Document ID: SEC-2005-0101-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2005-10-12T04:00Z

[Federal Register: October 12, 2005 (Volume 70, Number 196)]
[Notices]               
[Page 59384-59385]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc05-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52556; File No. SR-CHX-2005-20]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to Participant 
Fees and Credits

October 4, 2005.
    On July 17, 2005, the Chicago Stock Exchange, Inc. (``CHX'') 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 amend its 
Participant Fee Schedule to eliminate, retroactive to January 1, 2005, 
the assignment fees for listed securities that were assigned to a 
specialist when

[[Page 59385]]

other firms were not competing for the assignment. Such assignment fees 
have already been eliminated for securities assigned on or after May 2, 
2005.\3\ The proposed rule change would eliminate such fees for 
assignments made during the period from January 1, 2005 through May 1, 
2005, thus eliminating assignment fees for securities assigned without 
competition for all of 2005.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 51763 (May 31, 
2005), 70 FR 33230 (June 7, 2005).
    \4\ CHX has represented that these assignment fees have already 
been assessed and paid, and thus CHX would rebate such fees upon 
Commission approval of the proposed rule change. Telephone 
conversation between Leah Mesfin, Special Counsel, Division of 
Market Regulation, Commission, and Kathleen M. Boege, Vice President 
& Associate General Counsel, CHX, on September 26, 2005.
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    The proposed rule change was published for comment in the Federal 
Register on August 9, 2005.\5\ The Commission received no comments on 
the proposal.
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    \5\ See Securities Exchange Act Release No. 52200 (August 3, 
2005), 70 FR 46238.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \6\ and, in 
particular, the requirements of section 6 of the Act.\7\ The Commission 
finds specifically that the proposed rule change is consistent with 
section 6(b)(4) of the Act \8\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its 
members. The Commission notes that assignment fees for securities 
assigned without competition have already been eliminated for all such 
assignments effective on or after May 2, 2005. The Commission further 
notes that the elimination of the assignment fee on a retroactive basis 
would be for the period January 1, 2005 through May 1, 2005. Thus, the 
elimination of this fee would be applied evenhandedly during the 
current year. Therefore, the Commission believes that the proposed rule 
change is consistent with the Act.
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    \6\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-CHX-2005-20) be, and 
it hereby is approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
 [FR Doc. E5-5582 Filed 10-11-05; 8:45 am]

BILLING CODE 8010-01-P