[Federal Register: April 5, 2007 (Volume 72, Number 65)]
[Notices]
[Page 16837]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05ap07-136]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55549; File No. SR-CHX-2007-02]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Order Granting Accelerated Approval of a Proposed Rule Change To Amend
the CHX Fee Schedule on a Retroactive Basis To Clarify the Application
of a Credit Against Specialist Fixed Fees
March 28, 2007.
I. Introduction
On February 12, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend its Schedule of Participant Fees and
Credits (``Schedule'') on a retroactive basis to clarify application of
a monthly specialist fixed fee credit. The proposed rule change was
published for comment in the Federal Register on March 12, 2007 for a
15-day comment period.\3\ The comment period ended on March 27, 2007.
The Commission received no comments on the proposal. This order grants
accelerated approval of the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 55408 (March 6,
2007), 72 FR 11068.
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II. Description of the Proposal
The Exchange proposes to amend its Schedule on a retroactive basis
to clarify application of a monthly specialist fixed fee credit.
Beginning November 2006, the Exchange instituted a monthly specialist
fixed fee credit of $25,000, to be applied while the Exchange completed
implementation of its new trading model and issues were transitioned
from being traded by CHX specialists to a market maker model.\4\ This
proposal clarifies that the Exchange intended that the credit would be
applied on a cumulative basis for November and December of 2006, so
that the November credit would be $25,000 and the December credit would
be $50,000. In addition, the Exchange intended that the credit for
January would be reduced to $25,000. Because SR-CHX-2006-37 did not
clearly indicate that the credit would be applied on a cumulative basis
for the months of November and December and subsequently reduced for
the month of January, the CHX submitted the instant proposed rule
change to clarify the total amount of the specialist fixed fee credit
available for each month: $25,000 for November 2006; $50,000 for
December 2006; and $25,000 for January 2007.
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\4\ See Securities Exchange Act Release No. 55070 (January 9,
2007), 72 FR 2049 (January 17, 2007) (SR-CHX-2006-37).
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III. Discussion and Commission Findings
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\5\
Specifically, the Commission believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\6\ which requires that the
rules of an exchange provide for the equitable allocation of reasonable
dues, fees, and other charges among members and issuers and other
persons using any facilities or system which it operates or controls.
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\5\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition and
capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(4).
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This proposed rule change would clarify the application of a
specialist fixed fee credit that the CHX is offering as an incentive
for CHX specialists while the CHX completed its transition to a new
market maker trading model. The proposed rule change would reconcile
the discrepancy between the manner in which the CHX intended to apply
the credit and the description of the credit in SR-CHX-2006-37. The
proposal would also clarify that the credit was reduced to $25,000 for
the month of January 2007.
The Commission finds good cause for approving the proposed rule
change prior to the 30th day of the date of publication of the notice
thereof in the Federal Register. The proposed rule change clarifies
ambiguity about the application of the specialist fixed fee credit. The
Commission believes accelerated approval will provide clarity without
delay. Therefore, the Commission finds that there is good cause,
consistent with Section 19(b)(2) of the Act, to approve the proposed
rule change on an accelerated basis.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (SR-CHX-2007-02) be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-6374 Filed 4-4-07; 8:45 am]
BILLING CODE 8010-01-P