[Federal Register Volume 64, Number 100 (Tuesday, May 25, 1999)]
[Notices]
[Pages 28225-28226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13110]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41412; File No. SR-BSE-99-5]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange
Relating to Its Transaction Fee Schedule
May 17, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 29, 1999, the Boston Stock Exchange (``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 Exchange. 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).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend its transaction fee schedule to
implement a maximum transaction fee cap for floor broker-entered orders
executed on the Exchange.
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 Exchange 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
[[Page 28226]]
places specified in Item IV below. The Exchange 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
transaction fee schedule to improve the Exchange's overall competitive
position in the marketplace. The transaction fee schedule encompasses
the trade recording and comparison charges and the value charges that
the Exchange applies to orders that member firms send to the Exchange
for execution. The Exchange proposes to amend the schedule by
implementing a maximum transaction fee cap of $.35 per 100 average
monthly shares on all floor broker-entered orders executed on the
Exchange. The Exchange will apply this cap to floor broker-entered
orders prior to applying the existing total volume transaction fee cap
of $.45 per 100 average monthly shares.\3\
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\3\ To calculate the total transaction fees for all order flow,
the Exchange will add the total fees for electronic trades (capped
at $50,000 per month) to the total fees for broker-entered trades
(capped at the new rate of $.35 per 100 average monthly shares). The
Exchange then will apply the total volume cap of $.45 per 100
average monthly shares to that sum. Telephone conversation between
Kathy Marshall, Assistant Vice President, Finance, Boston Stock
Exchange, and Joshua Kans, Attorney, and Matthew Boesch, Paralegal,
Division of Market Regulation, Commission, May 7, 1999.
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(2) Basis
The basis for the proposed rule change in section 6(b)(5) of the
Act,\4\ 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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\4\ 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 that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance 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 comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Because the foregoing proposed rule change establishes or changes a
due, fee or other charge imposed by the Exchange, it has become
effective on filing, for implementation on May 1, 1999, pursuant to
section 19(b)(3)(A) of the Act \5\ and subparagraph (f) of 19b-4
thereunder.\6\ 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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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f).
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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.\7\ Persons making written
submissions should file six copies thereof with the Secretary,
Securities and Exchange Commission, 450 Fifth Street, NW., Washington,
DC 20549-0609. 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 above-mentioned Exchange. All submissions
should refer to File No. SR-BSE-99-5 and should be submitted by June
15, 1999.
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\7\ In reviewing these rules, the Commission has considered the
effect of the proposed rule change on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-13110 Filed 5-24-99; 8:45 am]
BILLING CODE 8010-01-M