Self Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Participant Fees and Credits, 76396-76397 [E6-21655]
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Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54922; File No. SR–CHX–
2006–36]
Self Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
Participant Fees and Credits
December 12, 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 November
16, 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
Exchange has filed this proposal
pursuant to Section 19(b)(3)(A) 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 fee for
receiving orders routed through the
CHX communications or routing
functionality. The text of this proposed
rule change is available on the
Exchange’s Web site (https://
www.chx.com/rules/
proposedlrules.htm) at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
sroberts on PROD1PC70 with NOTICES
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 changes and discussed
any comments it received regarding the
proposal. 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.
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
20:03 Dec 19, 2006
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. This
service would allow participants to
route orders to market makers or other
broker-dealers connected to the CHX’s
network, which provide order handling
and execution services in the over-thecounter market; and to other
destinations (including order-routing
vendors) that are connected to the
CHX’s network.5 (To the extent that this
service routes orders to destinations
other than the Exchange and its
institutional brokers, it is called the
Exchange’s ‘‘wide area network’’ or
‘‘WAN’’). The WAN would not effect
trade executions and would not report
trades to ‘‘the tape.’’ The WAN would
be a facility of the Exchange.
This proposal would establish a
$5,000 monthly fee for any participant
that receives orders through the WAN.
The monthly fee would be prorated in
the month that a participant first begins
using the service, based on the
participant’s first date of use. The fee
would not be assessed until January 1,
2007, to allow the full implementation
of the Exchange’s new trading model to
be completed before the fee is put into
effect.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act 6 in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among its members who might seek to
receive orders using the WAN service.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
5 Participants would also use this
communications service to route orders to the
Exchange’s matching System and to its institutional
brokers.
6 15 U.S.C. 78(f)(b)(4).
1 15
VerDate Aug<31>2005
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
Jkt 211001
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on 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
Because the foregoing rule change
establishes or changes a due, fee or
other charge applicable only to a
member,7 it therefore has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(2)
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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–CHX–2006–36 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–2006–36. 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
7 Under Article I, Rule 1(t) of the Exchange’s
rules, an Exchange ‘‘ participant’’ is considered a
‘‘member’’ for all purposes under the Act.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
E:\FR\FM\20DEN1.SGM
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Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
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–2006–36 and should be
submitted on or before January 10, 2007.
a situation where a participant notifies
DTC that it intends to wind down its
activities and DTC determines in its
discretion that it must take special
action in order to protect itself and its
participants.3
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21655 Filed 12–19–06; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule change would
allow DTC to make a determination that
a participant is a wind-down participant
and would set forth the conditions DTC
using its discretion could place on a
wind-down participant and the actions
DTC using its discretion could take with
respect to a wind-down participant to
protect itself and its participants. Such
actions would include restricting or
modifying the wind-down participant’s
use of any or all of DTC’s services and
requiring the wind-down participant to
post increased participants fund
deposits. DTC would retain all of its
other rights set forth in its rules and
participant agreements, including the
right to cease to act for the wind-down
participant.
DTC believes that the proposed rule
will ensure that it has the needed
flexibility to appropriately manage the
risks presented by an entity in crisis that
remains a participant of DTC. This is
particularly important to preserve
orderly settlement in the marketplace
and to minimize the risk of loss to DTC
and its participants. The proposed rule
summarizes in a single rule DTC’s rights
and the actions it may take in such a
situation. These rights and actions are
either permitted elsewhere in DTC’s
rules or are permitted pursuant to DTC’s
emergency authority. By summarizing
them in a single rule, however, the
proposed rule change should provide
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54927; File No. SR-DTC–
2006–07]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing of a Proposed Rule Change
Relating to the Wind-Down of a
Participant
December 13, 2006.
sroberts on PROD1PC70 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 28, 2006, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on September 29,
2006, amended the proposed rule
change as described in Items I, II, and
III below, which items have been
prepared primarily by DTC. 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 proposed rule change would add
a new Rule 32, Wind Down of a
Participant,2 to DTC’s Rules to address
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 The text of DTC’s proposed Rule 32 can be
found DTC’s Web site at https://www.dtc.org.
1 15
VerDate Aug<31>2005
20:03 Dec 19, 2006
Jkt 211001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
DTC 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. DTC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.4
3 Similar proposed rule changes have been filed
by the Fixed Income Clearing Corporation [File No.
SR–FICC–2006–05] and the National Securities
Clearing Corporation [File No. SR–NSCC–2006–05].
4 The Commission has modified parts of these
statements.
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
76397
clarity and a clear legal basis for DTC’s
rights or actions taken with respect to a
wind-down participant. DTC also
believes that the proposed rule is
designed to minimize the need for rule
waivers.
DTC believes that the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder because it is
designed to enhance DTC’s rules
regarding DTC’s rights and the actions it
may take with respect to a wind-down
of a participant that presents risk to
DTC.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change would have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not yet been
solicited or received. DTC will notify
the Commission of any written
comments received by DTC.
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 the proposed
rule change or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 rulecomments@sec.gov. Please include File
Number SR-DTC–2006–07 on the
subject line.
E:\FR\FM\20DEN1.SGM
20DEN1
]]>Agencies
[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76396-76397]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21655]
[[Page 76396]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54922; File No. SR-CHX-2006-36]
Self Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Participant Fees and Credits
December 12, 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 November 16, 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 Exchange
has filed this proposal pursuant to Section 19(b)(3)(A) 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).
\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 fee for receiving orders
routed through the CHX communications or routing functionality. The
text of this proposed rule change is available on the Exchange's Web
site (https://www.chx.com/rules/proposed_rules.htm) at the Exchange's
Office of the Secretary, 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 CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. 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
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. This service would allow participants to route orders to
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 to other destinations (including order-routing
vendors) that are connected to the CHX's network.\5\ (To the extent
that this service routes orders to destinations other than the Exchange
and its institutional brokers, it is called the Exchange's ``wide area
network'' or ``WAN''). The WAN would not effect trade executions and
would not report trades to ``the tape.'' The WAN would be a facility of
the Exchange.
---------------------------------------------------------------------------
\5\ Participants would also use this communications service to
route orders to the Exchange's matching System and to its
institutional brokers.
---------------------------------------------------------------------------
This proposal would establish a $5,000 monthly fee for any
participant that receives orders through the WAN. The monthly fee would
be prorated in the month that a participant first begins using the
service, based on the participant's first date of use. The fee would
not be assessed until January 1, 2007, to allow the full implementation
of the Exchange's new trading model to be completed before the fee is
put into effect.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(4) of the Act \6\ in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
its members who might seek to receive orders using the WAN service.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78(f)(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose 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 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
Because the foregoing rule change establishes or changes a due, fee
or other charge applicable only to a member,\7\ it therefore has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(2) 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.
---------------------------------------------------------------------------
\7\ Under Article I, Rule 1(t) of the Exchange's rules, an
Exchange `` participant'' is considered a ``member'' for all
purposes under 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 e-mail to rule-comments@sec.gov. Please include File
Number SR-CHX-2006-36 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-2006-36. 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
[[Page 76397]]
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-2006-36 and should be
submitted on or before January 10, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21655 Filed 12-19-06; 8:45 am]
BILLING CODE 8011-01-P
