[Federal Register Volume 66, Number 102 (Friday, May 25, 2001)]
[Notices]
[Pages 28939-28940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13214]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44324; File No. SR-BSE-2001-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange 
Adopting a Fee for Leases of Memberships

May 18, 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 April 30, 2001, the Boston Stock Exchange (``BSE'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by BSE. 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 the Exchange's fee schedule to 
include a membership lease fee charged to members who choose to lease a 
membership from 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 the 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 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 
fee schedule to include a monthly fee equal to one percent of the last 
consummated seat sale, billed quarterly in arrears, for leasing 
Exchange memberships from the Exchange. This fee will be charged to all 
qualified members who lease memberships from the Exchange when no 
public inventory is available. The fee will be charged in addition to 
all other membership fees, and will be arranged through a separate 
lease agreement the Exchange and the lessee.\3\ The one percent fee 
figure was established based on recent lease agreements for Exchange 
memberships. The proposed lease fee will be in addition to any dues, 
fees or assessments charged by the Exchange. Moreover, the lessees of 
memberships will be subject to all other rules relevant to membership 
qualifications.
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    \3\ The Board of Directors of the Exchange has authorized the 
Exchange to sell or lease up to 15 memberships out of 23 authorized, 
but unsold, memberships. The lessees of these memberships would have 
the same rights and obligations as all other members of the 
Exchange. Phone call between John A. Boese, Assistant Vice 
President, Rule Development and Market Structure, BSE, George W. 
Mann, Jr., General Counsel, BSE, Florence Harmon, Senior Special 
Counsel, Division of Market Regulation (``Division''), Commission, 
Sonia Patton, Attorney, Division, Commission, and John Riedel, 
Attorney, Division, Commission (May 15, 2001).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(4) of the Act,\4\ in that the proposed rule change is 
designed to provide 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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    \4\ 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.

[[Page 28940]]

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

    The Exchange has designated the proposed rule change as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-
4(f)(2) thereunder.\6\ Accordingly, the proposed rule change will 
become effective upon filing. 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 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)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
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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, 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 
BSE. All submissions should refer to the File Number SR-BSE-2001-02 and 
should be submitted June 15, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 01-13214 Filed 5-24-01; 8:45 am]
BILLING CODE 8010-01-M