[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