Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Participant Fees and Credits, 49511-49512 [E8-19353]
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Federal Register / Vol. 73, No. 163 / Thursday, August 21, 2008 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–19354 Filed 8–20–08; 8:45 am]
BILLING CODE 8010–01–P
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58362; File No. SR–CHX–
2008–13]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Participant Fees and Credits
August 14, 2008.
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 August
13, 2008, the Chicago Stock Exchange,
Inc. (the ‘‘CHX’’ or the ‘‘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
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
Assessments (the ‘‘Fee Schedule’’) to
provide for trade processing fee credits
to CHX–registered Institutional Brokers.
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,
100 F Street, NE., Washington, DC
20549.
mstockstill on PROD1PC66 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
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:48 Aug 20, 2008
Jkt 214001
Through this filing, the Exchange
would amend its Fee Schedule to
provide for a credit to institutional
brokers relating to trade processing fees
charged by the Exchange to its
participants. Trade processing fees are
fees charged by the Exchange for
transactions that are executed and
reported to the tape (but not reported to
clearing) by an institutional broker in an
away market (i.e., not the Exchange), but
which are reported to clearing by the
Exchange’s systems. The use of the
Exchange’s systems to report trades to
clearing, instead of the facility on which
the trade was executed, is done at the
request of the institutional broker’s
customer to simplify the customer’s
ability to access clearing data from a
unified source. All clearing transactions
reported in this manner appear in the
Exchange’s Regional Trade Interface
Operations (‘‘RIO’’) file along with the
customer’s trades executed on the CHX.
The Exchange proposes to provide to
the originating broker a trade processing
fee credit equal to 3% per side of the
trade processing fees received by the
Exchange. The Exchange further
proposes to provide to the broker of
credit a trade processing fee credit equal
to 6% of the trade processing fees
received by the Exchange for the
portion(s) of the transaction handled by
the broker of credit. An ‘‘originating
broker’’ is defined as the institutional
broker that executes a trade on an away
market. A ‘‘broker of credit’’ is defined
as the institutional broker that acts as
the broker for the ultimate Exchange
clearing participant. Prior to this filing,
trade processing fee credits were not
paid by the Exchange. This proposed fee
schedule change would take effect upon
filing.
2. Statutory Basis
The Exchange believes that the rule
changes proposed in this submission are
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b). The proposed rule change
is consistent with Section 6(b)(4) of the
Act in that it provides for the equitable
allocation of reasonable dues, fees and
other charges among its members.
Moreover, the proposed trade
PO 00000
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Fmt 4703
Sfmt 4703
49511
processing fee credits will allow the
Exchange to share trade processing fees
with institutional brokers, similar to the
way it currently shares transaction fees
for CHX executions with institutional
brokers. Prior to this filing, trade
processing fees were not shared with
institutional brokers.
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
The foregoing rule change establishes
or changes a due, fee or other charge
imposed by the Exchange and therefore
has become effective pursuant to
Section 19(b)(3)(A) of the Act 3 and
subparagraph (f)(2) of Rule 19b–4
thereunder.4 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 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–CHX–2008–13 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CHX–2008–13. This file
3 15
4 17
E:\FR\FM\21AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
21AUN1
49512
Federal Register / Vol. 73, No. 163 / Thursday, August 21, 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, 100 F Street, NE., Washington,
DC 20549, 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 Exchange. 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 publicly available. All
submissions should refer to File
Number SR–CHX–2008–13 and should
be submitted on or before September 11,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–19353 Filed 8–20–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58357; File No. SR–
NASDAQ–2008–068]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change as Modified
by Amendment No. 1 To Modify Rule
4770 To Enhance Trading in the
NASDAQ Crossing Network
mstockstill on PROD1PC66 with NOTICES
August 13, 2008.
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 August
11, 2008, The NASDAQ Stock Market
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Aug<31>2005
17:48 Aug 20, 2008
Jkt 214001
LLC (‘‘Nasdaq’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by Nasdaq. Nasdaq has designated this
proposal as non-controversial and
provided the Commission with the
notice required by Exchange Act Rule
19b–4(f)(6)(iii). This rule proposal,
which is effective upon filing with the
Commission, shall become operative on
September 1, 2008. On August 13, 2008,
the Exchange submitted Amendment
No. 1 to the proposed rule change.3 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
Nasdaq is filing a rule proposal to
modify Rule 4770 to enhance trading in
the NASDAQ Crossing Network. Nasdaq
proposes to implement the proposed
rule change on September 1, 2008.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are in
brackets.4
*
*
*
*
*
4770. Nasdaq Crossing Network
(a) Definitions. For the purposes of
this rule the term:
(1) ‘‘Nasdaq Reference Price Cross’’
shall mean the process for executing
orders at a predetermined reference
price at a randomly selected point in
time during a five-second [one minute]
trading window beginning at 10:45 a.m.,
12:45 p.m. and 2:45 p.m. Eastern Time
during the regular hours session and at
4:30 p.m. during the after hours session.
(2) No Change.
(3) No Change.
(b) No Change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq has prepared
3 The Commission considers the 60-day
abrogation period to have commenced on August
13, 2008, the date the Exchange filed Amendment
No. 1.
4 Changes are marked to the rule text that appears
in the electronic Nasdaq Manual found at https://
nasdaqomx.cchwallstreet.com.
PO 00000
Frm 00107
Fmt 4703
Sfmt 4703
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
Nasdaq is filing a rule proposal to
modify Rule 4770 to enhance trading in
the NASDAQ Crossing Network. The
Commission approved the Nasdaq
Crossing Network on July 5, 2006.5 The
Nasdaq Crossing Network provides an
execution option to market participants
trading in Nasdaq and other exchangelisted securities that facilitates the
execution of trades quickly and
anonymously.
In order to minimize the opportunity
for manipulation, Nasdaq executes the
cross through an automated and random
matching mechanism at a randomly
selected time during the predetermined
one-minute cross-trading window.
Nasdaq introduced the randomization
period in order to prevent market
participants from entering or cancelling
orders in the Nasdaq Crossing Network
in an attempt to improperly influence
the execution price of a cross. The
randomization period was thought to
protect both market participants and
public investors from potential
manipulation.
In response to input from our
members and other market participants,
Nasdaq proposes to modify the 60second ‘‘randomization period’’ of [sic]
that precedes the execution of all
crosses within the Nasdaq Crossing
Network. Based upon changing market
conditions, Nasdaq has now determined
that the full benefits of the
randomization period can be realized
through a shorter randomization period
of five seconds rather than 60 seconds.
The speed of order routing and
execution in the marketplace has
increased substantially since the launch
of the Nasdaq Crossing Network. As a
result, a random period of five seconds
is sufficient to create significant risk of
a delayed execution outside the control
of a market participant. In other words,
there is little incremental benefit of a
random period longer than five seconds.
5 See Securities Exchange Act Release No. 54248
(July 31, 2006) (SR–NASDAQ–2006–019). Prior to
the effective date of Nasdaq’s operation as an
exchange for Nasdaq-listed securities, the rule
governing the Nasdaq Crossing Network had been
approved as an NASD rule (NASD Rule 4716).
Securities Exchange Act Release No. 54101 (July 5,
2006), 71 FR 39382 (July 12, 2006) (SR–NASD–
2005–140).
E:\FR\FM\21AUN1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 163 (Thursday, August 21, 2008)]
[Notices]
[Pages 49511-49512]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19353]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58362; File No. SR-CHX-2008-13]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Participant Fees and Credits
August 14, 2008.
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 August 13, 2008, the Chicago Stock Exchange, Inc. (the ``CHX''
or the ``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
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.
---------------------------------------------------------------------------
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
Assessments (the ``Fee Schedule'') to provide for trade processing fee
credits to CHX-registered Institutional Brokers. 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, 100 F Street, NE., Washington, DC 20549.
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 Change
1. Purpose
Through this filing, the Exchange would amend its Fee Schedule to
provide for a credit to institutional brokers relating to trade
processing fees charged by the Exchange to its participants. Trade
processing fees are fees charged by the Exchange for transactions that
are executed and reported to the tape (but not reported to clearing) by
an institutional broker in an away market (i.e., not the Exchange), but
which are reported to clearing by the Exchange's systems. The use of
the Exchange's systems to report trades to clearing, instead of the
facility on which the trade was executed, is done at the request of the
institutional broker's customer to simplify the customer's ability to
access clearing data from a unified source. All clearing transactions
reported in this manner appear in the Exchange's Regional Trade
Interface Operations (``RIO'') file along with the customer's trades
executed on the CHX.
The Exchange proposes to provide to the originating broker a trade
processing fee credit equal to 3% per side of the trade processing fees
received by the Exchange. The Exchange further proposes to provide to
the broker of credit a trade processing fee credit equal to 6% of the
trade processing fees received by the Exchange for the portion(s) of
the transaction handled by the broker of credit. An ``originating
broker'' is defined as the institutional broker that executes a trade
on an away market. A ``broker of credit'' is defined as the
institutional broker that acts as the broker for the ultimate Exchange
clearing participant. Prior to this filing, trade processing fee
credits were not paid by the Exchange. This proposed fee schedule
change would take effect upon filing.
2. Statutory Basis
The Exchange believes that the rule changes proposed in this
submission are consistent with the requirements of the Act and the
rules and regulations thereunder that are applicable to a national
securities exchange, and, in particular, with the requirements of
Section 6(b). The proposed rule change is consistent with Section
6(b)(4) of the Act in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its members. Moreover,
the proposed trade processing fee credits will allow the Exchange to
share trade processing fees with institutional brokers, similar to the
way it currently shares transaction fees for CHX executions with
institutional brokers. Prior to this filing, trade processing fees were
not shared with institutional brokers.
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
The foregoing rule change establishes or changes a due, fee or
other charge imposed by the Exchange and therefore has become effective
pursuant to Section 19(b)(3)(A) of the Act \3\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\4\ 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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CHX-2008-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CHX-2008-13. This file
[[Page 49512]]
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, 100 F Street, NE.,
Washington, DC 20549, 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 Exchange. 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 publicly available. All
submissions should refer to File Number SR-CHX-2008-13 and should be
submitted on or before September 11, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-19353 Filed 8-20-08; 8:45 am]
BILLING CODE 8010-01-P
