Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Fixed Provide Credit for CHX-Registered Institutional Brokers, 28083-28085 [2010-11938]

Download as PDF Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices follows: (1) The fees for directed orders designated as Intermarket Sweep Orders that execute at the NYSE will increase to $0.0023 from $0.0020 per share executed; (2) The fee for other directed orders that execute at the NYSE will increase to $0.0022 from $0.0019 per share executed for members with an average daily volume through the NASDAQ Market Center in all securities during the month of more than 35 million shares of liquidity provided; (3) The fee for all for other directed orders that execute at the NYSE from members that do not reach the 35 million threshold will increase to $0.0023 from $0.0020 per share; (4) The fee for MOPP orders that execute at the NYSE will increase to $0.0023 from $0.0020 per share; and (5) The fee for TFTY orders that execute at the NYSE will increase to $0.0017 from $0.0014 per share. All other fees and pass-through fees remain unchanged. jlentini on DSKJ8SOYB1PROD with NOTICES 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,7 in general, and with Section 6(b)(4) of the Act,8 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which NASDAQ operates or controls. The impact of the modest price increases upon the net fees paid by a particular market participant will depend upon a number of variables, including the routing strategies that it uses, the relative availability of liquidity on NASDAQ and other venues, the prices of the market participant’s quotes and orders relative to the national best bid and offer (i.e., its propensity to add or remove liquidity), and the types of securities that it trades. NASDAQ notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. Accordingly, if particular market participants object to the proposed fee increases, they can avoid paying the fees by directing orders to other venues or using routing strategies and order types that are not subject to the increases. NASDAQ believes that its fees continue to be reasonable and equitably allocated to members on the basis of whether they opt to direct orders to NASDAQ. B. Self-Regulatory Organization’s Statement on Burden on Competition NASDAQ does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. Because the market for order execution and routing is extremely competitive, members may readily direct orders to NASDAQ’s competitors if they object to the proposed rule change. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 9 and subparagraph (f)(2) of Rule 19b–4 thereunder.10 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 change is consistent with the Act. Comments may be submitted by any of the following methods: 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 Web site viewing and printing 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 offices 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 available publicly. All submissions should refer to File Number SR–NASDAQ–2010–058, and should be submitted on or before June 9, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–11936 Filed 5–18–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2010–058 on the subject line. [Release No. 34–62085; File No. SR–CHX– 2010–08] Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Fixed Provide Credit for CHXRegistered Institutional Brokers Paper Comments May 12, 2010. • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2010–058. This file number should be included on the subject line if e-mail is used. 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 April 30, 2010, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II and III 11 17 7 15 U.S.C. 78f. 8 15 U.S.C. 78f(b)(4). VerDate Mar<15>2010 16:07 May 18, 2010 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). Jkt 220001 28083 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\19MYN1.SGM 19MYN1 28084 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices below, which Items have been prepared by the Exchange. CHX has filed the 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 the Substance of the Proposed Rule Change The CHX proposes to amend its Schedule of Participant Fees and Assessments (the ‘‘Fee Schedule’’), effective May 3, 2010, to establish a fixed provide credit for CHX-registered institutional brokers for agency trade executions of one-sided orders entered by their customers in Tape A, B and C securities which execute within the Exchange’s Matching System. The proposal also removes certain obsolete references to the now-defunct ITS trading system in the Fee Schedule. 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. jlentini on DSKJ8SOYB1PROD with NOTICES 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, effective May 3, 2010, to establish a non-variable credit for certain liquidity-providing single-sided orders submitted by CHXregistered Institutional Brokers on behalf of their customers to the Exchange’s Matching System and subsequently executed there. The Exchange’s Fee Schedule provides for a 3 15 4 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:07 May 18, 2010 Jkt 220001 tiered schedule of fees and rebates for Participants for trade executions of single-sided orders in securities priced over $1 in the event that certain volume thresholds (described as the ‘‘Average Daily Volume’’ or ‘‘ADV’’) are achieved.5 For transactions subject to the Agency Execution fee of Section E.3., the Fee Schedule states that the take fees and provide credits accruing pursuant to Section E.1. (Matching System single order executions (one-sided orders of 100+ shares)) shall be assessed against the Institutional Broker handling the transaction, and not the Participant which is a party to the transaction.6 Currently, the Institutional Broker is exempt from payment of the liquidity taking fee normally charged to Participants if it is handling an order subject to the Agency Execution fees.7 Pursuant to this filing, the Exchange would modify its Fee Schedule to state that Institutional Brokers would be entitled to a fixed provide credit irrespective of its ADV for orders subject to the Agency Execution fees. A provide credit of $0.0029/share in Tape A and C securities and $0.0032/share in Tape B securities priced $1.00/share or more would be paid to the Institutional Broker representing the Participant which originated the order (regardless of the ADV attributable to either firm). The filing also calls for a provide credit of 0.20% of the trade value in Tape A, B and C securities priced less than $1.00/ share to be paid to the Institutional Broker representing the Participant which originated the order (regardless of the ADV attributable to either firm). Institutional Brokers are typically smaller firms that enter orders manually and cannot realistically achieve the higher ADV levels needed for preferential pricing.8 Payment of a fixed provide credit at a preferential rate to Institutional Brokers acts as an incentive 5 Section E.1 of the Fee Schedule defines ADV as follows: ‘‘ ‘ADV’ means, with respect to a Participant, the number of shares such Participant has executed as a liquidity provider in any and all trading sessions on average per trading day (excluding partial trading days) across all tapes on the trading facilities of the CHX (excluding all cross transactions and transactions in issues priced less than $1.00/share) for the calendar month in which the executions occurred.’’ 6 See, Section E.3. of the Fee Schedule. (‘‘If the institutional broker executes the order in the Matching System or as otherwise permitted by CHX rules, the institutional broker (not its customer) will be assessed applicable Matching System fees (see (1) and (2) above).’’) 7 Section E.1. of the Fee Schedule. 8 Institutional Broker firms (formerly Floor Brokers under the Exchange’s old floor based trading model) are firms that primarily receive orders needing special handling and manual entry into the CHX system. These brokers are essentially order-entry firms for which the Exchange is the designated examining authority. PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 to post liquidity in the CHX Matching System when those firms are considering how best to seek execution of their customer’s orders. Representation of such orders within the CHX Matching System in turn benefits the Exchange by potentially increasing transaction revenue (in the form of take fees for orders which interact with posted liquidity) and market data revenue. Creating a fixed provide rate which does not vary based upon the Institutional Broker’s ADV allows for a simple and consistent formula which these firms can rely upon when deciding to how to handle their customer’s orders. Furthermore, any market participant may apply for registration as a CHX Institutional Broker and, if eligible, avail themselves of the fixed provide credit. The Exchange also proposes to remove from Section E.1. and E.3. of the Fee Schedule certain obsolete references to the Intermarket Trading System (‘‘ITS’’) and the payment obligations relating to orders transmitted to other ITS participating markets through the ITS system. The ITS system was deactivated in 2007 and is no longer is use. The removal of these obsolete references will serve to eliminate a potential source of confusion for Exchange Participants. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(4) of the Act 10 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members. Among other things, the change to the Fee Schedule would provide incentives to Exchangeregistered Institutional Brokers to increase the amount of liquidity provided on our trading facilities, which may contribute to an increase in trading volume on the Exchange and in the income derived therefrom. The removal of the obsolete references to the Intermarket Trading System in the Fee Schedule will serve to eliminate a potential source of confusion for Exchange Participants. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. 9 15 U.S.C. 78f. U.S.C. 78f(b)(4) 10 15 E:\FR\FM\19MYN1.SGM 19MYN1 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(B)(3)(A)(ii) of the Act 11 and subparagraph (f)(2) of Rule 19b–4 thereunder 12 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. 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: 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 Web site viewing and printing 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– 2010–08 and should be submitted on or before June 9, 2010. XVII of OCC’s By-Laws to clarify that OCC will clear and treat as securities options any option contracts on the CBOE Gold ETF Volatility Index. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Elizabeth M. Murphy, Secretary. The purpose of the proposed rule change is to make clear that options on the CBOE Gold ETF Volatility Index, which is an index that measures the implied volatility of options on the SPDR Gold Trust, which is an exchangetraded fund designed to reflect the performance of gold bullion. To accomplish this purpose, OCC is proposing to add an interpretation following the introduction in Article XVII of OCC’s By-Laws, clarifying that OCC will clear and treat as securities options any option contracts on the CBOE Gold ETF Volatility Index.2 On May 30, 2008, the Commission approved rule filing SR–OCC–2008–07, which added a similar interpretation with respect to the treatment and clearing of options on shares of the SPDR Gold Trust.3 On December 4, 2008, the Commission approved rule filings SR–OCC–2008–13 and SR–OCC– 2008–14, which extended similar treatment to options on iShares® COMEX Gold Shares and iShares® Silver Shares.4 On February 25, 2010, the Commission approved rule filing SR–OCC–2009–20, which extended similar treatment to options and security futures on ETFS Physical Swiss [FR Doc. 2010–11938 Filed 5–18–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION jlentini on DSKJ8SOYB1PROD with NOTICES 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–2010–08 on the subject line. [Release No. 34–62094; File No. SR–OCC– 2010–07] Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CHX–2010–08. 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 May 13, 2010. 11 15 12 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:07 May 18, 2010 Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to Clearing Options on the CBOE Gold ETF Volatility Index Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,1 notice is hereby given that on April 26, 2010, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by OCC. 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 the Substance of the Proposed Rule Change The proposed rule change would allow OCC to add an interpretation following the introduction in Article 13 17 1 15 Jkt 220001 28085 PO 00000 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). Frm 00107 Fmt 4703 Sfmt 4703 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC 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. OCC 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 2 The specific language of the proposed interpretation can be found on OCC’s Web site at https://www.theocc.com/publications/rules/ proposed_changes/proposed_changes.jspU. 3 Securities Exchange Act Release No. 57895, 73 FR 32066 (June 5, 2008). 4 Securities Exchange Act Release No. 59054, 73 FR 75159 (Dec. 10, 2008). These filings also provided that futures on the exchange-traded funds in question would be cleared and treated as security futures. E:\FR\FM\19MYN1.SGM 19MYN1

Agencies

[Federal Register Volume 75, Number 96 (Wednesday, May 19, 2010)]
[Notices]
[Pages 28083-28085]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11938]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62085; File No. SR-CHX-2010-08]


Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Establish a Fixed Provide Credit for CHX-Registered Institutional 
Brokers

May 12, 2010.
    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 April 30, 2010, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II 
and III

[[Page 28084]]

below, which Items have been prepared by the Exchange. CHX has filed 
the 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 the 
Substance of the Proposed Rule Change

    The CHX proposes to amend its Schedule of Participant Fees and 
Assessments (the ``Fee Schedule''), effective May 3, 2010, to establish 
a fixed provide credit for CHX-registered institutional brokers for 
agency trade executions of one-sided orders entered by their customers 
in Tape A, B and C securities which execute within the Exchange's 
Matching System. The proposal also removes certain obsolete references 
to the now-defunct ITS trading system in the Fee Schedule. 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, 
effective May 3, 2010, to establish a non-variable credit for certain 
liquidity-providing single-sided orders submitted by CHX-registered 
Institutional Brokers on behalf of their customers to the Exchange's 
Matching System and subsequently executed there. The Exchange's Fee 
Schedule provides for a tiered schedule of fees and rebates for 
Participants for trade executions of single-sided orders in securities 
priced over $1 in the event that certain volume thresholds (described 
as the ``Average Daily Volume'' or ``ADV'') are achieved.\5\ For 
transactions subject to the Agency Execution fee of Section E.3., the 
Fee Schedule states that the take fees and provide credits accruing 
pursuant to Section E.1. (Matching System single order executions (one-
sided orders of 100+ shares)) shall be assessed against the 
Institutional Broker handling the transaction, and not the Participant 
which is a party to the transaction.\6\ Currently, the Institutional 
Broker is exempt from payment of the liquidity taking fee normally 
charged to Participants if it is handling an order subject to the 
Agency Execution fees.\7\
---------------------------------------------------------------------------

    \5\ Section E.1 of the Fee Schedule defines ADV as follows: `` 
`ADV' means, with respect to a Participant, the number of shares 
such Participant has executed as a liquidity provider in any and all 
trading sessions on average per trading day (excluding partial 
trading days) across all tapes on the trading facilities of the CHX 
(excluding all cross transactions and transactions in issues priced 
less than $1.00/share) for the calendar month in which the 
executions occurred.''
    \6\ See, Section E.3. of the Fee Schedule. (``If the 
institutional broker executes the order in the Matching System or as 
otherwise permitted by CHX rules, the institutional broker (not its 
customer) will be assessed applicable Matching System fees (see (1) 
and (2) above).'')
    \7\ Section E.1. of the Fee Schedule.
---------------------------------------------------------------------------

    Pursuant to this filing, the Exchange would modify its Fee Schedule 
to state that Institutional Brokers would be entitled to a fixed 
provide credit irrespective of its ADV for orders subject to the Agency 
Execution fees. A provide credit of $0.0029/share in Tape A and C 
securities and $0.0032/share in Tape B securities priced $1.00/share or 
more would be paid to the Institutional Broker representing the 
Participant which originated the order (regardless of the ADV 
attributable to either firm). The filing also calls for a provide 
credit of 0.20% of the trade value in Tape A, B and C securities priced 
less than $1.00/share to be paid to the Institutional Broker 
representing the Participant which originated the order (regardless of 
the ADV attributable to either firm).
    Institutional Brokers are typically smaller firms that enter orders 
manually and cannot realistically achieve the higher ADV levels needed 
for preferential pricing.\8\ Payment of a fixed provide credit at a 
preferential rate to Institutional Brokers acts as an incentive to post 
liquidity in the CHX Matching System when those firms are considering 
how best to seek execution of their customer's orders. Representation 
of such orders within the CHX Matching System in turn benefits the 
Exchange by potentially increasing transaction revenue (in the form of 
take fees for orders which interact with posted liquidity) and market 
data revenue. Creating a fixed provide rate which does not vary based 
upon the Institutional Broker's ADV allows for a simple and consistent 
formula which these firms can rely upon when deciding to how to handle 
their customer's orders. Furthermore, any market participant may apply 
for registration as a CHX Institutional Broker and, if eligible, avail 
themselves of the fixed provide credit.
---------------------------------------------------------------------------

    \8\ Institutional Broker firms (formerly Floor Brokers under the 
Exchange's old floor based trading model) are firms that primarily 
receive orders needing special handling and manual entry into the 
CHX system. These brokers are essentially order-entry firms for 
which the Exchange is the designated examining authority.
---------------------------------------------------------------------------

    The Exchange also proposes to remove from Section E.1. and E.3. of 
the Fee Schedule certain obsolete references to the Intermarket Trading 
System (``ITS'') and the payment obligations relating to orders 
transmitted to other ITS participating markets through the ITS system. 
The ITS system was deactivated in 2007 and is no longer is use. The 
removal of these obsolete references will serve to eliminate a 
potential source of confusion for Exchange Participants.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \9\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \10\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among its members. Among other things, the change to the 
Fee Schedule would provide incentives to Exchange-registered 
Institutional Brokers to increase the amount of liquidity provided on 
our trading facilities, which may contribute to an increase in trading 
volume on the Exchange and in the income derived therefrom. The removal 
of the obsolete references to the Intermarket Trading System in the Fee 
Schedule will serve to eliminate a potential source of confusion for 
Exchange Participants.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4)
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

[[Page 28085]]

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(B)(3)(A)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4 
thereunder \12\ because it establishes or changes a due, fee, or other 
charge applicable only to a member imposed by the self-regulatory 
organization. Accordingly, the proposal is effective upon Commission 
receipt of the filing. 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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-2010-08 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2010-08. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing 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-2010-08 and should be 
submitted on or before June 9, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-11938 Filed 5-18-10; 8:45 am]
BILLING CODE 8010-01-P
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