[Federal Register Volume 59, Number 12 (Wednesday, January 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1169]


[[Page Unknown]]

[Federal Register: January 19, 1994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33455; File No. SR-NASD-94-1]

 

Self-Regulatory Organizations; Notice and Immediate Effectiveness 
of Proposed Rule Change by the National Association of Securities 
Dealers, Inc., Relating to a Waiver of ITS/CAES Service Fees for 
November and December 1993

January 11, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on January 
6, 1994, the National Association of Securities Dealers, Inc. 
(``NASD'') 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 NASD. The purpose 
of the proposed rule change is to authorize the waiver of member 
service fees associated with the operation of the NASD's Intermarket 
Trading System/Computer Assisted Execution System (``ITS/CAES'') for 
November and December 1993. 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 NASD is submitting this rule filing to authorize the waiver of 
member service fees associated with the operation of the NASD's ITS/
CAES for November and December 1993. Specifically, the service fees 
proposed to be waived are contained in NASD's By-Laws, Schedule D, Part 
VIII, Section A.4.

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 NASD 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 NASD 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

    This rule change reflects the NASD's determination to temporarily 
waive the collection of ITS/CAES service fees for November and December 
1993.\1\ Such action has resulted from the positive financial and 
operational developments experienced in the equities marketplace 
generally in 1993, including members' increased usage of ITS/CAES.\2\ 
The waiver of ITS/CAES service fees for November and December of 1993 
will maintain total revenue from ITS/CAES at levels believed to be 
reasonable in relation to recovery of the development and ongoing 
operational costs associated with the system.
---------------------------------------------------------------------------

    \1\The NASD only is proposing to waive the ITS/CAES service 
fees; the equipment related charges noted in section A.4. are not 
being waived for November and December 1993.
    \2\See also Securities Exchange Act Release No. 33143 (November 
3, 1993), 58 FR 59773.
---------------------------------------------------------------------------

    The NASD believes that the proposed rule change is consistent with 
and in furtherance of section 15A(b)(5) of the Act. Section 15A(b)(5) 
requires that the rules of a national securities association provide 
for the equitable allocation of reasonable dues, fees and other charges 
among members and issuers and other persons using any facility or 
system which the association operates or controls. By waiving ITS/CAES 
service fees for a limited two-month period, the NASD believes that the 
total fees assessed for ITS/CAES usage by members will remain at levels 
sufficient to ensure satisfaction of the statutory mandate that these 
fees be reasonably and equitably allocated.

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

    The NASD believes that the proposed rule change will not result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    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 pursuant to section 
19(b)(3)(A) of the Act and subparagraph (e) of Rule 19b-4 thereunder 
because the proposal establishes or changes a due, fee, or other charge 
imposed by the NASD. At any time within 60 days of the filing of such 
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.

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 NW., Washington, DC 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 
NASD. All submissions should refer to the file number in the caption 
above and should be submitted by February 9, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-1169 Filed 1-18-94; 8:45 am]
BILLING CODE 8010-01-M