Document ID: SEC-2006-0986-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2006-08-02T04:00Z

[Federal Register: August 2, 2006 (Volume 71, Number 148)]
[Notices]               
[Page 43828-43829]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au06-126]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No.34-54222; File No. SR-CHX-2006-21]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Participant Fees and Credits

July 26, 2006.
    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 July 11, 2006, 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 and 
II below, which Items have been prepared by CHX. The Exchange filed the 
proposal pursuant to Section 19(b)(3)(A)(iii) 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)(iii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CHX proposes to amend its Participant Fee Schedule (the ``Fee 
Schedule'') to clarify monthly applicability of the Exchange's Self-
Regulatory Organization Fee (``SRO Fee''). The text of this proposed 
rule change is available on the Exchange's Web site at (http://www.chx.com/rules/
 proposed--rules.htm), at the principal office of the 

Exchange, 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, CHX included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received regarding the proposed rule change. 
The text of these statements may be examined at the places specified in 
Item IV below. 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
    Through this proposal, the Exchange seeks to clarify monthly 
applicability of the Exchange's SRO Fee. The Exchange's Fee Schedule 
has for many years contained a provision establishing an SRO Fee of 
$100. Prior to the Exchange's demutualization in February of 2005, this 
provision of the Fee Schedule indicated that the SRO Fee was ``$100 per 
member and member organization per month.''
    In connection with the demutualization rule changes, this provision 
was modified to delete the ``per month'' reference. Despite the 
deletion of the ``per month'' reference, the Exchange did not intend to 
modify its long-standing practice of assessing the SRO Fee on a monthly 
basis. Indeed, since the provision was modified in February of 2005, 
the Exchange has consistently billed each CHX participant for the $100 
SRO Fee on a monthly basis and the Exchange intends to continue this 
monthly assessment. To eliminate any confusion, however, the Exchange 
is submitting this proposed rule change to the Fee Schedule to 
reincorporate the ``per month'' language.
2. Statutory Basis
    CHX believes that the proposed rule change is consistent with the 
provisions of Section 6(b)(4) of the Act \5\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among its members.
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    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CHX does not believe that the proposed rule change will result in 
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 on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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

    The foregoing proposed rule change establishes or changes a due, 
fee or other charge imposed by the Exchange and therefore has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(2) thereunder.\7\ At any time within 60 days of the filing of such 
proposed rule change, the Commission may summarily abrogate such 
proposed 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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 No. SR-CHX-2006-21 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-2006-21. 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

[[Page 43829]]

Room. Copies of such filing also will be available for inspection and 
copying at the principal office of 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-2006-21 and should be submitted on 
or before August 23, 2006.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-12428 Filed 8-1-06; 8:45 am]

BILLING CODE 8010-01-P