[Federal Register Volume 70, Number 64 (Tuesday, April 5, 2005)]
[Notices]
[Pages 17278-17279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1531]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51448; File No. SR-CHX-2005-07]


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

March 30, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 16, 2005, the Chicago Stock Exchange, Incorporated 
(``CHX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (the ``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 Exchange proposes to amend its schedule of Participant Fees and 
Credits (the ``Fee Schedule'') to confirm that late fees will be 
assessed on a participant's bill ten (10) days from the date on which 
payment of the bill is due. The text of the proposed rule change is 
available on CHX's Web site (http://www.chx.com), the CHX's Office of 
the Secretary, and at the Commission's Public Reference Room.

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 changes and 
discussed any comments it received regarding the proposal. 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 Exchange bills its participants monthly for fees and other 
assessments due to the Exchange. These bills typically are distributed 
to participants on the tenth day of the month following the month in 
which the fees were incurred and, by their terms, are due by the end of 
the month.\3\ Under the Exchange's Fee Schedule, the Exchange assesses 
a late fee on the outstanding balance of any unpaid participant bills. 
The current version of the Fee Schedule, however, allows the Exchange 
to assess this late fee only when a bill has remained unpaid 60 days 
from the date on which the fees were due.\4\
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    \3\ For example, the participant bills relating to the month of 
March are distributed on or about April 10 and are due on April 30.
    \4\ Using the same example as above, the Exchange currently 
cannot assess a late fee unless a participant's March bill (due 
April 30) remains unpaid on June 30.
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    Through this proposal, the Exchange seeks to amend the Fee Schedule 
to permit an earlier assessment of the late fee.\5\ The Exchange 
believes that this change will encourage its participants to pay their 
bills on time by assessing a reasonable late fee in those instances in 
which a participant does not do so.
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    \5\ Under the proposal, the Exchange could assess a late fee if 
a participant has not paid its March bill (due April 30) by May 10.
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2. Statutory Basis
    The Exchange believes that proposed rule change is consistent with 
Section 6(b)(4) of the Act \6\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its 
members.
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    \6\ 15 U.S.C. 78(f)(b)(4).
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B. Self-Regulatory Organization's Statement of 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

    The foregoing rule change establishes or changes a due, fee or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to Section 19(B)(3)(A) of the Act \7\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder.\8\ At any time within 60 days of the filing 
of such 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. 78s(b)(3)(A).
    \8\ 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. Comments may be submitted by any of the 
following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File No. SR-CHX-2005-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File No. SR-CHX-2005-07. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use

[[Page 17279]]

only one method. The Commission will post all comments on the 
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 
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, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of the filing will also be available for inspection 
and copying at the principal office of the CHX. All comments received 
will be posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File No. SR-CHX-2005-07 and should be submitted on or 
before April 26, 2005.

    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. E5-1531 Filed 4-4-05; 8:45 am]
BILLING CODE 8010-01-P