[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Notices]
[Pages 27084-27085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12885]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-38605; File No. SR-CHX-97-7]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to SRO Fees

May 9, 1997.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ notice is hereby given that on May 1, 1997, the 
Chicago Stock Exchange, Incorporated (``CHX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'' or ``SEC'') 
the proposed rule change as described in Items I, II, and III below, 
which Items have been prepared by the Exchange. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Section (q) of its Membership Dues 
and Fees Schedule.
Chicago Stock Exchange, Incorporated
Membership Dues and Fees
Additions are italized; deletions [bracketed].
    (q) Self-Regulatory Organization Fee,\2\ $100 per member and member 
organization per month.
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    \2\ This fee shall not be applicable to [inactive organizations. 
An inactive organization is one which has no securities transaction 
revenue, as determined by annual FOCUS reports, as long as the 
organization continues to have no such revenue each month] 
memberships to which a nominee has not been assigned and which are 
not otherwise being used.

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 on the proposed rule change. 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 Change

1. Purpose
    The purpose of the proposed rule change is to clarify the existing 
exemption from the Exchange's SRO fee. This fee helps recoup costs 
incurred by the Exchange in performing its self-regulatory function. 
Specifically, rather than exempting organizations that have no 
securities transaction revenue, the Exchange proposes to exempt 
memberships to which a nominee has not been assigned and which are not 
otherwise being used. In this regard, to qualify for this exemption, 
the owner of the membership cannot hold itself out as a CHX member to 
others by virtue of its ownership of that membership and cannot 
otherwise conduct business on the CHX on the basis of its ownership of 
that membership. This exemption is applied on a membership by 
membership basis and not on a member

[[Page 27085]]

by member basis. As a result, if a person or entity owns more than one 
membership on the CHX, it is possible for that person or entity to 
qualify for the exemption for one membership (by not having a nominee 
and not otherwise using the membership), but not qualify for the 
exemption for another membership owned by that person or entity.
2. Statutory Basis
    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 members and issuers and persons 
using its facilities.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective on May 1, 1997, the 
date of receipt of this filing by the Commission, pursuant to Section 
19(b)(3)(A)(ii) of the Act \3\ and paragraph (e) of Rule 19b-4 \4\ 
thereunder, because it establishes or changes a due, fee, or other 
charge imposed by the Exchange.
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    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(e)(1991).
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    At any time within sixty days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change it if 
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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. 
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 
Exchange. All submissions should refer to File No. CHX-97-7 and should 
be submitted by June 6, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)12.
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-12885 Filed 5-15-97; 8:45 am]
BILLING CODE 8010-01-M