[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8807]
[[Page Unknown]]
[Federal Register: April 13, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33867; File No. SR-BSE-94-02]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc., Relating to Its Fee Schedules
April 6, 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 February
22, 1994, the Boston Stock Exchange, Inc. (``BSE'' or ``Exchange''),
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change, and amended such proposed rule change on March 8,
1994,\1\ 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\The amendment removes a provision which provided for a $.50
charge to specialists on non-internalized orders executed by the
specialist in stocks subject to competition under the proposed
Competing Specialist Initiative. See letter from John I. Fitzgerald,
Executive Vice President, Boston Stock Exchange, to Howard Kramer,
Associate Director, Division of Market Regulation, Commission, dated
March 28, 1994. The BSE's proposed Competing Specialist Initiative
is currently still under consideration and is the subject of a
pending rule filing (File No. SR-BSE-93-12) and is currently under
consideration. See Securities Exchange Release No. 32549 (June 29,
1993), 58 FR 36229 (July 6, 1993).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Boston Stock Exchange seeks to amend its fee schedules
pertaining to listing, specialist trade processing, and transaction
fees.
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 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 purpose of the proposed rule filing is to amend several of the
Exchange's fee schedules in order to capitalize on the competitive
niches that the Exchange currently enjoys and to improve the Exchange's
competitive position. The proposal would (1) establish a $250.00 non-
refundable listing application fee, which upon acceptance by the
Exchange for listing would be applied toward the $750.00 listing fee;
(2) provide a $1.50 per trade credit on all non-internalized market
orders ranging in size from 100 up to 2,500 shares; (3) reduce the
specialist post clearing and cashiering fee from $1375.00 to $500.00
per specialist book per month; (4) eliminate charges on pre-opening
trades and trades in CTA securities ranked above 1000; and (5)
establish a security routing fee of $500.00 per month per BEACON User
ID with stocks being routed to that ID. For purpose of the market order
credit, ``non-internalized'' shall mean all orders directed to the
Exchange in stocks in which the routing firm has no affiliation with or
financial interest in the specialist operation registered in those
stocks. In addition, specialists will be charged a new fee of $.50 per
trade for certain market orders. The specific new language is as
follows: [deleted language]; new language
LISTING FEES
Listing Application Fee: $250.00 per original listing application.
Fee is non-refundable, but will be applied toward the $7,500
original listing fee upon acceptance for listing.
TRANSACTION FEES
Value Charges
Market Order Credit* (non- $1.50 per trade credit.
internalized orders from 100 up to
$2,500 shares).
*Credit is limited to total transaction costs.
FLOOR OPERATION FEES
Specialist Post Clearing and $500.00 [$1375.00] per specialist
Cashiering. book per month
Specialist Trade Processing
Pre-Opening Trades............... No Charge
Trades in CTA Securities Ranked No Charge
Above 1000.
Market Orders**.................. $.50 per trade
Round Lot/Odd Lot Trades......... $.75 per trade side
Trading Account Trades........... $5.00 per trade side
Security Routing Fee............... $500.00 per month per BEACON User
ID with routed stocks
**Charge per non-internalized market order from 100 up to 2500 shares.
This charge is not applicable to any stock subject to competition
under the Competing Specialist Initiative.
2. Statutory Basis
The statutory basis for this proposal is section 6(b)(4) of the
Act.
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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
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
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.
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, Secretaries 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 at 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 BSE. All
submissions should refer to File No. SR-BSE-94-02 and should be
submitted by May 4, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-8807 Filed 4-12-94; 8:45 am]
BILLING CODE 8010-01-M