[Federal Register Volume 66, Number 14 (Monday, January 22, 2001)]
[Notices]
[Page 6714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1805]



[[Page 6714]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43840; File No. SR-BSE-00-19]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and Amendment No. 1 of Proposed 
Rule Change by the Boston Stock Exchange, Inc. Relating to its Fee 
Schedule

January 12, 2001.
    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 December 15, 2000, as amended on December 21, 2000,\3\ the Boston 
Stock Exchange, Inc. (``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See December 20, 2000 letter from John A. Boese, Assistant 
Vice President, Rule Development and Market Structure, BSE, to Madge 
Hamilton, Division of Market Regulation, Commission (Amendment No. 
1). Amendment No. 1 is reflected in this release.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange seeks to amend its Floor Operations Fee Schedule to 
include a $1,000 monthly Electronic Trading Permits (``ETP'') fee 
charged to members for each trader trading pursuant to an ETP from a 
remote location.

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 III 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 Floor 
Operations Fee Schedule to include a $1,000 per month ETP fee. This fee 
will be charged to all members on a per trader basis (i.e., member 
firms will be billed $1,000 per month per trader holding an ETP). The 
$1,000 monthly fee is based on the Exchange's analysis of the 
additional costs that are necessary to operate the BSE's BEACON system 
from a remote location including, but not limited to, reengineering the 
design of the Exchange's network, several up-front and ongoing software 
reprogramming and enhancement efforts, initial and ongoing 
telecommunication costs, maintenance of equipment at remote locations, 
hiring and training additional ``help desk'' personnel specifically for 
the remote locations, travel costs incurred as a result of ongoing 
training, system upgrades and regulatory oversight of remote locations, 
and the creation and updating of training manuals and documentation for 
remote locations.\4\
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    \4\ The Exchange understands that its proposal regarding the 
Electronic Fee Permits (SR-BSE-00-13) to which the fee proposed 
herein applies is pending before the Commission. Accordingly, the 
fees will not go into effect until such time as the Electronic Fee 
Permit rule change proposal is approved, and the permits are issued. 
(The Commission notes that, on December 22, 2000, the Commission 
issued an approval order for the EFPs, SR-BSE-00-13. See Securities 
Exchange Act Release No. 43766 (December 22, 2000), 66 FR 822 
(January 4, 2001).
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2. Statutory Basis
    The basis for the proposed rule change is Section 6(b)(4) of the 
Act,\5\ in that the proposed rule change is designed to provide for the 
equitable allocation of reasonable dues, fees and other charges among 
its member other persons using its facilities.
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    \5\ 15 U.S.C. 78f(b)(4).
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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.

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

    The foregoing rule change will become effective upon filing of 
Amendment No. 1 pursuant to Section 19(b)(3) of the Act \6\ and 
subparagraph (e) of the Rule 19b-4.\7\ At any time within 60 days of 
the filing of such amended proposed rule change, the Commission may 
summarily abrogate such rule change if 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 Act.
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    \6\ 15 U.S.C. 78s(b)(3).
    \7\ 17 CFR 240.19b-4(e).
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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, 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 self-regulatory organization. All submissions should 
refer to file number in the caption above and should be submitted by 
February 12, 2001.

    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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Jonathan G. Katz,
Secretary.
[FR Doc. 01-1805 Filed 1-19-01; 8:45 am]
BILLING CODE 8010-01-M