[Federal Register: August 21, 2008 (Volume 73, Number 163)]
[Notices]
[Page 49511-49512]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21au08-97]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58362; File No. SR-CHX-2008-13]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Participant Fees and Credits
August 14, 2008.
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 August 13, 2008, the Chicago Stock Exchange, Inc. (the ``CHX''
or the ``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 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 CHX proposes to amend its Schedule of Participant Fees and
Assessments (the ``Fee Schedule'') to provide for trade processing fee
credits to CHX-registered Institutional Brokers. The text of this
proposed rule change is available on the Exchange's Web site at http://
www.chx.com/rules/proposed_rules.htm and in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549.
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 would amend its Fee Schedule to
provide for a credit to institutional brokers relating to trade
processing fees charged by the Exchange to its participants. Trade
processing fees are fees charged by the Exchange for transactions that
are executed and reported to the tape (but not reported to clearing) by
an institutional broker in an away market (i.e., not the Exchange), but
which are reported to clearing by the Exchange's systems. The use of
the Exchange's systems to report trades to clearing, instead of the
facility on which the trade was executed, is done at the request of the
institutional broker's customer to simplify the customer's ability to
access clearing data from a unified source. All clearing transactions
reported in this manner appear in the Exchange's Regional Trade
Interface Operations (``RIO'') file along with the customer's trades
executed on the CHX.
The Exchange proposes to provide to the originating broker a trade
processing fee credit equal to 3% per side of the trade processing fees
received by the Exchange. The Exchange further proposes to provide to
the broker of credit a trade processing fee credit equal to 6% of the
trade processing fees received by the Exchange for the portion(s) of
the transaction handled by the broker of credit. An ``originating
broker'' is defined as the institutional broker that executes a trade
on an away market. A ``broker of credit'' is defined as the
institutional broker that acts as the broker for the ultimate Exchange
clearing participant. Prior to this filing, trade processing fee
credits were not paid by the Exchange. This proposed fee schedule
change would take effect upon filing.
2. Statutory Basis
The Exchange believes that the rule changes proposed in this
submission are 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). 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. Moreover,
the proposed trade processing fee credits will allow the Exchange to
share trade processing fees with institutional brokers, similar to the
way it currently shares transaction fees for CHX executions with
institutional brokers. Prior to this filing, trade processing fees were
not shared with institutional brokers.
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.
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 \3\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\4\ 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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\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 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 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-2008-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2008-13. This file
[[Page 49512]]
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 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 publicly available. All
submissions should refer to File Number SR-CHX-2008-13 and should be
submitted on or before September 11, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19353 Filed 8-20-08; 8:45 am]
BILLING CODE 8010-01-P