[Federal Register Volume 67, Number 181 (Wednesday, September 18, 2002)]
[Notices]
[Pages 58831-58832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23722]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46491; File No. SR-CHX-2002-23]


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

September 11, 2002.
    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 July 30, 2002, the Chicago Stock Exchange, Incorporated (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 CHX proposes to amend its membership dues and fees schedule 
(``Schedule''), effective July 2002, to reduce the fixed fee charged to 
specialists trading Nasdaq/NM securities. The text of the proposed rule 
change is available upon request from the Office of the Secretary, 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 CHX 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 CHX 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 by reducing the fixed 
fees charged specialists who trade Nasdaq/NM securities. Specifically, 
the proposal would charge a monthly fixed fee for each specialist firm 
trading Nasdaq/NM securities, calculated by taking the lowest monthly 
fixed fee charged that firm for the period January through June 2002, 
and reducing it by the Nasdaq/NM market data rebates earned by the firm 
in June 2002. This fee would first be applied for the month of July 
2002 and thus would be included in monthly bills distributed in 
September 2002. The Exchange currently anticipates that the fee would 
remain in effect until December 31, 2002, but recognizes that it might 
be changed for a variety of reasons, such as to accommodate the entry 
of a new member firm into the trading of Nasdaq/NM Securities.\3\
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    \3\ If a firm that has not previously traded Nasdaq/NM 
securities seeks, and receives, an appointment to act as specialist 
for one or more of those securities, that firm could not be charged 
a fee under this proposal until a new fee has been approved by the 
Exchange's Finance Committee and the Board.
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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 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 either solicited or received.

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

    Because the foregoing rule change establishes or changes a due, 
fee, or

[[Page 58832]]

other charge imposed by the Exchange, it has become effective pursuant 
to Section 19(b)(3)(A) of the Act and subparagraph (f)(2) of Rule 19b-4 
thereunder. 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.\4\
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    \4\ 15 U.S.C. 78s(b)(3)(C).
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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 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 
CHX. All submissions should refer to File No. SR-CHX-2002-23 and should 
be submitted by October 9, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-23722 Filed 9-17-02; 8:45 am]
BILLING CODE 8010-01-P