[Federal Register Volume 60, Number 71 (Thursday, April 13, 1995)]
[Notices]
[Pages 18865-18866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9078]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35568; File No. SR-NYSE-95-03]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Fees for the Initial Comparison of Equity Security Trade 
Sides Submitted for Comparison Through the On-Line Comparison System

April 5, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 21, 1995, the New 
York Stock Exchange, Inc. (``NYSE'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change (File No. 
SR-NYSE-95-03) as described in Items I, II, and III below, which Items 
have been prepared primarily by NYSE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.

    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The rule change modifies NYSE's fee structure for trade comparison. 
Commencing on or about March 1, 1995, NYSE will charge participants for 
the comparison of each side of a trade in an equity security\2\ 
submitted to it on the day of the trade (``initial trade data'') 
through its On-Line Comparison System (``OCS''). NYSE has not 
previously charged for this service.

    \2\For the purposes of this rule proposal, NYSE is using the 
term ``side'' to mean a purchase or a sale that consists of two or 
more separate transactions made with the same firm, in the same 
security, at the same price, on the same side of the market, and 
which have been added together and submitted for comparison as one 
item. NYSE refers to this process as summarization.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NYSE 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. NYSE 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

    On August 15, 1994, NYSE began requiring its clearing members to 
submit listed equity comparison data to NYSE's OCS within two hours of 
the time of a trade's execution or at two-hour intervals (e.g., 12:00 
noon, 2:00 p.m., 4:00 p.m., and 6:00 p.m.) on each business day.\3\ 
Under this procedure, by the end of each trading day NYSE forwards the 
day's initial trade data, which consists of both compared and 
uncompared trades, to a qualified clearing agency for final 
processing.\4\

    \3\For background on NYSE's trade date comparison procedure, 
refer to Securities Exchange Act Release No. 34153 (June 3, 1994), 
59 FR 30071 [File No. SR-NYSE-94-08] (order approving proposed rule 
change).
    \4\For the purpose of this rule proposal, the term ``qualified 
clearing agency'' means a clearing agency that: (1) is registered 
under the Act, (2) maintains facilities through which NYSE's trades 
may be compared or settled, (3) has agreed to supply NYSE with data 
in connection with NYSE's compliance duties under the Act, and (4) 
has agreed to establish rules and procedures to facilitate the 
comparison of transactions as provided in NYSE Rule 130 (i.e., 
NYSE's principal rule governing trade comparison). NYSE Rule 130, 
Supplementary Material .10 and NYSE Rule 132, Supplementary Material 
.10.
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    From August 1994 to date, NYSE has provided these OCS services to 
its clearing members without charge. NYSE states, however, that its 
costs for providing these services have been rising due to increased 
usage and that it now proposes to recoup some of these additional costs 
by charging a processing fee based on the number of shares per sides. 
While the NYSE will continue charging no fee for sides from one share 
to 999 shares, the fee for each side from 1,000 shares to 2,999 shares 
will be $0.06, and the fee for each side for 3,000 shares to any higher 
amount will be $0.18. As noted, the NYSE will commence charging this 
new fee on or about March 1, 1995.
    NYSE believes the rule change provides for the equitable allocation 
of fees among its members. Therefore, NYSE believes the rule change is 
consistent with the requirements of the Act and particularly with 
Section 6(b)(4) of the Act.\5\

    \5\15 U.S.C. 78q-1(f)(b)(4) (1988).
B. Self-Regulatory Organization's Statement on Burden on Competition

    NYSE believes that the proposed rule changes will not impose any 
burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants, or Others

    NYSE has neither solicited nor received any written comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act\6\ and subparagraph (e)(2) of Rule 19b-4 
thereunder because it establishes a due, fee, or other charge imposed 
by NYSE.\7\ At any time within sixty days of the filing of such 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.

    \6\15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \7\17 CFR 204.19b-4(e)(4) (1994).
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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 

[[Page 18866]]
proposed rule change between the Commission and any person, other than 
those that may be withheld from the public in accordance with 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in 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 NYSE. 
All submissions should refer to File No. SR-NYSE-95-03 and should be 
submitted by May 4, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\

    \8\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-9078 Filed 4-12-95; 8:45 am]
BILLING CODE 8010-01-M