80 FR 36875 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Eliminate the Change in Business Form Fee

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 123 (June 26, 2015)

Page Range		36875-36877
FR Document		2015-15687

Federal Register, Volume 80 Issue 123 (Friday, June 26, 2015)

[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Notices]
[Pages 36875-36877]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-15687]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75254; File No. SR-CHX-2015-04]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Eliminate the Change in Business Form Fee

June 22, 2015.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on June 15, 2015, the Chicago Stock Exchange, Inc. (``CHX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items

[[Page 36876]]

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).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

CHX proposes to amend section C of the Fee Schedule of CHX (``Fee
Schedule'') to eliminate the change in business form fee. The text of
this proposed rule change is available on the Exchange's Web site at
(www.chx.com) and in the Commission's Public Reference Room.

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 changes 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 Exchange proposes to amend section C of the Fee Schedule to
eliminate the change in business form fee. Currently, the Exchange
charges a $200 fee for any Participant that changes its form of
business (e.g., from a partnership to a limited liability corporation)
to cover the administrative costs of tracking and verifying such
changes. However, the Exchange believes that the $200.00 change in
business form fee has become unnecessary, in light of the recent
amendment to the Trading Permit application fee, which was increased
from $200 to $2,000 per application.\3\ Aside from the elimination of
the change in business form fee, the Exchange does not propose to
substantively modify any other fees, assessments, credits or rebates.
The Exchange proposes to make this proposed rule change operative July
1, 2015.
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\3\ See section A of the Fee Schedule; see also Exchange Act
Release No. 73906 (December 22, 2014), 79 FR 78541 (December 30,
2014) (SR-CHX-2014-20).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \4\ in general, and furthers the
objectives of sections 6(b)(4) of the Act \5\ in particular, as the
proposed rule provides for the equitable allocation of reasonable dues,
fees and other charges among members and other persons using its
facilities. Specifically, the Exchange believes that the proposed
elimination of the change in business form fee will be applied in a
non-discriminatory manner as the fee will no longer be assessed to any
Participants.
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\4\ 15 U.S.C. 78f.
\5\ 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 burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. To the contrary, the
proposed elimination of the change in business form fee will reduce the
number of fees assessed to Participants, which will enhance
competition. The Exchange operates in a highly competitive market in
which market participants can readily direct order flow to competing
venues if they deem fee levels set by the Exchange to be excessive.
Thus, the proposed rule change is a competitive proposal that is
intended to retain Participants at, and draw prospective Participants
to, the Exchange by, among other things, providing a simplified Fee
Schedule.

C. 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.

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

The foregoing rule change is effective upon filing pursuant to
section 19(b)(3)(A)(ii) of the Act \6\ and subparagraph(f)(2) of Rule
19b-4 thereunder \7\ because it establishes or changes a due, fee or
other charge imposed by the Exchange.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. 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 email to rule-comments@sec.gov. Please include
File Number SR-CHX-2015-04 on the subject line.

Paper Comments

Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2015-04. This file
number should be included on the subject line if email 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 Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will 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 Number SR-CHX-

[[Page 36877]]

2015-04 and should be submitted on or before July 17, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15687 Filed 6-25-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices 36875

OPP on the basis of the better of the public interest. The Exchange believes only one method. The Commission will
NBBO or the internal market BBO rather that waiving the 30-day operative delay post all comments on the Commission’s
than solely on the basis of the NBBO is consistent with the protection of Internet Web site (http://www.sec.gov/
protects investors and the public investors and the public interest rules/sro.shtml). Copies of the
interest by extending the benefits of because it would allow the Exchange to submission, all subsequent
OPP to orders received in instances immediately correct the inaccuracy with amendments, all written statements
where the internal market BBO is better respect to the NBBO described above, as with respect to the proposed rule
than the NBBO. well as eliminate language suggesting change that are filed with the
the Exchange possesses the capability to Commission, and all written
B. Self-Regulatory Organization’s
temporarily deactivate OPP on an communications relating to the
Statement on Burden on Competition
intraday basis when in fact this is not proposed rule change between the
The Exchange does not believe that the case. The Exchange believes that the Commission and any person, other than
the proposed rule change will impose public interest would not be served by those that may be withheld from the
any burden on competition not preserving these inaccuracies in its rules public in accordance with the
necessary or appropriate in furtherance during a notice and comment period for provisions of 5 U.S.C. 552, will be
of the purposes of the Act, as the this proposed rule change. The available for Web site viewing and
amendments to Rule 1080(p)(3)(B) will Commission believes that waiving the printing in the Commission’s Public
apply uniformly to all market 30-day operative delay 11 is consistent Reference Room, 100 F Street NE.,
participants availing themselves of the with the protection of investors and the Washington, DC 20549, on official
OPP feature. Nor will the proposal public interest and designates the business days between the hours of
impose a burden on competition among proposal operative on filing. 10:00 a.m. and 3:00 p.m. Copies of such
the options exchanges, because of the At any time within 60 days of the filing also will be available for
vigorous competition for order flow filing of the proposed rule change, the inspection and copying at the principal
among the options exchanges. To the Commission summarily may office of the Exchange. All comments
extent that market participants disagree temporarily suspend such rule change if received will be posted without change;
with the particular approach taken by it appears to the Commission that such the Commission does not edit personal
the Exchange herein, market action is necessary or appropriate in the identifying information from
participants can easily and readily public interest, for the protection of submissions. You should submit only
direct order flow to competing venues. investors, or otherwise in furtherance of information that you wish to make
C. Self-Regulatory Organization’s the purposes of the Act. If the available publicly. All submissions
Statement on Comments on the Commission takes such action, the should refer to File Number SR–Phlx–
Proposed Rule Change Received From Commission will institute proceedings 2015–51 and should be submitted on or
Members, Participants, or Others to determine whether the proposed rule before July 17, 2015.
No written comments were either change should be approved or For the Commission, by the Division of
disapproved. Trading and Markets, pursuant to delegated
solicited or received. authority.12
III. Date of Effectiveness of the IV. Solicitation of Comments Robert W. Errett,
Proposed Rule Change and Timing for Interested persons are invited to Deputy Secretary.
Commission Action submit written data, views, and [FR Doc. 2015–15689 Filed 6–25–15; 8:45 am]
Because the foregoing proposed rule arguments concerning the foregoing, BILLING CODE 8011–01–P
change does not: (i) Significantly affect including whether the proposed rule
the protection of investors or the public change is consistent with the Act.
interest; (ii) impose any significant Comments may be submitted by any of SECURITIES AND EXCHANGE
burden on competition; and (iii) become the following methods: COMMISSION
operative for 30 days from the date on Electronic Comments [Release No. 34–75254; File No. SR–CHX–
which it was filed, or such shorter time 2015–04]
as the Commission may designate, it has • Use the Commission’s Internet
become effective pursuant to section comment form (http://www.sec.gov/ Self-Regulatory Organizations;
19(b)(3)(A) of the Act 7 and Rule 19b– rules/sro.shtml); or Chicago Stock Exchange, Inc.; Notice
4(f)(6) thereunder.8 • Send an email to rule-comments@ of Filing and Immediate Effectiveness
A proposed rule change filed sec.gov. Please include File Number SR– of a Proposed Rule Change To
pursuant to Rule 19b–4(f)(6) under the Phlx–2015–51 on the subject line. Eliminate the Change in Business
Act 9 normally does not become Paper Comments Form Fee
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)10 • Send paper comments in triplicate June 22, 2015.
permits the Commission to designate a to Secretary, Securities and Exchange Pursuant to section 19(b)(1) of the
shorter time if such action is consistent Commission, 100 F Street NE., Securities Exchange Act of 1934
Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 2 thereunder,
with the protection of investors and the
All submissions should refer to File notice is hereby given that on June 15,
7 15 U.S.C. 78s(b)(3)(A). Number SR–Phlx–2015–51. This file 2015, the Chicago Stock Exchange, Inc.
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– number should be included on the (‘‘CHX’’ or the ‘‘Exchange’’) filed with
4(f)(6) requires a self-regulatory organization to give subject line if email is used. To help the the Securities and Exchange
tkelley on DSK3SPTVN1PROD with NOTICES

the Commission written notice of its intent to file
Commission process and review your Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change at least five business days the proposed rule change as described
prior to the date of filing of the proposed rule comments more efficiently, please use
change, or such shorter time as designated by the in Items I, II, and III, below, which Items
Commission. The Commission has determined to 11 For purposes only of waiving the 30-day
waive the five-day pre-filing period in this case. operative delay, the Commission has considered the
12 17 CFR 200.30–3(a)(12).
9 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
proposed rule’s impact on efficiency, competition,
10 17 CFR 240.19b–4(f)(6). and capital formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.

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36876 Federal Register / Vol. 80, No. 123 / Friday, June 26, 2015 / Notices

have been prepared by the Exchange. proposed rule change operative July 1, action is necessary or appropriate in the
The Commission is publishing this 2015. public interest, for the protection of
notice to solicit comments on the investors, or otherwise in furtherance of
2. Statutory Basis
proposed rule change from interested the purposes of the Act. If the
persons. The Exchange believes that the Commission takes such action, the
proposed rule change is consistent with Commission shall institute proceedings
I. Self-Regulatory Organization’s section 6(b) of the Act 4 in general, and to determine whether the proposed rule
Statement of the Terms of Substance of furthers the objectives of sections 6(b)(4) should be approved or disapproved.
the Proposed Rule Change of the Act 5 in particular, as the
proposed rule provides for the equitable IV. Solicitation of Comments
CHX proposes to amend section C of
allocation of reasonable dues, fees and Interested persons are invited to
the Fee Schedule of CHX (‘‘Fee
other charges among members and other submit written data, views, and
Schedule’’) to eliminate the change in
persons using its facilities. Specifically, arguments concerning the foregoing,
business form fee. The text of this
the Exchange believes that the proposed including whether the proposed rule
proposed rule change is available on the
elimination of the change in business change is consistent with the Act.
Exchange’s Web site at (www.chx.com)
form fee will be applied in a non- Comments may be submitted by any of
and in the Commission’s Public
discriminatory manner as the fee will no the following methods:
Reference Room.
longer be assessed to any Participants.
Electronic Comments
II. Self-Regulatory Organization’s B. Self-Regulatory Organization’s
Statement of the Purpose of, and • Use the Commission’s Internet
Statement on Burden on Competition
Statutory Basis for, the Proposed Rule comment form (http://www.sec.gov/
Change The Exchange does not believe that rules/sro.shtml); or
the proposed rule change will impose • Send an email to rule-comments@
In its filing with the Commission, the any burden on competition that is not sec.gov. Please include File Number SR–
CHX included statements concerning necessary or appropriate in furtherance CHX–2015–04 on the subject line.
the purpose of and basis for the of the purposes of the Act. To the
proposed rule changes and discussed contrary, the proposed elimination of Paper Comments
any comments it received on the the change in business form fee will • Send paper comments in triplicate
proposed rule change. The text of these reduce the number of fees assessed to to Secretary, Securities and Exchange
statements may be examined at the Participants, which will enhance Commission, 100 F Street NE.,
places specified in Item IV below. The competition. The Exchange operates in Washington, DC 20549–1090.
CHX has prepared summaries, set forth a highly competitive market in which All submissions should refer to File
in sections A, B and C below, of the market participants can readily direct Number SR–CHX–2015–04. This file
most significant aspects of such order flow to competing venues if they number should be included on the
statements. deem fee levels set by the Exchange to subject line if email is used. To help the
be excessive. Thus, the proposed rule Commission process and review your
A. Self-Regulatory Organization’s change is a competitive proposal that is
Statement of the Purpose of, and comments more efficiently, please use
intended to retain Participants at, and only one method. The Commission will
Statutory Basis for, the Proposed Rule draw prospective Participants to, the
Change post all comments on the Commission’s
Exchange by, among other things, Internet Web site (http://www.sec.gov/
1. Purpose providing a simplified Fee Schedule. rules/sro.shtml). Copies of the
C. Self-Regulatory Organization’s submission, all subsequent
The Exchange proposes to amend
Statement on Comments on the amendments, all written statements
section C of the Fee Schedule to
Proposed Rule Change Received From with respect to the proposed rule
eliminate the change in business form
Members, Participants, or Others change that are filed with the
fee. Currently, the Exchange charges a
Commission, and all written
$200 fee for any Participant that changes No written comments were either
communications relating to the
its form of business (e.g., from a solicited or received.
proposed rule change between the
partnership to a limited liability
III. Date of Effectiveness of the Commission and any person, other than
corporation) to cover the administrative
Proposed Rule Change and Timing for those that may be withheld from the
costs of tracking and verifying such
Commission Action public in accordance with the
changes. However, the Exchange
The foregoing rule change is effective provisions of 5 U.S.C. 552, will be
believes that the $200.00 change in
upon filing pursuant to section available for Web site viewing and
business form fee has become
19(b)(3)(A)(ii) of the Act 6 and printing in the Commission’s Public
unnecessary, in light of the recent
subparagraph(f)(2) of Rule 19b–4 Reference Room, 100 F Street NE.,
amendment to the Trading Permit
thereunder 7 because it establishes or Washington, DC 20549, on official
application fee, which was increased
changes a due, fee or other charge business days between the hours of
from $200 to $2,000 per application.3
imposed by the Exchange. 10:00 a.m. and 3:00 p.m. Copies of such
Aside from the elimination of the
At any time within 60 days of the filing also will be available for
change in business form fee, the
filing of the proposed rule change, the inspection and copying at the principal
Exchange does not propose to
Commission summarily may office of the Exchange. All comments
substantively modify any other fees,
tkelley on DSK3SPTVN1PROD with NOTICES

temporarily suspend such rule change if received will be posted without change;
assessments, credits or rebates. The
it appears to the Commission that such the Commission does not edit personal
Exchange proposes to make this
identifying information from
3 See section A of the Fee Schedule; see also
4 15 U.S.C. 78f. submissions. You should submit only
Exchange Act Release No. 73906 (December 22,
5 15 U.S.C. 78f(b)(4). information that you wish to make
2014), 79 FR 78541 (December 30, 2014) (SR–CHX– 6 15 U.S.C. 78s(b)(3)(A)(ii). available publicly. All submissions
2014–20). 7 17 CFR 240.19b–4(f)(2). should refer to File Number SR–CHX–

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Document Created: 2015-12-15 14:14:42
Document Modified: 2015-12-15 14:14:42

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 36875