[Federal Register Volume 62, Number 246 (Tuesday, December 23, 1997)]
[Notices]
[Pages 67103-67104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33403]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39450; File No. SR-CHX-97-31]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Inc. Relating to a Rebate to Members of Dues and Certain Fees
December 15, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 11, 1997, the
Chicago Stock Exchange, Inc. (``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 self-regulatory organization.\2\ 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\ See letter from J. Craig Long, Attorney, Foley & Lardner, to
Katherine England, Assistant Director, Division of Market
Regulation, Commission, dated December 10, 1997 (``Amendment No.
1''). The Exchange initially submitted the proposal on December 8,
1997. However, at the Commission's request, the Exchange filed
Amendment No. 1 to the proposed rule change on December 11, 1997 to
provide the reasoning for rebating the dues and fees.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to rebate to members (1) an amount equal to
six months of membership dues and (2) an amount equal to twelve months
of floor telephone booth and/or post space charges applicable to them,
as set forth in the Exchange's Membership Dues and Fees Schedule.
[[Page 67104]]
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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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 purpose of the proposed rule change is to rebate to members an
amount equal to six months of membership dues and an amount equal to
twelve months of floor telephone booth and/or post space charges
applicable to them because the Exchange has already adequately covered
its costs for the year.
The Exchange's Finance Committee has determined that the proposed
rebates would be consistent with the general guidelines adopted by the
Committee with respect to the appropriate level of capital and retained
earnings that the Exchange should possess at any given time.
Furthermore, the Committee has focused on the Exchange's capitalization
and determined that even after the proposed rebate, the Exchange will
have ample capital and resources to continue to fulfill its proscribed
duties in its capacity as a self-regulator and as a registered national
securities exchange.\3\
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\3\ See Amendment No. 1.
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2. Statutory Basis
The Exchange represents that proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(4) \5\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among the Exchange's members and other persons using its
facilities
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\4\ 15 U.S.C. 78f(b).
\5\ 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change constitutes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and
subparagraph (e) of Rule 19b-4 thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4.
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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. Soliciation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, DC. 20549.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying at the
Commission's Public Reference Room. Copies of the filing also will be
available for inspection and copying at the principal office of the
Chicago Stock Exchange, Inc. All submissions should refer to File No.
SR-CHX-97-31 and should be submitted by January 13, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 97-33403 Filed 12-22-97; 8:45 am]
BILLING CODE 8010-01-M
