[Federal Register Volume 60, Number 138 (Wednesday, July 19, 1995)]
[Notices]
[Pages 37113-37115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17667]



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[[Page 37114]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35960; File No. SR-BSE-95-11]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc. Pertaining to Its Transaction Fee and Specialist Trade Processing 
Fee Schedules

July 12, 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 June 1, 
1995, the Boston Stock Exchange, Inc. (``BSE'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change, and amended such proposed rule change on July 7, 
1995,\1\ 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.

    \1\ The amendment made a number of clarifying changes to the 
original filing. See letter from Karen A. Aluise, Assistant Vice 
President, Boston Stock Exchange, to Glen Barrentine, Senior 
Counsel, Division of Market Regulation, SEC (July 7, 1995).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its fee schedules pertaining to 
transaction fees and specialist trade processing fees. The text of the 
proposed rule change is as follows [new text is italicized; deleted 
text is bracketed]:

                                                Transaction Fees                                                
                                                                                                                
                                                                                                                
                                               * * * * * * * * *                                                
                                   (2) Trade Recording and Comparison Charges                                   
                                                                                                                
 BSE single-sided executions up to and including [2]5,000    No charge.                                 
 shares.                                                                                                        
 BSE cross trade executions up to and including 2,000        No charge.                                 
 shares.                                                                                                        
 All other executions                                                                                   
    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] single-sided).........  50.00.                                     
        Maximum charge per side (cross]............................  100.00.                                    
                                                                                                                
                                  (All trades accumulate for volume discounts)                                  
                                                                                                                
                                                                                                                
                                               * * * * * * * * *                                                
                                                (3) Value Charges                                               
                                                                                                                
 BSE single-sided executions up to and including [2]5,000    $.20 per 100 shares.                       
 shares.                                                                                                        
 BSE cross trade executions up to and including 2,000        .20 per 100 shares.                        
 shares.                                                                                                        
 All other executions (including ITS trades)                                                            
    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] single-sided).........  100.00.                                    
        Maximum charge per side (cross)............................  75.00.                                     
                                                                                                                
                        (Contract value on these trades accumulate for volume discounts)                        
                                                                                                                
                                                                                                                
                                               * * * * * * * * *                                                
                                              Floor Operation Fees                                              
                                                                                                                
                                                                                                                
                                               * * * * * * * * *                                                
                                         (3) Specialist Trade Processing                                        
                                                                                                                
Pre-Opening Trades.................................................  No Charge.                                 
Trades in CTA Securities ranked 1,001 and above....................  No Charge.                                 
Market Orders                                                                                                   
     Self-directed.........................................  No Charge.                                 
     All other orders from 100-2,500 shares inclusive in     .50 per trade.                             
     top 1,000 CTA ranked stocks.                                                                               
Round[-] lot/Odd[-] lot Trades.....................................  .75 per order [trade].                     
Trading Accounts Trades............................................  1.50 per order [5.00 per trade].           
CSI Trades (pilot)                                                                                              
     Maximum Total Round lot/Odd lot Charges                                                            
        Competing Specialist.......................................  250.00 per issue.                          
        Primary Specialist.........................................  250.00 per issue (if Competing Specialist  
                                                                      reaches maximum).                         
     Credit                                                                                             
        Primary Specialist.........................................  .50 per trade (based on Competing          
                                                                      Specialist trade volume).                 
 (Total of the assessed fees for round lot/odd lot trades and trade credits will not be less than zero on a per 
                                                  issue basis)                                                  
                                                                                                                


[[Page 37115]]


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 several of the 
Exchange's fee schedules in order to capitalize on the competitive 
niches it currently enjoys and to improve the Exchange's competitive 
position in the overall marketplace. (1) The existing Value Charge and 
Trade Recording rates on single-sided BSE executions from 2,001 to 
5,000 shares will be replaced with a $.20 per 100 shares Value Charge 
rate. No Trade Recording fees will be charged on these trades. These 
new rates are consistent with the fee structure currently in place for 
BSE executions up to 2,000 shares. These changes will reduce members' 
costs of executing mid-sized trades on the BSE. (2) Specialist Trading 
Account fees will be reduced from $5.00 per trade to $1.50 per order. 
(3) Specialist Trade Processing (round lot/odd lot/trading account) 
fees will be levied on a per order rather than a per trade basis. (4) 
Maximum total Specialist Trade Processing fees for round lot/odd lot 
trades will be capped at $250.00 per month per issue for both the 
competing and primary specialists in Competing Specialist Initiative 
(``CSI'') issues. If, however, the competing specialist does not 
generate $250.00 per month in round lot/odd lot fees in his or her 
competing issue, the primary specialist will not be eligible for the 
cap and, therefore, will be charged regular total trade processing 
(round lot/odd lot) fees. In addition, each primary specialist will 
receive a $.50 per trade credit based on the total trading volume of 
the competing specialist. The total of the assessed fees for round lot/
odd lot trades and trade credits in competitive issues will not be less 
than zero on a per issue basis. Due to the temporary nature of the CSI 
pilot program, the Exchange proposes that this fee apply concurrently 
with the CSI pilot program, which is scheduled to expire on October 2, 
1995.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b)(4) of the 
Securities Exchange Act of 1934 because it provides for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities.

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

    The Exchange believes 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

    Comments were neither solicited nor 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.\2\

    \2\ For the purposes of the foregoing, the Commission considers 
this proposed rule change to have been filed on July 7, 1995, the 
date that Amendment No. 1 was made.
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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, 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 Boston Stock 
Exchange. All submissions should refer to File No. SR-BSE-95-11 and 
should be submitted by August 9, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-17667 Filed 7-18-95; 8:45 am]
BILLING CODE 8010-01-M