[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Notices]
[Pages 361-362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-80]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36630; File No. SR-NYSE-95-40]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Fees for Terminal Equipment

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 30, 1995 the 
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

    Beginning January 2, 1996, the Exchange plans to charge a fee of 
$3,600 per annum for a package of terminal equipment that its members 
and member organizations use to operate the Exchange's Broker Booth 
Support System (``BBSS'') from their ``upstairs'' offices.\2\ 
Previously, the Exchange has not charged for this terminal equipment, 
because it was installed and operated on a trial basis.

    \2\ The terminal equipment is necessary to access the BBSS.
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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, 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's BBSS is designed for use by its members and member 
organizations either in their booth spaces on the Trading Floor or in 
their ``upstairs'' offices or both.\3\ The BBSS is an order management 
system providing order processing capabilities as well as access to 
other services such as market data, the Exchange's On-Line Comparison 
System,\4\ and information services. Booth routing, a feature offered 
through BBSS, enables Exchange members and member organizations to 
algorithmically route market and limited price orders to their booths 
or to a specialist based on share size and price parameters, as may be 
determined by each participant.

    \3\ Telephone conversation on December 8, 1995 between George A. 
Villasana, Attorney, Market Regulation, SEC and Dennis Covelli, Vice 
President, Post Trade Services, NYSE.
    \4\ The NYSE's On-Line Comparison System allows NYSE clearing 
members to submit trade data on certain securities on trade date to 
NYSE for initial comparison. Compared trades are submitted by the 
NYSE to a ``qualified clearing agency'' to complete the clearance 
and settlement process. See Securities Exchange Act Release No. 
34153 (June 3, 1994), 59 FR 30071 (June 10, 1994) (order approving 
File No. SR-NYSE-94-08).
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    The Exchange has charged a fee \5\ for BBSS terminal equipment 
located in members' and member organizations' floor booth spaces since 
July 1, 1994, but does not currently charge for terminals located in 
members' and member organizations' ``upstairs'' offices because they 
were installed and operated on a trial basis.\6\

    \5\The NYSE provides its members and member organizations with 
one BBSS terminal per booth without charge. The exchange charges its 
members and member organizations $3,600 per annum for each 
additional BBSS terminal installed in each booth with access to the 
BBSS. Telephone conversation on December 13, 1995 between George A. 
Villasana, Attorney, Market Regulation, SEC and Dennis Covelli, Vice 
President, Post Trade Services, NYSE.
    \6\See Securities Exchange Act Release No. 34395 (July 18, 
1994), 59 FR 38007 (July 26, 1994) (order approving File No. SR-
NYSE-94-25).
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    Now, however, the Exchange has concluded its trial, and the number 
of ``upstairs'' installations are proliferating.\7\ Commencing on 
January 2, 1996, the Exchange intends to charge a fee of $3,600.00 per 
annum for a package of hardware, consisting of a terminal, keyboard, 
and printer, that is necessary to operate the BBSS. This charge is in 
line with the charge for the use of similar equipment located on its 
Trading Floor,\8\ and will enable the Exchange to recoup part of its 
development and hardware costs.

    \7\ While the number of terminals on the NYSE floor is 
approximately 400, the number of terminals in the ``upstairs'' 
offices is approximately 20. See supra note 5.
    \8\ See supra note 5.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\9\ in general and furthers the objectives of Section 6(b)(4) \10\ 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.

    \9\ 15 U.S.C. 78f(b).
    \10\ 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 proposes 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 neither solicited nor received 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 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 \11\ and 
subparagraph (e) of Rule 19b-4 thereunder.\12\

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 

[[Page 362]]
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 the 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, Inc. All 
submissions should refer to File No. SR-NYSE-95-40 and should be 
submitted by January 25, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\

    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-80 Filed 1-3-96; 8:45 am]
BILLING CODE 8010-01-M