Self-Regulatory Organizations; Proposed Rule Changes: Chicago Stock Exchange, Inc.
Federal Register: July 14, 2009 (Volume 74, Number 133)
Notices
Page 34059-34060
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr14jy09-115
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-60258; File No. SR-CHX-2009-07
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Participant Fees and Credits
July 7, 2009.
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 June 29, 2009, 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 Exchange. CHX filed the proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(2) thereunder,\4\ 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.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The CHX proposes to amend its Schedule of Participant Fees and
Assessments (the ``Fee Schedule''), effective July 1, 2009, to provide for an increased rebate for trade executions of one-sided orders in
Tape A and C securities which execute within the Exchange's Matching
System. The Exchange also proposes to delete obsolete text from the Fee
Schedule. The text of this proposed rule change is available on the
Exchange's Web site at http://www.chx.com/rules/proposed_rules.htm and in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549.
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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.
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Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change 1. Purpose
Through this filing, the Exchange would amend its Fee Schedule, effective July 1, 2009, to provide for an increased rebate for trade executions of one-sided orders in Tape A and C securities which execute within the Exchange's Matching System. The Fee Schedule would be amended to provide for an increased Rebate of $0.0029 per share in Tape
A and C securities if liquidity was provided to the Matching System.
The Exchange believes that the increased rebate will help attract additional orders to be displayed and executed on our trading facilities. The Exchange notes that some of our competitors have recently raised their provide rebates, and that our proposed increase will help us remain competitive with these entities. While an increase in transaction volume would not increase the amount of direct transaction revenue in Tape A and C securities to the Exchange (since the provide credit would equal the take fees), the Exchange believes that an increase in market data revenue arising from the execution of such transactions would provide additional revenue.
Finally, the Exchange proposes to make certain minor corrections and updates to the Fee Schedule. These corrections and updates include the deletion of certain obsolete sections of the Fee Schedule which refer to Specialist Credits and the Specialist Fixed Fee. The Exchange discontinued its Specialist program as part of the transition to its
New Trading Model in late 2006 and early 2007, and such fees are no longer being assessed. 2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act \5\ in general, and furthers the objectives of Section 6(b)(4) of the Act \6\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members. Among other things, the change to the fee schedule would increase the amount of credits paid to liquidity providers and may contribute to an increase in trading volume on the
Exchange's facilities and
Page 34060
therefore in the income derived therefrom. The deletion of the obsolete references to Credits paid to Specialists and Fixed Fees charged to
Specialists will eliminate a source of potential confusion about the operations of the Exchange and the application of its Fee Schedule.
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
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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.
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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.
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Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change is effective upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) thereunder.\8\ 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.
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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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 (http:// www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CHX-2009-07 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-2009-07. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://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 inspection and copying in the Commission's Public Reference Room, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing will also 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 No. SR-CHX- 2009-07 and should be submitted on or before August 4, 2009.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\
\9\ 17 CFR 200.30-3(a)(12).
Elizabeth M. Murphy,
Secretary.
FR Doc. E9-16581 Filed 7-13-09; 8:45 am
BILLING CODE 8010-01-P
