[Federal Register Volume 65, Number 149 (Wednesday, August 2, 2000)]
[Notices]
[Pages 47529-47530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19502]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43074; File No. SR-CHX-00-23]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated To Create a New Registration Fee and Annual Fee for Off-
Floor Proprietary Securities Traders for CHX Member Firms for Which the 
CHX Acts as Designated Examining Authority

July 26, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 47530]]

(``Act''), \1\ and Rule 19b-4 thereunder, \2\ notice is hereby given 
that on July 17, 2000, 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 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.

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 reflect a new registration fee and 
annual fee for certain associated persons of member firms for which the 
CHX acts as the designated examining authority. The text of the 
proposed rule change is available upon request at the CHX or the 
Commission.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ U.S.C. 78s(b)(3)(A)(ii).
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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 Schedule to establish a $500 
per person registration fee and a $500 per person annual fee for 
certain associated persons of member firms for which the CHX acts as 
the designated examining authority (``DEA''). Specifically, these fees 
would apply to those persons who are acting as off-floor proprietary 
securities traders for CHX member firms for which the CHX acts as the 
DEA.
    These fees reflect the increased costs of administration and 
oversight involved in preparing and processing necessary Series 7 \4\ 
registration sponsor forms for these off-floor traders; inputting and 
maintaining traders' employment, examination and disciplinary 
histories; tracking adherence to applicable Series 7 continuing 
education requirements; and conducting on-site examinations of firms 
that employ these off-floor traders. The new registration fee is 
designed to apply to all registration sponsor forms received on or 
after August 1, 2000. The new annual fee will be charged as of January 
1, 2001.
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    \4\ CHX Rules require persons acting as off-floor proprietary 
securities traders for CHX member firms for which the CHX acts as 
DEA to successfully complete the Uniform Registered Representative 
Exam, Series 7, and to meet certain continuing education 
requirements. See Article VI, Rule 3, Interpretation .02; Article 
VI, Rule 9. The Series 7 examination is designed to ensure that 
registered representatives, such as CHX off-floor proprietary 
securities traders, understand the legal requirements applicable to 
their activities. See July 20, 2000 letter from Ellen J. Neely, Vice 
President and General Counsel, CHX, to Nancy J. Sanow, Assistant 
director, Division of Market Regulation, SEC.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(4) of the Act \5\ in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
its members.

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 \6\ and subparagraph (f)(2) of Rule 19b-4 
thereunder, \7\ because it involves 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 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.
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    \5\ 15 U.S.C. 78f(b)(4).
    \6\ 15 U.S.C. 78s(b)((3)(A)(ii).
    \7\ 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 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, 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 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-00-23, and should be 
submitted by August 23, 2000.

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-19502 Filed 8-1-00; 8:45 am]
BILLING CODE 8010-01-M