Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Alter its Tiered Schedule of Fees and Rebates for Participants for Trade Executions of Single-Sided Orders in Securities Priced Over One Dollar, 48397-48399 [2010-19656]
Download as PDF
Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices
general, to protect investors and the
public interest. In particular, the
Exchange believes that the proposal, if
approved, will result in additional
liquidity available at improved prices
with competitive final pricing out of the
initiating member’s control, thus
increasing competition in the crossing
auctions and providing more options
contracts with price improvement. As a
result of the increased opportunity for
price improvement, the Exchange
believes that market participants will be
incented to initiate more crossing
actions. Increases in the number of
auctions will directly correlate with an
increase in the number of customer
orders that are provided with the
opportunity to receive price
improvement over the NBBO.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the
Exchange Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 16 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6) 17
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6).
sroberts on DSKB9S0YB1PROD with NOTICES
15 17
VerDate Mar<15>2010
16:26 Aug 09, 2010
Jkt 220001
48397
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange requests
that the Commission waive the 30-day
operative delay because the proposed
changes will allow immediate increases
in the liquidity available at improved
prices. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest and
designates the proposal operative upon
filing.18
At any time within the 60-day period
beginning on the date of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
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.
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 the 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 available publicly. All
submissions should refer to File
Number SR–ISE–2010–61 and should be
submitted on or before August 31, 2010.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Florence E. Harmon,
Deputy Secretary.
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–ISE–2010–61 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
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–ISE–2010–61. 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,19 all subsequent
amendments, all written statements
with respect to the proposed rule
18 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
19 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov/ules/sro.shtml.
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
[FR Doc. 2010–19657 Filed 8–9–10; 8:45 am]
BILLING CODE 8010–01–P
[Release No. 34–62650; File No. SR–CHX–
2010–18]
Self-Regulatory Organizations; The
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Alter its
Tiered Schedule of Fees and Rebates
for Participants for Trade Executions
of Single-Sided Orders in Securities
Priced Over One Dollar
August 4, 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 July 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 and II
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
20 17
CFR 200.30–3(a)(12).
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).
1 15
E:\FR\FM\10AUN1.SGM
10AUN1
48398
Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices
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 August 1, 2010, to alter its
tiered schedule of fees and rebates for
Participants for trade executions of
single-sided orders in securities priced
over one dollar that occur within the
Exchange’s Matching System. 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.
sroberts on DSKB9S0YB1PROD 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 is
proposing to amend its Fee Schedule,
effective August 1, 2010, to alter its
tiered schedule of fees and rebates for
Participants for trade executions of
single-sided orders in securities priced
over one dollar. The fee imposed on
Participants for removing liquidity from
the Matching System (the ‘‘take fee’’) or
credit given to Participants which
display orders in the Matching System
which result in trade executions (the
‘‘provide credit’’) currently varies
depending on the executing
Participant’s Average Daily Volume
(‘‘ADV’’).5 A Participant’s ADV is
determined by the number of shares it
5 Through its filing on January 4, 2010, the
Exchange instituted a tiered fee and rebate structure
based on a Participant’s ADV. See Securities
Exchange Act Release No. 61322 (Jan. 11, 2010), 75
FR 2914 (Jan. 19, 2010) (SR–CHX–2010–01).
VerDate Mar<15>2010
16:26 Aug 09, 2010
Jkt 220001
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) for the calendar
month in which the executions
occurred. There are three volume-based
Tiers and the rate of applicable take fees
and provide credits vary based upon the
Tier into which a Participant falls.
According to this proposal, the
Exchange would delete those provisions
of the Fee Schedule which vary the take
fee based upon the Participant’s ADV. In
its place, the Exchange proposes to
impose a flat take fee of $0.003/share
across all Tapes. The Exchange is also
proposing to reduce the provide credit
for executions in Tape A & C securities
from $0.0026/share to $0.0025/share for
the lowest Tier of activity, from
$0.0028/share to $0.0027/share in the
middle Tier and from $0.003/share to
$0.0029/share in the highest Tier. For
Tape B securities, the provide credit is
being reduced from $0.0028/share to
$0.0026/share in the lowest Tier, from
$0.003/share to $0.0028/share in the
middle Tier and from $0.0032/share to
$0.0031/share in the highest Tier. The
flat provide credit paid to CHXregistered Institutional Brokers when
they represent agency orders which
execute in the CHX Matching System in
Tape B securities will be reduced from
$0.0032 to $0.0031/share.
Furthermore, the Exchange proposes
to alter the ADV requirements for
Participants to qualify for the escalating
Tiers and associated provide credits.
The ADV requirement for the lowest
Tier of activity would be increased from
500,000 shares or less daily to 1,000,000
shares or less daily. The middle Tier
would be changed from an ADV which
is greater than 500,000 and up to and
including 5,000,000 shares to an ADV
which is greater than 1,000,000 and up
to and including 5,000,000 shares. The
ADV for the highest Tier will remain at
its current level of greater than
5,000,000 shares.
Finally, we propose to remove the
exclusion of trade activity in securities
priced under $1 in the ADV calculation.
Going forward, executions in such
securities would count towards the
determination of a Participant’s monthly
ADV.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among its members. Among other
things, the Exchange believes that these
changes better tailor the existing tiered
fee structure to the amount and type of
volume which order sending
Participants direct to the Exchange and
may attract additional orders to be
displayed and executed on our trading
facilities.
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.
C. Self-Regulatory Organization’s
Statement on Comments Regarding 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 has become
effective pursuant to Section
19(B)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder 9 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 the proposed rule change, the
Commission summarily may
temporarily suspend 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:
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
7 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
8 15
6 15
PO 00000
U.S.C. 78f.
Frm 00097
Fmt 4703
Sfmt 4703
E:\FR\FM\10AUN1.SGM
10AUN1
Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices
Number SR–CHX–2010–18 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–2010–18. 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–
2010–18 and should be submitted on or
before August 31, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19656 Filed 8–9–10; 8:45 am]
sroberts on DSKB9S0YB1PROD with NOTICES
BILLING CODE 8010–01–P
[Release No. 34–62648; File No. SR–CBOE–
2010–071]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Fees Schedule
August 4, 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 July 30,
2010, Chicago Board Options Exchange,
Incorporated (‘‘Exchange’’ or ‘‘CBOE’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange has designated this proposal
as one establishing or changing a due,
fee, or other charge imposed by CBOE
under Section 19(b)(3)(A)(ii) of the Act 3
and Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Fees Schedule to make changes related
to its Marketing Fee Program. The text
of the proposed rule change is available
on the Exchange’s Web site (https://
www.cboe.org/Legal), at the Exchange’s
Office of the Secretary and at the
Commission.
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
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
10 17
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:26 Aug 09, 2010
Jkt 220001
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
48399
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(a) Purpose
CBOE proposes to amend its
Marketing Fee Program to increase the
amount of the fee that is assessed in
options on the SPDR S&P 500 (SPY) and
options on the iShares Russell 2000
Index (IWM). Currently, the marketing
fee is assessed at the rate of $0.10 per
contract in SPY options and $0.00 per
contract in IWM options. CBOE
proposes to assess the marketing fee at
the rate of $0.25 per contract in SPY
options and IWM options, which is
consistent with the marketing fee that
CBOE assesses in nearly all of the
option classes participating in the
Penny Pilot Program. CBOE also notes
that it would be consistent with the fee
NYSE Amex assesses for its payment for
order flow program in option classes
participating in the Penny Pilot
Program.
CBOE proposes to implement this
change to the marketing fee program
beginning on August 1, 2010. CBOE is
not amending its Marketing Fee Program
in any other respects.
(b) Statutory Basis
The proposed rule change is
consistent with Section 6(b) of the Act,5
in general, and furthers the objectives of
Section 6(b)(4) 6 of the Act in particular,
in that it is designed to provide for the
equitable allocation of reasonable dues,
fees, and other charges among CBOE
Trading Permit Holders and other
persons using its facilities. The
Exchange believes the fee change
proposed by this filing is equitable and
reasonable in that it will allow the
Exchange to be competitive with the
fees assessed by the NYSE Amex in its
payment for order flow program.
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 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 solicited nor
received comments on the proposal.
5 15
6 15
E:\FR\FM\10AUN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10AUN1
Agencies
[Federal Register Volume 75, Number 153 (Tuesday, August 10, 2010)]
[Notices]
[Pages 48397-48399]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19656]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62650; File No. SR-CHX-2010-18]
Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Alter its Tiered Schedule of Fees and Rebates for Participants for
Trade Executions of Single-Sided Orders in Securities Priced Over One
Dollar
August 4, 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 July 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 and II
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
[[Page 48398]]
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 August 1, 2010, to alter
its tiered schedule of fees and rebates for Participants for trade
executions of single-sided orders in securities priced over one dollar
that occur within the Exchange's Matching System. 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 is proposing to amend its Fee
Schedule, effective August 1, 2010, to alter its tiered schedule of
fees and rebates for Participants for trade executions of single-sided
orders in securities priced over one dollar. The fee imposed on
Participants for removing liquidity from the Matching System (the
``take fee'') or credit given to Participants which display orders in
the Matching System which result in trade executions (the ``provide
credit'') currently varies depending on the executing Participant's
Average Daily Volume (``ADV'').\5\ A Participant's ADV is determined by
the number of shares it 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) for the calendar month in which the
executions occurred. There are three volume-based Tiers and the rate of
applicable take fees and provide credits vary based upon the Tier into
which a Participant falls.
---------------------------------------------------------------------------
\5\ Through its filing on January 4, 2010, the Exchange
instituted a tiered fee and rebate structure based on a
Participant's ADV. See Securities Exchange Act Release No. 61322
(Jan. 11, 2010), 75 FR 2914 (Jan. 19, 2010) (SR-CHX-2010-01).
---------------------------------------------------------------------------
According to this proposal, the Exchange would delete those
provisions of the Fee Schedule which vary the take fee based upon the
Participant's ADV. In its place, the Exchange proposes to impose a flat
take fee of $0.003/share across all Tapes. The Exchange is also
proposing to reduce the provide credit for executions in Tape A & C
securities from $0.0026/share to $0.0025/share for the lowest Tier of
activity, from $0.0028/share to $0.0027/share in the middle Tier and
from $0.003/share to $0.0029/share in the highest Tier. For Tape B
securities, the provide credit is being reduced from $0.0028/share to
$0.0026/share in the lowest Tier, from $0.003/share to $0.0028/share in
the middle Tier and from $0.0032/share to $0.0031/share in the highest
Tier. The flat provide credit paid to CHX-registered Institutional
Brokers when they represent agency orders which execute in the CHX
Matching System in Tape B securities will be reduced from $0.0032 to
$0.0031/share.
Furthermore, the Exchange proposes to alter the ADV requirements
for Participants to qualify for the escalating Tiers and associated
provide credits. The ADV requirement for the lowest Tier of activity
would be increased from 500,000 shares or less daily to 1,000,000
shares or less daily. The middle Tier would be changed from an ADV
which is greater than 500,000 and up to and including 5,000,000 shares
to an ADV which is greater than 1,000,000 and up to and including
5,000,000 shares. The ADV for the highest Tier will remain at its
current level of greater than 5,000,000 shares.
Finally, we propose to remove the exclusion of trade activity in
securities priced under $1 in the ADV calculation. Going forward,
executions in such securities would count towards the determination of
a Participant's monthly ADV.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \7\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among its members. Among other things, the Exchange
believes that these changes better tailor the existing tiered fee
structure to the amount and type of volume which order sending
Participants direct to the Exchange and may attract additional orders
to be displayed and executed on our trading facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 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.
C. Self-Regulatory Organization's Statement on Comments Regarding 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 has become effective pursuant to Section
19(B)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder \9\ 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 the
proposed rule change, the Commission summarily may temporarily suspend
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the 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
[[Page 48399]]
Number SR-CHX-2010-18 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-2010-18. 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-2010-18 and should be
submitted on or before August 31, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19656 Filed 8-9-10; 8:45 am]
BILLING CODE 8010-01-P