[Federal Register: October 11, 2007 (Volume 72, Number 196)]
[Notices]
[Page 57980-57982]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11oc07-103]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56611; File No. SR-CHX-2007-19]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Relating
to a New Book Feed Product
October 4, 2007.
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 September 27, 2007, 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 substantially 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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[[Page 57981]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Through this filing, the Exchange proposes to distribute a new Book
Feed product and to amend its Fee Schedule to confirm that it will not
charge a fee for the distribution of this product. The text of this
proposed rule change is available on the Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm
, at 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
Through this filing, the Exchange proposes to distribute a new Book
Feed product and to amend its Fee Schedule to confirm that it will not
charge a fee for the distribution of this product.\3\ This product
currently is slated to be available on or before October 31, 2007.
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\3\ The Exchange does not currently plan to charge a fee for the
distribution of this data, but may choose to do so in the future.
Any decision to charge a fee for the Book Feed data would be
reflected in a filing submitted to the Commission as required by
Rule 19b-4 of the Act.
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Through the Book Feed, the Exchange would disseminate a real-time
stream of data that includes, among other things, all visible orders
submitted to the Exchange's Matching System, as well as any changes to
those orders.\4\ The Book Feed would also contain information about
trades that occur on the Exchange. This data would be available to any
person or entity, either through a direct feed from the Exchange or
through a company or vendor that provides the data to others.\5\ The
Book Feed would include basic information about each order, including
the size and price of the order; whether it was an order to buy or
sell; its time of receipt; and the identity of the participant firm
that submitted the order.\6\
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\4\ Undisplayed orders and the undisplayed portions of reserve
size orders would not be disseminated through the Book Feed;
however, any odd lot orders (which are not expressly identified as
``undisplayed'') would be disseminated through the Book Feed.
\5\ Each person or entity that requests the data directly from
the Exchange would be required to sign an appropriate agreement with
the Exchange; if the recipient of the data (the ``vendor'')
disseminates the data to another person or entity (the
``subscriber''), the subscriber would be required to sign a
subscriber agreement with the vendor. Each of these agreements would
contain provisions substantially similar to those used by the
securities information processors for the distribution of market
data.
\6\ A participant firm could choose, either on a firm-wide or
order-by-order basis, to have its identity kept confidential in the
order information that is distributed in the Book Feed. The Exchange
plans to have the ability to remove a participant firm's identity on
the data, at the firm's request, on or before October 31, 2007;
alternatively, beginning on or about November 15, 2007, the firm
could append a special indicator to the order confirming its choice
to remain anonymous in the Book Feed.
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The Exchange believes that, by making this Book Feed available, it
would enhance market transparency and foster competition among
markets.\7\ Other self-regulatory organizations currently distribute
similar data feeds.\8\
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\7\ Within the Exchange's systems, the data that would be
disseminated as part of the Book Feed would leave the Matching
System immediately following the best bids, offers and last sales
that are being sent to the securities information processors
(``SIPs''). The Exchange would not use any technology that is
designed to make the Book Feed data available from the Matching
System earlier than the best bids, offers and last sales are
available to the SIPs.
\8\ See filings relating to the New York Stock Exchange's
OpenBook service (including Securities Exchange Act Release Nos.
44138 (December 7, 2001), 66 FR 64895 (December 14, 2001) and 53585
(March 31, 2006), 71 FR 17934 (April 7, 2006)); NYSE Arca's ArcaBook
data, Securities Exchange Act Release No. 54597 (October 12, 2006),
71 FR 62029 (October 20, 2006) (confirming that the ArcaBook data
currently is disseminated without charge); and the Philadelphia
Stock Exchange's data display in its new XLE system, Securities
Exchange Act Release No. 54538 (September 28, 2006), 71 FR 59184
(October 6, 2006).
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2. Statutory Basis
The CHX believes the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder that are applicable
to a national securities exchange, and, in particular, with the
requirements of section 6(b).\9\ The proposed rule change is consistent
with section 6(b)(4) of the Act in that it provides for the equitable
allocation of reasonable dues, fees and other charges among its
members. The proposed rule change is consistent with section 6(b)(5) of
the Act because it would promote just and equitable principles of
trade, remove impediments to, and perfect the mechanism of, a free and
open market and a national market system, and, in general, protect
investors and the public interest by allowing the Exchange distribute a
Book Feed much like those already distributed by other markets.
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\9\ 15 U.S.C. 78(f)(b).
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B. Self-Regulatory Organization's Statement on Burden on Competition
CHX 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
The Exchange neither solicited nor received comments on the
proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, provided that the Exchange has given the
Commission written notice of its intent to file the proposed rule
change at least five business days prior to the date of filing of the
proposed rule change or such shorter time as designated by the
Commission,\10\ the proposed rule change has become effective pursuant
to section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6)
thereunder.\12\
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\10\ The Exchange has fulfilled this requirement.
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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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 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 rule-comments@sec.gov. Please include
File Number SR-CHX-2007-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 57982]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2007-19. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m.. Copies of such filing also will 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 Number SR-CHX-2007-19 and should be
submitted on or before November 1, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-20024 Filed 10-10-07; 8:45 am]
BILLING CODE 8011-01-P