[Federal Register Volume 64, Number 194 (Thursday, October 7, 1999)]
[Notices]
[Pages 54703-54704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26158]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41947; File No. SR-CHX-99-15]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Inc. Relating to Membership Dues and Fees

September 29, 1999.
    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 September 14, 1999, the Chicago Stock Exchange, Inc. (``CHX'' or 
``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 Exchange proposes to amend its membership dues and fees 
schedule. Specifically, the portion of the CHX fee schedule governing 
transaction fees would be amended to provide for application of a 
$.0025 per share transaction fee to all agency orders transacted by CHX 
floor brokers in NASDAQ/NMS Securities, up to a maximum of $100 per 
side. Additionally, the CHX fee schedule would be amended to increase 
the current earned credit available to floor brokers by a factor of 
three and to provide a new credit based on Consolidated Tape 
Association revenue generated by each floor broker.\3\ The rule changes 
will be reflected in the October, 1999 invoices transmitted by the 
Exchange to its members. The text of the proposed rule change is 
available upon request from the Commission or the CHX.
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    \3\ The proposed language with regards to tape credits reads as 
follows: ``Tape Credits. Total monthly fees owed by a floor broker 
to the Exchange will also be reduced (but to no less than zero) by 
the application of a Tape Credit. `Tape Credit' means 35% of monthly 
CHX tape revenue from the Consolidated Tape Association generated by 
a particular floor broker. To the extent that CHX tape revenue is 
subject to a year end adjustment, Tape Credits may be adjusted 
accordingly.''
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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 Exchange 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 Exchange 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 proposed rule change amends the CHX schedule of membership dues 
and fees in three ways to provide new transaction fees and enhanced 
credits for CHX floor brokers. First, the portion of the CHX fee 
schedule governing transaction fees is amended to provide

[[Page 54704]]

for application of a $.0025 per share transaction fee to all agency 
orders transacted by CHX floor brokers in NASDAQ/NMS Securities, up to 
a maximum of $100 per side. Second, the CHX fee schedule is amended to 
increase the current earned credit available to floor brokers by a 
factor of three. Finally, the schedule is modified to provide a new 
credit based on Consolidated Tape Association revenue generated by each 
floor broker. The proposed rule change is intended to stimulate growth 
on the Exchange, enhance the competitive capability of floor brokers 
and foster cooperation on the Exchange's trading floor by making a 
reasonable allocation of those CHX revenues generated by its floor 
brokers.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(4) \4\ of the Act in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
its members.
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    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    No written comments were solicited or received.

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

    The proposed rule change is effective immediately upon filing 
pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and subparagraph 
(f)(2) of Rule 19b-4 under the Act \6\ because the proposal is 
establishing or changing a due, fee or other charge. At any time within 
60 days of the filing of the proposed rule change, the Commission may 
summarily abrogate such rule 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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.\7\ Persons making written 
submissions should file six copies thereof with the Secretary, 
Securities and Exchange Commission, 450 Fifth Street, NW, Washington, 
DC 20549-0609. 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 at the Commission's Public Reference Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the CHX. All submissions should refer to File No. 
SR-CHX-99-15 and should be submitted by October 28, 1999.
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    \7\ In reviewing this proposal, the Commission has considered 
its potential impact on efficiency, competition and capital 
formulation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 99-26158 Filed 10-6-99; 8:45 am]
BILLING CODE 8010-01-M