Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Specialist Participant Fees and Credits, 13197-13198 [E6-3543]

Download as PDF Federal Register / Vol. 71, No. 49 / Tuesday, March 14, 2006 / Notices retroactive basis, on January 1, 2006 so that it can apply to temporary assignments made on or after that date.7 2. Statutory Basis The Exchange believes that the proposed rule change, as amended, is consistent with Section 6(b)(4) of the Act 8 in that it provides for the equitable allocation of reasonable dues, fees and other charges among CHX’s members and creates an appropriate (and limited) incentive for a firm to agree to act as specialist on a temporary basis. 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 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 self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change, as amended; or B. Institute proceedings to determine whether the proposed rule change, as amended, should be disapproved. wwhite on PROD1PC65 with NOTICES 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–2006–08 on the subject line. 7 The Exchange also has filed a proposal to make this fee change effective immediately. See SR– CHX–2006–07. 8 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 19:18 Mar 13, 2006 Jkt 208001 13197 Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on February • Send paper comments in triplicate 27, 2006, the Chicago Stock Exchange, to Nancy M. Morris, Secretary, Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with Securities and Exchange Commission, the Securities and Exchange Station Place, 100 F Street, NE., Commission (‘‘Commission’’) the Washington, DC 20549–1090. proposed rule change as described in All submissions should refer to File Items I, II and III below, which Items Number SR–CHX–2006–08. This file have been prepared by the CHX. On number should be included on the March 2, 2006, CHX filed Amendment subject line if e-mail is used. To help the No. 1 to the proposed rule change.3 The Commission process and review your CHX has designated this proposal as one comments more efficiently, please use changing a fee imposed by the CHX only one method. The Commission will under Section 19(b)(3)(A)(ii) of the Act,4 post all comments on the Commission’s and Rule 19b–4(f)(2) thereunder,5 which Internet Web site (https://www.sec.gov/ renders the proposal effective upon rules/sro.shtml). Copies of the filing with the Commission. The submission, all subsequent Commission is publishing this notice to amendments, all written statements solicit comments on the proposed rule with respect to the proposed rule change, as amended, from interested change that are filed with the parties. Commission, and all written I. Self-Regulatory Organization’s communications relating to the Statement of the Terms of Substance of proposed rule change between the Commission and any person, other than the Proposed Rule Change those that may be withheld from the The CHX proposes to amend its public in accordance with the Participant Fee Schedule to confirm provisions of 5 U.S.C. 552, will be that, effectively immediately, specialist available for inspection and copying in fixed fees would not be assessed to a the Commission’s Public Reference specialist firm with respect to securities Room. Copies of such filing also will be that are temporarily assigned. The text available for inspection and copying at of the proposed rule change is available the principal office of the CHX. All on the Exchange’s Web site (https:// comments received will be posted www.chx.com/rules/ without change; the Commission does proposed_rules.htm) and at the not edit personal identifying Commission’s Public Reference Room. information from submissions. You Below is the text of the proposed rule should submit only information that change, as amended. Proposed new you wish to make available publicly. All language is italicized. submissions should refer to File FEES AND ASSESSMENTS Number SR–CHX–2006–08 and should * * * * be submitted on or before April 4, 2006. * For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Nancy M. Morris, Secretary. [FR Doc. E6–3542 Filed 3–13–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53429; File No. SR–CHX– 2006–07] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto Relating to Specialist Participant Fees and Credits March 6, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 9 17 PO 00000 CFR 200.30–3(a)(12). Frm 00132 Fmt 4703 Sfmt 4703 E. Specialist Fixed Fees * * * * * These fixed fees shall not be assessed to a firm with respect to securities that are temporarily assigned. * * * * * 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the Exchange revised the proposed rule text to clarify its meaning. The effective date of the original proposed rule change is February 27, 2006, and the effective date of Amendment No. 1 is March 2, 2006. 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 March 2, 2006, the date on which the CHX filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 5 17 CFR 240.19b–4(f)(2). 2 17 E:\FR\FM\14MRN1.SGM 14MRN1 13198 Federal Register / Vol. 71, No. 49 / Tuesday, March 14, 2006 / Notices 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 2. Statutory Basis The Exchange believes that the proposed rule change, as amended, is wwhite on PROD1PC65 with NOTICES VerDate Aug<31>2005 19:18 Mar 13, 2006 Jkt 208001 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 11 and Rule 19b– 4 thereunder,12 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, as amended, 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.13 IV. Solicitation of Comments Article IV, Rule 6. Article XXX, Rule 1. 8 The Exchange represents that when a security is to be assigned or reassigned, the Exchange notifies specialist firms of the assignment opportunity and invites applications for the security. See Article XXX, Rule 1, Interpretation and Policy .01, Section II. The Exchange further represents that if more than one firm seeks the assignment, the CSAE holds meetings with the firms to review their demonstrated ability, experience, financial responsibility and other factors that are relevant to the CSAE’s assignment decision. See Article XXX, Rule 1, Interpretation and Policy .01, Section II and Section III. The Exchange represents that depending upon the number of firms applying for a security and the availability of committee members and specialist firm representatives, this process could take several weeks to complete. An interim temporary assignment allows a security to continue to be traded by a specialist firm, while the process is completed. 9 The Exchange also is filing, pursuant to Section 19b(2) of the Act, a proposal to make this fee change retroactive to January 1, 2006. See SR–CHX–2006– 08. 7 See 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. 1. Purpose Under the Exchange’s rules, the Committee on Specialist Assignment and Evaluation (‘‘CSAE’’) is responsible for appointing participant firms to act as specialists on the Exchange.6 From time to time, the CSAE may make a temporary assignment of one or more securities to a specialist firm.7 Temporary assignments may be made, for example, when one specialist firm has requested and been granted the opportunity to deregister in one or more of its securities before the formal posting and assignment process has been completed.8 Through this filing, the Exchange proposes to confirm that, when a firm has been appointed to act as specialist in a security on a temporary basis, the firm will not be charged the specialist fixed fees otherwise associated with the trading of that security. The Exchange believes that this fee waiver creates an appropriate (and limited) incentive for a firm to agree to act as specialist on a temporary basis.9 6 See consistent with Section 6(b)(4) of the Act 10 in that it provides for the equitable allocation of reasonable dues, fees and other charges among CHX’s members and creates an appropriate (and limited) incentive for a firm to agree to act as specialist on a temporary basis. 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–2006–07 on the subject line. 10 15 U.S.C. 78f(b)(4). U.S.C. 78s(b)(3)(A). 12 12 17 CFR 240.19b–4(f)(2). 13 See supra note 3. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CHX–2006–07. 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 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–2006–07 and should be submitted on or before April 4, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E6–3543 Filed 3–13–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53435; File No. SR–DTC– 2006–03] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of Proposed Rule Change To Amend the Criteria Used To Place Participants on Surveillance Status March 7, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on 11 15 PO 00000 Frm 00133 Fmt 4703 Sfmt 4703 14 17 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). E:\FR\FM\14MRN1.SGM 14MRN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 49 (Tuesday, March 14, 2006)]
[Notices]
[Pages 13197-13198]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3543]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53429; File No. SR-CHX-2006-07]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
and Amendment No. 1 Thereto Relating to Specialist Participant Fees and 
Credits

March 6, 2006.
    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 February 27, 2006, 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 March 2, 
2006, CHX filed Amendment No. 1 to the proposed rule change.\3\ The CHX 
has designated this proposal as one changing a fee imposed by the CHX 
under Section 19(b)(3)(A)(ii) of the Act,\4\ and Rule 19b-4(f)(2) 
thereunder,\5\ 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 revised the proposed rule 
text to clarify its meaning. The effective date of the original 
proposed rule change is February 27, 2006, and the effective date of 
Amendment No. 1 is March 2, 2006. 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 March 2, 2006, the 
date on which the CHX filed Amendment No. 1. See 15 U.S.C. 
78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 5 17 CFR 240.19b-4(f)(2).
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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 Participant Fee Schedule to confirm 
that, effectively immediately, specialist fixed fees would not be 
assessed to a specialist firm with respect to securities that are 
temporarily assigned. The text of the proposed rule change is available 
on the Exchange's Web site (https://www.chx.com/rules/proposed_
rules.htm) and at the Commission's Public Reference Room. Below is the 
text of the proposed rule change, as amended. Proposed new language is 
italicized.

FEES AND ASSESSMENTS

* * * * *
E. Specialist Fixed Fees
* * * * *
    These fixed fees shall not be assessed to a firm with respect to 
securities that are temporarily assigned.
* * * * *

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

[[Page 13198]]

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
    Under the Exchange's rules, the Committee on Specialist Assignment 
and Evaluation (``CSAE'') is responsible for appointing participant 
firms to act as specialists on the Exchange.\6\ From time to time, the 
CSAE may make a temporary assignment of one or more securities to a 
specialist firm.\7\ Temporary assignments may be made, for example, 
when one specialist firm has requested and been granted the opportunity 
to deregister in one or more of its securities before the formal 
posting and assignment process has been completed.\8\ Through this 
filing, the Exchange proposes to confirm that, when a firm has been 
appointed to act as specialist in a security on a temporary basis, the 
firm will not be charged the specialist fixed fees otherwise associated 
with the trading of that security. The Exchange believes that this fee 
waiver creates an appropriate (and limited) incentive for a firm to 
agree to act as specialist on a temporary basis.\9\
---------------------------------------------------------------------------

    \6\ See Article IV, Rule 6.
    \7\ See Article XXX, Rule 1.
    \8\ The Exchange represents that when a security is to be 
assigned or reassigned, the Exchange notifies specialist firms of 
the assignment opportunity and invites applications for the 
security. See Article XXX, Rule 1, Interpretation and Policy .01, 
Section II. The Exchange further represents that if more than one 
firm seeks the assignment, the CSAE holds meetings with the firms to 
review their demonstrated ability, experience, financial 
responsibility and other factors that are relevant to the CSAE's 
assignment decision. See Article XXX, Rule 1, Interpretation and 
Policy .01, Section II and Section III. The Exchange represents that 
depending upon the number of firms applying for a security and the 
availability of committee members and specialist firm 
representatives, this process could take several weeks to complete. 
An interim temporary assignment allows a security to continue to be 
traded by a specialist firm, while the process is completed.
    \9\ The Exchange also is filing, pursuant to Section 19b(2) of 
the Act, a proposal to make this fee change retroactive to January 
1, 2006. See SR-CHX-2006-08.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b)(4) of the Act \10\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among CHX's members and creates an appropriate (and limited) incentive 
for a firm to agree to act as specialist on a temporary basis.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 \11\ and 
Rule 19b-4 thereunder,\12\ 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, as amended, 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.\13\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 12 17 CFR 240.19b-4(f)(2).
    \13\ See supra note 3.
---------------------------------------------------------------------------

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-2006-07 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2006-07. 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 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-2006-07 and should be submitted on or before April 
4, 2006.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
Nancy M. Morris,
Secretary.
[FR Doc. E6-3543 Filed 3-13-06; 8:45 am]
BILLING CODE 8010-01-P

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