[Federal Register Volume 61, Number 175 (Monday, September 9, 1996)]
[Notices]
[Pages 47536-47537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22880]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37627; File No. SR-PSE-96-27]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange 
Incorporated

September 3, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 11, 1996, the 
Pacific Stock Exchange Incorporated (``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 self-regulatory organization. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \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

    The Exchange hereby amends its Schedule of Rates for Exchange 
Services by reducing the current cap on transaction charges for equity 
block trades and by adopting a transaction fee cap per 100 shares for 
equity securities. The text of the proposed rule change is set forth 
below [new text is italicized; deleted text is bracketed]:

[[Page 47537]]



                               Schedule of Fees and Charges for Exchange Services                               
                                                                                                                
                                                      Cumulative billable trade      Charge per $1,000 of trade 
                                                           value per month                    value *           
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
        PSE EQUITIES: TRADE-RELATED CHARGES                                                                     
                                                                                                                
EXCHANGE TRANSACTIONS.............................  No change....................  No change                    


DISCOUNTS AND CAPS [ON AUTOMATED TRANSACTIONS]:                                                                 
    AUTOMATED TRADE DISCOUNTS..................  No change.                                                     
    BLOCK TRADES (5,000 SHARES OR MORE)........  Transaction charges for block trades of 5,000 shares or more   
                                                  are subject to a minimum charge of $15 per trade side and a   
                                                  maximum charge of $75 [$100] per trade side.                  
    CAP ON TRANSACTION CHARGES.................  Aggregate monthly transaction charges are subject to a cap of  
                                                  $.45 per 100 shares.                                          

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 is proposing to amend its charges for equity 
transactions in two respects: First, the Exchange is proposing to 
reduce from $100 to $75 the current cap on transaction charges for 
block trades (i.e., trades involving 5,000 shares or more). Second, the 
Exchange proposes to establish a cap on aggregate monthly transaction 
charges equal to $.45 per 100 shares. These changes are intended to 
make the Exchange's equity transaction charges more competitive.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\2\ in general and furthers the objectives of Section 6(b)(4) \3\ 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.
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    \2\ 15 U.S.C. 78f(b).
    \3\ 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 \4\ and 
subparagraph (e) of Rule 19b-4 thereunder.\5\
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    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4.
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    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 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. Sec. 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 also will be available 
for inspection and copying at the principal office of the Pacific Stock 
Exchange. All submissions should refer to File No. SR-PSE-96-27 and 
should be submitted by September 30, 1996.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-22880 Filed 9-6-96; 8:45 am]
BILLING CODE 8010-01-M