

[Federal Register: July 12, 2006 (Volume 71, Number 133)]
[Notices]               
[Page 39378-39379]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jy06-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54100; File No. SR-CHX-2006-13]

 
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Order Approving Proposed Rule Change Relating to Participant Fees and 
Credits

July 5, 2006.
    On April 24, 2006, the Chicago Stock Exchange, Inc. (``CHX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its Participant Fee Schedule (``Fee 
Schedule'') to reduce, retroactively to March 1, 2006, the assignment 
fees charged to specialist firms seeking the right to trade securities, 
when the securities are assigned in competition with other firms. The 
proposed rule change was published for comment in the Federal Register 
on June 1, 2006.\3\ The Commission received no comments regarding the 
proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 53868 (May 25, 
2006), 71 FR 31242.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and in 
particular, with section 6(b)(4) of the Act,\4\ which requires that the 
rules of the Exchange provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.\5\ The proposed retroactive fee reduction 
was filed simultaneously with, and is identical to, a fee reduction 
applied by the Exchange prospectively as of April 24, 2006.\6\ That fee 
reduction was based on the Exchange's belief that the right to trade 
securities as an Exchange specialist has only a short-term benefit, in 
view of an Exchange proposal pending with the Commission to implement a 
new trading model that does not involve the use of specialists to 
handle customer orders.\7\ The Exchange believes that it is appropriate 
to apply the fee reduction

[[Page 39379]]

retroactively to specialist assignments made in the period beginning 
March 1, 2006, a time when, the Exchange states, its management began 
talking with specialist firms about the reasons for, and possibility 
of, this type of fee reduction. The Commission believes such reduction 
is consistent with the Act.
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    \4\ 15 U.S.C. 78f(b)(4).
    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition and 
capital formation. See 15 U.S.C. 78c(f).
    \6\ See Securities Exchange Act Release No. 53781 (May 10, 
2006), 71 FR 28727 (May 17, 2006) (notice and immediate 
effectiveness of SR-CHX-2006-12).
    \7\ See SR-CHX-2006-05.
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-CHX-2006-13) is approved.
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06-6162 Filed 7-11-06; 8:45 am]

BILLING CODE 8010-01-M
