[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