[Federal Register Volume 59, Number 205 (Tuesday, October 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26435]


[[Page Unknown]]

[Federal Register: October 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34861; File No. SR-CSE-94-08]

 

Self-Regulatory Organizations; Cincinnati Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to Exchange 
Membership Fees

October 19, 1994.
    On August 16, 1994, the Cincinnati Stock Exchange, Inc. (``CSE'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``SEC'' or ``Commission''), pursuant to Section 19(b)(1) of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend the membership 
application fees imposed by the Exchange.
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    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\17 CFR 240.19b-4 (1993).
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    The proposed rule change was published for comment in Securities 
Exchange Act Release No. 34654 (September 12, 1994), 59 FR 47964 
(September 19, 1994). No comments were received on the proposal.
    The CSE is increasing its membership application fees as follows: 

------------------------------------------------------------------------
                                                 Current                
                     Item                          fee        New fee   
------------------------------------------------------------------------
Yearly membership dues........................     $2,500  $2,500.      
(Quarterly Charge $625).......................             (No change). 
New Member Application Fee....................        100  1,000.       
Transfers:                                                              
  Responsible Party Change....................         75  350.         
  Firm Registration/Name Change...............         75  350.         
CBOE Exercise Application.....................         75  350.         
------------------------------------------------------------------------

    The increases apply to the initial application fee, as well as the 
fee to exercise a Chicago Board Options Exchange (``CBOE'') 
membership.\3\ Additionally, intra-firm transfers of individuals 
assigned to a membership are being raised to reflect the cost of 
processing the transfers. The Exchange states that the increase in fees 
will more accurately reflect the costs associated with the processing 
of applications and will make the fees comparable to those charged by 
other markets.
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    \3\Pursuant to an agreement signed in November 1986, a CBOE 
member may be eligible to become a proprietary member of the CSE 
without having to purchase and own a certificate of proprietary 
membership (i.e., a seat on the Exchange), provided that the CBOE 
member meets all of the other requirements for eligibility set forth 
in the CSE's By-Laws. See Article II, Section 5.2 of the CSE's Code 
of Regulations (By-Laws).
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and, in 
particular, with the requirements of Section 6(b).\4\ In particular, 
the Commission believes the proposal is consistent with the Section 
6(b)(4) requirements that the rules of an exchange provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members, issuers, and other persons using the Exchange's 
facilities.\5\ The Commission believes that the increases in membership 
application fees are equitable because the Exchange has proposed the 
increases to offset rising costs, and the fees do not have a 
discriminatory or anti-competitive effect. Accordingly, the Commission 
believes that it is appropriate to approve the proposed rule change.
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    \4\15 U.S.C. 78f(b) (1988).
    \5\15 U.S.C. 78f(b)(4) (1988).
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    It is therefore ordered, Pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-CSE-94-08) is approved.

    \6\15 U.S.C. 78s(b)(2) (1988).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-26435 Filed 10-24-94; 8:45 am]
BILLING CODE 8010-01-M