[Federal Register Volume 59, Number 207 (Thursday, October 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26641]
[[Page Unknown]]
[Federal Register: October 27, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34868; File No. SR-BSE-94-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Relating to its Fee Schedules
October 20, 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
September 30, 1994, the Boston Stock Exchange, Inc. (``BSE'' 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. On October 14, 1994, the Exchange agreed to submit the
instant filing for immediate effectiveness for a period of one hundred
and twenty days commencing with the date of filing.\1\ The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\Conversation between Jack Fitzgerald, Executive Vice
President, Boston Stock Exchange, and Holly Smith, Division of
Market Regulation, Commission, on October 14, 1994. The proposed
rule change will cease to be effective on January 30, 1995, unless
the Commission approves a similar, subsequent filing by the BSE
under Rule 19b-4, or disapproves the instant rule change prior to
January 30, 1995.
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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 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 the Exchange's
fee schedule in order to capitalize on the competitive niches that the
Exchange currently enjoys and to improve the Exchange's competitive
position. The proposal would provide a $.25 per trade credit on all
non-self-directed, electronically routed, Exchange executed, trades of
any size. For purposes of the per trade credit, ``non-self-directed''
shall mean entered by a BEACON subscriber in stocks in which the
routing firm has no affiliation with or financial interest in the
specialist operation registered in those stocks. The aggregate credit
per firm shall be limited to the total monthly layoff transaction fees
charged to that firm.\2\
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\2\The term ``layoff'' refers to any trade wherein a specialist
is eliminating (or decreasing) a position in a security in which he
makes a market.
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The specific new language is as follows: New language.
Transaction Fees
Trade Recording and Comparison Charges
Trades up to and including 2,000 No charge.
shares (all trades accumulate for volume
discounts).
Trades above 2,000:
First 2,500 trades per month............. $.29 per 100 shares.
Next 2,500 trades per month.............. .25 per 100 shares.
Next 2,500 trades per month.............. .15 per 100 shares.
Over 7,500 trades per month.............. .05 per 100 shares.
Maximum charge per side (non-cross)...... 50.00.
Maximum charge per side (cross).......... 25.00.
BEACON subscriber Credits............ .25 per trade.
All non-self-directed, electronically routed
trades (credit is limited to total monthly
layoff transaction fees)
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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
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, 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 Section, 450 Fifth Street, N.W.,
Washington, D.C. 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-94-11 and should be
submitted by November 17, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-26641 Filed 10-26-94; 8:45 am]
BILLING CODE 8010-01-M