Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits, 43828-43829 [E6-12428]

Download as PDF 43828 Federal Register / Vol. 71, No. 148 / Wednesday, August 2, 2006 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.22 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–12429 Filed 8–1–06; 8:45 am] comments it received regarding the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. CHX has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No.34–54222; File No. SR–CHX– 2006–21] 1. Purpose Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits July 26, 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 July 11, 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 and II below, which Items have been prepared by CHX. The Exchange filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice 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 CHX proposes to amend its Participant Fee Schedule (the ‘‘Fee Schedule’’) to clarify monthly applicability of the Exchange’s SelfRegulatory Organization Fee (‘‘SRO Fee’’). The text of this proposed rule change is available on the Exchange’s Web site at (http://www.chx.com/rules/ proposed_rules.htm), at the principal office of the Exchange, and in the Commission’s Public Reference Room. Through this proposal, the Exchange seeks to clarify monthly applicability of the Exchange’s SRO Fee. The Exchange’s Fee Schedule has for many years contained a provision establishing an SRO Fee of $100. Prior to the Exchange’s demutualization in February of 2005, this provision of the Fee Schedule indicated that the SRO Fee was ‘‘$100 per member and member organization per month.’’ In connection with the demutualization rule changes, this provision was modified to delete the ‘‘per month’’ reference. Despite the deletion of the ‘‘per month’’ reference, the Exchange did not intend to modify its long-standing practice of assessing the SRO Fee on a monthly basis. Indeed, since the provision was modified in February of 2005, the Exchange has consistently billed each CHX participant for the $100 SRO Fee on a monthly basis and the Exchange intends to continue this monthly assessment. To eliminate any confusion, however, the Exchange is submitting this proposed rule change to the Fee Schedule to reincorporate the ‘‘per month’’ language. 2. Statutory Basis CHX believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act 5 in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members. B. Self-Regulatory Organization’s Statement on Burden on Competition wwhite on PROD1PC61 with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change CHX does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In its filing with the Commission, CHX included statements concerning the purpose of, and basis for, the proposed rule change and discussed any C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(2). 2 17 VerDate Aug<31>2005 16:40 Aug 01, 2006 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed 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 6 and Rule 19b–4(f)(2) thereunder.7 At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such proposed 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. 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 rulecomments@sec.gov. Please include File No. SR–CHX–2006–21 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–2006–21. 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 (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 6 15 5 15 Jkt 208001 PO 00000 U.S.C. 78f(b)(4). Frm 00119 Fmt 4703 7 17 Sfmt 4703 E:\FR\FM\02AUN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 02AUN1 Federal Register / Vol. 71, No. 148 / Wednesday, August 2, 2006 / Notices Room. Copies of such filing also will be available for inspection and copying at the principal office of 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–2006–21 and should be submitted on or before August 23, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–12428 Filed 8–1–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54221; File No. SR– NASDAQ–2006–005] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order Granting Approval of Proposed Rule Change and Amendments No. 1 and 2 Thereto To Modify Nasdaq’s Delisting Procedures To Conform to Recent Amendments to Commission Rules Regarding Removal From Listing and Withdrawal From Registration July 26, 2006. I. Introduction On April 4, 2006, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘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 Nasdaq delisting procedures to conform to recent amendments to Commission rules regarding removal from listing and withdrawal from registration. On May 5, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change.3 On May 17, 2006, Nasdaq filed Amendment No. 2 to the proposed rule change.4 The proposed rule change, as amended, was published for comment in the Federal 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment No. 1 replaced the original proposed rule change in its entirety. 4 In Amendment No. 2, Nasdaq amended the implementation date of the proposed rule change to the later of Commission approval or the date Nasdaq begins to operate as a national securities exchange. wwhite on PROD1PC61 with NOTICES 1 15 VerDate Aug<31>2005 16:40 Aug 01, 2006 Jkt 208001 Register on June 15, 2006.5 No comments were received regarding the proposal. This order approves the proposed rule change, as amended. II. Description of the Proposed Rule Change Section 12 of the Act6 and Rule 12d2– 2 thereunder7 (‘‘SEC Rule 12d2–2’’) govern the process for the delisting and deregistration of securities listed on national securities exchanges. Recent amendments to SEC Rule 12d2–2 (‘‘amended SEC Rule 12d2–2’’) and other Commission rules require the electronic filing of revised Form 25 on the Commission’s Electronic Data Gathering, Analysis, and Retrieval (‘‘EDGAR’’) system by exchanges and issuers for all delistings, other than delistings of standardized options and securities futures, which are exempted.8 Nasdaq proposes to revise Nasdaq Rules 4480, 4804, 4805, 4806, 4807, 4808, 4809, and adopt Interpretative Material 4800 (‘‘IM 4800’’) with respect to delisting procedural requirements as mandated by amended SEC Rule 12d2– 2. In the case of exchange-initiated delistings, amended SEC Rule 12d2–2(b) states that a national securities exchange may file an application on Form 25 to strike a class of securities from listing and/or withdraw the registration of such securities, in accordance with its rules, if the rules of such exchange, at a minimum, provide for: (i) Notice to the issuer of the exchange’s decision to delist its securities; (ii) An opportunity for appeal to the exchange’s board of directors, or to a committee designated by the exchange’s board of directors; and (iii) Public notice of the national securities exchange’s final determination to remove the security from listing and/or registration, by issuing a press release and posting notice on its Web site. Public notice must be disseminated no fewer than 10 days before the delisting becomes effective pursuant to amended SEC Rule 12d2–2(d)(1), and must remain posted on its Web site until the delisting is effective. Nasdaq’s rules currently provide the requisite issuer notice as well as an opportunity for appeal to a committee designated by the Nasdaq’s board of 5 See Securities Exchange Act Release No. 53964 (June 8, 2006), 71 FR 34656. 6 15 U.S.C. 78l. 7 17 CFR 240.12d2–2. 8 See Securities Exchange Act Release No. 52029 (July 14, 2005), 70 FR 42456 (July 22, 2005). PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 43829 directors.9 Nasdaq proposes to adopt IM 4800 to incorporate the requirements of amended SEC Rule 12d2–2. Proposed IM 4800 sets forth the procedures Nasdaq would follow to remove a security from listing. Under proposed IM 4800, Nasdaq would provide public notice of its final determination to remove a security from listing by issuing a press release and posting a notice on its Web site. Nasdaq would disseminate the public notice no fewer than 10 days before the delisting becomes effective. The public notice would remain on Nasdaq’s Web site until the delisting is effective. After the public notice, Nasdaq would file a Form 25 with the Commission and would promptly provide a copy of such form to the issuer. With respect to issuer-initiated delisting procedures, Nasdaq proposes to amend Nasdaq Rule 448010 to require the issuer to: (i) Comply with all requirements of amended SEC Rule 12d2–2(c); (ii) Comply with all applicable laws in effect in the state in which it is incorporated and with applicable Nasdaq rules; (iii) Provide notice to Nasdaq no fewer than 10 days before the issuer files the Form 25 with the Commission, including a statement of the material facts relating to the reasons for delisting; (iv) Contemporaneous with providing notice to Nasdaq, publish notice of its intent to delist, along with its reasons, via a press release and on its Web site, if it has one (any notice provided on the Web site must remain available until the delisting is effective); and (v) Provide a copy of the Form 25 to Nasdaq simultaneously with the filing of the Form 25 with the Commission. Nasdaq would provide notice on its Web site of the issuer’s intent to delist as required by amended SEC Rule 12d2– 2(c)(3). Nasdaq also proposes that an issuer seeking to voluntarily delist a class of securities that has received notice from Nasdaq that the issuer fails to comply with one or more requirements for continued listing, or is aware that it is below such continued listing requirements notwithstanding that it has not received such notice, must disclose this fact (including the specific continued listing requirements that it is below) in: (i) Its statement of all material facts relating to the reasons for withdrawal from listing provided to Nasdaq, along with written notice of its 9 See Nasdaq Rules 4803(a), 4805, 4806, 4807, 4808, and 4809. 10 Nasdaq proposes to renumber Nasdaq Rule 4480 to Nasdaq Rule 4380. E:\FR\FM\02AUN1.SGM 02AUN1

Agencies

[Federal Register Volume 71, Number 148 (Wednesday, August 2, 2006)]
[Notices]
[Pages 43828-43829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-12428]


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SECURITIES AND EXCHANGE COMMISSION

[Release No.34-54222; File No. SR-CHX-2006-21]


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

July 26, 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 July 11, 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 and 
II below, which Items have been prepared by CHX. The Exchange filed the 
proposal pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 
19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon 
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 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

    CHX proposes to amend its Participant Fee Schedule (the ``Fee 
Schedule'') to clarify monthly applicability of the Exchange's Self-
Regulatory Organization Fee (``SRO Fee''). The text of this proposed 
rule change is available on the Exchange's Web site at (http://
www.chx.com/rules/proposed_rules.htm), at the principal office of the 
Exchange, 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, 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. 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 proposal, the Exchange seeks to clarify monthly 
applicability of the Exchange's SRO Fee. The Exchange's Fee Schedule 
has for many years contained a provision establishing an SRO Fee of 
$100. Prior to the Exchange's demutualization in February of 2005, this 
provision of the Fee Schedule indicated that the SRO Fee was ``$100 per 
member and member organization per month.''
    In connection with the demutualization rule changes, this provision 
was modified to delete the ``per month'' reference. Despite the 
deletion of the ``per month'' reference, the Exchange did not intend to 
modify its long-standing practice of assessing the SRO Fee on a monthly 
basis. Indeed, since the provision was modified in February of 2005, 
the Exchange has consistently billed each CHX participant for the $100 
SRO Fee on a monthly basis and the Exchange intends to continue this 
monthly assessment. To eliminate any confusion, however, the Exchange 
is submitting this proposed rule change to the Fee Schedule to 
reincorporate the ``per month'' language.
2. Statutory Basis
    CHX believes that the proposed rule change is consistent with the 
provisions of Section 6(b)(4) of the Act \5\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among its members.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    CHX does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing proposed 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 \6\ and Rule 19b-
4(f)(2) thereunder.\7\ At any time within 60 days of the filing of such 
proposed rule change, the Commission may summarily abrogate such 
proposed 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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 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 No. SR-CHX-2006-21 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-2006-21. 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 (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

[[Page 43829]]

Room. Copies of such filing also will be available for inspection and 
copying at the principal office of 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-2006-21 and should be submitted on 
or before August 23, 2006.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-12428 Filed 8-1-06; 8:45 am]
BILLING CODE 8010-01-P