[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