[Federal Register Volume 62, Number 50 (Friday, March 14, 1997)]
[Notices]
[Pages 12261-12262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6419]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38371; File No. SR-CHX-97-04]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to SEC Transaction Fees
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on
February 18, 1997, 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 CHX
has designated this proposal as one constituting a change to a due,
fee, or other charge under Section 19(b)(3)(A) of the Act, which
renders the rule effective upon receipt of this filing. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organizations Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to codify in its fee schedule the CHX's
collection of SEC transaction fees assessed pursuant
[[Page 12262]]
to Section 31 of the Act,\1\ as authorized by CHX Article XV, Rule 4.
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\1\ 15 U.S.C. 78ee.
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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 CHX 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 statement 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
Congress recently enacted the National Securities Markets
Improvement Act of 1996 (``Improvement Act'') and the Omnibus
Consolidated Appropriations Act for Fiscal Year 1997 (``Appropriations
Act''), which together require national securities associations to pay
SEC transaction fees for transactions in certain OTC securities.
As a result of the Improvement Act and Appropriations Act, the SEC
has amended Rule 31-1 \2\ to eliminate the current exemption from SEC
transaction fees for transactions in OTC securities occurring on the
CHX (as a national securities exchange) that are either listed on the
CHX or are traded on the CHX pursuant to unlisted trading privileges
(``OTC/UTP Securities''). Thus, effective January 1, 1997, the CHX is
required to pay to the Commission a transaction fee for sales of OTC/
UTP Securities transacted on the CHX.\3\ Additionally, pursuant to the
Improvement Act, effective October 1, 1997, these fees, as well as the
traditional SEC transaction fees on exchange-registered securities that
are not OTC/UTP Securities, will become payable to the SEC twice a
year, as opposed to once a year as required by existing Section 31 of
the Act.
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\2\ 17 CFR 240.31-1.
\3\ See Securities Exchange Act Release No. 38073 (December 23,
1996), 61 FR 68590 (December 30, 1996).
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The purpose of the proposed rule change is to codify the imposition
of SEC transaction fees in the Exchange's fee schedule.
2. Statutory Basis
The CHX believes that the proposed rule change is consistent with
Section 6(b)(4) of the Act \4\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among its members
and issuers and persons using its facilities.
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\4\ 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 with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change establishes 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 and subparagraph (e) of Rule
19b-4 thereunder. 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 purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing. Persons making written submission
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington D.C. 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 in the
Commission's Public Reference Room, 450 Fifth Street, N.W., Washington
D.C. Copies of such filing also will be available for inspection and
copying at the Exchange. All submissions should refer to file number
SR-CHX-97-04 and should be submitted by April 4, 1997.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-6419 Filed 3-13-97; 8:45 am]
BILLING CODE 8010-01-M
