[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1) (1988). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(e)(1991). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \5\ 17 CFR 200.30-3(a)12. --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 97-12885 Filed 5-15-97; 8:45 am] BILLING CODE 8010-01-M