Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rules Relating to Registration Requirements, 18598-18599 [E8-7029]

Download as PDF 18598 Federal Register / Vol. 73, No. 66 / Friday, April 4, 2008 / Notices 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, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the CBOE. 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–CBOE– 2008–34 and should be submitted on or before April 25, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–7028 Filed 4–3–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57587; File No. SR–CHX– 2007–21] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Granting Approval of Proposed Rule Change, as Modified by Amendment No. 1, To Amend Rules Relating to Registration Requirements March 31, 2008. ebenthall on PRODPC61 with NOTICES I. Introduction On October 9, 2007, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’), filed with the Securities and Exchange Commission (‘‘Commission’’) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 13 17 1 15 CFR 200.30–3(a)(12). U.S.C. 78s(b)(l) VerDate Aug<31>2005 15:24 Apr 03, 2008 Jkt 214001 19b–4 thereunder,2 a proposed rule change to amend rules relating to registration requirements. On February 14, 2008, CHX filed Amendment No. 1 to the proposed rule change. The proposed rule change, as amended by Amendment No. 1, was published for comment in the Federal Register on February 28, 2008.3 The Commission received no comments on the proposal. This order approves the proposed rule change, as amended. II. Description of the Proposal The Financial Industry Regulatory Authority, Inc.’s (‘‘FINRA’’) Web Central Registration Depository (‘‘Web CRD’’) system is a centralized, web-based system used by securities exchanges and broker-dealers across the country to track registration and qualification information about firms and the individuals who work for those firms. CHX entered into an agreement with FINRA to allow the Exchange’s participants to use Web CRD to register certain of its associated persons. Therefore, the Exchange proposes to amend its registration rules relating to registration requirements and to adopt related fees and to delete an outdated provision in its rules. First, the Exchange proposes to require Exchange participants to use Web CRD to register their associated persons who are required to register with the Exchange under CHX rules.4 Similarly, the Exchange also seeks to require participants to submit a Form U–5 to the Web CRD following the termination of the associated person.5 Second, the Exchange proposes that it be allowed to direct its participants to submit fingerprint cards to the Exchange or to FINRA for processing during the registration process.6 Current CHX rules require participants to submit fingerprints to the Exchange. The Exchange seeks flexibility so that it could determine, from time to time, which fingerprint processing method would be most efficient for the Exchange and for its participants. Because FINRA would assess charges to CHX participants for using the Web 2 17 CFR 240.19B–4. 3 See Securities Exchange Act Release No. 57363 (February 20, 2008), 73 FR 10846 (February 28, 2008). 4 See proposed Article 6, Rule 2, Interpretation and Policy .01. 5 See proposed Article 6, Rule 2, Interpretation and Policy .02. The Exchange plans to allow its participants to transition to the use of the Web CRD system over the course of a six to nine-month period. At the end of this period, CHX participants would be required to use Web CRD for submitting any registration materials required by CHX rules. 6 See proposed Article 6, Rule 10, Interpretation and Policy .01. PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 CRD system and for processing any fingerprints that are submitted, the Exchange also is amending its Fee Schedule to include applicable registration, processing and termination fees, as well as various fingerprint charges.7 Finally, CHX proposes to delete Interpretation and Policy .03 of Article 6, Rule 2 that requires firms to notify CHX of the termination of any nonregistered, associated person’s employment. CHX believes that this requirement has become somewhat obsolete with the elimination of its physical trading floor because the requirement had been largely focused on the employment status of clerks working on the Exchange’s trading floor.8 III. Discussion and Commission Findings The Commission has carefully reviewed the proposed rule change and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.9 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,10 which, among other things, requires that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Commission believes that Exchange’s proposal to require its participant firms to use Web CRD system to register certain associated persons and to submit a Form U–5 following the termination of the associated person would eliminate the need for manual processing currently performed by Exchange staff. Significantly, it would also allow for the 7 7 These charges include an $85 registration fee; a $95 disclosure processing fee; a $30 annual processing fee; and termination fees of $40 and $80. Fingerprint processing fees would be $30.25 per card for an initial submission; $13 per card for a second submission; and $30.25 per card for a third submission. These fees reflect the charges assessed by FINRA for these services; CHX would not be charging any additional fees of its own. 8 Moreover, CHX regularly receives an updated list of a firm’s associated persons when it conducts its annual examinations. 9 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 10 15 U.S.C. 78f(b)(5). E:\FR\FM\04APN1.SGM 04APN1 Federal Register / Vol. 73, No. 66 / Friday, April 4, 2008 / Notices compilation of information related to the registration of associated persons in one central repository for access by regulators and broker-dealers, and could allow the Exchange’s regulatory group, as well as the firms themselves, to better determine whether a registrant has met applicable continuing education requirements. The Commission believes this should increase regulatory efficiency and capabilities without imposing an undue burden on participants. The Commission also believes that it is reasonable to provide the Exchange with the flexibility to determine whether it, or FINRA, would be best suited to process fingerprint cards, while participants would continue to have the obligation to submit fingerprints. Furthermore, the Commission believes that it is appropriate for the Exchange to amend its Fee Schedule to reflect fees that FINRA would charge for services rendered in connection with the use of Web CRD and the fingerprinting services set forth in the proposal. The Commission notes that CHX would not be charging any additional fees of its own. Finally, the Commission agrees that it is appropriate for CHX to delete Interpretation and Policy .03 of Article 6, Rule 2 relating to the firms’ requirement to notify the Exchange of the termination of any non-registered, associated person’s employment, since it has become obsolete given CHX’s new trading model and since CHX regularly receives an updated list of a firm’s associated persons when it conducts its annual examinations. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,11 that the proposed rule change (SR–CHX–2007– 21), as amended, be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–7029 Filed 4–3–08; 8:45 am] ACTION: Notice. Percent This is a Notice of the Presidential declaration of a major disaster for the State of Arkansas (FEMA–1751–DR ), dated 03/28/2008. Incident: Severe Storms, Tornadoes, and Flooding. Incident Period: 03/18/2008 and continuing. Effective Date: 03/28/2008. Physical Loan Application Deadline Date: 05/27/2008. Economic Injury (EIDL) Loan Application Deadline Date: 12/29/2008. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on 03/28/2008, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties (Physical Damage and Economic Injury Loans): Baxter, Jackson, Madison, Stone, Benton, Lawrence, Marion, Woodruff, Independence, Logan, Randolph. Contiguous Counties (Economic Injury Loans Only): Arkansas: Boone, Cleburne, Cross, Greene, Monroe, Pope, Searcy, St. Francis, White, Carroll, Craighead, Franklin, Izard, Newton, Prairie, Sebastian, Van Buren, Yell, Clay, Crawford, Fulton, Johnson, Poinsett, Scott, Sharp, Washington. Missouri: Barry, Ozark, McDonald, Ripley, Oregon, Taney. Oklahoma: Adair, Delaware. The Interest Rates are: SUMMARY: BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION ebenthall on PRODPC61 with NOTICES [Disaster Declaration #11206 and #11207] Arkansas Disaster #AR–00018 U.S. Small Business Administration. AGENCY: 11 15 12 17 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:24 Apr 03, 2008 Jkt 214001 For Physical Damage: Homeowners with credit available elsewhere: .......... Homeowners without credit available elsewhere: .......... Businesses with credit available elsewhere: .................. Other (including non-profit organizations) with credit available elsewhere: .......... Businesses and non-profit organizations without credit available elsewhere: .......... PO 00000 Frm 00110 Fmt 4703 18599 Sfmt 4703 For Economic Injury: Businesses & small agricultural cooperatives without credit available elsewhere: 4.000 The number assigned to this disaster for physical damage is 112066 and for economic injury is 112070. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) James E. Rivera, Acting Associate Administrator for Disaster Assistance. [FR Doc. E8–6992 Filed 4–3–08; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #11205] Iowa Disaster #IA–00014 Declaration of Economic Injury U.S. Small Business Administration. ACTION: Notice. AGENCY: SUMMARY: This is a notice of an Economic Injury Disaster Loan (EIDL) declaration for the State of Iowa, dated 03/31/2008. Incident: Structural Fire. Incident Period: 01/19/2008. Effective Date: 03/31/2008. EIDL Loan Application Deadline Date: 12/31/2008. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing And Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the Administrator’s EIDL declaration, applications for economic injury disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been Percent determined to be adversely affected by the disaster: Primary Counties: Jackson. 5.500 Contiguous Counties: Iowa: Clinton, Dubuque, Jones. 2.750 Illinois: Carroll, Jo Daviess. The Interest Rate is: 4.000. 8.000 The number assigned to this disaster for economic injury is 112050. The States which received an EIDL 5.250 Declaration # are Iowa and Illinois. 4.000 (Catalog of Federal Domestic Assistance Number 59002) E:\FR\FM\04APN1.SGM 04APN1

Agencies

[Federal Register Volume 73, Number 66 (Friday, April 4, 2008)]
[Notices]
[Pages 18598-18599]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7029]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57587; File No. SR-CHX-2007-21]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change, as Modified by 
Amendment No. 1, To Amend Rules Relating to Registration Requirements

 March 31, 2008.

I. Introduction

    On October 9, 2007, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange''), filed with the Securities and Exchange Commission 
(``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 rules relating to registration 
requirements. On February 14, 2008, CHX filed Amendment No. 1 to the 
proposed rule change. The proposed rule change, as amended by Amendment 
No. 1, was published for comment in the Federal Register on February 
28, 2008.\3\ The Commission received no comments on the proposal. This 
order approves the proposed rule change, as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(l)
    \2\ 17 CFR 240.19B-4.
    \3\ See Securities Exchange Act Release No. 57363 (February 20, 
2008), 73 FR 10846 (February 28, 2008).
---------------------------------------------------------------------------

II. Description of the Proposal

    The Financial Industry Regulatory Authority, Inc.'s (``FINRA'') Web 
Central Registration Depository (``Web CRD'') system is a centralized, 
web-based system used by securities exchanges and broker-dealers across 
the country to track registration and qualification information about 
firms and the individuals who work for those firms. CHX entered into an 
agreement with FINRA to allow the Exchange's participants to use Web 
CRD to register certain of its associated persons. Therefore, the 
Exchange proposes to amend its registration rules relating to 
registration requirements and to adopt related fees and to delete an 
outdated provision in its rules.
    First, the Exchange proposes to require Exchange participants to 
use Web CRD to register their associated persons who are required to 
register with the Exchange under CHX rules.\4\ Similarly, the Exchange 
also seeks to require participants to submit a Form U-5 to the Web CRD 
following the termination of the associated person.\5\
---------------------------------------------------------------------------

    \4\ See proposed Article 6, Rule 2, Interpretation and Policy 
.01.
    \5\ See proposed Article 6, Rule 2, Interpretation and Policy 
.02.
    The Exchange plans to allow its participants to transition to 
the use of the Web CRD system over the course of a six to nine-month 
period. At the end of this period, CHX participants would be 
required to use Web CRD for submitting any registration materials 
required by CHX rules.
---------------------------------------------------------------------------

    Second, the Exchange proposes that it be allowed to direct its 
participants to submit fingerprint cards to the Exchange or to FINRA 
for processing during the registration process.\6\ Current CHX rules 
require participants to submit fingerprints to the Exchange. The 
Exchange seeks flexibility so that it could determine, from time to 
time, which fingerprint processing method would be most efficient for 
the Exchange and for its participants.
---------------------------------------------------------------------------

    \6\ See proposed Article 6, Rule 10, Interpretation and Policy 
.01.
---------------------------------------------------------------------------

    Because FINRA would assess charges to CHX participants for using 
the Web CRD system and for processing any fingerprints that are 
submitted, the Exchange also is amending its Fee Schedule to include 
applicable registration, processing and termination fees, as well as 
various fingerprint charges.\7\
---------------------------------------------------------------------------

    \7\ 7 These charges include an $85 registration fee; a $95 
disclosure processing fee; a $30 annual processing fee; and 
termination fees of $40 and $80. Fingerprint processing fees would 
be $30.25 per card for an initial submission; $13 per card for a 
second submission; and $30.25 per card for a third submission. These 
fees reflect the charges assessed by FINRA for these services; CHX 
would not be charging any additional fees of its own.
---------------------------------------------------------------------------

    Finally, CHX proposes to delete Interpretation and Policy .03 of 
Article 6, Rule 2 that requires firms to notify CHX of the termination 
of any non-registered, associated person's employment. CHX believes 
that this requirement has become somewhat obsolete with the elimination 
of its physical trading floor because the requirement had been largely 
focused on the employment status of clerks working on the Exchange's 
trading floor.\8\
---------------------------------------------------------------------------

    \8\ Moreover, CHX regularly receives an updated list of a firm's 
associated persons when it conducts its annual examinations.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\9\ In particular, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\10\ which, among 
other things, requires that the rules of a national securities exchange 
be designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \9\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that Exchange's proposal to require its 
participant firms to use Web CRD system to register certain associated 
persons and to submit a Form U-5 following the termination of the 
associated person would eliminate the need for manual processing 
currently performed by Exchange staff. Significantly, it would also 
allow for the

[[Page 18599]]

compilation of information related to the registration of associated 
persons in one central repository for access by regulators and broker-
dealers, and could allow the Exchange's regulatory group, as well as 
the firms themselves, to better determine whether a registrant has met 
applicable continuing education requirements. The Commission believes 
this should increase regulatory efficiency and capabilities without 
imposing an undue burden on participants.
    The Commission also believes that it is reasonable to provide the 
Exchange with the flexibility to determine whether it, or FINRA, would 
be best suited to process fingerprint cards, while participants would 
continue to have the obligation to submit fingerprints.
    Furthermore, the Commission believes that it is appropriate for the 
Exchange to amend its Fee Schedule to reflect fees that FINRA would 
charge for services rendered in connection with the use of Web CRD and 
the fingerprinting services set forth in the proposal. The Commission 
notes that CHX would not be charging any additional fees of its own.
    Finally, the Commission agrees that it is appropriate for CHX to 
delete Interpretation and Policy .03 of Article 6, Rule 2 relating to 
the firms' requirement to notify the Exchange of the termination of any 
non-registered, associated person's employment, since it has become 
obsolete given CHX's new trading model and since CHX regularly receives 
an updated list of a firm's associated persons when it conducts its 
annual examinations.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\11\ that the proposed rule change (SR-CHX-2007-21), as amended, 
be, and hereby is, approved.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-7029 Filed 4-3-08; 8:45 am]
BILLING CODE 8011-01-P
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