Document ID: SEC-2009-0980-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Adding the Voluntary De-Registration Rule
Posted Date: 2009-07-16T04:00Z

[Federal Register: July 16, 2009 (Volume 74, Number 135)]
[Notices]               
[Page 34604-34606]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy09-85]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60268; File No. SR-CHX-2009-06]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Adding the Voluntary De-Registration Rule

July 9, 2009.

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on July 7, 2009, the Chicago Stock Exchange, Inc. (``CHX'' or the 
``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 the CHX. CHX has filed this 
proposal pursuant to Exchange Act Rule 19b-4(f)(6) \3\ and requests 
that the Commission waive the 30-day pre-operative waiting period 
contained in Exchange Act Rule 19b-4(f)(6)(iii).\4\ If such waiver is 
granted by the Commission, this rule proposal, which is effective upon 
filing with the Commission, shall become immediately operative.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).

---------------------------------------------------------------------------

[[Page 34605]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CHX proposes to amend its rules to add a rule to Article 17 
(governing CHX-registered Institutional Brokers) to notify the Exchange 
when they seek to voluntarily deregister as an Institutional Broker. 
The text of this proposed rule change is available on the Exchange's 
Web site at (http://www.chx.com) 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 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
    The Exchange is proposing to add a rule to Article 17, which 
governs the rights and obligations of Participant firms registered with 
the Exchange as Institutional Brokers (``Institutional Brokers''). 
Institutional Brokers utilize a trading platform provided for them by 
the Exchange and are entitled to certain rebates and credits under the 
Exchange's fee schedule. The proposed addition would require that an 
Institutional Broker notify the Exchange of its intent to voluntarily 
deregister as an Institutional Broker by completing the proper form and 
submitting it to the Exchange. Such notification would ensure that 
these Participants would not have unwarranted access to Exchange 
trading technologies and were being billed in an appropriate manner if 
they continue to operate as an Exchange Participant in a non-
Institutional Broker capacity (e.g., as an order sending firm).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act in general,\5\ and furthers the objectives 
of Section 6(b)(5) in particular,\6\ in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transaction in 
securities, to remove impediments and perfect the mechanisms of a free 
and open market, and, in general, to protect investors and the public 
interest by allowing CHX to add a rule to Article 17 (governing CHX-
registered Institutional Brokers) to notify the Exchange they seek to 
voluntarily deregister as an Institutional Broker by completing the 
proper form and submitting it to the Exchange. Such notification would 
ensure that these Participants would not have unwarranted access to 
Exchange trading technologies and were being billed in an appropriate 
manner if they continue to operate as an Exchange Participant in a non-
Institutional Broker capacity (e.g., as an order sending firm).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 either solicited or received.

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

    Because the foregoing proposed rule change does not: (1) 
Significantly affect the protection of investors or the public 
interest; (2) impose any significant burden on competition; and (3) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). When filing a proposed rule change 
pursuant to Rule 19b-4(f)(6) under the Act, an Exchange is required 
to give the Commission written notice of its intent to file the 
proposed rule change, along with a brief description and text of the 
proposed rule change, at least five business days prior to the date 
of filing of the proposed rule change, or such shorter time as 
designated by the Commission. The Exchange met this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing.\9\ 
However, Rule 19b-4(f)(6) \10\ permits the Commission to designate a 
shorter time if such action is consistent with the protection of 
investors and the public interest. CHX has requested that the 
Commission waive the 30-day operative delay. The Exchange notes that no 
rule currently requires that a Participant firm notify the Exchange of 
its intent to voluntarily de-register as an Institutional Broker. The 
Exchange believes that it is important to establish such a requirement 
as soon as practicable to prevent unwarranted access to Exchange 
trading technologies. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because it should further the Exchange's ability to 
determine who no longer should have access the Exchange's trading 
technologies. For this reason, the Commission designates the proposal 
to be operative upon filing with the Commission.\11\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ Id.
    \11\ For the purposes only of waiving the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 the 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-2009-06 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-2009-06. This file 
number should be included on the subject line if e-mail is used. To 
help the

[[Page 34606]]

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, 100 F Street, NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. Copies of the 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-2009-06 and should be submitted on 
or before August 6, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16860 Filed 7-15-09; 8:45 am]

BILLING CODE 8010-01-P