[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Notices]
[Pages 27084-27085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12885]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38605; File No. SR-CHX-97-7]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to SRO Fees
May 9, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ notice is hereby given that on May 1, 1997, the
Chicago Stock Exchange, Incorporated (``CHX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'' or ``SEC'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the Exchange. 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) (1988).
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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 Section (q) of its Membership Dues
and Fees Schedule.
Chicago Stock Exchange, Incorporated
Membership Dues and Fees
Additions are italized; deletions [bracketed].
(q) Self-Regulatory Organization Fee,\2\ $100 per member and member
organization per month.
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\2\ This fee shall not be applicable to [inactive organizations.
An inactive organization is one which has no securities transaction
revenue, as determined by annual FOCUS reports, as long as the
organization continues to have no such revenue each month]
memberships to which a nominee has not been assigned and which are
not otherwise being used.
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 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
The purpose of the proposed rule change is to clarify the existing
exemption from the Exchange's SRO fee. This fee helps recoup costs
incurred by the Exchange in performing its self-regulatory function.
Specifically, rather than exempting organizations that have no
securities transaction revenue, the Exchange proposes to exempt
memberships to which a nominee has not been assigned and which are not
otherwise being used. In this regard, to qualify for this exemption,
the owner of the membership cannot hold itself out as a CHX member to
others by virtue of its ownership of that membership and cannot
otherwise conduct business on the CHX on the basis of its ownership of
that membership. This exemption is applied on a membership by
membership basis and not on a member
[[Page 27085]]
by member basis. As a result, if a person or entity owns more than one
membership on the CHX, it is possible for that person or entity to
qualify for the exemption for one membership (by not having a nominee
and not otherwise using the membership), but not qualify for the
exemption for another membership owned by that person or entity.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(4) of the
Act 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.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective on May 1, 1997, the
date of receipt of this filing by the Commission, pursuant to Section
19(b)(3)(A)(ii) of the Act \3\ and paragraph (e) of Rule 19b-4 \4\
thereunder, because it establishes or changes a due, fee, or other
charge imposed by the Exchange.
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\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(e)(1991).
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At any time within sixty days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change it if
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 submissions
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. 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 No. CHX-97-7 and should
be submitted by June 6, 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. 97-12885 Filed 5-15-97; 8:45 am]
BILLING CODE 8010-01-M
