Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Retroactively Waive Its Order Cancellation Fee for the Period of September 1 to September 9, 2011 (Inclusive), 58553-58555 [2011-24174]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 183 / Wednesday, September 21, 2011 / Notices
wreier-aviles on DSK7SPTVN1PROD with NOTICES
market are present.19 Lastly, the trading
of the Shares will be subject to NYSE
Arca Equities Rule 8.200, Commentary
.02(e), which sets forth certain
restrictions on ETP Holders 20 acting as
registered Market Makers 21 in Trust
Issued Receipts to facilitate
surveillance.
The Exchange has represented that
the Shares are deemed to be equity
securities, thus rendering trading in the
Shares subject to the Exchange’s
existing rules governing the trading of
equity securities. In support of this
proposal, the Exchange has made
representations, including:
(1) The Funds will meet the initial
and continued listing requirements
applicable to Trust Issued Receipts in
NYSE Arca Equities Rule 8.200 and
Commentary .02 thereto.
(2) The Exchange has appropriate
rules to facilitate transactions in the
Shares during all trading sessions.
(3) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable federal securities laws.
(4) With respect to the Funds’ futures
contracts traded on exchanges, not more
than 10% of the weight of such futures
contracts in the aggregate shall consist
of components whose principal trading
market is not a member of the
Intermarket Surveillance Group or is a
market with which the Exchange does
not have a comprehensive surveillance
sharing agreement.
(5) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The risks
involved in trading the Shares during
the Opening and Late Trading Sessions
when an updated ITV will not be
calculated or publicly disseminated;
(b) the procedures for purchases and
redemptions of Shares in creation
baskets and redemption baskets (and
that Shares are not individually
redeemable); (c) NYSE Arca Equities
19 With respect to trading halts, the Exchange may
consider other relevant factors in exercising its
discretion to halt or suspend trading in the Shares
of the Funds. Trading in the Shares of the Funds
will be subject to halts caused by extraordinary
market volatility pursuant to the Exchange’s circuit
breaker rules in NYSE Arca Equities Rule 7.12.
Trading also may be halted because of market
conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable.
20 See NYSE Arca Equities Rule 1.1(n) (defining
ETP Holder).
21 See NYSE Arca Equities Rule 1.1(u) (defining
Market Maker).
VerDate Mar<15>2010
15:20 Sep 20, 2011
Jkt 223001
Rule 9.2(a), which imposes a duty of
due diligence on its ETP Holders to
learn the essential facts relating to every
customer prior to trading the Shares;
(d) how information regarding the ITV
is disseminated; (e) that a static ITV will
be disseminated, between the close of
trading on the applicable futures
exchange and the close of the NYSE
Arca Core Trading Session; (f) the
requirement that ETP Holders deliver a
prospectus to investors purchasing
newly issued Shares prior to or
concurrently with the confirmation of a
transaction; and (g) trading information.
(6) A minimum of 100,000 Shares will
be outstanding as of the start of trading
on the Exchange.
(7) With respect to the application of
Rule 10A–3 under the Act, the Trust
will rely on the exception contained in
Rule 10A–3(c)(7).22
This approval order is based on all of
the Exchange’s representations.23 The
Commission notes that the Funds are
substantially similar to another fund,
the shares of which have been approved
for the listing and trading on the
Exchange by the Commission.24
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 25 and the rules and
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,26 that the
proposed rule change (SR–NYSEArca–
2011–48) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–24175 Filed 9–20–11; 8:45 am]
BILLING CODE 8011–01–P
22 See
supra notes 11 and 12 and accompanying
58553
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65342; File No. SR–CHX–
2011–28]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To
Retroactively Waive Its Order
Cancellation Fee for the Period of
September 1 to September 9, 2011
(Inclusive)
September 14, 2011.
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
September 12, 2011, the Chicago Stock
Exchange, Inc. (‘‘CHX’’ or the
‘‘Exchange’’) 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 the CHX. CHX has filed this proposal
pursuant to Exchange Act Rule 19b–
4(f)(6) 3 which is 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
CHX proposes to amend its Fee
Schedule to retroactively waive its order
cancellation fee for a limited duration.
The text of this proposed rule change is
available on the Exchange’s Web site at
(https://www.chx.com) and in the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
text.
23 The Commission notes that it does not regulate
the market for futures in which the Fund plans to
take positions, which is the responsibility of the
CFTC. The CFTC has the authority to set limits on
the positions that any person may take in futures.
These limits may be directly set by the CFTC or by
the markets on which the futures are traded. The
Commission has no role in establishing position
limits on futures, even though such limits could
impact an exchange-traded product that is under
the jurisdiction of the Commission.
24 See Securities Exchange Act Release No. 62213
(June 3, 2010), 75 FR 32828 (June 9, 2010) (SR–
NYSEArca-2010–22) (approving the listing and
trading on the Exchange of the Teucrium Corn
Fund).
25 15 U.S.C. 78f(b)(5).
26 15 U.S.C. 78s(b)(2).
27 17 CFR 200.30–3(a)(12).
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\21SEN1.SGM
21SEN1
58554
Federal Register / Vol. 76, No. 183 / Wednesday, September 21, 2011 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
wreier-aviles on DSK7SPTVN1PROD with NOTICES
1. Purpose
Through this proposal, the Exchange
seeks to retroactively waive the order
cancellation fees as provided in Section
E.8. of its Schedule of Fees and
Assessments (‘‘Fee Schedule’’) for the
period of September 1 to September 9,
2011, inclusive. On August 25, 2011, the
Exchange filed a proposal to amend its
Fee Schedule to replace the prior order
cancellation fee with a new version,
effective September 1, 2011.4
The Exchange submitted a filing to
the Commission on August 25, 2011 to
make these changes with a proposed
effective date of September 1, 2011. The
Exchange posted a Legal Notice dated
August 26, 2011 detailing the proposed
changes to the cancellation fee and
posted it to its public Web site.5 The
Exchange also included the Legal Notice
in its Weekly Bulletin to Participants
dated September 2, 2011 which is also
posted to its Web site.6 Finally, the
Exchange posted the rule filing
requesting the change to its Web site.
The Commission published the Notice
of Filing and Immediate Effectiveness of
the proposed cancellation fee change on
its public Web site on September 6,
2011. Pursuant to Commission rules, the
Exchange updated the Fee Schedule to
reflect the changes in the calculation of
the order cancellation fee on its Web
site on September 8, 2011. Since the Fee
Schedule was not updated until after
the September 1st effective date,
however, the Exchange believes that
certain Participants may not have
received actual notice of the changes.7
Such Participants may have incurred
cancellation fee charges which they
otherwise may have avoided by, for
example, limiting the number of
cancellation requests. Given the
potential that Participants might have
incurred charges which they did not
anticipate, the Exchange seeks to waive
the cancellation fees as to all
Participants through the close of
business on Friday, September 9, 2011.
Beginning on Monday, September 12,
2011, order and cancellation activity
would give rise to cancellation fees if
4 Securities
Exchange Act Rel. No. 34–65268
(Aug. 25, 2011), 76 FR 56246 (SR–CHX–2011–25).
5 Legal Notice L–2011–26 (Aug. 26, 2011).
6 CHX Weekly Bulletin, Issue 2011–35 (Sept. 2,
2011).
7 The Exchange also believes that disruptions to
Participants and their personnel as a result of the
recent Hurricane Irene may have contributed to the
failure to effectively communicate the impact of the
cancellation fee changes to some Participants.
VerDate Mar<15>2010
15:20 Sep 20, 2011
Jkt 223001
the criteria defined in the Fee Schedule
are met. The Exchange believes that this
proposal recognizes that certain
Participants may not have received
actual notice of the cancellation fee
changes or fully understood and
appreciated the potential impact and
magnitude of those changes to their
firms.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act in general,8 and
furthers the objectives of Section 6(b)(5)
in particular,9 in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transaction in securities, to
remove impediments and perfect the
mechanisms of a free and open market,
and, in general, to protect investors and
the public interest by retroactively
waiving the Exchange’s order
cancellation fee for a limited period of
time to ensure that all Participants
effectively received actual notice of the
recent changes to those fees. Depending
on the nature of the order and
cancellation request activity of a
Participant, the proposed changes could
significantly increase the cancellation
fees imposed upon Participants such
that a limited waiver is appropriate
under these particular circumstances.
The Exchange also believes that the
proposed rule change is consistent with
Section 6(b) of the Act 10 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 11 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and other persons
using any facility or system which the
Exchange operates or controls. The
proposed waiver is fair and nondiscriminatory since it would apply
equally to all Participants and negates
the imposition of fees (as opposed to
imposing a fee) for prior activity where
some Participants may not have fully
appreciated the substantial nature of the
changes to the order cancellation fees.
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.
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78f.
11 15 U.S.C. 78f(b)(4).
9 15
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change 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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
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
Number SR–CHX–2011–28 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–2011–28. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
12 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.
13 17
E:\FR\FM\21SEN1.SGM
21SEN1
Federal Register / Vol. 76, No. 183 / Wednesday, September 21, 2011 / Notices
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
available publicly. All submissions
should refer to File Number SR–CHX–
2011–28 and should be submitted on or
before October 12, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–24174 Filed 9–20–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65341; File No. SR–
NYSEAmex–2011–68]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing of
Proposed Rule Change Relating to the
Messages to Contracts Traded Ratio
Fee in the Options Fee Schedule
wreier-aviles on DSK7SPTVN1PROD with NOTICES
September 14, 2011.
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
September 1, 2011, NYSE Amex LLC
(the ‘‘Exchange’’ or ‘‘NYSE Amex’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15:20 Sep 20, 2011
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Options Fee Schedule (the ‘‘Schedule’’)
by adjusting the message ratio used to
calculate the Messages to Contracts
Traded Ratio Fee (‘‘Messages Fee’’).
Changes to the Schedule are shown in
Exhibit 5. The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Schedule by adjusting the message ratio
used to calculate the Messages Fee.
The Exchange recently adopted the
Messages Fee to help encourage efficient
usage of systems capacity by all ATP
firms.3 The Exchange believes that it is
in the best interests of all ATP firms and
investors who access our markets to
encourage efficient usage of capacity.
The Messages Fee takes into
consideration quotes as well as orders
entered and looks at the number of
contracts traded as a result. ATP firms
that enter excessive amounts of orders
and quotes that produce little or no
volume are assessed the Messages Fee
based on the ratio of quotes and orders
to contracts traded. The Messages Fee is
only assessed against ATP firms who
exceed one billion quotes and/or orders
(collectively, ‘‘messages’’) in a given
month in determining whether
3 See Securities Exchange Act Release No. 64655
(June 13, 2011), 76 FR 35495 (June 17, 2011) (SR–
NYSEAmex–2011–37).
1 15
VerDate Mar<15>2010
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Jkt 223001
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
58555
inefficient utilization of systems
capacity has occurred. For those ATP
firms exceeding one billion messages in
a month, the Exchange currently
assesses a fee for those ATP firms that
do not execute at least one contract for
every 1,500 messages entered. An ATP
firm failing to meet that execution ratio
is charged $.01 for every 1,000 messages
in excess of one billion messages.
The Exchange proposes to amend the
message ratio in the Schedule to reflect
a range, namely one contract for every
1,500 to 3,000 messages entered. Under
the proposal, the Exchange would be
permitted to select the precise number
of messages within that range that
would be used to calculate the Messages
Fees. Any change to the number of
messages to be used in setting the
Messages Fee would be announced in
an Information Memo at least one
business day in advance of its
implementation and would be
applicable in the next calendar month
and thereafter until changed. The fee
would not be changed mid-month.
Thus, for example, if the Exchange
determined to change the message ratio
as of September 1, 2011, the Exchange
would announce the newly selected
ratio in an Information Memo not later
than August 31, 2011 and that ratio
would apply in September 2011 and
each succeeding month until changed in
accordance with the notice described
above. Under the proposed rule change,
the Exchange also would be authorized
to exclude one or more days of data for
purposes of calculating the Messages
Fee for an ATP firm if the Exchange
determined, in its sole discretion, that
one or more ATP Firms or the Exchange
was experiencing a bona fide systems
problem.4 Any ATP Firm seeking relief
as a result of a systems problem will be
required to notify the Exchange via email with a description of the systems
problem. The Exchange shall keep a
record of all such requests and whether
the request was deemed by the
Exchange to be a bona fide systems
problem resulting in waiving that day’s
activity from the calculation of the
Messages Fee.
4 Examples of bona fide systems problems
include, but are not limited to, an erroneous input
(such as an error related to volatility or underlying
price) that cause the generation of quotes that are
substantially away from the quoted national best
bid and offer; or an Exchange systems problem that
causes an ATP firm to continually attempt to
update or withdraw its quotes, generating a large
volume of message traffic. In those cases, where the
bona fide systems problem is at the Exchange, the
Exchange will exclude that day’s activity from the
calculation of the Messages Fee for all ATP firms
that were impacted by such bona fide systems
problem.
E:\FR\FM\21SEN1.SGM
21SEN1
]]>Agencies
[Federal Register Volume 76, Number 183 (Wednesday, September 21, 2011)]
[Notices]
[Pages 58553-58555]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-24174]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65342; File No. SR-CHX-2011-28]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Retroactively Waive Its Order Cancellation Fee for the Period of
September 1 to September 9, 2011 (Inclusive)
September 14, 2011.
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 September 12, 2011, the Chicago Stock Exchange, Inc. (``CHX''
or the ``Exchange'') 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 the CHX. CHX has filed this
proposal pursuant to Exchange Act Rule 19b-4(f)(6) \3\ which is
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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CHX proposes to amend its Fee Schedule to retroactively waive its
order cancellation fee for a limited duration. The text of this
proposed rule change is available on the Exchange's Web site at (https://www.chx.com) and in the Commission's Public Reference Room.
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.
[[Page 58554]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Through this proposal, the Exchange seeks to retroactively waive
the order cancellation fees as provided in Section E.8. of its Schedule
of Fees and Assessments (``Fee Schedule'') for the period of September
1 to September 9, 2011, inclusive. On August 25, 2011, the Exchange
filed a proposal to amend its Fee Schedule to replace the prior order
cancellation fee with a new version, effective September 1, 2011.\4\
---------------------------------------------------------------------------
\4\ Securities Exchange Act Rel. No. 34-65268 (Aug. 25, 2011),
76 FR 56246 (SR-CHX-2011-25).
---------------------------------------------------------------------------
The Exchange submitted a filing to the Commission on August 25,
2011 to make these changes with a proposed effective date of September
1, 2011. The Exchange posted a Legal Notice dated August 26, 2011
detailing the proposed changes to the cancellation fee and posted it to
its public Web site.\5\ The Exchange also included the Legal Notice in
its Weekly Bulletin to Participants dated September 2, 2011 which is
also posted to its Web site.\6\ Finally, the Exchange posted the rule
filing requesting the change to its Web site.
---------------------------------------------------------------------------
\5\ Legal Notice L-2011-26 (Aug. 26, 2011).
\6\ CHX Weekly Bulletin, Issue 2011-35 (Sept. 2, 2011).
---------------------------------------------------------------------------
The Commission published the Notice of Filing and Immediate
Effectiveness of the proposed cancellation fee change on its public Web
site on September 6, 2011. Pursuant to Commission rules, the Exchange
updated the Fee Schedule to reflect the changes in the calculation of
the order cancellation fee on its Web site on September 8, 2011. Since
the Fee Schedule was not updated until after the September 1st
effective date, however, the Exchange believes that certain
Participants may not have received actual notice of the changes.\7\
Such Participants may have incurred cancellation fee charges which they
otherwise may have avoided by, for example, limiting the number of
cancellation requests. Given the potential that Participants might have
incurred charges which they did not anticipate, the Exchange seeks to
waive the cancellation fees as to all Participants through the close of
business on Friday, September 9, 2011. Beginning on Monday, September
12, 2011, order and cancellation activity would give rise to
cancellation fees if the criteria defined in the Fee Schedule are met.
The Exchange believes that this proposal recognizes that certain
Participants may not have received actual notice of the cancellation
fee changes or fully understood and appreciated the potential impact
and magnitude of those changes to their firms.
---------------------------------------------------------------------------
\7\ The Exchange also believes that disruptions to Participants
and their personnel as a result of the recent Hurricane Irene may
have contributed to the failure to effectively communicate the
impact of the cancellation fee changes to some Participants.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act in general,\8\ and furthers the objectives
of Section 6(b)(5) in particular,\9\ in that it is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transaction in
securities, to remove impediments and perfect the mechanisms of a free
and open market, and, in general, to protect investors and the public
interest by retroactively waiving the Exchange's order cancellation fee
for a limited period of time to ensure that all Participants
effectively received actual notice of the recent changes to those fees.
Depending on the nature of the order and cancellation request activity
of a Participant, the proposed changes could significantly increase the
cancellation fees imposed upon Participants such that a limited waiver
is appropriate under these particular circumstances.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that the proposed rule change is
consistent with Section 6(b) of the Act \10\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \11\ in particular, in
that it provides for the equitable allocation of reasonable dues, fees
and other charges among members and other persons using any facility or
system which the Exchange operates or controls. The proposed waiver is
fair and non-discriminatory since it would apply equally to all
Participants and negates the imposition of fees (as opposed to imposing
a fee) for prior activity where some Participants may not have fully
appreciated the substantial nature of the changes to the order
cancellation fees.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f.
\11\ 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 on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 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.
---------------------------------------------------------------------------
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 rule-comments@sec.gov. Please include
File Number SR-CHX-2011-28 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-2011-28. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your
[[Page 58555]]
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 available publicly. All submissions should refer to
File Number SR-CHX-2011-28 and should be submitted on or before October
12, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-24174 Filed 9-20-11; 8:45 am]
BILLING CODE 8011-01-P
