[Federal Register Volume 59, Number 175 (Monday, September 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22468]


[[Page Unknown]]

[Federal Register: September 12, 1994]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34643; File No. SR-CSE-94-9]

 

Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange, 
Inc. Amending Its Fees for Designated Dealers

September 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 August 
11, 1994, the Cincinnati Stock Exchange, Inc. (``CSE'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'' or 
``SEC'') the proposed rule change as described in Items I, II and III 
below, which Items have been prepared by the self-regulatory 
organization. On August 15, 1994, the CSE submitted to the Commission 
Amendment No. 1 to the proposed rule change.\1\ On August 18, 1994, the 
CSE submitted to the Commission Amendment No. 2 to the proposed rule 
change.\2\ The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\See letter from Robert P. Ackermann, Vice President, 
Regulation, CSE, to Louis A. Randazzo, Attorney, Division of Market 
Regulation, SEC, dated August 15, 1994. Amendment No. 1 withdrew the 
section of the proposal relating to CSE membership fees.
    \2\See letter from Robert P. Ackermann, Vice President, 
Regulation, CSE, to Sharon Lawson, Assistant Director, Division of 
Market Regulation, SEC, dated August 18, 1994. Amendment No. 2 added 
certain clarifying language to the Proposed fee amendment.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The CSE is proposing to amend Exchange fees for designated 
dealers.\3\
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    \3\The text of the proposed fee amendment was included as 
Exhibit 1 to File No. SR-CSE-94-9, and is available at the locations 
specified in Section IV of this filing.
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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 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 has revised certain fees associated with the activity 
of Designated Dealers\4\ as it relates to their transactions on the 
CSE. The revisions became effective on the date the fee change was 
filed with the Commission. The changes are as follows: (1) Designated 
Dealer base fees are reduced from $0.01125 per share to $0.0075 per 
share; (2) member proprietary trades are increased from $0.015 per 
share to $0.02 per share; (3) no fee will be imposed for transactions 
in tape B securities;\5\ (4) the minimum average per share for a 
Designated Dealer is reduced from $0.0047 per share to $0.0046 per 
share; and (5) the second level of fees for Designated Dealers that 
preference transactions has been reduced from $0.0018 per share to 
$0.0015 per share.
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    \4\A ``Designated Dealer'' is defined as a proprietary member 
who maintains a minimum net capital of at least the greater of 
$100,000 or the amount required under Rule 15c3-1 of the Act, and 
who has been approved by the Securities Committee to perform market 
functions by entering bids and offers for designated issues into the 
system. See CSE Rule 11.9(a)(3).
    \5\The Exchange stated that Tape B securities are American Stock 
Exchange, Inc. (``Amex'') listed securities.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
in general and furthers the objectives of Section 6(b)(5) of the Act in 
particular, in that it is not designated to permit unfair 
discrimination between customers, issuers, brokers and dealers and in 
general is designed to protect investors and the public interest.

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

    The Exchange does not believe that the proposed rule change will 
impose any inappropriate burden on competition.

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

    No written comments were solicited or received with respect to 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, Securities and 
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 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 Room. Copies of the filing will also be 
available for inspection and copying at the principal office of the 
CSE. All submissions should refer to File No. SR-CSE-94-9 and should be 
submitted by October 3, 1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-22468 Filed 9-9-94; 8:45 am]
BILLING CODE 8010-01-M