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Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, Incorporated Restating and Amending Membership Dues and Fees Schedule

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Start Preamble January 11, 2000.

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 December 27, 1999, 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 Exchange has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the CHX under Section 19(b)(3)(A)(ii) of the Act,[3] 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.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The Exchange proposes to restate and amend its membership dues and fees schedule (“Schedule”) to better organize and define the charges included in the Schedule; delete references to obsolete charges and confirm specific charges rebilled to members and member firms; and continue, through March 1, 2000, the waiver of all transaction, order processing and floor broker fees for transactions that occur during the Exchange's after-hours trading session (“E-Session”). The text of the proposed rule change is available upon request from the CHX or the Commission.

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 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.

A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

1. Purpose

The proposed rule change restates and amends the Schedule. The proposal primarily reorganizes individual items by grouping them under more descriptive and more appropriate headings, and changes descriptions to better define the charges assessed or rebilled by the Exchange. The proposed changes to the Schedule also delete references to obsolete charges and identify specific charges rebilled to members and member firms by the Exchange. Finally, the proposal includes provisions to eliminate, through March 1, 2000, order processing, transaction and floor broker fees for transactions that occur during the E-Session.[4] This last portion of the proposal is designed to allow CHX members to participate in the E-Session without incurring the fees normally associated with their CHX transactions.[5]

2. Statutory Basis

The Exchange believes the proposed rule change is consistent with section 6(b)(4) of the Act [6] in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members.

B. Self-Regulatory Organization's Statement of Burden on Competition

The Exchange does not believe that the proposed rule change will impose any inappropriate burden on competition. Start Printed Page 3001

C. Self-Regulatory Organization's Statement of Comments on the Proposed Rule Change Received From Members, Participants, or Others

No written comments were solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

The proposed rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act [7] and subparagraph (f)(2) of Rule 19b-4 thereunder,[8] because it involves a due, fee, or other charge. 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.[9]

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 number SR-CHX-99-29, and should be submitted by February 9, 2000.

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.[10]

Start Signature

Margaret H. McFarland,

Deputy Secrtary.

End Signature End Preamble


3.  15 U.S.C. 78s(b)(3)(A)(ii).

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4.  The Commission approved, on a pilot basis, the implementation of the Exchange's E-Session. See Securities Exchange Act Release No. 42004 (October 13, 1999), 64 FR 56548 (October 20, 1999), (SR-CHX-99-16). The E-Session takes place from 3:30 p.m. to 5:30 p.m., Central Time, Monday through Friday. The E-Session is approved to continue through March 1, 2000.

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5.  According to the Exchange, the vast majority of the vast majority of the securities that trade during the E-Session are already subject to order processing and transaction fee waivers under the current fee schedule because they are either NASDAQ/NMS issues or issues within the S&P 500. Waiving fees on the very few remaining securities and on floor broker transactions in all securities simplifies the Exchange's fee-related communications with its members.

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7.  15 U.S.C. 78s(b)(3)(A)(ii)

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9.  In reviewing this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).

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[FR Doc. 00-1171 Filed 1-18-00; 8:45 am]