[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35604-35605]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12569]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45924; File No. SR-CHX-2002-13]


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

May 14, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice hereby is given that 
on April 26, 2002, 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.
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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 a provision of its membership dues 
and fees schedule (the ``Schedule'') governing assessment of 
transaction fees. The text of the proposed rule change follows. 
Proposed new language is italicized; proposed deletions are in 
brackets.

Membership Dues and Fees

* * * * *
F. Transaction and Order Processing Fees
* * * * *
6. Transaction Fees
* * * * *
    e. In Nasdaq/NM securities, a[A]gency executions [orders in NASDAQ/
NM securities] executed through a floor broker and market maker 
executions.
    f. In Dual Trading System issues, a[A]gency executions [orders in 
Dual Trading System Securities] executed through a floor broker and 
market maker executions.
    g. All other MAX orders.

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 Exchange proposes to amend a provision of the Schedule 
governing assessment of transaction fees. The Schedule contains 
provisions assessing various transaction fees and order processing 
fees. Transaction fees are assessed based on factors including (a) the 
type of order executed on the Exchange, and (b) the type of member that 
facilitates execution of the order on the Exchange.
    A previous change to the provisions governing transaction fees was 
intended to provide for a transaction fee applicable to certain manual 
orders that are not executed by a specialist, i.e., agency orders 
executed through a floor broker or executions by a market maker. The 
Exchange believes that it is appropriate to edit this provision to 
reflect the intent that the provision applies to all manual orders not 
executed by a specialist (other than executions by floor brokers in 
their capacity as principals). Significantly, the proposed edit set 
forth in Exhibit A reflects current billing practice; the change to the 
fee schedule thus will not result in assessment of any additional 
transaction fees.
    In addition, the Exchange proposed to clarify that the catch-all 
provision governing transaction fees, subsection g., only applied to 
all other ``MAX'' orders.\3\
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    \3\ Telephone call between Ellen Neely, Senior Vice President 
and General Counsel, CHX, and Jennifer Lewis, Attorney, Division of 
Market Regulation, Commission, on May 9, 2002.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\4\ in general, and furthers the 
objectives of Section 6(b)(4),\5\ in particular, because 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).
    \5\ 15 U.S.C. 78f(b)(4).

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[[Page 35605]]

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 by the Exchange 
relating to this submission.\6\
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    \6\ At the request of CHX, this sentence was revised to clarify 
that the Exchange did not solicit comment from its members. 
Telephone call between Florence E. Harmon, Senior Special Counsel, 
Division of Market Regulation, Commission, and Ellen Neely, Senior 
Vice President and General Counsel, CHX, on May 14, 2002.
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III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The Exchange has designated the proposed rule change as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-
4(f)(2) thereunder.\8\ Accordingly, the proposal will take effect upon 
filing with the Commission. 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 purpose of the Act.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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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. 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 will also be 
available for inspection and copying at the principal office of the 
CHX. All submissions should refer to File No. SR-CHX-2002-13 and should 
be submitted by June 10, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 02-12569 Filed 5-17-02; 8:45 am]
BILLING CODE 8010-01-P