[Federal Register Volume 61, Number 169 (Thursday, August 29, 1996)]
[Notices]
[Pages 45467-45468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22053]


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

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37586; File No. SR-CSE-96-04]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange 
Relating to Transaction Fees

August 20, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), 15 U.S.C. Sec. 78s(b)(1), notice is hereby given that on 
August 14, 1996, the Cincinnati Stock Exchange (``CSE'' 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.

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

    The CSE hereby proposes to amend its trading fee rules to codify 
its long-standing practice concerning the collection and payment of an 
annual transaction fee required under Section 31 of the Act to be paid 
to the

[[Page 45468]]

Commission. This fee currently equals \1/300\th of one percent of the 
aggregate dollar amount of total annual securities sales on the 
Exchange. The text of the proposed rule change is available at the 
Office of the Secretary, CSE 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 CSE 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 CSE 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 proposed rule change is to amend the Exchange's 
trading fee rules to codify its long-standing practice concerning the 
collection and payment of the annual transaction fee required under 
Section 31 of the Act. The Exchange generates daily data concerning the 
number of trades, share volume, trade value and SEC fee generated by 
each member. This information is compiled monthly and furnished to 
Exchange members with a monthly invoice. In addition, Exchange members 
are required to complete and certify a monthly Report of Sales form 
indicating the aggregate sales price and aggregate volume of securities 
transacted on the Exchange, and the SEC transaction fees due. This form 
is remitted with the payment of the required fee. New members are 
provided with copies of the Report of Sales form.
2. Statutory Basis
    Because the proposed rule change will help fund the Commission 
oversight and regulatory activities, the Exchange believes that the 
proposed rule change is consistent with Section 6 \1\ of the Act in 
general and with Section 6(b)(5) \2\ in particular in that it is 
designed to promote just and equitable principles of trade and to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78f.
    \2\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The CSE does not believe that the proposed rule change will impose 
any burden on competition that is unnecessary or inappropriate 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 were neither solicited nor received with respect 
to the proposed rule change.

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

    The foregoing rule change establishes 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 and subparagraph 
(e) of Rule 19b-4 thereunder.\3\ At any time within 60 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 purpose of 
the Act.
---------------------------------------------------------------------------

    \3\15 U.S.C. 78s(b)(3)(A) and 17 CFR 19b-4(e).
---------------------------------------------------------------------------

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, N.W., 
Washington, D.C. 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 File No. SR-CSE-96-04 and should be 
submitted by September 19, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-22053 Filed 8-28-96; 8:45 am]
BILLING CODE 8010-01-M