[Federal Register Volume 60, Number 220 (Wednesday, November 15, 1995)]
[Notices]
[Pages 57473-57474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28168]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36465; File No. SR-NYSE-95-38]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to the Revision of Equity Transaction Charges

Nobember 8, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 7, 1995 the New 
York Stock Exchange, Inc. (``NYSE'' 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.

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

    The NYSE plans to implement, as of January 1996 trading, rate 
revisions to its equity transaction charges. Included in this revision 
are the elimination of all system credits, a reduction of charges for 
shares 5,000 and under, the elimination of charges for non-market maker 
system orders from 100 to 2,099 shares, the elimination of the growth 
limitation of 4% over 1988 levels, and the implementation of a monthly 
$400,000 transaction charge cap per firm. The text of the proposed rule 
change is set forth below [new text is italicized; deleted text is 
bracketed]:

------------------------------------------------------------------------
            Equity Transaction Charges                 1995       1996  
------------------------------------------------------------------------
Per Share Charge--per transaction:                                      
    System Orders from 100-2,099 shares \1\.......   $0.00265  No Charge
    Floor Executed Trades and System Trades--                           
     greater than 2,099 shares:                                         
        First 5,000 shares........................   $0.00265   $0.00190
        5001 to 710,000 (previously 672,500)......   $0.00010   $0.00010
    Subsequent shares.............................  No charge  No charge
System Credits:                                                         
    Credit per eligible order placed through CMS                        
     (100-2,099 shares)...........................      $0.30       None
    Additional credit--Individual or Agency Market                      
     order from 100-2,099 shares [(1)]............      $1.30       None
Floor Brokerage: Credit on Floor Brokerage Paid                         
 Out (percent)....................................        1.2        1.2
Fee Limitations:                                                        
    Equity Commissions (percent)..................          2          2
    Percent Growth over 1988 (percent)............          4       None
    Monthly Fee \2\...............................       None   $400,000
------------------------------------------------------------------------
\1\ Not inclusive of orders of a member or member organization trading  
  as an agent for the account of a nonmember competing market maker.    
Competing Market Maker: a specialist or market-maker registered as such 
  on a registered stock exchange (other than the NYSE), or a market-    
  maker bidding and offering over-the-counter, in a New York Stock      
  Exchange-traded security.                                             
\2\ Monthly Fee Limitation will be removed January 1, 1999 and will be  
  indexed annually to average daily volume.                             

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 

[[Page 57474]]
Sections A, B, an 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 change is to respond to the needs of the 
Exchange's constituents with respect to overall competitive market 
conditions and customer satisfaction.
2. Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(4) \2\ that the Exchange have rules that 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members, issuers and other persons using its 
services.

    \2\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed fee change will not impose any 
burden on competition that is not necessary or appropriate in the 
furtherance of the purposes of the Act.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments regarding the proposed rule change. The Exchange has not 
received any unsolicited written comments from members or other 
interested parties.

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

    The foregoing rule change constitutes 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 \3\ and 
subparagraph (e) of Rule 19b-4 thereunder.\4\

    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4.
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    At any time within sixty 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 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. Sec. 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 also will be available 
for inspection and copying at the principal office of the New York 
Stock Exchange. All submissions should refer to File No. SR-NYSE-95-38 
and should be submitted by December 6, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\

    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-28168 Filed 11-14-95; 8:45 am]
BILLING CODE 8010-01-M