[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37784-37785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18304]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37430; File No. SR-NYSE-96-14]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to the Revision of the Equity Transaction Charges and the 
Specialist Odd-Lot Charge

July 12, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'').\1\ notice is hereby given that on June 13, 1996 the New York 
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. On July 9, 1996, the 
Exchange submitted Amendment No. 1 to the Commission.\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 removed the provisions in the filing that 
indicated that the fee would be applied retroactively. In addition, 
the NYSE stated that it will resubmit those provisions for notice 
and action pursuant to Section 19(b)(2) of the Act. See letter from 
James E. Buck, Senior Vice President and Secretary, NYSE, to Ivette 
Lopez, Assistant Director, Division of Market Regulation, SEC, dated 
July 5, 1996.
---------------------------------------------------------------------------

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

    The revision to Equity Transaction Charges would eliminate the 
$0.0019 per share charge for Odd-Lots (trades less than 100 shares), 
except for orders of a member or member organization trading as an 
agent for the account of a non-member competing market maker. In 
addition, the current Specialist Odd-Lot Charge of $0.004 per share for 
Odd-Lots would be reduced to $.00135 per share. The text of the 
proposed rule changes is set forth below (new text is italicized; 
deleted text is bracketed):

                            Transaction Fees                            
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
        Equity Public Agency Transaction                                
Equity Per Share Charge--per transaction:                               
    System Orders from [100] 1-2,099 shares \1\  No Charge.             
Floor Executed Trades and System Trades greater                         
 than 2,099 Shares:                                                     
    First 5,000 Shares.........................  $0.0019.               
    5,001 to 710,000 Shares....................  0.0001.                

[[Page 37785]]

                                                                        
    Subsequent Shares..........................  No Charge.             
------------------------------------------------------------------------
\1\ Not inclusive of orders of a member or member organization trading  
  as an agent for the account of a nonmember competing market maker.    


    Competing Market Maker: a specialist or market-maker registered as 
such on a registered stock exchange (other than the NYSE), or a market-
maker bidding and offering over-the-counter, in a New York Stock 
Exchange-trade security.
* * * * *

                         System Processing Fees                         
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Specialist Odd-Lot Charge--per share:                                   
    Odd Lots.................................     [$0.004]      $0.00135
                                                            ------------
    Partial Round-Lots.......................  ............      0.00135
------------------------------------------------------------------------

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 respond to the needs of our 
constituents with respect to overall competitive market conditions and 
customer satisfaction.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) \3\ that an exchange have rules that 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members, issuers, and other persons using its 
facilities.
---------------------------------------------------------------------------

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

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed fee change does not impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purpose 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 not solicited, and does not intend to solicit, 
comments regarding the proposed rule change. The Exchange has not 
received any unsolicited written comments from members or other 
interested parties.

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

    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    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, 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. 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-96-14 and should be 
submitted by August 9, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-18304 Filed 7-18-96; 8:45 am]
BILLING CODE 8010-01-M