Document ID: SEC-2008-0613-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Posted Date: 2008-04-24T04:00Z

[Federal Register: April 24, 2008 (Volume 73, Number 80)]
[Notices]               
[Page 22185-22186]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ap08-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57684; File No. SR-CHX-2008-03]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change To Amend Rules Relating 
to Fingerprint-Based Record Checks

April 18, 2008.

I. Introduction

    On February 26, 2008, 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 amend rules relating to fingerprint-based 
criminal record checks of Exchange staff and other persons. The 
proposed rule change was published for comment in the Federal Register 
on March 18, 2008.\3\ The Commission received no comments on the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57479 (March 12, 
2008), 73 FR 14516 (March 18, 2008).
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II. Description of the Proposal

    As part of its trading model rule set, the Exchange included a 
fingerprint rule that requires the Exchange to conduct fingerprint-
based criminal record checks of Exchange staff, certain independent 
contractors and other persons that have regular access to the 
Exchange's facilities and premises.\4\ The Exchange proposes to amend 
this rule to remove the requirement that the Exchange conduct these 
fingerprint-based background checks. The Exchange believes that those 
criminal record background checks of staff and consultants may be 
obtained through more efficient means. This proposal has no impact on 
the fingerprinting obligations that apply to Exchange participants and 
participant firm personnel. The Exchange will continue to require its 
participants to adhere to applicable fingerprinting obligations.\5\
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    \4\ See Article 6, Rule 10(b) of the Exchange's Rules.
    \5\ See Article 6, Rule 10(a) of the Exchange's Rules; see also 
Section 17(f)(2) of the Act (15 U.S.C. 78q(f)(2)) and Rule 17f-2 
thereunder (17 CFR 240.17f-2).
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III. Discussion and Commission Findings

    The Commission has carefully reviewed the proposed rule change and

[[Page 22186]]

finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\6\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\7\ which, among 
other things, requires that the rules of a national securities exchange 
be designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest.
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    \6\ 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).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the Exchange's proposal to permit it 
the flexibility to determine whether it conducts fingerprint-based 
criminal record checks of Exchange staff and other persons, or whether 
it obtains those background checks in another manner, is reasonable and 
consistent with the Act. The Commission notes that the proposed rule 
change has no effect on the current fingerprinting obligations of 
Exchange participants and participant firm personnel under the rules of 
the Exchange or of the Act and the rules thereunder.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CHX-2008-03), be, and hereby 
is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).
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    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E8-8875 Filed 4-23-08; 8:45 am]

BILLING CODE 8010-01-P