Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto, Relating to Participant Fees and Credits, 26660-26662 [E7-8960]
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26660
Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices
effect of an increase in the CQL is
procompetitive in that it increases the
number of market participants that may
quote electronically in a product. The
purpose of this filing is to increase the
CQL in International Securities
Exchange (‘‘ISE’’) from its current limit
of 25 to 40. The trading volume in ISE
recently has increased substantially.
Increasing the CQL in ISE will enable
the Exchange to enhance the liquidity
offered, thereby offering deeper and
more liquid markets.
2. Statutory Basis
CBOE believes the proposed rule
change is consistent with the Act and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE does not believe that the
proposed rule change 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 Change Received From
Members, Participants, or Others
The Exchange neither received nor
solicited written comments on the
proposal.
pwalker on PROD1PC71 with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
19(b)(3)(A)(i) of the Act 9 and Rule 19b–
4(f)(1) thereunder,10 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ Rule
8.3A.01(c).
7 15 U.S.C. 78(f)(B).
8 15 U.S.C. 78(f)(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(i).
10 17 CFR 240.19b–4(f)(1).
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15:04 May 09, 2007
Jkt 211001
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
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8958 Filed 5–9–07; 8:45 am]
BILLING CODE 8010–01–P
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–CBOE–2007–42 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55705; File No. SR–CHX–
2007–05[
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment No. 1 Thereto, Relating to
Participant Fees and Credits
May 4, 2007.
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 March 23,
Paper Comments
2007, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ or ‘‘Exchange’’) filed with the
• Send paper comments in triplicate
Securities and Exchange Commission
to Nancy M. Morris, Secretary,
(‘‘Commission’’) the proposed rule
Securities and Exchange Commission,
change as described in Items I, II, and
100 F Street, NE., Washington, DC
III below, which Items have been
20549–1090.
prepared substantially by the CHX. The
All submissions should refer to File
CHX amended the proposed rule change
Number SR–CBOE–2007–42. This file
on May 1, 2007.3 The CHX has
number should be included on the
designated this proposal as one
subject line if e-mail is used. To help the establishing or changing a member due,
Commission process and review your
fee, or other charge imposed by the CHX
comments more efficiently, please use
under Section 19(b)(3)(A)(ii) of the Act,4
only one method. The Commission will and Rule 19b–4(f)(2) thereunder,5 which
post all comments on the Commission’s renders the proposal effective upon
Internet Web site (https://www.sec.gov/
filing with the Commission. The
rules/sro.shtml). Copies of the
Commission is publishing this notice to
submission, all subsequent
solicit comments on the proposed rule
amendments, all written statements
change, as amended, from interested
persons.
with respect to the proposed rule
change that are filed with the
I. Self-Regulatory Organization’s
Commission, and all written
Statement of the Terms of Substance of
communications relating to the
the Proposed Rule Change
proposed rule change between the
The CHX proposes to amend its
Commission and any person, other than
Schedule of Participant Fees and Credits
those that may be withheld from the
(‘‘Fee Schedule’’), effective April 1,
public in accordance with the
2007, to (1) assess a single ‘‘take’’ fee
provisions of 5 U.S.C. 552, will be
and provide a single ‘‘provide’’ credit
available for inspection and copying in
for Matching System transactions in all
the Commission’s Public Reference
Room. Copies of such filing also will be securities; (2) eliminate the provisions
relating to sharing of market data; and
available for inspection and copying at
(3) modify the Matching System routing
the principal office of the CBOE. All
fees for executions through the Reg
comments received will be posted
without change; the Commission does
11 17 CFR 200.30–3(a)(12).
not edit personal identifying
1 15 U.S.C. 78s(b)(1).
information from submissions. You
2 17 CFR 240.19b–4.
3 See Amendment No. 1. The Commission
should submit only information that
you wish to make available publicly. All considers the 60-abrogation period to have
commenced on May 1, 2007, the date the CHX filed
submissions should refer to File
Amendment No. 1.
Number SR–CBOE–2007–42 and should
4 15 U.S.C. 78s(b)(3)(A)(ii).
be submitted on or before May 31, 2007.
5 17 CFR 240.19b–4(f)(2).
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Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices
NMS Linkage Plan. The text of the
proposed rule change is available at the
CHX, the Commission’s Public
Reference Room, and the CHX’s Web
site at https://www.chx.com/rules/
proposed_rules.htm.
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
pwalker on PROD1PC71 with NOTICES
1. Purpose
The CHX proposes to amend its Fee
Schedule, effective April 1, 2007, to (1)
assess a single ‘‘take’’ fee and provide a
single ‘‘provide’’ credit for Matching
System transactions in all securities; (2)
eliminate the provisions relating to
sharing of market data revenues; and (3)
modify the Matching System routing
fees for executions through the Reg
NMS Linkage Plan.
On April 1, 2007, the new market data
revenue allocation formula that is part
of Regulation NMS takes effect.6 This
new formula significantly modifies the
manner in which market data revenue is
allocated among the self-regulatory
organizations that participate in the
plans associated with the dissemination
of market data. Among other things, the
new formula allocates revenue among
the securities in each plan based (in
most cases) on the square root of the
dollar volume of trading in each
security; allocates revenue based upon
both quotes and trades in each security;
and limits the amount of revenue
associated with trades with dollar
volumes less than $5,000.7 The
Exchange believes that it is appropriate
to gain some experience with the impact
of this new revenue sharing formula
before determining whether it is
6 See Release No. 34–55160 (January 24, 2007), 72
FR 4202 (January 30, 2007) (File No. S7–10–04)
(confirming that the compliance date for the market
data revenue allocation amendment remains April
1, 2007).
7 See Reg NMS Final Rule Release, No. 34–51808,
File No. S7–10–04, 70 FR 37496 (June 29, 2005),
Section XIV (Text of Adopted Amendments to the
CTA Plan, the CQ Plan and the Nasdaq UTP Plan).
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15:04 May 09, 2007
Jkt 211001
appropriate to share a portion of that
revenue with Exchange participants.8
As a result, effective April 1, 2007, the
Exchange proposes to eliminate the
market data revenue credits set out in its
Fee Schedule.
At the same time, however, the
Exchange would slightly increase its
‘‘take’’ fees and more significantly
increase the ‘‘provide’’ credits for
transactions that occur within the CHX’s
Matching System. Under these changes,
the CHX would charge a ‘‘take’’ fee of
$.0029/share and pay a ‘‘provide’’ credit
of $.0026/share. These changes are
designed, at least in part, to provide an
incentive for participants to submit
single-sided orders to the Matching
System for execution.
As a final portion of this proposed
rule change, the Exchange would
modify the routing fees associated with
the use of the Linkage Plan’s routing
mechanism. These proposed fee changes
respond, in part, to changes instituted
by other markets and simplify the fee
structure by assessing a fee of $0.0030/
share for executed orders routed to all
markets in all securities (except that a
$.0003/share fee will be assessed on
executed orders routed to the NYSE in
non-ETFs).9 The Exchange believes that
this simplified fee structure will be
easier for its participants to understand;
will not require the Exchange to
continually modify its fees as other
markets make changes to their own fee
schedules; and will allow the Exchange
to cover a portion of its costs of
providing its participants with access to
the Linkage Plan.10
The provisions in Sections E(1), E(6)
and F(1) of the CHX Schedule of
Participant Fees and Credits that were
applicable only through March 31, 2007
are deemed to have been removed,
effective as of April 1, 2007, leaving
only the provisions that took effect on
April 1, 2007.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b)(4) of the
Act 11 in that it provides for the
equitable allocation of reasonable dues,
8 In addition, even if the Exchange believed it was
appropriate to share revenue under the new
allocation, the Exchange will not receive sufficient
information from the securities information
processors to readily calculate the amount of
revenue that might be shared in connection with a
specific quote or trade.
9 See Securities Exchange Act Release No. 55395
(March 2, 2007), 72 FR 11067 (March 12, 2007) (SR–
CBOE–2007–25) (setting new transaction fees for
the CBOE Stock Exchange).
10 These costs include the costs associated with
maintaining an omnibus clearing account for
Linkage Plan transactions with the National
Securities Clearing Corporation.
11 15 U.S.C. 78f(b)(4).
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26661
fees and other charges among its
members.
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 member
due, fee, or other charge imposed by the
Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(2) 13
thereunder. 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.
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
No. SR–CHX–2007–05 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–2007–05. 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
12 15
13 17
E:\FR\FM\10MYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
10MYN1
26662
Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices
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–2007–05 and should
be submitted on or before May 31, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8960 Filed 5–9–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55701; File No. SR–FICC–
2007–02]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Clarify the
Rules of Its Government Securities
Division With Respect to Obligations
Associated With Brokered Repo
Trades
pwalker on PROD1PC71 with NOTICES
May 3, 2007
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 12, 2007, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which items have
been prepared primarily by FICC. FICC
filed the proposed rule change pursuant
to Section 19(b)(3)(A)(i) of the Act 2 and
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i).
1 15
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15:04 May 09, 2007
Jkt 211001
Rule 19b–4(f)(1) thereunder 3 so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to add language to Section 3
to Rule 19 (Special Provisions for
Brokered Repo Transactions) of FICC’s
Government Securities Division
(‘‘GSD’’) Rules to make explicit that
blind broker repo trades assumed by
FICC are included in the calculation of
the parties to such trades’ receive and
deliver obligations to FICC.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.4
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In 2006, the Commission approved a
clarifying change to FICC’s Rules
relating to a longstanding practice by
FICC of assuming brokers’ positions in
certain blind broker repo transactions.5
As part of that filing, a new Section 5
was added to Rule 19 of the GSD Rules
to expressly provide for this practice.
FICC has determined that an additional
change as set forth below is necessary to
further clarify the GSD Rules with
respect to obligations associated with
brokered repo trades.
Section 3 of GSD Rule 19 allows FICC
to deem a repo brokered trade as
compared based solely upon the
submission of trade data by the broker
despite an untimely submission of data
by the dealer and states that such a trade
would be included in the calculation of
the margin and mark-to-market
payments of the parties to the trade.
3 17
CFR 240.19b–4(f)(1).
Commission has modified the text of the
summaries prepared by FICC.
5 Securities Exchange Act Release No. 54487
(September 22, 2006), 71 FR 58025 (October 2,
2006) [File No. SR–FICC–2005–17].
4 The
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FICC is adding language to Section 3 to
make it clear that such a trade is also
included in the calculation of the
parties’ receive and deliver obligations,
which is consistent with the language in
Section 5 of Rule 19. The proposed
change is technical in nature and does
not reflect a change in the practices or
policies of GSD.
The proposed rule change is
consistent with the requirements of
Section 17A of the Act 6 and the rules
and regulations thereunder applicable to
FICC because the proposed change is a
clarification that does not adversely
affect the safeguarding of securities and
funds in the custody or control of the
clearing agency or for which it is
responsible and does not adversely
affect the respective rights or obligations
of the clearing agency or its members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
FICC does not believe that the
proposed rule change will 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. FICC will notify
the Commission of any written
comments received by FICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(i) of the Act 7 and Rule 19b–
4(f)(1) 8 thereunder because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of FICC.
At any time within 60 days of the filing
of the 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
6 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(i).
8 17 CFR 240.19b–4(f)(1).
7 15
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]]>Agencies
[Federal Register Volume 72, Number 90 (Thursday, May 10, 2007)]
[Notices]
[Pages 26660-26662]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8960]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55705; File No. SR-CHX-2007-05[
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendment No. 1 Thereto, Relating to Participant Fees and Credits
May 4, 2007.
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 March 23, 2007, 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 substantially by the CHX.
The CHX amended the proposed rule change on May 1, 2007.\3\ The CHX has
designated this proposal as one establishing or changing a member due,
fee, or other charge 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 persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Amendment No. 1. The Commission considers the 60-
abrogation period to have commenced on May 1, 2007, the date the CHX
filed Amendment No. 1.
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 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 (``Fee Schedule''), effective April 1, 2007, to (1) assess a
single ``take'' fee and provide a single ``provide'' credit for
Matching System transactions in all securities; (2) eliminate the
provisions relating to sharing of market data; and (3) modify the
Matching System routing fees for executions through the Reg
[[Page 26661]]
NMS Linkage Plan. The text of the proposed rule change is available at
the CHX, the Commission's Public Reference Room, and the CHX's Web site
at https://www.chx.com/rules/proposed_rules.htm.
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 CHX proposes to amend its Fee Schedule, effective April 1,
2007, to (1) assess a single ``take'' fee and provide a single
``provide'' credit for Matching System transactions in all securities;
(2) eliminate the provisions relating to sharing of market data
revenues; and (3) modify the Matching System routing fees for
executions through the Reg NMS Linkage Plan.
On April 1, 2007, the new market data revenue allocation formula
that is part of Regulation NMS takes effect.\6\ This new formula
significantly modifies the manner in which market data revenue is
allocated among the self-regulatory organizations that participate in
the plans associated with the dissemination of market data. Among other
things, the new formula allocates revenue among the securities in each
plan based (in most cases) on the square root of the dollar volume of
trading in each security; allocates revenue based upon both quotes and
trades in each security; and limits the amount of revenue associated
with trades with dollar volumes less than $5,000.\7\ The Exchange
believes that it is appropriate to gain some experience with the impact
of this new revenue sharing formula before determining whether it is
appropriate to share a portion of that revenue with Exchange
participants.\8\ As a result, effective April 1, 2007, the Exchange
proposes to eliminate the market data revenue credits set out in its
Fee Schedule.
---------------------------------------------------------------------------
\6\ See Release No. 34-55160 (January 24, 2007), 72 FR 4202
(January 30, 2007) (File No. S7-10-04) (confirming that the
compliance date for the market data revenue allocation amendment
remains April 1, 2007).
\7\ See Reg NMS Final Rule Release, No. 34-51808, File No. S7-
10-04, 70 FR 37496 (June 29, 2005), Section XIV (Text of Adopted
Amendments to the CTA Plan, the CQ Plan and the Nasdaq UTP Plan).
\8\ In addition, even if the Exchange believed it was
appropriate to share revenue under the new allocation, the Exchange
will not receive sufficient information from the securities
information processors to readily calculate the amount of revenue
that might be shared in connection with a specific quote or trade.
---------------------------------------------------------------------------
At the same time, however, the Exchange would slightly increase its
``take'' fees and more significantly increase the ``provide'' credits
for transactions that occur within the CHX's Matching System. Under
these changes, the CHX would charge a ``take'' fee of $.0029/share and
pay a ``provide'' credit of $.0026/share. These changes are designed,
at least in part, to provide an incentive for participants to submit
single-sided orders to the Matching System for execution.
As a final portion of this proposed rule change, the Exchange would
modify the routing fees associated with the use of the Linkage Plan's
routing mechanism. These proposed fee changes respond, in part, to
changes instituted by other markets and simplify the fee structure by
assessing a fee of $0.0030/share for executed orders routed to all
markets in all securities (except that a $.0003/share fee will be
assessed on executed orders routed to the NYSE in non-ETFs).\9\ The
Exchange believes that this simplified fee structure will be easier for
its participants to understand; will not require the Exchange to
continually modify its fees as other markets make changes to their own
fee schedules; and will allow the Exchange to cover a portion of its
costs of providing its participants with access to the Linkage
Plan.\10\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 55395 (March 2,
2007), 72 FR 11067 (March 12, 2007) (SR-CBOE-2007-25) (setting new
transaction fees for the CBOE Stock Exchange).
\10\ These costs include the costs associated with maintaining
an omnibus clearing account for Linkage Plan transactions with the
National Securities Clearing Corporation. 10
---------------------------------------------------------------------------
The provisions in Sections E(1), E(6) and F(1) of the CHX Schedule
of Participant Fees and Credits that were applicable only through March
31, 2007 are deemed to have been removed, effective as of April 1,
2007, leaving only the provisions that took effect on April 1, 2007.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(4) of the
Act \11\ in that it provides for the equitable allocation of reasonable
dues, fees and other charges among its members.
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\11\ 15 U.S.C. 78f(b)(4).
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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
member due, fee, or other charge imposed by the Exchange, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(2) \13\ thereunder. 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.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 19b-4(f)(2).
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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 No. SR-CHX-2007-05 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-2007-05. 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
[[Page 26662]]
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-2007-05
and should be submitted on or before May 31, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8960 Filed 5-9-07; 8:45 am]
BILLING CODE 8010-01-P
