Self Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits., 28727-28728 [E6-7470]

Download as PDF Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION 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–Amex–2006–41 on the subject line. [Release No. 34–53781; File No. SR–CHX– 2006–12] Self Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits. May 10, 2006. mstockstill on PROD1PC61 with NOTICES Paper Comments Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, notice is hereby given that on April 24, Securities and Exchange Commission, 2006, the Chicago Stock Exchange, Inc. 100 F Street, NE., Washington, DC (‘‘CHX’’ or ‘‘Exchange’’) filed with the 20549–1090. Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule All submissions should refer to File change as described in Items I, II and III Number SR–Amex–2006–41. This file below, which Items have been prepared number should be included on the subject line if e-mail is used. To help the by the CHX. The Commission is publishing this notice to solicit Commission process and review your comments on the proposed rule change comments more efficiently, please use only one method. The Commission will from interested persons. post all comments on the Commission’s I. Self-Regulatory Organization’s Internet Web site (https://www.sec.gov/ Statement of the Terms of Substance of rules/sro.shtml). Copies of the the Proposed Rule Change submission, all subsequent amendments, all written statements The CHX proposes to amend its with respect to the proposed rule Participant Fee Schedule (the ‘‘Fee change that are filed with the Schedule’’) to reduce the assignment Commission, and all written fees charged to specialist firms seeking communications relating to the the right to trade securities to $500 per proposed rule change between the assignment, when the securities are Commission and any person, other than assigned in competition with other those that may be withheld from the firms. The text of this proposed rule public in accordance with the change is available on the Exchange’s provisions of 5 U.S.C. 552, will be Web site at https://www.chx.com/rules/ available for inspection and copying in proposed_rules.htm and in the the Commission’s Public Reference Commission’s Public Reference Room. Room. Copies of the filing also will be II. Self-Regulatory Organization’s available for inspection and copying at the principal office of the Exchange. All Statement of the Purpose of, and Statutory Basis for, the Proposed Rule comments received will be posted Change without change; the Commission does not edit personal identifying In its filing with the Commission, the information from submissions. You CHX included statements concerning should submit only information that the purpose of and basis for the you wish to make available publicly. All proposed rule change and discussed any submissions should refer to File comments it received regarding the Number SR–Amex–2006–41 and should proposed rule change. The text of these be submitted on or before June 7, 2006. statements may be examined at the places specified in Item IV below. The For the Commission, by the Division of CHX has prepared summaries, set forth Market Regulation, pursuant to delegated authority.26 in sections A, B, and C below, of the most significant aspects of such J. Lynn Taylor, statements. Assistant Secretary. [FR Doc. E6–7471 Filed 5–16–06; 8:45 am] BILLING CODE 8010–01–P 1 15 26 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:08 May 16, 2006 2 17 Jkt 208001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00073 Fmt 4703 Sfmt 4703 28727 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Changes 1. Purpose Under the Exchange’s rules, the Committee on Specialist Assignment and Evaluation is responsible for appointing participant firms to act as specialists on the Exchange.3 When more than one firm competes for the right to be the specialist in a particular security, the Exchange charges assignment fees of $1,000 or $4,000 for the assignment, depending on the number of firms competing for that right.4 In a separate filing, the Exchange has submitted a proposal to implement a new trading model, which features an automated Matching System into which orders may be sent for execution, but which does not involve the use of specialists to handle customer orders.5 Instead, in this new model, offExchange market makers may choose to handle customer orders, by sending those orders to the Exchange or to other venues for execution. Because the Exchange plans to be able to implement its new model in the second quarter of 2006, the Exchange believes that the right to trade securities as an Exchange specialist has only a short-term benefit. For that reason, the Exchange proposes to reduce the assignment fees to $500 per security, regardless of the number of participants competing for the assignments and regardless of the type of security that is being assigned.6 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with See Article IV, Rule 6. ‘‘dual trading system’’ securities, a group of securities which includes securities listed on the New York Stock Exchange or American Stock Exchange, the Exchange currently charges a $1,000 assignment fee if the security (or a group of securities) was assigned in competition with at least one other participant and up to one-third of all participants that trade these issues. The fee for the assignment of this type of security is increased to $4,000 if the security (or a group of securities) was assigned in competition with more than one-third of the participants that trade these issues. For Nasdaq/NM securities, the Exchange currently charges a $1,000 assignment fee if the security was assigned in competition with one other participant firm; the fee is increased to $4,000 if two or more firms compete for the assignment. 5 See SR–CHX–2006–05. 6 The Exchange believes that it is appropriate to maintain at least a $500 assignment fee to help defray the costs of the assignment process. The Exchange will continue to charge no fee when securities are assigned without competition. The Exchange is submitting a separate filing, SR–CHX– 2006–13, which proposes to make this fee reduction effective retroactively to March 1, 2006. 3 4 For E:\FR\FM\17MYN1.SGM 17MYN1 28728 Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices Section 6(b)(4) of the Act 7 in that it provides for the equitable allocation of reasonable dues, fees and other charges among its 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 of Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition. C. Self-Regulatory Organization’s Statement on Comments Regarding the Proposed Rule Changes Received From Members, Participants or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Changes 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 8 and subparagraph (f)(2) of Rule 19b–4 thereunder.9 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: mstockstill on PROD1PC61 with 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 No. SR–CHX–2006–12 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–CHX–2006–12. This file number U.S.C. 78f(b)(4). U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(2). 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 changes 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 will also 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 No. SR–CHX–2006–12 and should be submitted on or before June 7, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–7470 Filed 5–16–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53788; File No. SR–ISE– 2006–19] Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to PrecISE Fees 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 April 3, 2006, the International Securities Exchange, Inc. (‘‘ISE’’ 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 10 17 8 15 1 15 15:08 May 16, 2006 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Jkt 208001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to amend its Schedule of Fees to adopt fees for the use of its new, proprietary PrecISE Trade order entry terminals. The text of the proposed rule change, as amended, is available on the ISE’s Web site (https://www.iseoptions.com/legal/ proposed _rule_changes.asp), at the principal office of the ISE, 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 ISE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The ISE 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 purpose of this proposed rule change is to establish fees for the use of ISE’s new, proprietary PrecISE Trade order entry terminals. PrecISE Trade is May 11, 2006. 7 15 VerDate Aug<31>2005 have been prepared by the ISE. On May 10, 2006, ISE filed Amendment No. 1 to the proposed rule change.3 The ISE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the ISE 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 persons. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 3 Amendment No. 1 revised the purpose section of the filing to clarify that: (i) PrecISE is merely a new front-end system interface to the Exchange’s existing trading system, which does not require changes to ISE’s surveillance or communications rules and does not impact the Exchange’s market structure; (ii) ISE members will continue to pay CLICK fees only to the extent that they continue to have or use those terminals; (iii) the new away market routing functionality is optional for members; and (iv) the $20 monthly fee charged to IRDs for the away market routing functionality will be charged per PrecISE trade terminal (which conformed the purpose section to the text of the Schedule of Fees). 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). E:\FR\FM\17MYN1.SGM 17MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 95 (Wednesday, May 17, 2006)]
[Notices]
[Pages 28727-28728]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7470]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53781; File No. SR-CHX-2006-12]


Self Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Participant Fees and Credits.

May 10, 2006.
    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 April 24, 2006, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 reduce the assignment fees charged to specialist firms 
seeking the right to trade securities to $500 per assignment, when the 
securities are assigned in competition with other firms. The text of 
this proposed rule change is available on the Exchange's Web site at 
https://www.chx.com/rules/proposed_rules.htm and in 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 change and 
discussed any comments it received regarding the proposed rule change. 
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 Changes

1. Purpose
    Under the Exchange's rules, the Committee on Specialist Assignment 
and Evaluation is responsible for appointing participant firms to act 
as specialists on the Exchange.\3\ When more than one firm competes for 
the right to be the specialist in a particular security, the Exchange 
charges assignment fees of $1,000 or $4,000 for the assignment, 
depending on the number of firms competing for that right.\4\
---------------------------------------------------------------------------

    \3\  See Article IV, Rule 6.
    \4\ For ``dual trading system'' securities, a group of 
securities which includes securities listed on the New York Stock 
Exchange or American Stock Exchange, the Exchange currently charges 
a $1,000 assignment fee if the security (or a group of securities) 
was assigned in competition with at least one other participant and 
up to one-third of all participants that trade these issues. The fee 
for the assignment of this type of security is increased to $4,000 
if the security (or a group of securities) was assigned in 
competition with more than one-third of the participants that trade 
these issues. For Nasdaq/NM securities, the Exchange currently 
charges a $1,000 assignment fee if the security was assigned in 
competition with one other participant firm; the fee is increased to 
$4,000 if two or more firms compete for the assignment.
---------------------------------------------------------------------------

    In a separate filing, the Exchange has submitted a proposal to 
implement a new trading model, which features an automated Matching 
System into which orders may be sent for execution, but which does not 
involve the use of specialists to handle customer orders.\5\ Instead, 
in this new model, off-Exchange market makers may choose to handle 
customer orders, by sending those orders to the Exchange or to other 
venues for execution. Because the Exchange plans to be able to 
implement its new model in the second quarter of 2006, the Exchange 
believes that the right to trade securities as an Exchange specialist 
has only a short-term benefit. For that reason, the Exchange proposes 
to reduce the assignment fees to $500 per security, regardless of the 
number of participants competing for the assignments and regardless of 
the type of security that is being assigned.\6\
---------------------------------------------------------------------------

    \5\ See SR-CHX-2006-05.
    \6\ The Exchange believes that it is appropriate to maintain at 
least a $500 assignment fee to help defray the costs of the 
assignment process. The Exchange will continue to charge no fee when 
securities are assigned without competition. The Exchange is 
submitting a separate filing, SR-CHX-2006-13, which proposes to make 
this fee reduction effective retroactively to March 1, 2006.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 28728]]

Section 6(b)(4) of the Act \7\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among its members 
and creates an appropriate (and limited) incentive for a firm to agree 
to act as specialist on a temporary basis.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement of Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments Regarding the 
Proposed Rule Changes Received From Members, Participants or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Changes 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 \8\ and subparagraph (f)(2) 
of Rule 19b-4 thereunder.\9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 No. SR-CHX-2006-12 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-CHX-2006-12. 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 changes 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 will also 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 No. SR-CHX-2006-12 and should be submitted on or before June 7, 
2006.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-7470 Filed 5-16-06; 8:45 am]
BILLING CODE 8010-01-P

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