Document ID: SEC-2011-1012-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2011-07-15T04:00Z

[Federal Register Volume 76, Number 136 (Friday, July 15, 2011)]
[Notices]
[Pages 41853-41854]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17793]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64850; File No. SR-CHX-2011-16]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Alter Its Fee Schedule To Increase its SRO, DEA and Off-Exchange Trader 
Fees

July 11, 2011.
    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 30, 2011, 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 prepared by the Exchange. 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 Substance 
of the Proposed Rule Change

    The CHX proposes to amend its Schedule of Participant Fees and 
Assessments (the ``Fee Schedule''), effective July 1, 2011, to alter 
its schedule of fees for Participants relating to its SRO, Off-Exchange 
trader and DEA fees. 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 Change

1. Purpose
    Through this filing, the Exchange proposes to amend its Schedule of 
Participant Fees and Assessments (the ``Fee Schedule''), effective July 
1, 2011, to amend its existing SRO, Off-Exchange trader and DEA fees. 
These fee changes are being proposed in response to the increased 
importance and expense of the Exchange's regulatory efforts and 
competitive pricing pressures.
    The Exchange proposes to increase both its SRO and DEA fees to 
reflect increased current and planned expenses related to the 
Exchange's regulatory responsibilities. Currently, the Exchange's SRO 
fee is $500 per month for each Participant firm and its DEA fee is $800 
per month for each firm for which the Exchange is its DEA. Through this 
filing, the Exchange proposes increasing the SRO fee to $600 per month 
for each Participant firm and the DEA fee to $1,000 per month.
    Additionally, the Exchange currently charges each off-Exchange 
Participant firm, that is solely involved in proprietary securities 
trading and for which the CHX is DEA, a $500 annual fee for each 
trader. Through this filing, the Exchange proposes to amend its Fee 
Schedule to allow off-Exchange Participant firms to register two 
traders at no charge while capping the total annual trader fees payable 
by each off-Exchange Participant firm at $70,000. The Exchange is 
proposing this

[[Page 41854]]

amendment to lower total registration fees for off-Exchange traders to 
respond to competitive pressures. The Exchange believes that these 
changes will further encourage firms of all sizes to utilize its 
facilities and services.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \5\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \6\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and other persons using any facility or 
system which the Exchange operates or controls. Among other things, 
these changes to the fee schedule would equitably allocate fees among 
Participants by increasing fees overall to reflect higher regulatory 
costs among all Participants as well as allocating the increased costs 
associated with the Exchange's DEA service among those Participants 
which utilize the service. In addition, the proposed changes to the 
Off-Exchange trader registration fee will allow the Exchange to respond 
to competitive pressures by lowering trader fees for all off-Exchange 
proprietary trading firms for which CHX is DEA while encouraging firms 
of all sizes to utilize the Exchange's facilities and services.\7\
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ See email from James G. Ongena, Vice President and Associate 
General Counsel, Exchange, to Christopher W. Chow, Special Counsel, 
Commission, dated July 8, 2011.
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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 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 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 to the Exchange's members and non-members, which 
renders the proposed rule change effective upon filing.
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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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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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.

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-2011-16 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-2011-16. 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 website 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 will also 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 available publicly. All 
submissions should refer to File No. SR-CHX-2011-16 and should be 
submitted on or before August 5, 2011.

    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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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17793 Filed 7-14-11; 8:45 am]
BILLING CODE 8011-01-P