[Federal Register Volume 60, Number 16 (Wednesday, January 25, 1995)]
[Notices]
[Pages 4935-4936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1784]



=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35239; File No. SR-CHX-95-2]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, 
Incorporated Relating to the Extension of the Waiver of Certain 
Exchange Transaction Fees for Transactions in Certain Tape B Eligible 
Issues

January 19, 1995.
    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 January 
9, 1955, the Chicago Stock Exchange, Incorporated (``CHX'' 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 January 18, 1995, the Exchange submitted to the 
Commission Amendment No. 1 to the proposed rule change, which is also 
described below.\1\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.

    \1\See letter from David T. Rusoff, Counsel, Chicago Stock 
Exchange, to Glen Barrentine, Senior Counsel, Division of Market 
Regulations, SEC, dated January 18, 1995. See infra note 4 for a 
description of Amendment No. 1.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the waiver of certain transaction 
fees, as set out in Section (c) (Transaction Fee Schedule) of its 
Membership Dues and Fees, for transactions in Tape B eligible 
issues.\2\ executed through the Midwest Automated Execution System 
(``MAX''). The Exchange had waived these fees through December 31, 
1994\3\ and now proposes to extend the waiver on MAX executed trades 
through December 31, 1995. The text of the proposed rule change is as 
follows [new text is italicized; deleted text is bracketed]:

    \2\The Consolidated Tape, operated by the Consolidated Tape 
Association (``CTA''), compiles current last sale reports in certain 
listed securities from all exchanges and market makers trading such 
securities and disseminates these reports to vendors on a 
consolidated basis. The CTA is comprised of the New York, American, 
Boston, Cincinnati, Chicago, Pacific, and Philadelphia Stock 
Exchanges, as well as the Chicago Board Options Exchange and the 
National Association of Securities Dealers, Inc. Transactions in 
American Stock Exchange listed stocks and qualifying regional listed 
stocks are reported on CTA Tape B.
    \3\See Securities Exchange Act Release No. 33637 (Feb. 17, 
1994), 59 FR 9261 (approving File No. SR-CHX-94-4). The Exchange has 
waived these fees for several consecutive years. See Securities 
Exchange Act Release No. 31636 (Dec. 22, 1992), 57 FR 62406 
(approving File No. SR-MSE-92-15); Securities Exchange Act Release 
No. 30154 (Jan. 6, 1992), 57 FR 1291 (approving File No. SR-MSE-91-
17); Securities Exchange Act Release No. 28916 (Feb. 25, 1991), 56 
FR 9028 (approving File No. SR-MSE-91-7).
---------------------------------------------------------------------------

(c) Transaction Fee Schedule
Round Lots/Mixed Lots
    45 cents per 100 shares.
    $100.00 maximum per trade.
Odd Lots
    35 cents per trade.
    $400.00 maximum monthly fees.

    The above fees include all applicable trade recording fees, as set 
out in the Midwest Clearing Corporation (MCC) ``Services and Schedule 
of Charges'' bulletin, relating to floor executed trades.
    The above fees shall not apply to transactions in Tape B eligible 
issues which are executed through the Midwest Automated Execution 
System (``MAC'') through December 31, 199[4]5; however, all applicable 
trade recording fees relating to Tape B trades will be assessed as set 
out in the MCC ``Services and Schedule of Charges'' bulletin.\4\

    \4\Amendment No. 1 deleted a reference in the Transaction Fee 
Schedule that limited the applicability of such fees on round lots/
mixed lots and odd lots to transactions in New York Stock Exchange 
listed issues. This reference was included inadvertently in the 
Exchange's filings requesting the waiver of these fees for calendar 
years 1992, 1993, and 1994.
---------------------------------------------------------------------------

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 change is to continue the 
Exchange's efforts to attract additional order flow in Tape B eligible 
securities to enhance the Exchange's competitive position in these 
issues. Limiting the waiver of fees to MAX trades recognizes the 
economies of scale and cost savings achieved through electronic order 
routing versus manually processed trades.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(4) of the 
Securities Exchange Act of 1934 in that it provides for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and persons using its facilities.

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

    The fee change will impose no 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 
fee 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 [[Page 4936]] 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 
Chicago Stock Exchange. All submissions should refer to File No. SR-
CHX-95-2 and should be submitted by February 15, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-1784 Filed 1-24-95; 8:45 am]
BILLING CODE 8010-01-M