[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