Document ID: SEC-2008-1582-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2008-11-24T05:00Z

[Federal Register: November 24, 2008 (Volume 73, Number 227)]
[Notices]               
[Page 71049-71050]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24no08-145]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58966; File No. SR-CHX-2008-15]

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

November 17, 2008.
    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 November 7, 2008, 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, 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 amend its Schedule of Participant Fees and 
Assessments (the ``Fee Schedule'') to alter the take/provide charges 
for Tape B securities. 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, the CHX included statements 
concerning the purpose of, and basis for, the proposed rule change 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
    Through this filing, the Exchange would amend its Fee Schedule to 
discontinue the existing program setting forth a higher provide credit 
of $0.0036/share for transactions in Tape B securities if certain 
volume thresholds had been met. Moreover, the transaction fee for 
liquidity takers in Tape B securities is being raised to $0.0030/share 
from the current level of $0.0029/share. All liquidity providers in 
Tape B securities would qualify for a credit of $0.0032/share, 
regardless of its average daily trading volume. The Exchange believes 
that these proposed fee changes are more consistent with its long-term 
goals of incenting firms to trade using our facilities at rates which 
do not expose the Exchange to potential losses or capital outlays.
2. Statutory Basis
    The Exchange believes that the rule changes proposed in this 
submission are consistent with the requirements of the Act and the 
rules and regulations thereunder that are applicable to a national 
securities exchange, and, in particular, with the requirements of 
Section 6(b). The proposed rule change is consistent with Section 
6(b)(4) of the Act in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among its Participants. The 
proposed increase in the liquidity takers fee in Tape B securities is 
of $0.0001/share, which is a relatively modest amount. The increased 
revenue will be used to fund the Exchange's existing operations, which 
may in turn benefit its Participants. Finally, the discontinuance of 
the two-tiered fee structure for liquidity providers in Tape B 
securities fee streamlines the Exchange's Fee Schedule and related 
billing structure, as well as eliminates a program which potentially 
exposed the Exchange to large and costly rebates to Participant firms.

B. Self-Regulatory Organization's Statement on Burden on Competition

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

[[Page 71050]]

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 Changes and Timing for 
Commission Action

    The foregoing 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 \3\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder.\4\ At any time within 60 days of the filing 
of such 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 furtherance of the purpose of the Act.
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    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 Number SR-CHX-2008-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2008-15. 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 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 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 Number SR-CHX-2008-15 and should be 
submitted on or before December 15, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-27881 Filed 11-21-08; 8:45 am]

BILLING CODE 8011-01-P