[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)]
[Notices]
[Pages 34918-34919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16925]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37373; File No. SR-PSE-96-22]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange, 
Inc. Relating to the Establishment of a $50 Fee for One-Day Transfers 
of Membership

June 26, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on June 21, 
1996, the Pacific Stock Exchange, Inc. (``PSE'' 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 PSE. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Currently, the PSE's Schedule of Rates for Exchange Services 
(``Schedule of Rates'') provides a fee of $100 for temporary intrafirm 
or interfirm transfers of membership.\1\ The PSE proposes to amend the 
Schedule of Rates to: (1) establish a fee of $50 for one-day intrafirm 
transfers of membership; (2) specify that a ``temporary'' transfer of 
membership is for a period of less than 30 days; \2\ and (3) eliminate 
a reference to ``interfirm'' temporary transfers of membership, so that 
the $100 fee for temporary membership transfers will apply solely to 
temporary intrafirm transfers of membership.\3\
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    \1\ Currently, PSE Rule 1.10(a), ``Initial, Transfer and 
Processing Fees,'' also provides for interfirm and intrafirm 
transfer fees. In a separate rule filing, the PSE has proposed to 
delete the transfer fees from PSE Rule 1.10(a). Under that proposal, 
PSE Rule 1.23, ``Transfer of Membership,'' will govern membership 
transfers but will not contain a fee schedule. See Securities 
Exchange Act Release No. 37076 (April 5, 1996), 61 FR 16152 (April 
11, 1996) (notice of filing of proposed rule change for File No. SR-
PSE-96-07).
    \2\ The $100 fee for temporary membership transfers applies to 
transfers lasting for a consecutive period lasting from two days to 
less than 30 days.
    \3\ According to the PSE, temporary transfers of membership 
occur only between members of the same firm, not between firms. 
Thus, the proposal eliminates an inaccurate reference to temporary 
``interfirm'' transfers of membership. Telephone conversation 
between Michael Pierson, Senior Attorney, Market Regulation, PSE, 
and Yvonne Fraticelli, Attorney, Office of Market Supervision, 
Division of Market Regulation, Commission, on June 24, 1996.
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    The text of the proposed rule change is available at the Office of 
the Secretary, PSE, and at the Commission.

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 Exchange 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 prices specified in 
Item IV below. The Exchange 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 the 
Statutory Basis for, the Proposed Rule Change

Purpose
    The PSE proposes to adopt a $50 fee for members who transfer their 
membership rights, on a one-day basis, to other members of the same 
firm. This change is intended to address situations where floor members 
are unable to be present on the trading floor for one day and need to 
have substitute coverage on the floor for that day. Under the proposal, 
members who expect to be away from the floor for one day will notify 
the Exchange of the proposed transfer and the Exchange will bill them 
$50.
    The Schedule of Rates currently provides for a fee of $100 for 
``temporary'' transfers of membership.\4\ That fee is intended to cover 
transfers of membership that last longer than one day (but less than 30 
days), such as when a floor member takes a vacation. The Exchange 
believes that the proposed one-day intrafirm transfer fee will provide 
an equitable alternative to the $100 temporay transfer fee for members 
who are away from the floor for just one day. In addition, the PSE 
notes that the proposal will address more directly situations in which 
a member transfers his or her membership to another person, one a one-
day basis, on more than two separate occasions during a 30-day period. 
In such situations, the member would be charged $50 for each one-day 
transfer of membership. In addition, if a member notifies the PSE of a 
one-day transfer, and that member is later unable to return to the 
floor for a consecutive period of from two to 30 days, that member 
would be charged a maximum fee of $100.
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    \4\ In addition, the Schedule of Rates provides a $250 fee for 
permanent intrafirm or interfirm transfers of membership.
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    The Exchange also proposes to amend its Schedule of Rates with 
regard to ``temporary'' transfers of membership by specifying that such 
transfers are for a period of less than 30 days.\5\ In addition, the 
PSE proposes to eliminate a reference in the provision governing 
temporary transfers to ``interfirm'' transfers of membership, so that 
the $100 fee will apply solely to temporary ``intrafirm'' transfers of 
membership.\6\
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    \5\ The $100 fee for a temporary transfer of membership was 
implemented in 1995. See Securities Exchange Act Release No. 35817 
(September 5, 1995), 60 FR 47417 (September 12, 1995) (Notice of 
filing and immediate effectiveness for File No. SR-PSE-95-19).
    \6\ See note 3, supra.
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Statutory Basis
    The PSE believes that the proposal is consistent with Section 6(b) 
of the Act, in general, and with Section 6(b)(4), in particular, in 
that it provides for the equitable allocation of reasonable charges 
among its members.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The PSE does not believe that the proposed rule change will 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

    Written comments on the proposed rule change were neither solicited 
or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing rule change establishes or changes a due, fee 
or other charge imposed by the Exchange, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule 
19b-4 thereunder. At any time within 60 days of the filing of the 
proposed rule change, the Commission may summarily abrogate such rule 
change if it appears

[[Page 34919]]

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 in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of the Exchange. All 
submissions should refer to the file number in the caption above and 
should be submitted by July 24, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-16925 Filed 7-2-96; 8:45 am]
BILLING CODE 8010-01-M