[Federal Register Volume 61, Number 13 (Friday, January 19, 1996)]
[Notices]
[Pages 1419-1420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-542]



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[[Page 1420]]


SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36701; File No. SR-NYSE-95-44]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., Relating to the Specialist System Charge

January 11, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 21, 1995, the New 
York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``SEC'' or ``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 
January 4, 1996, the Exchange submitted to the Commission Amendment No. 
1 to the proposed rule change.\2\ 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\ Amendment No. 1 clarified that competing market maker orders 
are considered ``eligible system orders'' for purposes of the 
Specialist System Charge. See Letter dated January 3, 1996, from 
James E. Buck, Senior Vice President and Secretary, NYSE, to Glen 
Barrentine, Team Leader, SEC.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    Beginning January 1, 1996, the Exchange plans to institute changes 
affecting the Specialist System Charge. This charge will be reduced, 
and the method of payment calculation will be changed. The current 
Specialist System Charge will be changed from $0.65 per eligible order 
with an annual aggregate maximum fee of $9 million to a fixed aggregate 
fee of $7 million to be allocated evenly over twelve months with each 
specialist unit contributing monthly according to its percentage of 
eligible system orders. The text of the proposed rule change is as 
follows [new text is italicized; deleted text is bracketed]:

Specialist System Charge [- per Order]
[Charge per eligible order placed through CMS (1) $0.65]

    $7 million per annum is aggregate to be allocated evenly over 12 
months with each specialist unit contributing monthly according to its 
percentage of eligible system orders. (1)
    (1) Individual or agency market orders from 100-2099 shares placed 
through CMS [excluding competing market maker orders].

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 change is to provide a more equitable 
distribution of the Exchange's overall charges among its constituents 
and to respond to overall competitive market conditions.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\3\ in general and furthers the objectives of Section 6(b) (4) \4\ 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.

    \3\ 15 U.S.C. 78f(b).
    \4\ 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

    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 \5\ and 
subparagraph (e) of Rule 19b-4 thereunder.\6\

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, D.C. 20549.\7\ Copies of such filing also will be available 
for inspection and copying at the principal office of the NYSE. All 
submissions should refer to File No. SR-NYSE-95-44 and should be 
submitted by February 9, 1996.

    \7\ 17 CFR 200.30-3(a)(12).
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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-542 Filed 1-18-96; 8:45 am]
BILLING CODE 8010-01-M