[Federal Register Volume 61, Number 16 (Wednesday, January 24, 1996)]
[Notices]
[Pages 1959-1961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10333]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36731; File No. SR-NYSE-95-41]


Self-Regulatory Organization; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to the Vendor Service Administrative Fee

January 17, 1996.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 


[[Page 1960]]
(``Act''),\1\ notice is hereby given that on December 19, 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 Item 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

    Effective October 1, 1995,\2\ the NYSE proposes to retroactively 
decrease the Vendor Service Administrative Fee and change how this fee 
is calculated. The text of the proposed rule change is as follows [new 
text is italicized; deleted text is bracketed]:

    \2\ Although the effective date of the Vendor Service 
Administrative Fee for billing purposes is October 1, 1995, the 
Commission notes that this fee will not be invoiced until the end of 
January 1996.
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Administrative Fee

(Annual Fee)

Vendor Service Administrative Fee

[Pass Through plus $900 per Terminal]
Pass Through plus $480 per ITPN user*
Pass Through plus $480 per Terminal for non-ITPN distributed 
product**

    *An ``ITPN'' is a member or person associated with a member, who 
has been entitled to receive one or more third party market data 
vendor service offerings via the Exchange's Integrated Technology 
Program Network.
    **It should be noted that the Exchange is in the process of 
migrating all services to the ITPN distribution method. Therefore, 
the terminal vs user distinction is only temporary, pending 
completion of the migration.

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 provides administrative support for members and member 
organizations who wish to receive third party market data vendor 
services on the Trading Floor. This administrative support includes 
arranging for subscriptions, installations, repairs, and training as 
well as billing validation and payment. A fee is charged to members and 
member organizations for such administrative services. The purpose of 
the proposed rule change is to reduce this administrative fee and 
change how it is calculated.
    The Vendor Service Administrative Fee is composed of third party 
market data vendor pass through fees and the Exchange's fee for 
administrative services rendered. The Exchange, on behalf of its 
members, recently negotiated a reduction in the pass through fees 
charged to members by third party market data vendors. To complement 
this reduction, the Exchange is reducing its portion of the Vendor 
Service Administrative Fee from $900 per third party market data 
terminal to, depending on the circumstances, $480 per terminal for 
those users who receive third party market data services by means of 
their own terminals or terminals leased from third party market data 
vendors.
    The Exchange also proposes to alter the methodology for calculating 
the NYSE's administrative fee for those users receiving third party 
market data vendor services via the Exchange's ITPN.\3\ Instead of 
basing the fee on the number of third party market data terminals owned 
or leased by a member, the proposal assesses the fee for ITPN 
distributed services based on the number of ITPN usernames associated 
with a member that are entitled to access third party market data 
vendor services through any of the terminals on the Floor of the 
Exchange.\4\

    \3\ ITPN stands for ``Integrated Technology Program Network.''
    \4\ In addition to third party market data vendor services, the 
ITPN offers users a number of additional services. The Exchange will 
not assess an administrative fee on a username that allows access to 
these additional services unless the username also allows access to 
third party market data vendor services. Telephone conversation 
between Santo A. Famularo, NYSE, and Anthony P. Pecora, Attorney, 
SEC (Jan. 11, 1996).
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    The Exchange notes that it is in the process of migrating all of 
the third party market data vendor services received by members and 
member organizations on the Floor of the Exchange to the ITPN 
distribution method.\5\ After the migration is completed, the Exchange 
component of the Vendor Service Administrative Fee will be based solely 
on the number of ITPN usernames associated with a member that are 
entitled to concurrent access to third party market data vendor 
services.

    \5\ The Exchange anticipates that all third party market data 
vendor terminals will be removed from the Floor by June 1996. 
Telephone conversation between Santo A. Famularo, NYSE, and Anthony 
P. Pecora, Attorney, SEC (Dec. 21, 1995).
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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 to objectives of section 6(b)(4)\7\ in 
particular in that is 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 Organizations'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 \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(e).
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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 actions 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 

[[Page 1961]]
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. Also, copies of such filing will be available 
for inspection and copying at the principal office of the NYSE. All 
submissions should refer to File No. SR-NYSE-95-41 and should be 
submitted by February 14, 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. 96-10333 Filed 1-23-96; 8:45 am]
BILLING CODE 8010-01-M