[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4336]


[[Page Unknown]]

[Federal Register: February 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33637; File No. SR-CHX-94-4]

 

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Inc., Regarding the Re-extension of the Waiver of Certain Exchange 
Transaction Fees for Transactions in Certain Tape B Eligible Issues

February 17, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 2, 1994, 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 self-regulatory organization. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CHX proposes to re-extend the waiver of certain transaction 
fees, and not re-extend the waiver of certain other transaction fees, 
as set out in Section (c) (Transaction Fee Schedule), of its Membership 
Dues and Fees for transactions in Tape B eligible issues.\2\ The 
Exchange proposes to extend the waiver of certain transaction fees for 
Tape B eligible issues executed through the Midwest Automated Execution 
System (``MAX''), but not extend the waiver for otherwise eligible 
issues not executed through MAX. The Exchange had waived these fees 
through December 31, 1993, on both MAX and non-MAX executed trades\3\ 
and now proposes to extend the waiver on MAX executed trades through 
December 31, 1994.
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    \2\The Consolidated Tape, operated by the Consolidated Tape 
Association (``CTA''), compiles current last sale reports in certain 
listed securities from all exchanges and market makers trading such 
securities and disseminates these reports to vendors on a 
consolidated basis. The CTA is comprised of the New York, American, 
Boston, Cincinnati, Chicago, Pacific, and Philadelphia Stock 
Exchanges, as well as the Chicago Board Options Exchange and the 
National Association of Securities Dealers, Inc. Transactions in 
American Stock Exchange listed stocks and qualifying regional listed 
stocks are reported on CTA Tape B. Securities Exchange Act Release 
No. 21583 (December 18, 1984), 50 FR 730 (January 7, 1985).
    \3\See Securities Exchange Act Release No. 31636 (December 22, 
1992), 57 FR 62406 (December 30, 1992) (approving File No. SR-MSE-
92-15). Previously, the Exchange waived these fees for the time 
period of February 7, 1991 through December 31, 1991 in Securities 
Exchange Act Release No. 28916 (February 25, 1991), 56 FR 9028 
(March 4, 1991) (approving File No. SR-MSE-91-7). The Exchange also 
waived these fees for the time period of August 31 through December 
31, 1990. See Securities Exchange Act Release No. 28402 (August 31, 
1990), 55 FR 37389 (September 11, 1990) (approving File No. SR-MSE-
90-14). The Commission did not receive any comments in connection 
with these filings.
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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 self-regulatory organization 
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 self-regulatory organization 
has prepared summaries, set forth in Section (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

    The purpose of the proposed rule change is to continue the 
Exchange's efforts to attract additional order flow in Tape B eligible 
securities in order to enhance the Exchange's competitive position in 
these issues. Limiting the waiver of fees to MAX trades recognizes the 
economies of scale and cost savings achieved through electronic order 
routing versus manually processed trades.
    The proposed rule change is consistent with section 6(b)(4) of the 
Act in that it provides for the equitable allocation of reasonable 
dues, fees, and other charges among its members and issuers and the 
persons using its facilities.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that no burden will be placed on competition 
as a result of the proposed rule change.

(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 establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
pursuant to section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
19b-4 thereunder. 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 submissions, 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 Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the CHX. All 
submissions should refer to File No. SR-CHX-94-4 and should be 
submitted by March 18, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4336 Filed 2-24-94; 8:45 am]
BILLING CODE 8010-01-M