[Federal Register Volume 66, Number 28 (Friday, February 9, 2001)]
[Notices]
[Pages 9734-9735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3363]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43924; File No. SR-CHX-01-04]


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

February 5, 2001.
    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 January 30, 2001, 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 
Exchange has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the CHX under Section 
19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit

[[Page 9735]]

comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to amend its membership dues and fees 
schedule (the ``Schedule''), retroactive to January 1, 2001, to 
reinstate a monthly cap on transaction fees of $.40 per 100 average 
monthly gross round lot shares. The text of the proposed rule change is 
below. Proposed new language is in italics.

Membership Dues and Fees

* * * * *
F. Transaction and Order Processing Fees
4. Transaction Fees
    a.-g. No change to text.
    h. Effective January 1, 2001, monthly maximums for fees:
    (1) Maximum monthly transaction fees for orders sent via MAX: 
$7,000;
    (2) Maximum monthly transaction fee for transactions in NASDAQ/NMS 
Securities: $110,000;
    (3) Maximum monthly transaction fee for transactions in Dual 
Trading System Securities: $110,000;
    (4) Maximum monthly transaction fees shall not exceed the lesser of 
that specified in (1), (2) or (3) above, or $.40 per 100 average 
monthly gross round lot shares.
* * * * *

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 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 Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organizations's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On December 18, 2000, the Exchange filed a proposed rule change to 
amend the Schedule in several ways.\4\ Among other things, the proposal 
made changes to the CHX's transaction fee structure by: (a) Setting a 
flat per share fee, instead of a graduated fee based on the number of 
shares traded, for agency transactions in certain securities that are 
executed through a floor broker; (b) raising the current caps on 
transaction fees paid by member firms; and (c) reorganizing the 
Schedule to include all of its transaction fees in the same place.
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    \4\ See Securities Exchange Act Release No. 43778 (December 28, 
2000), 66 FR 1164 (January 5, 2001) (SR-CHX-00-38).
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    In the course of making these changes, the Exchange inadvertently 
omitted one of the monthly caps on transaction fees. The Exchange has 
instituted several fee caps, including dollar-valued caps on 
transactions sent through the CHX's MAX system and on transactions in 
both Nasdaq/NMS and Dual Trading System securities.\5\ The cap to be 
reinstated through this proposal provides an additional ceiling on 
those fees by ensuring that a member's maximum monthly transaction fees 
will not exceed $.40 per 100 average monthly gross round lot shares, if 
this calculation results in a lower fee payment.
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    \5\ Dual Trading System securities are listed on the New York 
Stock Exchange or the American Stock Exchange and traded on the CHX.
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2. Statutory Basis
    The Exchange believes 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.
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    \6\ 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.

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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\8\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate such 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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 will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to file number SR-CHX-01-04, and should be 
submitted by March 2, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-3363 Filed 2-8-01; 8:45 am]
BILLING CODE 8010-01-M