[Federal Register Volume 70, Number 152 (Tuesday, August 9, 2005)]
[Notices]
[Pages 46238-46239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4275]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52200; File No. SR-CHX-2005-20]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change Relating to Participant Fees 
and Credits

August 3, 2005.
    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 17, 2005, the Chicago Stock Exchange, Inc. (``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 
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, pursuant under Rule 19b-4 of the Act, proposes to amend 
its Participant Fee Schedule (``Fee Schedule'') to eliminate, 
retroactive to January 1, 2005, the assignment fee for listed 
securities that are not assigned in competition.

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 Exchange proposes to modify its Fee Schedule to eliminate, 
retroactive to January 1, 2005, the assignment fee for listed 
securities that were not assigned in competition. Under the Fee 
Schedule that was in effect from January 1, 2005 through May 2, 2005, 
the Exchange charged a fee to a specialist that received the assignment 
of a listed security when other firms were not competing for the 
assignment.\3\ To encourage firms to trade additional listed securities 
by reducing their costs of doing so, the Exchange eliminated the 
assignment fee for securities assigned without competition on an on-
going basis, effective May 2, 2005.\4\ The Exchange now seeks to 
confirm that the fee should be eliminated for all periods in 2005, thus 
consistently assessing assignment fees for listed securities assigned 
without competition throughout the year and avoiding any confusion, 
among the Exchange's participants, of the assignment fees that should 
have been charged.\5\ The Exchange believes that this fee change is an 
appropriate and fair allocation of fees among its participants because 
of its ability to reduce confusion and enhance the consistency of the 
fees that participants are charged.
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    \3\ The Exchange also has charged, and will continue to charge, 
specialist assignment fees with respect to securities that are 
assigned to a specialist firm in competition with other firms, 
reflecting the increased administrative costs associated with 
allocating stocks in competition.
    \4\ See Securities Exchange Act Release No. 51763 (May 31, 
2005), 70 FR 33230 (June 7, 2005). The Exchange previously had 
waived this fee on a temporary basis, through the end of 2004. See 
Securities Exchange Act Release No. 50657 (November 12, 2004), 69 FR 
67615 (November 18, 2004).
    \5\ This change is consistent with the Exchange's decision not 
to charge assignment fees charged with respect to Nasdaq/NM 
securities that are not assigned in competition. See Securities 
Exchange Act Release No. 50616 (November 1, 2004), 69 FR 64608 
(November 5, 2004).
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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 \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. 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 burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. 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 Number SR-CHX-2005-20 on the subject line.

[[Page 46239]]

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-CHX-2005-20. 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 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. Copies of the 
filing also will be available for inspection and copying at the 
principal office of the Exchange. 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 Number SR-CHX-2005-20 and should be submitted on or before August 
30, 2005.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-4275 Filed 8-8-05; 8:45 am]
BILLING CODE 8010-01-P