[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Notices]
[Pages 24937-24938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11446]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35668; File No. SR-CSE-95-05]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange, 
Inc., Relating to National Securities Trading System Fees

May 3, 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 April 
24, 1995, the Cincinnati Stock Exchange, Inc. (``CSE'' 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 hereby amends Rule 11.10 regarding fees imposed by the 
Exchange. The text of the proposed rule change is as follows [new text 
is italicized; deleted text is bracketed]:

Rule 11.10  NATIONAL SECURITIES TRADING SYSTEM FEES

G. PROPRIETARY (principal) TRANSACTIONS

    1. Designated Dealers will be charged $0.0075 per share ($0.75/
100 shares) for principal transactions unless acting as Dealer of 
the Day, a Preferencing Dealer or a Contributing Dealer except, ITS 
Transactions will be billed $0.0050 per share on outbound trades and 
$0.0000 per share on inbound trades subject to paragraph 5 below. 
(Billable shares shall not exceed 650,000 shares times the number of 
trading days in any given month.)
    2. Designated Dealers acting as ``Dealer of the Day'' will be 
charged $0.005 per share ($0.50/100 shares) for principal 
transactions.
    3. Contributing Dealers will be charged $0.02 per share ($2.00/
100 shares) for principal transactions.
    4. Members executing principal transactions in securities for 
which they are not registered as a Designated or Contributing Dealer 
will be charged $0.02 per share ($2.00/100 shares).
    5. Designated Dealers (DD) shall have the following minimum 
average per share charge applied to their aggregate monthly DD 
transactions using the DD's average volume per trading day:

------------------------------------------------------------------------
                                                    Per share           
 Designated dealer's average share volume per day    minimum            
                                                     charge             
------------------------------------------------------------------------
[1 to 1,350,000].................................   [$0.0046]           
[1,350,000] 1 to 2,000,000.......................   [$0.0040]    $0.0038
                                                              ----------
2,000,001 and higher.............................     $0.0030           
------------------------------------------------------------------------

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 Exchange has determined to adjust its inter-market transaction 
fees as they relate to Designated Dealers\1\ to reflect costs for 
similar trading on other markets. The fee changes impact Designated 
Dealer trades (other than those transacted as Dealer of the Day,\2\ 
Preferencing Dealer\3\ or Contributing Dealer\4\ and place the 
Exchange's fees in [[Page 24938]] line with those of other markets. The 
fees are effective on settlement date May 1, 1995.

    \1\A Designated Dealer is a proprietary member who maintains a 
minimum net capital of at least the greater of $100,000 or the 
amount required under Rule 15c3-1 of the Act, and who has been 
approved by the Exchange's Securities Committee to perform market 
functions by entering bids and offers for securities designated by 
the Securities Committee to be traded in the CSE's National 
Securities Trading System (``designated issue'') into that System. 
See CSE Rule 11.9(a)(3).
    \2\The CSE's Rules provide that if there are two or more 
Designated Dealers in a designated issue, unless the Exchange's 
Securities Committee has approved one member as a primary Designated 
Dealer, the guarantee obligations under the Rules rotate among such 
Designated Dealers on a daily basis. See CSE Rule 11.9(c)(iv).
    \3\A Preferencing Dealer is an Approved Dealer who enters 
principal bids and offers into the National Securities Trading 
System for execution against public agency orders that such Approved 
Dealer is representing as agent pursuant to CSE Rule 11.9(u). An 
Approved Dealer is a Designated Dealer, a Contributing Dealer, or a 
specialist or market maker registered as such with another exchange 
with respect to any designated issue. See CSE Rule 11.9(a)(2).
    \4\A Contributing Dealer is a proprietary member who maintains a 
minimum net capital of at least the greater of $50,000 or the amount 
required under Rule 15c3-1 of the Act, is registered with the 
Exchange with respect to one or more designated issues, and provides 
to all users (members of the Exchange or Approved Dealers) through 
the National Securities Trading System, during Exchange trading 
hours, regular bids and offers for round lots of designated issues 
for which he is registered. See CSE Rule 11.9(a)(4).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
in general and furthers the objectives of Section 6(b)(5) in that it is 
designed to protect investors and the public interest.

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 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-CSE-95-05 and should be 
submitted by May 31, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11446 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M