[Federal Register Volume 61, Number 218 (Friday, November 8, 1996)]
[Notices]
[Pages 57936-57937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28698]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37913; File No. SR-PSE-96-33]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange, 
Inc. Relating to the Automated System Access Privilege Annual 
Membership Fee

November 1, 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 
September 6, 1996, the Pacific Stock Exchange, Incorporated (``PSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'')

[[Page 57937]]

the proposed rule change as described in Items I, II and III below, 
which Items have been prepared by the self-regulatory organization.\1\ 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ The PSE has been charging the Automated System Access 
Privilege (``ASAP'') membership fee noticed in this filing since 
1994. According to the Exchange, the PSE's Board of Governors 
approved the current ASAP membership fee in March 1994 and the 
Exchange inadvertently failed to submit the ASAP membership fee 
change to the Commission. See Letter from Rosemary A. MacGuinness, 
Senior Counsel, PSE, to Anthony P. Pecora, Attorney, Division of 
Market Regulation (``Division''), Commission, dated June 7, 1996. 
Proposed fee changes must be submitted to the Commission and are 
effective upon filing with the Commission pursuant to Section 
19(b)(3)(A) under the Act. Accordingly, the PSE's current ASAP 
membership fee became effective pursuant to Section 19(b)(3)(A) 
under the Act on September 6, 1996. The ASAP renewal fee as of 
October 1996 is $28,188. See Letter from Rosemary A. MacGuinness, 
Senior Counsel, PSE, to Yvonne Fraticelli, Attorney, Division, 
Commission, dated October 15, 1996.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The PSE proposes to amend its Schedule of Fees and Charges for 
Exchange Services by replacing the $4,000 annual flat fee for Automated 
System Access Privilege (``ASAP'') memberships with an ASAP annual fee 
based on a calculation of 20% of the average price of PSE membership 
sales in the three months immediately preceding the activation of ASAP 
membership or the annual renewal date of ASAP membership. Under the 
proposal, the minimum annual ASAP membership fee will be $4,000.

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

    The PSE proposes to amend its Schedule of Fees and Charges for 
Exchange Services by replacing the $4,000 annual flat fee for ASAP 
memberships with an ASAP annual fee based on a calculation of 20% of 
the average price of PSE membership sales in the three months 
immediately preceding the activation of ASAP membership or the annual 
renewal date of ASAP membership. Under the proposal, the minimum annual 
ASAP membership fee will be $4,000. The ASAP membership fee is a non-
refundable, non-transferable fee. However, if the ASAP member becomes a 
regular members of the Exchange, the ASAP membership fee paid for the 
current year shall be subject to a rebate prorated to the date of the 
approval as a full member.\2\ The PSE believes that basing the ASAP 
membership fee on the recent membership seat sales will provide a 
correlation between the fees for the ASAP membership program and the 
fees for leased memberships. Accordingly, the PSE believes that the 
proposed fee provides a more equitable distribution of fees and charges 
among PSE members.
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    \2\ See PSE Rule 1.14(d)(5), which also authorizes the PSE's 
Board of Governors to amend the fee at its discretion.
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    The PSE believes that the proposed rule change is consistent with 
Section 6(b) of the Act, in general, and furthers the objectives of 
Section 6(b)(4), in particular, in that the proposal provides for the 
equitable allocation of reasonable charges among the Exchange's members 
and other persons using its facilities.

(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 
nor 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 under the Act. 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 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. 552, will be available for inspection and copying at the 
Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. Copies of such filing will also be available for 
inspection and copying at the principal office of the above-mentioned 
self-regulatory organization. All submissions should refer to the file 
number in the caption above and should be submitted by November 29, 
1996.

    For the Commission, by the Division of Market Regulation, pursuant 
to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-28698 Filed 11-7-96; 8:45 am]
BILLING CODE 8010-01-M