[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Notices]
[Pages 14041-14042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6353]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35462; File No. SR-BSE-95-1]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc., Relating to the Value Charges on Intermarket Trading System 
Trades

March 8, 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 February 
3, 1995, 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. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.

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

    The Exchange seeks to make permanent the portion of its fee 
schedule pertaining to value charges on non-specialist Intermarket 
Trading System (``ITS'') trades and the waiver of ITS user fees. By a 
filing, which the Commission noticed on November 24, 1992, the Exchange 
amended its fee schedule to provide for a $.003 per share user fee on 
net outbound specialist trades, value charges of $.002 per share for 
BSE executions up to and including 2,000 shares, and a range of value 
charges per $1,000 contract values for all BSE executions over 2,000 
shares.\1\

    \1\See Securities Exchange Act Release No. 31515 (Nov. 24, 
1992), 57 FR 56937 (notice of immediate effectiveness of File No. 
SR-BSE-92-9).
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    Moreover, the Exchange amended its fee schedule to provide for 
value charges, and waive user fees, on all non-specialist ITS trades 
for a one-year period.\2\

    \2\The portion of the proposed rule change that was amended for 
a one-year period was intended to replace the ITS user fee of $.003 
per share on ``outbound trades only.''
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    By a filing, which the Commission noticed on November 10, 1993, the 
Exchange extended the value charges on non-specialist ITS trades and 
the waiver of the non-specialist ITS user fees for a six-month 
period.\3\ The Exchange now proposes to amend permanently its fee 
schedule to impose value charges, and waive user fees, on all non-
specialist ITS trades as follows:

    \3\See Securities Exchange Act Release No. 33184 (Nov. 10, 
1993), 58 FR 60709 (notice of immediate effectiveness of File No. 
SR-BSE-93-22).
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Value Charges

First $10 million per month--$.16 per $1,000 contract value
Next $40 million per month--$.13 per $1,000 contract value
Next $50 million per month--$.10 per $1,000 contract value
Next $100 million per month--$.08 per $1,000 contract value
Next $300 million per month--$.05 per $1,000 contract value
$500.1 + million per month--$.01 per $1,000 contract value
Maximum charge per side (non-cross) $100.00
Maximum charge per side (cross) $75.00
I.T.S. User Fee--No charge for non-specialist firms

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 amend permanently the 
Exchange's fee schedule regarding certain ITS fees. At the request of 
the Commisson, the Exchange had temporarily amended a portion of its 
proposed rule filing SR-BSE-92-9 [[Page 14042]] regarding certain ITS 
transactions. The Exchange temporarily amended these fees in 1992 for a 
one-year period and extended these fees in 1993 for a six-month period, 
pending the outcome of the Market 2000 Study.\4\ The affected fees are 
comprised of the value charges instituted on all nonspecialist outbond 
ITS trades, which replaces the ITS User Fee of $.003 per share on all 
outbound trades incurred by non-specialist firms.

    \4\The six-month extension expired in May 1994. BSE did not seek 
another extension until this filing.
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2. Statutory Basis
    The statutory basis for this proposal is Section 6(b)(4) of the 
Securities Exchange Act of 1934.

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.\5\

    \5\At the time of the original filing in 1992, the Exchange 
solicited comments from the Fee Committee of the Board of Governors, 
comprised of representatives of dealer-specialist, retail, and 
institutional firms, the Executive Committee, which serves as the 
Board of Governors of the Clearing Corporation, and the Board of 
Governors of the Exchange. See Securities Exchange Act Release No. 
31515 (Nov. 24, 1992), 57 FR 56937 (notice of immediate 
effectiveness of File No. SR-BSE-92-9).
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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 NW., Washington, DC 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 NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to File No. SR-BSE-95-1 and should be 
submitted by April 5, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6353 Filed 3-14-95; 8:45 am]
BILLING CODE 8010-01-M