[Federal Register Volume 65, Number 47 (Thursday, March 9, 2000)]
[Notices]
[Page 12601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5762]



[[Page 12601]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42486; File No. SR-CHX-00-05]


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

March 2, 2000.
    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 February 28, 2000, the Chicago Stock Exchange, Incorporated (``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 Exchange. The 
Exchange has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the CHX under Section 
19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal effective 
upon filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(II).
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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 (the ``Schedule'') to continue, through June 30, 2000, the 
waiver of all transaction, order processing and floor broker fees for 
transactions that occur during the CHX's E-Session extended hours 
trading session. The text of the proposed rule change is available upon 
request from the CHX and the Commission.

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 restates and amends the Schedule to 
eliminate, through June 30, 2000, order processing, transaction and 
floor broker fees for transactions that occur during the CHX's E-
Session.\4\ This proposal is designed to allow CHX members to continue 
to participate in the E-Session without incurring the fees normally 
associated with their CHX transactions.\5\ According to the Exchange, 
the vast majority of the securities that trade during the E-Session are 
already subject to order processing and transaction fee waivers under 
the current fee schedule because they are either Nasdaq/NMS issues or 
issues within the S&P 500. Waiving fees on the few remaining securities 
and on floor broker transactions in all securities simplifies the 
Exchange's fee-related communications with its members.
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    \4\ On October 13, 1999, the Commission approved, on a pilot 
basis, the CHX's proposed rule change that allowed the CHX to 
implement an extended hours trading session. See Securities Exchange 
Act Release No. 42004 (October 13, 1999), 64 FR 56548 (October 20, 
1999)(SR-CHX-99-16). The E-Session takes place from 3:30 p.m. to 
5:30 p.m. Central Time, Monday through Friday. The E-Sessiion is 
currently approved to continue through October 1, 2000. See 
Securities Exchange Act Release No. 42463 (February 28, 2000)(SR-
CHX-00-02).
    \5\ E-Session fees have been waived since the beginning of the 
E-Session. See Securities Exchange Act Release No. 42089 (November 
2, 1999), 64 FR 60864 (November 8, 1999) (SR-CHX-99-23) (waiving 
fees from October 13, 1999 through December 31, 1999; see also 
Securities Exchange Act Release No. 42329 (January 11, 2000), 65 FR 
3000 (January 19, 2000) (SR-CHX-99-29) (waiving fees from January 1, 
2000 through March 1, 2000. This proposal simply extends the waiver 
of the same fees through June 30, 2000. See March 2, 2000 telephone 
conversation between Paul B. O'Kelly, Executive Vice President, 
Market Regulation and Legal, CHX, and Joseph P. Morra, Attorney, 
Division of Market Regulation, SEC.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act \6\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its 
members.
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    \6\ 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 inappropriate 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 has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\8\ because it involves a due, fee, or other charge. At any 
time with 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate such rule change 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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
    \9\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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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 proposal is 
consistent with the Act. Persons making written submissions should file 
six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-0609. 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 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 number SR-CHX-00-05, and 
should be submitted by March 30, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).

      
Margaret H. McFarland,
  
[FR Doc. 00-5762 Filed 3-8-00; 8:45 am]
BILLING CODE 8010-01-M