[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]


-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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