[Federal Register Volume 64, Number 215 (Monday, November 8, 1999)]
[Notices]
[Pages 60864-60865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29158]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42089; File No. SR-CHX-99-23]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Amending Membership Dues and Fees Schedule for
Transactions Occurring During the E-Session
November 2, 1999.
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 October 15, 1999, the Chicago Stock Exchange, Incorporated (``CHX''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I,II,
and III below, which Items have been prepared by the Exchange. The
Exchange has designated this proposal as one establishing or changing a
due, fee, or other charge imposed by the CHX under Section
19(b)(3)(A)(ii) of the Act,\3\ 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend its membership dues and fees
schedule to eliminate, through December 31, 1999, all transaction,
order processing and floor broker fees for transactions that occur
during the Exchange's after-hours trading session (``E-Session'').\4\
The text of the proposal is available upon request from the CHX or the
Commission.
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\4\ On October 13, 1999, the Commission approve, on a pilot
basis, the CHX's proposed rule change that allows the CHX to
implement an after-hours trading session. See Securities Exchange
Act Release No. 42004 (October 13, 1999) (SR-CHX-99-16). The E-
Session takes place from 3:30 p.m. to 5:30 p.m. Central Time, Monday
through Friday, and began on October 29, 1999.
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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 Exchange 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. The Exchange 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
The proposed rule change amends the CHX schedule of membership dues
and fees to eliminate, through December 31, 1999, order processing,
transaction and floor broker fees for transactions that occur during
the E-Session.\5\ The Exchange seeks this change to allow CHX members
to participate in the E-Session without incurring the fees normally
associated with their CHX transactions.\6\
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\5\ The fees which CHX seeks to eliminate through December 31,
1999 with this proposed rule change include OTC agency orders in
Nasdaq/NMS securities transacted by floor brokers, which were
recently reviewed by the Commission. See Securities Exchange Act
Release No. 41947 (September 29, 1999), 64 FR 54703 (October 7,
1999) (SR-CHX-99-15).
\6\ The Exchange notes that the vast majority of securities that
initially will be eligible for trading in the E-Session are already
subject to order processing and transaction fee waivers under the
Exchange's current fee schedule because they are either Nasdaq/NMS
issues or issues within the S&P 500. The Exchange does not
anticipate much floor brokerage activity in the E-Session, and
believes that waiving brokerage fees will likely have little impact
on the Exchange's revenues. According to the Exchange, waiving the
fees on the few transactions to which they would otherwise apply
will allow the Exchange to simplify its communications to members
about the fees. Telephone conversation between Paul B. O'Kelly,
Executive Vice President, CHX, and Joseph Morra, Attorney, Division
of Market Regulation, SEC, October 28, 1999.
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[[Page 60865]]
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(4) of the Act \7\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among its
members.
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\7\15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The proposed 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 involves a due, fee, or other charge. 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.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
\10\ In reviewing this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Persons making written submissions should file
six copies thereof with the Secretary, Securities and Exchange
Commission, 450 Fifth Street, N.W., Washington, D.C. 20549-0609. 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 wit the provisions
of 5 U.S.C. 552, with be available for inspection and copying in the
Commission's Public Reference Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
Exchange. All submissions should refer to file number SR-CHX-99-23, and
should be submitted by November 29, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-29158 Filed 11-5-99; 8:45 am]
BILLING CODE 8010-01-M
