, No. 110 / Wednesday, June 9, 2010 / Notices 32831 

20See supra notes 10 and 11 and accompanying 

text. 

21The Commission notes that it does not regulate 

the market for the futures in which the Fund plans 

to take positions, which is the responsibility of the 

CFTC. The CFTC has the authority to set limits on 

the positions that any person may take in futures 

on commodities. These limits may be directly set 

by the CFTC, or by the markets on which the 

futures are traded. The Commission has no role in 

establishing position limits on futures in 

commodities, even though such limits could impact 

a commodity-based exchange-traded product that is 

under the jurisdiction of the Commission. 

22 15 U.S.C. 78f(b)(2). 

23 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). 

4 17 CFR 240.19b–4(f)(2). 

5The DEA Examination Fee is assessed against 

those Participants for which the Exchange is the 

Designated Examining Authority pursuant to 

Section 17 of the Exchange Act and Rule 17d–1 

thereunder. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4) 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

a transaction; and (f) trading 

information. 

(6) A minimum of 100,000 Shares will 

be outstanding as of the start of trading 

on the Exchange. 

(7) With respect to the application of 

Rule 10A–3 under the Act, the Trust 

will rely on the exception contained in 

Rule 10A–3(c)(7).20

This approval order is based on the 

Exchange’s representations.21

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,22 that the 

proposed rule change (SR–NYSEArca– 

2010–22) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–13826 Filed 6–8–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62215; File No. SR–CHX– 

2010–11] 

Self-Regulatory Organizations; The 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Change 

Its Transaction Fees and Rebates to 

Exchange Participants for SRO Fees 

and DEA Examinations 

June 3, 2010. 

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 June 1, 

2010, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(2) 

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 the Substance 

of the Proposed Rule Change 

The CHX proposes to amend its 

Schedule of Participant Fees and 

Assessments (the ‘‘Fee Schedule’’), 

effective June 1, 2010, to change its 

transaction fees and rebates to Exchange 

Participants for SRO Fees and DEA 

Examinations. The text of this proposed 

rule change is available on the 

Exchange’s Web site at http:// 

www.chx.com/rules/proposed_rules.htm 

and in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549. 

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 changes and discussed 

any comments it received regarding the 

proposal. 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 

Chane 

1. Purpose 

Through this filing, the Exchange 

would amend its Fee Schedule to 

modify the fees charged to CHX 

Participants which are designed to 

offset, in part, the expenses associated 

with the Exchange’s performance of its 

regulatory oversight function. 

The Exchange proposes to increase its 

SRO Fee under Section B of the Fee 

Schedule from $250 per month to $500 

per month. The Exchange also proposes 

to reduce the DEA Examinations Fee 

under Section J.4. of the Fee Schedule 

from $1000 per month to $800 per 

month. Since the SRO Fee is charged to 

all Exchange Participants and the DEA 

Examinations Fee is only charged to a 

subset of Participants,5 the proposed 

changes should result in a net revenue 

increase. 

As part of a planned enhancement to 

its ongoing regulatory program, the 

Exchange plans on increasing its 

expenditures for surveillance and 

oversight in the near future. The 

proposed fee changes would provide 

additional revenue to fund such 

increases and also distribute those costs 

in a more even manner across all 

Participants, which the Exchange 

believes is fair and equitable. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 6 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 7 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members. Among other 

things, the change to the fee schedule 

would increase revenue to the Exchange 

to fund enhancements to its regulatory 

program and allocate costs more evenly 

across the entire population of 

Participants. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding 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 

The foregoing rule change has become 

effective pursuant to Section 

19(B)(3)(A)(ii) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 9 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 


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