Document ID: SEC-2006-0125-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc.
Posted Date: 2006-02-01T05:00Z

[Federal Register: February 1, 2006 (Volume 71, Number 21)]
[Notices]               
[Page 5390-5391]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01fe06-161]                         

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53181; File No. SR-CHX-2005-40]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to a Session Fee Increase for the Regulatory Element of the 
Continuing Education Program

January 26, 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 December 30, 2005, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the CHX. The Exchange 
has designated this proposal as one establishing or changing a due, 
fee, or other charge imposed by CHX under section 19(b)(3)(A)(ii) 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.
---------------------------------------------------------------------------

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

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

    The CHX proposes to amend its Participant Fee Schedule (the ``Fee 
Schedule'') to incorporate the session fee for the Regulatory Element 
of the continuing education requirements set out in CHX rules. 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 CHX, and at 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
    The Exchange is proposing to incorporate, in its Fee Schedule, the 
session fee paid by Exchange participants for the Regulatory Element of 
the continuing education program required by CHX Rules. Under Exchange 
rules, registered persons associated with CHX participant firms are 
required to complete the Regulatory Element of the continuing education 
program on the second anniversary of their registration and every three 
years after that date, or as otherwise prescribed by the Exchange.\5\ 
The Regulatory Element is a computer-based education program 
administered by the National Association of Securities Dealers 
(``NASD'') that is designed to help ensure that registered persons are 
kept up-to-date on regulatory, compliance and sales practice matters in 
the industry. The Regulatory Element is a component of the Securities 
Industry Continuing Education Program (the ``Program''). The Securities 
Industry/Regulatory Council on Continuing Education (the ``Council'') 
was organized in 1995 to facilitate cooperative industry and regulatory 
coordination of the administration and future development of the 
Program in keeping with applicable industry regulations and changing 
industry needs. Its roles include recommending and helping develop 
specific content and questions for the Regulatory Element, defining 
minimum core curricula for the Firm Element component of the Program 
and developing and updating information about the Program for industry-
wide dissemination.
---------------------------------------------------------------------------

    \5\ See CHX Article VI, Rule 9.
---------------------------------------------------------------------------

    The Exchange understands that it is the Council's responsibility to 
maintain the Program on a revenue neutral basis while maintaining 
adequate reserves for unanticipated future expenditures.\6\ In December 
2003, the Council voted to reduce the Regulatory Element session fee 
from $65 to $60, effective January 1, 2004. Although there was no 
change to the fee for 2005, the Council has decided to increase the 
Regulatory Element session fee from $60 to $75, effective January 1, 
2006, in order to meet costs and maintain an adequate reserve in 
2006.\7\ Through this filing, the Exchange proposes to incorporate the 
$75 fee into its Fee Schedule.
---------------------------------------------------------------------------

    \6\ The Council currently consists of 20 individuals, including 
six representatives of self-regulatory organizations and 14 persons 
who are associated with NASD member firms. The Commission and the 
North American Securities Administrators Association have liaisons 
to the Council. The Exchange does not have a representative serving 
on the Council.
    \7\ See Securities Exchange Act Release No. 52947 (December 13, 
2005), 70 FR 75517 (December 20, 2005) (SR-NASD-2005-132).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes this proposed rule change is consistent with 
section 6(b)(4) of the Act \8\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its 
members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78(f)(b)(4).
---------------------------------------------------------------------------

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 on 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 Changes and Timing for 
Commission Action

    The foregoing proposed rule change has been designated as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \9\ and Rule 19b-
4(f)(2) thereunder,\10\ because it establishes or changes a due, fee or 
other charge imposed by the

[[Page 5391]]

Exchange. Accordingly, the proposal will take effect upon filing with 
the Commission. At any time within 60 days of the filing of the 
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 furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-CHX-2005-40 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File No. SR-CHX-2005-40. 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. 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-2005-40 and should be submitted on or before February 
22, 2006.
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
Nancy M. Morris,
Secretary.
[FR Doc. E6-1304 Filed 1-31-06; 8:45 am]

BILLING CODE 8010-01-P