Document ID: SEC-2006-1082-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2006-08-23T04:00Z

[Federal Register: August 23, 2006 (Volume 71, Number 163)]
[Notices]               
[Page 49495-49496]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23au06-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54323; File No. SR-CHX-2006-27]

 
 Self-Regulatory Organization; Chicago Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change Relating to Retroactive 
Application of Participant Fees and Credits

August 16, 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 August 10, 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, II, 
and III below, which Items have been prepared by the CHX. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CHX proposes to make effective, retroactive to February 9, 
2005, the trading permit fee due to the Exchange if a CHX participant's 
trading permit is cancelled intra-year.

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 Changes

1. Purpose
    The Exchange proposes to make effective, retroactive to February 9, 
2005, a change to the Fee Schedule relating to the trading permit fee 
due to the Exchange if a CHX participant's trading permit is cancelled 
intra-year. This change to the Fee Schedule originally became effective 
on October 24, 2005,\3\ and provided that for trading permits cancelled 
intra-year, the CHX participant shall pay the Exchange the lesser of 
$2,000 or the remaining balance of the annual trading permit fee. The 
Exchange believed that it was appropriate to amend the Fee Schedule to 
provide for some fee relief for CHX participants whose trading permits 
are cancelled intra-year. However, the Exchange also believed that it 
was necessary for the Exchange to have an adequate basis on which to 
budget and project annual revenues. Accordingly, the Exchange 
instituted the Fee Schedule change that it now seeks to make 
retroactive.
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    \3\ See Securities Exchange Act Release No. 52815 (November 21, 
2005), 70 FR 71572 (November 29, 2005) (SR-CHX-2005-31).
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    The Exchange believed that it had requested retroactive application 
of the Fee Schedule change at the same time that the change was 
originally filed with the Commission.\4\ It now appears that 
retroactive application was not requested at that juncture. The 
Exchange has, however, been reserving funds to be refunded to CHX 
participants once retroactive application of the Fee Schedule change is 
approved. The Exchange believes that its participants are entitled to 
such refunds on account of intra-year trading permit termination. 
Accordingly, the Exchange proposes retroactive application of the Fee 
Schedule change, dating back to February 9, 2005.\5\
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    \4\ Id.
    \5\ February 9, 2005 was the date of the Exchange's 
demutualization, and, correspondingly, the date upon which the Fee 
Schedule provision relating to trading permit fees first became 
effective.
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2. Statutory Basis
    The CHX believes the proposal is consistent with the requirements 
of the Act and the rules and regulations thereunder that are applicable 
to a national securities exchange and with the requirements of Section 
6(b) of the Act.\6\ The CHX believes the proposal is consistent with 
Section 6(b)(4) of the Act \7\ in particular in that it provides for an 
equitable allocation of reasonable fees and other charges among the 
Exchange's participants.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement of Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments Regarding the 
Proposed Rule Changes 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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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

[[Page 49496]]

     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CHX-2006-27 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 No. SR-CHX-2006-27. 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 changes 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 will also 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 No. SR-CHX-2006-27 and should be submitted on or before September 
13, 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\
Nancy M. Morris,
Secretary.
 [FR Doc. E6-13934 Filed 8-22-06; 8:45 am]

BILLING CODE 8010-01-P