Document ID: SEC-2006-1267-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2006-10-02T04:00Z

[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]               
[Page 58025]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc06-134]                         

[[Page 58025]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54495; File No. SR-CHX-2006-27]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Approving Proposed Rule Change Relating to Retroactive 
Application of Participant Fees and Credits

September 25, 2006.
    On August 10, 2006, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') 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 make retroactive to February 9, 2005, the 
trading permit fee due to the Exchange if a CHX participant's trading 
permit is cancelled intra-year. The proposed rule change was published 
for comment in the Federal Register on August 23, 2006.\3\ The 
Commission received no comments regarding the proposal.
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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. 54323 (August 16, 
2003), 71 FR 49495.
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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.\4\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\5\ which requires that the 
rules of an exchange provide for the equitable allocation or reasonable 
dues, fees and other charges among its members and other persons using 
its facilities.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b)(4).
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    The proposal to permit CHX participants to pay the Exchange the 
lesser of $2,000 or the remaining balance of the annual trading permit 
fee if cancelled intra-year originally became effective on October 24, 
2005.\6\ The Exchange intended but did not request retroactive 
application of this amended Fee Schedule when the rule change was 
originally filed with the Commission. The Exchange believes that CHX 
participants who terminated their permits intra-year are entitled to a 
refund. Further, the Exchange has been reserving funds for such 
remuneration. The Commission therefore finds that it is appropriate to 
make retroactive to February 9, 2005, the Fee Schedule change as 
described above.
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    \6\  See Securities Exchange Act Release No. 52815 (November 21, 
2005), 70 FR 71572 (November 29, 2005) (SR-CHX-2005-31).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-CHX-2006-27) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
Nancy M. Morris,
Secretary.
[FR Doc. E6-16114 Filed 9-29-06; 8:45 am]

BILLING CODE 8010-01-P