Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Participant Fees and Credits, 61482-61484 [E5-5858]
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61482
Federal Register / Vol. 70, No. 204 / Monday, October 24, 2005 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–79 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–CBOE–2005–79. 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 (https://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 such filing also will be
D. Specialist Assignment Fees.
Specialist Application Fee ..........
Assignment of Dual Trading System Securities.
*
*
$1,000 ............................................
$4,000 ............................................
Assignment of Nasdaq/NM Securities.
*
*
$1,000 ............................................
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange: (1) made
clarifying changes to the proposed rule text and the
purpose section of the filing; and (2) noted that the
proposed rule change is submitted in conjunction
with the filing (SR–CHX–2005–23), which
established a special allocation process available to
the Committee on Specialist Assignment and
1 15
VerDate Aug<31>2005
15:19 Oct 21, 2005
Jkt 208001
available for inspection and copying at
the principal office of the CBOE. 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–CBOE–2005–79 and should
be submitted on or before November 14,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5860 Filed 10–21–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52612; File No. SR–CHX–
2005–25]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Participant Fees and Credits
October 14, 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
September 16, 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 CHX. On
October 3, 2005, CHX filed Amendment
No. 1 to the proposed rule change.3 On
October 12, 2005, CHX filed
Amendment No. 2 to the proposed rule
change.4 The CHX has designated this
proposal as one establishing or changing
a due, fee, or other charge imposed by
the CHX under Section 19(b)(3)(A)(ii) of
the Act,5 and Rule 19b–4(f)(2)
thereunder,6 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CHX proposes to amend its
Participant Fee Schedule (the ‘‘Fee
Schedule’’) to confirm the assignment
fees that apply when the Exchange’s
CSAE assigns a group of securities to a
specialist firm in competition with other
specialist firms. Below is the text of the
proposed rule change, as amended.
Proposed new language is italicized;
proposed deletions are in [brackets].
Participant Fees and Credits
*
*
*
*
*
No change to text
Once the Committee on Specialist Assignment and Evaluation approves a Participant to act
as specialist in a security (or a group of securities), that Participant must pay the following fee:
*
*
*
*
*
If the security (or group of securities) was assigned in competition with at least one other
Participant and up to one-third of all Participants that trade Dual Trading System Securities
If the security (or group of securities) was assigned in competition with more than onethird of all Participants that trade Dual Trading System Securities
Beginning on September 1, 2004, once the Committee on Specialist Assignment and Evaluation approves a Participant to act as specialist in a security (or a group of securities),
that Participant must pay the following fee:
*
*
*
*
*
If the security (or group of securities) was assigned in competition with one other Participant that trades Nasdaq/NM Securities
Evaluation (‘‘CSAE’’) in special circumstances
involving the allocation of more than 100 stocks at
a time.
4 In Amendment No. 2, which superseded
Amendment No. 1 in its entirety, the Exchange
made a minor change to the proposed rule text and
made a corresponding change to the purpose
section of the proposed rule change.
The effective date of the original proposed rule
change is September 16, 2005, the effective date of
Amendment No. 1 is October 3, 2005 and the
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
effective date of Amendment No. 2 is October 12,
2005. For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on October 12, 2005, the
date on which the CHX filed Amendment No. 2. See
15 U.S.C. 78s(b)(3)(C).
5 15 U.S.C. 78s(b)(3)(A)(ii).
6 17 CFR 240.19b–4(f)(2).
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Federal Register / Vol. 70, No. 204 / Monday, October 24, 2005 / Notices
$4,000 ............................................
*
*
In its filing with the Commission, the
CHX included statements concerning
the purpose of, and basis for, the
proposed rule change, as amended, and
discussed any comments it received
regarding the proposal, as amended. 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’s CSAE is responsible
for assigning securities to be traded by
specialist firms.7 Although the CSAE
ordinarily assigns securities on a oneby-one basis, the CSAE could choose to
assign securities in groups consisting of
more than one security.
Through this submission, the
Exchange proposes to modify its Fee
Schedule to confirm the assignment fees
that apply when the CSAE assigns a
group of securities to a specialist firm in
competition with other specialist firms.
Specifically, the Exchange proposes to
charge, for the assignment of a group of
listed securities: (a) a fee of $1,000 per
group, if the group was assigned in
competition with at least one other
participant and up to one-third of all
participants trading Dual Trading
System Securities; and (b) a fee of
$4,000 per group, if the group was
assigned in competition with more than
one-third of the participants trading
Dual Trading System Securities.8
Similarly, the Exchange proposes to
charge, for the assignment of a group of
Nasdaq/NM securities: (x) a fee of
$1,000 per group if the group of
securities was assigned in competition
with at least one other participant that
trades Nasdaq/NM securities; and (y) a
fee of $4,000 per group, if the group of
securities was assigned in competition
7 See
Article XXX, Rule 1.
Trading System Securities’’ are securities
listed on the New York Stock Exchange, the
American Stock Exchange or any other stock
exchange that are also listed or traded on the
Chicago Stock Exchange.
8 ‘‘Dual
VerDate Aug<31>2005
15:19 Oct 21, 2005
If the security (or group of securities) was assigned in competition with two or more
[member firms] Participants that trade Nasdaq/NM Securities
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Jkt 208001
61483
*
*
with two or more participants that
trades Nasdaq/NM securities.
These changes to the Fee Schedule are
submitted in connection with SR–CHX–
2005–23, which proposed a change to
Rule 1 of CHX Article XXX that
established an allocation process
available to the CSAE, in special
circumstances involving the allocation
of more than 100 stocks at a time.9 If the
CSAE determines that it will allocate a
large number of stocks by posting
groups of stocks at the beginning of the
application and assignment process,
then these changes to the Fee Schedule
would govern the applicable assignment
fees.10
The Exchange represents that the fees
associated with the assignment of
securities in competition would be the
same for a single security and for a
group of securities. The Exchange
believes that these charges are
appropriate because, among other
things, the Exchange’s work associated
with the assignment of securities in
competition is not measurably different
based on the number of securities that
are being assigned at a particular time.
In each instance, Exchange staff gathers
data relating to each applicant’s
demonstrated ability, experience and
financial responsibility and the CSAE
meets to review the data, to hear
presentations from applicants and to
determine the appropriate assignment
decision.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b)(4) of the
Act 11 in that it provides for the
equitable allocation of reasonable dues,
fees and other charges among CHX’s
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change, as amended,
will impose any burden on competition.
9 The Commission notes that the Exchange uses
the terms ‘‘security(ies), stock(s) and issue(s)’’
interchangeably. See Securities Exchange Act
Release No. 52379 (September 2, 2005), 70 FR
53825 (September 12, 2005).
10 According to the Exchange, assignment fees are
assessed upon permanent assignment of the subject
issues.
11 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
*
*
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change,
as amended, has been designated as a
fee change pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4 thereunder 13 because it establishes or
changes a due, fee or other charge
imposed by the Exchange. Accordingly,
the proposal will take effect upon filing
with the Commission. At any time
within 60 days of the filing of the
proposed 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 purposes of the
Act.14
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CHX–2005–25 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303. All
submissions should refer to File
Number SR–CHX–2005–25. 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
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14 See supra note 4.
13 17
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61484
Federal Register / Vol. 70, No. 204 / Monday, October 24, 2005 / Notices
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://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 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–2005–25 and should
be submitted on or before November 14,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5858 Filed 10–21–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52574; File No. SR–NASD–
2005–099]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing of
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
Amendments to the Restated
Certificate of Incorporation of the
Nasdaq Stock Market, Inc.
October 7, 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 August
19, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, the Nasdaq Stock
Market, Inc. (‘‘Nasdaq’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
15:19 Oct 21, 2005
Jkt 208001
III below, which Items have been
prepared by Nasdaq. On September 30,
2005, Nasdaq submitted Amendment
No. 1 to the proposed rule change.3 The
Commission is publishing this notice, as
amended, to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to amend its
Restated Certificate of Incorporation
(‘‘Certificate’’). Below is the text of the
proposed rule change, as amended.
Proposed new language is italicized;
proposed deletions are in [brackets].
*
*
*
*
*
RESTATED CERTIFICATE OF
INCORPORATION OF THE NASDAQ
STOCK MARKET, INC.
*
*
*
*
*
ARTICLE FOURTH
A. No change.
B. No change.
C. 1. (a) Except as may otherwise be
provided in this Restated Certificate of
Incorporation (including any Preferred
Stock Designation) or by applicable law,
each holder of Common Stock, as such,
shall be entitled to one vote for each
share of Common Stock held of record
by such holder on all matters on which
stockholders generally are entitled to
vote, and no holder of any series of
Preferred Stock, as such, shall be
entitled to any voting powers in respect
thereof.
(b) Except as may otherwise be
provided in this Restated Certificate of
Incorporation or by applicable law, the
holders of the 3.75% Series A
Convertible Notes due 2012 (as may be
amended, supplemented or otherwise
modified from time to time, the ‘‘Series
A Notes’’) and the 3.75% Series B
Convertible Notes due 2012 (as may be
amended, supplemented or otherwise
modified from time to time, the ‘‘Series
B Notes’’ and, together with the Series
A Notes, the ‘‘Notes’’) [4.0% Convertible
Subordinated Notes due 2006 (the
‘‘Notes’’)] which may be issued from
time to time by Nasdaq shall be entitled
to vote on all matters submitted to a
vote of the stockholders of Nasdaq,
voting together with the holders of the
3 Amendment No. 1 made minor edits to the
originally filed proposed rule change and clarified
the proposed definition of ‘‘Broker Affiliate’’ set
forth in Paragraph C.6. of Nasdaq’s Restated
Certificate of Incorporation to include a broker or
dealer or an affiliate thereof. In Amendment No. 1,
Nasdaq also reflected approval of the proposal by
the Board of Directors of Nasdaq and by its
stockholders.
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Frm 00062
Fmt 4703
Sfmt 4703
Common Stock (and of any other shares
of capital stock of Nasdaq entitled to
vote at a meeting of stockholders) as one
class. Each principal amount of Notes
shall be entitled to a number of votes
equal to the number of votes
represented by the Common Stock of
Nasdaq that could then be acquired
upon conversion of such principal
amount of Notes into Common Stock,
subject to adjustments as provided in
the Notes and the Indenture dated as of
April 22, 2005 between Nasdaq and Law
Debenture Trust Company of New York,
as trustee, as such Indenture may be
amended, supplemented or otherwise
modified from time to time. Holders of
the Notes shall be deemed to be
stockholders of Nasdaq, and the Notes
shall be deemed to be shares of stock,
solely for the purpose of any provision
of the General Corporation Law of the
State of Delaware or this Restated
Certificate of Incorporation that requires
the vote of stockholders as a
prerequisite to any corporate action.
2. Notwithstanding any other
provision of this Restated Certificate of
Incorporation, but subject to
subparagraph 6 of this paragraph C. of
this Article Fourth, in no event shall (i)
any record owner of any outstanding
Common Stock or Preferred Stock
which is beneficially owned, directly or
indirectly, as of any record date for the
determination of stockholders and/or
holders of Notes entitled to vote on any
matter, or (ii) any holder of any Notes
which are beneficially owned, directly
or indirectly, as of any record date for
the determination of stockholders and/
or holders of Notes entitled to vote on
any matter, by a person (other than an
Exempt Person) who beneficially owns
shares of Common Stock, Preferred
Stock and/or Notes [(’’Excess Shares
and/or Notes’’)] in excess of five percent
(5%) of the then-outstanding shares of
stock generally entitled to vote as of the
record date in respect of such matter
(‘‘Excess Shares and/or Notes’’), be
entitled or permitted to vote any Excess
Shares and/or Notes on such matter. For
all purposes hereof, any calculation of
the number of shares of stock
outstanding at any particular time,
including for purposes of determining
the particular percentage of such
outstanding shares of stock of which
any person is the beneficial owner, shall
be made in accordance with the last
sentence of Rule 13d–3(d)(1)(i) of the
General Rules and Regulations under
the Securities Exchange Act of 1934, as
amended (the ‘‘Exchange Act’’), as in
effect on the date of filing this Restated
Certificate of Incorporation.
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]]>Agencies
[Federal Register Volume 70, Number 204 (Monday, October 24, 2005)]
[Notices]
[Pages 61482-61484]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5858]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52612; File No. SR-CHX-2005-25]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Participant Fees and Credits
October 14, 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 September 16, 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 CHX. On October 3,
2005, CHX filed Amendment No. 1 to the proposed rule change.\3\ On
October 12, 2005, CHX filed Amendment No. 2 to the proposed rule
change.\4\ The CHX has designated this proposal as one establishing or
changing a due, fee, or other charge imposed by the CHX under Section
19(b)(3)(A)(ii) of the Act,\5\ and Rule 19b-4(f)(2) thereunder,\6\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change, as amended, from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, the Exchange: (1) made clarifying
changes to the proposed rule text and the purpose section of the
filing; and (2) noted that the proposed rule change is submitted in
conjunction with the filing (SR-CHX-2005-23), which established a
special allocation process available to the Committee on Specialist
Assignment and Evaluation (``CSAE'') in special circumstances
involving the allocation of more than 100 stocks at a time.
\4\ In Amendment No. 2, which superseded Amendment No. 1 in its
entirety, the Exchange made a minor change to the proposed rule text
and made a corresponding change to the purpose section of the
proposed rule change.
The effective date of the original proposed rule change is
September 16, 2005, the effective date of Amendment No. 1 is October
3, 2005 and the effective date of Amendment No. 2 is October 12,
2005. For purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission considers the period
to commence on October 12, 2005, the date on which the CHX filed
Amendment No. 2. See 15 U.S.C. 78s(b)(3)(C).
\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CHX proposes to amend its Participant Fee Schedule (the ``Fee
Schedule'') to confirm the assignment fees that apply when the
Exchange's CSAE assigns a group of securities to a specialist firm in
competition with other specialist firms. Below is the text of the
proposed rule change, as amended. Proposed new language is italicized;
proposed deletions are in [brackets].
Participant Fees and Credits
* * * * *
D. Specialist
Assignment Fees.
Specialist No change to text
Application Fee.
Assignment of Once the Committee on Specialist
Dual Trading Assignment and Evaluation approves a
System Participant to act as specialist in a
Securities. security (or a group of securities),
that Participant must pay the following
fee:
* * * * * * *
$1,000........... If the security (or group of securities)
was assigned in competition with at
least one other Participant and up to
one-third of all Participants that trade
Dual Trading System Securities
$4,000........... If the security (or group of securities)
was assigned in competition with more
than one-third of all Participants that
trade Dual Trading System Securities
Assignment of Beginning on September 1, 2004, once the
Nasdaq/NM Committee on Specialist Assignment and
Securities. Evaluation approves a Participant to act
as specialist in a security (or a group
of securities), that Participant must
pay the following fee:
* * * * * * *
$1,000........... If the security (or group of securities)
was assigned in competition with one
other Participant that trades Nasdaq/NM
Securities
[[Page 61483]]
$4,000........... If the security (or group of securities)
was assigned in competition with two or
more [member firms] Participants that
trade Nasdaq/NM Securities
* * * * * * *
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 change, as
amended, and discussed any comments it received regarding the proposal,
as amended. 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's CSAE is responsible for assigning securities to be
traded by specialist firms.\7\ Although the CSAE ordinarily assigns
securities on a one-by-one basis, the CSAE could choose to assign
securities in groups consisting of more than one security.
---------------------------------------------------------------------------
\7\ See Article XXX, Rule 1.
---------------------------------------------------------------------------
Through this submission, the Exchange proposes to modify its Fee
Schedule to confirm the assignment fees that apply when the CSAE
assigns a group of securities to a specialist firm in competition with
other specialist firms. Specifically, the Exchange proposes to charge,
for the assignment of a group of listed securities: (a) a fee of $1,000
per group, if the group was assigned in competition with at least one
other participant and up to one-third of all participants trading Dual
Trading System Securities; and (b) a fee of $4,000 per group, if the
group was assigned in competition with more than one-third of the
participants trading Dual Trading System Securities.\8\ Similarly, the
Exchange proposes to charge, for the assignment of a group of Nasdaq/NM
securities: (x) a fee of $1,000 per group if the group of securities
was assigned in competition with at least one other participant that
trades Nasdaq/NM securities; and (y) a fee of $4,000 per group, if the
group of securities was assigned in competition with two or more
participants that trades Nasdaq/NM securities.
---------------------------------------------------------------------------
\8\ ``Dual Trading System Securities'' are securities listed on
the New York Stock Exchange, the American Stock Exchange or any
other stock exchange that are also listed or traded on the Chicago
Stock Exchange.
---------------------------------------------------------------------------
These changes to the Fee Schedule are submitted in connection with
SR-CHX-2005-23, which proposed a change to Rule 1 of CHX Article XXX
that established an allocation process available to the CSAE, in
special circumstances involving the allocation of more than 100 stocks
at a time.\9\ If the CSAE determines that it will allocate a large
number of stocks by posting groups of stocks at the beginning of the
application and assignment process, then these changes to the Fee
Schedule would govern the applicable assignment fees.\10\
---------------------------------------------------------------------------
\9\ The Commission notes that the Exchange uses the terms
``security(ies), stock(s) and issue(s)'' interchangeably. See
Securities Exchange Act Release No. 52379 (September 2, 2005), 70 FR
53825 (September 12, 2005).
\10\ According to the Exchange, assignment fees are assessed
upon permanent assignment of the subject issues.
---------------------------------------------------------------------------
The Exchange represents that the fees associated with the
assignment of securities in competition would be the same for a single
security and for a group of securities. The Exchange believes that
these charges are appropriate because, among other things, the
Exchange's work associated with the assignment of securities in
competition is not measurably different based on the number of
securities that are being assigned at a particular time. In each
instance, Exchange staff gathers data relating to each applicant's
demonstrated ability, experience and financial responsibility and the
CSAE meets to review the data, to hear presentations from applicants
and to determine the appropriate assignment decision.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b)(4) of the Act \11\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among CHX's members.
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\11\ 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, as
amended, 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 solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change, as amended, has been designated
as a fee change pursuant to Section 19(b)(3)(A) of the Act \12\ and
Rule 19b-4 thereunder \13\ because it establishes or changes a due, fee
or other charge imposed by the Exchange. Accordingly, the proposal will
take effect upon filing with the Commission. At any time within 60 days
of the filing of the proposed 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 purposes of
the Act.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
\14\ See supra note 4.
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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, as amended, is consistent with the Act. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CHX-2005-25 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-9303. All submissions should refer to
File Number SR-CHX-2005-25. 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 61484]]
only one method. The Commission will post all comments on the
Commission's Internet Web site (https://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 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-
2005-25 and should be submitted on or before November 14, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-5858 Filed 10-21-05; 8:45 am]
BILLING CODE 8010-01-P
