[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Notices]
[Pages 359-361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-79]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36631; File No. SR-CSE-95-08]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange, 
Inc. Relating to Exchange Rule 11.10, National Securities Trading 
System Fees

December 21, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 16, 1995 the 
Cincinnati Stock 

[[Page 360]]
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. On December 1, 1995, the Exchange 
submitted Amendment No. 1 text to the proposed rule change.\2\ On 
December 20, 1995, the Exchange submitted Amendment No. 2 to the 
proposed rule change.\3\ 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).
    \2\ See Letter from Robert Ackermann, Vice President Regulatory 
Services, CSE, to Glen Barrentine, Team Leader, Division of Market 
Regulation, SEC, dated December 1, 1995. In Amendment No. 1, the 
Exchange clarified that Designated Dealer (``DD'') transactions 
resulting from trades assigned to the DD acting as ``Dealer of the 
Day'' are charged at the rate of $0.005 per share.
    \3\ See Letter from Robert Ackermann, Vice President Regulatory 
Services, CSE, to Glen Barrentine, Team Leader, Division of Market 
Regulation, SEC, dated December 20, 1995. In Amendment No. 2, the 
Exchange submitted revised text to proposed CSE Rule 11.10 G(1).
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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

    A. Agency Transactions.
    Except for Preferenced transactions, members acting as an agent 
will be charged $0.0025 per share ($0.25/100 shares) for public 
agency transactions. [except that there will be no transaction fee 
charge for public agency limit orders executed from the CSE limit 
order book.]
    B. through F. No. Change.
    G. Proprietary (principal) Transactions.
    1. All Designated Dealers, except those acting as Preferencing 
Dealers or Contributing Dealers, will be charged $0.005 per share 
($0.50/100 shares) [$.0075 per share ($0.75/100 shares)] for 
principal transactions excluding ITS transactions. [unless acting as 
Dealer of the Day, a Preferencing Dealer or a Contributing Dealer 
except, ITS Transactions] Designated Dealers will be billed $0.0050 
per share on outbound ITS trades and $0.0000 per share on inbound 
ITS trades. All Designated Dealers' charges are subject to the 
minimum charges set forth in paragraph 5 below. (Billable shares 
shall not exceed 650,000 shares times the number of trading days in 
any given month.)
    2. through 5. No Change.
    H. through M. No Change.

II. Self-Regulatory Organization's Statement of the Purpose of and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    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 amend the fee charged limit orders 
executed through the facilities of the Exchange's limit order book such 
that the fee charged for market orders and limit orders executed 
through that facility will be the same.\4\ Additionally, the fee 
charged Designated Dealers \5\ has been lowered.

    \4\ In order to encourage all members to place public agency 
limit orders on the CSE book, the Exchange in August 1994 amended 
Rule 11.10 to eliminate the transaction charge on public agency 
limit orders. See Securities Exchange Act Release No. 34493, (August 
5, 1994), 59 FR 41531 (August 12, 1994) (approving File No. SR-CSE-
94-6).
    \5\ A Designated Dealer (``DD'') 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 issues'') into that 
System. See CSE Rule 11.9(a)(3). The DD status obligates the dealer 
to guarantee execution of all public agency market orders and agency 
limit orders up to 2,099 shares. See Release No. 34493, supra note 
4.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\6\ in general and furthers the objectives of Section 6(b)(4) \7\ in 
particular in that it provides for the equitable allocation of 
reasonable dues, fees, and other charges among the Exchange's members 
and other persons using its facilities.

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in 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

    No written comments were solicited or received with respect to the 
proposed rule change.

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 \8\ and 
subparagraph (e) of Rule 19b-4 thereunder.\9\

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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, 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 also will be available for 
inspection and copying at the principal office of the Cincinnati Stock 
Exchange. All submissions should refer to File No. SR-CSE-95-08 and 
should be submitted by January 25, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\

    \10\ 17 CFR 200.30-3(a)(12).
    
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-79 Filed 1-3-96; 8:45 am]
BILLING CODE 8010-01-M