Document ID: SEC-2007-0557-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2007-04-17T04:00Z

[Federal Register: April 17, 2007 (Volume 72, Number 73)]
[Notices]               
[Page 19222-19223]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ap07-86]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55613; File No. SR-CHX-2007-11]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Participant Fees and Credits

April 10, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 22, 2007, the Chicago Stock Exchange, Inc. (``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 substantially prepared by the CHX. 
On April 10, 2007, the CHX filed Amendment No. 1 to the proposed rule 
change. The Commission is publishing this notice to solicit comments on 
the proposed rule change, as amended, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CHX proposes to amend its Schedule of Participant Fees and 
Credits (the ``Fee Schedule'') to remove provisions that are no longer 
in effect due to the roll-out of the Exchange's new trading model. The 
text of this proposed rule change is available at the CHX, on the 
Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm, 

and in the Commission's Public Reference Room.

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 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 Change

1. Purpose
    On January 26, 2007, the CHX completed the transition to its new 
trading model.\3\ The Exchange now proposes to amend its Fee Schedule 
to delete several provisions that are no longer in effect as a result 
of that transition. The provisions of the Fee Schedule that would be 
deleted through this filing include: (1) Section E(8) (Transaction and 
Order Processing Fees Associated with Securities Not Yet Traded in the 
Matching System); (2) Parts of Section F(2) (Institutional Broker 
Credits); (3) Section F(4) (Two-Sided Quote Providers); (4) Section L 
(Space Charges); and (5) Section M (Equipment, Information Services and 
Technology Charges). Each of these provisions currently contains an 
introductory note confirming that it is only in effect until the 
transition to the new trading model or contains an effective date that 
has been exceeded.\4\ Because of the transition to the new trading 
model, these fees are no longer in effect for the Exchange's 
participants.\5\
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    \3\ See Securities Exchange Act Release No. 54550 (September 29, 
2006); 71 FR 59563 (October 10, 2006) (SR-CHX-2006-05) (approving 
rules for the new trading model).
    \4\ See, e.g., Section E(8) of the Fee Schedule (confirming that 
``these fees will continue to be charged as the Exchange transitions 
to its new trading model, but will be eliminated as each issue 
transitions to the new trading model''); see also Section F(4) of 
the Fee Schedule (noting that it is in effect through October 31, 
2006).
    \5\ For example, an additional network/connectivity fee credit 
was available to institutional brokers until the completion of the 
new trading model rollout. See Section F(2) of the Fee Schedule. 
Similarly, with the transition to the new trading model, the CHX no 
longer operates a physical trading floor; as a result, the space and 
equipment charges are no longer charged to participants pursuant to 
the Fee Schedule, but are instead part of separate agreements 
between the Exchange and any firms that sublease space on the 
Exchange's former trading floor. See Sections L and M of the Fee 
Schedule.

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[[Page 19223]]

2. Statutory Basis

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 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 either solicited or received.

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

    Because the foregoing proposed rule change establishes or changes a 
member due, fee or other charge imposed by the Exchange, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and 
subparagraph (f)(2) of Rule 19b-4 thereunder.\8\ At any time within 60 
days of the filing of such 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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
    \9\ For purposes of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers the period 
to commence on April 10, 2007, the date on which the CHX filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
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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-2007-11 on the subject line.

Paper comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2007-11. 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 inspection and 
copying in the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the CHX. 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 available publicly. All submissions should refer to 
File Number SR-CHX-2007-11 and should be submitted on or before May 8, 
2007.

    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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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-7223 Filed 4-16-07; 8:45 am]

BILLING CODE 8010-01-P