[Federal Register Volume 68, Number 111 (Tuesday, June 10, 2003)]
[Notices]
[Pages 34688-34689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14564]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47971; File No. SR-CHX-2003-14]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated To Decrease Certain Technology and Connectivity Fees

June 4, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 34689]]

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 29, 2003, 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 (``Schedule'') to decrease certain technology and connectivity 
fees charged to the Exchange's on-floor member firms, and to waive 
those fees for the month of June 2003. The text of the proposed rule 
change is available at the Commission and at the CHX.

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 CHX proposes to amend the Schedule by decreasing the charges 
assessed to on-floor member firms for the computer equipment and 
connectivity that the Exchange provides, and by waiving the fees for 
this technology for the month of June 2003.
    The Exchange made changes to this section of the Schedule in 
February 2003, decreasing many of the fees and instituting new 
connectivity fees.\4\ The new charges set forth in the instant proposed 
rule change reflect a further decrease in the amounts charged for this 
equipment and connectivity to better reflect the costs to the Exchange 
of providing both this technology and the services associated with it, 
and to ensure that these fees do not have an unintended financial 
impact on the Exchange's member firms. The Exchange also seeks to waive 
these otherwise-applicable fees for the month of June 2003, to 
counteract, to some extent, the impact of the initially higher fees 
instituted in February 2003.
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    \4\ See Securities Exchange Act Release No. 47369 (February 14, 
2003), 68 FR 8788 (February 25, 2003)(SR-CHX-2003-01).
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2. Statutory Basis
    The Exchange believes 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.
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    \5\ 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 \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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    \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-2003-14, and should be 
submitted by July 1, 2003.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-14564 Filed 6-9-03; 8:45 am]
BILLING CODE 8010-01-P