Document ID: SEC-2010-0832-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago StockExchange, Inc.
Posted Date: 2010-06-09T04:00Z

[Federal Register: June 9, 2010 (Volume 75, Number 110)]
[Notices]               
[Page 32831-32832]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jn10-119]                         

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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.
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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).
    \4\ 17 CFR 240.19b-4(f)(2).
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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.
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    \5\ The 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.
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    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.
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    \6\ 15 U.S.C. 78f.
    \7\ 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 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.

[[Page 32832]]

Accordingly, the proposal is effective upon Commission receipt of the 
filing. 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 purpose of the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 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 rule-comments@sec.gov. Please include 
File Number SR-CHX-2010-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2010-11. 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 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-CHX-2010-11 and should be 
submitted on or before June 30, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-13828 Filed 6-8-10; 8:45 am]
BILLING CODE 8010-01-P