[Federal Register Volume 69, Number 69 (Friday, April 9, 2004)]
[Notices]
[Page 18997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8085]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49517; File No. SR-CHX-2004-01]


Self-Regulatory Organizations; Order Granting Approval to a 
Proposed Rule Change and Amendment No. 1 Thereto by the Chicago Stock 
Exchange, Inc. Relating to Membership Dues and Fees

April 1, 2004.
    On January 21, 2004, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its membership dues and fees schedule 
(the ``Fee Schedule'') to clarify the applicability of certain Fee 
Schedule provisions relating to transaction fees, and to establish a 
schedule of maximum monthly transaction fees for certain agency orders 
executed through a CHX floor broker. The Exchange proposed to apply the 
Fee Schedule changes on a retroactive basis effective as of November 1, 
2003.\3\ On February 19, 2004, the Exchange submitted an amendment to 
the proposed rule change.\4\ The proposed rule change, as amended, was 
published for comment in the Federal Register on March 1, 2004.\5\ The 
Commission received no comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On December 31, 2003, the Exchange filed an identical 
amendment to the Fee Schedule, as immediately effective. See SR-CHX-
2003-39. Because the Exchange also sought to apply the Fee Schedule 
amendments on a retroactive basis (i.e., to the months November and 
December, 2003), the Exchange submitted the proposed rule change for 
notice and comment.
    \4\ See facsimile from Ellen J. Neely, Senior Vice President & 
General Counsel, CHX, to A. Michael Pierson, Attorney, and Marisol 
Rubecindo, Law Clerk, Division of Market Regulation (``Division''), 
Commission, dated February 19, 2004 (``Amendment No. 1''). Amendment 
No. 1 replaced the proposed rule change in its entirety.
    \5\ See Securities Exchange Act Release No. 49298 (February 23, 
2004), 69 FR 9660.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange \6\ 
and, particularly, Section 6(b)(4) of the Act, which requires that the 
rules of an exchange provides for the equitable allocation of 
reasonable dues, fees, and other charges among its members.\7\ The 
Commission believes that the Exchange's proposal to apply its current 
Fee Schedule on a retroactive basis to November 1, 2003, should allow 
the Exchange to provide eligible order-sending firms that route 
significant levels of order flow to the CHX a transaction fee credit. 
The Commission notes that the retroactive application of the proposal 
will not result in the assessment of any additional fees against CHX 
members.
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    \6\ In approving this proposed rule change, the Commission has 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(4).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change, as amended, (SR-CHX-2004-01) is 
approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-8085 Filed 4-8-04; 8:45 am]
BILLING CODE 8010-01-P