[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11470-11471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5890]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39705; File No. SR-BSE-98-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Incorporated Relating to its Fee Schedule

March 2, 1998.
    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 March 2, 
1998, the Boston Stock Exchange, Incorporated (``BSE'' 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 Exchange seeks to amend its fee schedule pertaining to Floor 
Operation Fees.

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 proposed fee revision is to eliminate the $.50 
per trade charge to specialists for all non-self-directed market orders 
from 100 to 2,500 shares in the top 1,000 Consolidated Tape Association 
(``CTA'') ranked stocks. At the same time, the Exchange also proposes 
to rebate to its specialists an amount equal to five months (October 
1997--February 1998) of the same $.50 per trade charge for non-self-
directed market orders. This is in keeping with the Exchange's practice 
of distributing profits back to its membership, and of providing its 
members with increased incentives for directing more order flow to the 
Exchange.
2. Statutory Basis
    The Exchange believes that the basis for the proposed rule change 
is Section 6(b)(5) of the Act,\1\ in that the proposed rule change is 
designed to promote just and equitable principles of trade; to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions, in, securities; to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system; and in general, to protect investors and the public interest; 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \1\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe the proposed rule change will impose 
any burden on competition

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The proposed rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) of the Act \2\ and subparagraph (e) of Rule 19b-
4 thereunder,\3\ in that the proposal

[[Page 11471]]

establishes or changes a due, fee, or other charge by eliminating a 
member fee and rebating that same fee to BSE members for the months 
October 1997 to February 1998. 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.
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    \2\ 15 U.S.C. 78f(b)(3)(A).
    \3\ 17 CFR 19b-4.e(6).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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 Room. 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-BSE-98-02 and 
should be submitted by March 30, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 98-5890 Filed 3-6-98; 8:45 am]
BILLING CODE 8010-01-M