Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits, 71002-71003 [E6-20715]
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71002
Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Notices
copying at the principal office of BSE
and on BSE’s Web site, www.bse.com.
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–BSE–2006–46 and should
be submitted on or before December 28,
2006.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.8
Nancy M. Morris,
Secretary.
[FR Doc. E6–20730 Filed 12–6–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54842; File No. SR–CHX–
2006–35]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Participant Fees and Credits
November 30, 2006.
sroberts on PROD1PC70 with NOTICES
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 November
13, 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. The
CHX has designated this proposal as one
establishing or changing a member due,
fee, or other charge imposed by the CHX
pursuant to Section 19(b)(3)(A)(ii) 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
The CHX proposes to amend its
Schedule of Participant Fees and Credits
(the ‘‘Fee Schedule’’) to include a
reduction in the fees charged for orders
routed through the NMS Linkage Plan to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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17:29 Dec 06, 2006
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The NASDAQ Stock Market, Inc.
(‘‘Nasdaq’’). 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 on 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
Change
1. Purpose
The Exchange’s Fee Schedule, among
other things, identifies the fees that are
charged to participants on account of
outbound NMS Linkage Plan orders.5
Section E.6 of the Fee Schedule applies
to orders that are Matching Systemeligible and therefore are routed from
the Matching System to other market
centers. Section E.8 of the Fee Schedule
applies to orders that have not yet
migrated to the Matching System and
therefore are routed from the Exchange’s
pre-new trading model facilities.6
When an outbound NMS Linkage Plan
order is executed on another NMS
Linkage participant market, that market
will directly invoice the CHX for a
transaction fee, in an amount that may
not exceed the transaction fee that it
would charge its own member for such
an execution. The CHX is then
responsible for payment of such invoice.
Sections E.6 and E.8 of the Fee Schedule
permit the CHX to collect a
corresponding fee from the CHX
participant that generated the outbound
NMS Linkage Plan order. The CHX
believes that it is appropriate to
establish outbound NMS Linkage fee
5 See Securities Exchange Act Release No. 54548
(September 29, 2006), 71 FR 59159 (October 6,
2006) (SR–CHX–2006–28) (approving NMS Linkage
Plan exchange-to-exchange billing procedures);
Securities Exchange Act Release No. 54551
(September 29, 2006), 71 FR 59148 (October 6,
2006) (approving NMS Linkage Plan).
6 See Securities Exchange Act Release No. 54550
(September 29, 2006); 71 FR 59563 (October 10,
2006) (SR–CHX–2006–05) (approving rules to
implement a new trading model).
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
rates that reasonably correspond to the
respective transaction fee rates being
charged by the executing markets.
Accordingly, it is submitting changes to
Sections E.6 and E.8 of the Fee
Schedule, to reflect recent
developments regarding applicable
transaction fees assessed by Nasdaq on
account of NMS Linkage Plan
executions.7 Specifically, the proposal
would change the outbound fee for NMS
Linkage orders routed to Nasdaq (in
issues other than exchange-traded
funds) from $.0030/share to $.0015/
share. This change is not applicable to
orders for exchange-traded funds.
2. Statutory Basis
The Exchange believes that the
proposed rule change 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 its members and is consistent
with the allocation of dues, fees and
other charges utilized by other selfregulatory organizations that have
implemented trading platforms similar
to the CHX new trading model.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change 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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change establishes or changes a due, fee
or other charge imposed by the
Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 9 and subparagraph (f)(2) of Rule
19b–4 thereunder.10 At any time within
60 days of the filing of such 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.
7 See Nasdaq Head Trader Alert #2006–176
(November 1, 2006, updated November 3, 2006).
8 15 U.S.C. 78f(b)(4).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / 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 is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–20715 Filed 12–6–06; 8:45 am]
BILLING CODE 8011–01–P
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
No. SR–CHX–2006–35 on the subject
line.
Paper Comments
[Release No. 34–54846; File No. SR–CHX–
2006–34]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Regarding
the Implementation of a
Communications or Routing Service
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
November 30, 2006.
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–2006–35 and should
be submitted on or before December 28,
2006.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
sroberts on PROD1PC70 with NOTICES
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 November
16, 2006, the Chicago Stock Exchange,
All submissions should refer to File
Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with
Number SR–CHX–2006–35. This file
the Securities and Exchange
number should be included on the
Commission (‘‘Commission’’) the
subject line if e-mail is used. To help the proposed rule change as described in
Items I and II below, which Items have
Commission process and review your
been prepared by the Exchange. The
comments more efficiently, please use
only one method. The Commission will CHX has filed this proposal pursuant to
post all comments on the Commission’s Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder,4 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 from interested persons.
change that are filed with the
The Exchange proposes to amend its
rules to operate a service that allows its
participants to route orders to any other
destination connected to the CHX’s
network.
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
Exchange 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
11 17
CFR 200.30–3(a)(12).
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)(6).
1 15
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71003
Exchange 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
As part of the Exchange’s new trading
model, the Exchange proposes to
operate a neutral communications
service that allows its participants to
route orders to any destination
connected to the CHX’s network.
Specifically, this service would allow
participants to route orders to: (1) The
CHX Matching System; (2) CHX
institutional brokers; (3) market makers
or other broker-dealers connected to the
CHX’s network, which provide order
handling and execution services in the
over-the-counter market; and (4) other
destinations (including order-routing
vendors) that are connected to the
CHX’s network.5 This communications
or routing service would not effect trade
executions and would not report trades
to ‘‘the tape.’’ An order would not pass
through the CHX market before going to
an entity or market outside of the CHX
(i.e., a participant could choose to route
an order directly to any of the above
destinations). A participant would be
responsible for identifying the
appropriate destination for any orders
sent through the service and for
ensuring that it had authority to access
the selected destination; the CHX would
merely provide the mechanism by
which orders (and associated messages)
could be routed by a participant to a
destination and from the destination
back to the participant.6
This service would be a facility of the
Exchange. As a result, the Exchange
would submit fee changes, and any
applicable changes to its rules, to the
Commission as required by Rule 19b–4
under the Act in connection with its
routing.7 Accordingly, the Exchange is
5 Details associated with the operation of these
routing services would be set out on the Exchange’s
Web site or could be the subject of an agreement
between the CHX and any participants that seek to
use the services.
6 This service is an extension of a service that the
Exchange already provides to its participants—
current order-sending participants route orders
through access provided by the Exchange to the
MAX trading system and to the CHX’s
institutional brokers. Institutional brokers and
specialists use CHX-provided connectivity to route
orders to the MAX trading system (and, for
securities that have been transitioned to the new
trading model, to the CHX’s new Matching System).
7 17 CFR 240.19b–4. The Exchange’s rules and
fees, however, would not address the fees or
Continued
E:\FR\FM\07DEN1.SGM
07DEN1
]]>Agencies
[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Notices]
[Pages 71002-71003]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20715]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54842; File No. SR-CHX-2006-35]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Participant Fees and Credits
November 30, 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 November 13, 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. The CHX has
designated this proposal as one establishing or changing a member due,
fee, or other charge imposed by the CHX pursuant to Section
19(b)(3)(A)(ii) 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)(ii).
\4\ 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 Schedule of Participant Fees and
Credits (the ``Fee Schedule'') to include a reduction in the fees
charged for orders routed through the NMS Linkage Plan to The NASDAQ
Stock Market, Inc. (``Nasdaq''). 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 on 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 Change
1. Purpose
The Exchange's Fee Schedule, among other things, identifies the
fees that are charged to participants on account of outbound NMS
Linkage Plan orders.\5\ Section E.6 of the Fee Schedule applies to
orders that are Matching System-eligible and therefore are routed from
the Matching System to other market centers. Section E.8 of the Fee
Schedule applies to orders that have not yet migrated to the Matching
System and therefore are routed from the Exchange's pre-new trading
model facilities.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54548 (September 29,
2006), 71 FR 59159 (October 6, 2006) (SR-CHX-2006-28) (approving NMS
Linkage Plan exchange-to-exchange billing procedures); Securities
Exchange Act Release No. 54551 (September 29, 2006), 71 FR 59148
(October 6, 2006) (approving NMS Linkage Plan).
\6\ See Securities Exchange Act Release No. 54550 (September 29,
2006); 71 FR 59563 (October 10, 2006) (SR-CHX-2006-05) (approving
rules to implement a new trading model).
---------------------------------------------------------------------------
When an outbound NMS Linkage Plan order is executed on another NMS
Linkage participant market, that market will directly invoice the CHX
for a transaction fee, in an amount that may not exceed the transaction
fee that it would charge its own member for such an execution. The CHX
is then responsible for payment of such invoice. Sections E.6 and E.8
of the Fee Schedule permit the CHX to collect a corresponding fee from
the CHX participant that generated the outbound NMS Linkage Plan order.
The CHX believes that it is appropriate to establish outbound NMS
Linkage fee rates that reasonably correspond to the respective
transaction fee rates being charged by the executing markets.
Accordingly, it is submitting changes to Sections E.6 and E.8 of the
Fee Schedule, to reflect recent developments regarding applicable
transaction fees assessed by Nasdaq on account of NMS Linkage Plan
executions.\7\ Specifically, the proposal would change the outbound fee
for NMS Linkage orders routed to Nasdaq (in issues other than exchange-
traded funds) from $.0030/share to $.0015/share. This change is not
applicable to orders for exchange-traded funds.
---------------------------------------------------------------------------
\7\ See Nasdaq Head Trader Alert 2006-176 (November 1,
2006, updated November 3, 2006).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change 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
its members and is consistent with the allocation of dues, fees and
other charges utilized by other self-regulatory organizations that have
implemented trading platforms similar to the CHX new trading model.
---------------------------------------------------------------------------
\8\ 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 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change establishes or changes a
due, fee or other charge imposed by the Exchange, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and
subparagraph (f)(2) of Rule 19b-4 thereunder.\10\ At any time within 60
days of the filing of such 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
[[Page 71003]]
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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-CHX-2006-35 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-2006-35. 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-2006-35 and should be submitted on or before
December 28, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-20715 Filed 12-6-06; 8:45 am]
BILLING CODE 8011-01-P
