[Federal Register Volume 67, Number 180 (Tuesday, September 17, 2002)]
[Notices]
[Pages 58663-58664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23602]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46489; File No. SR-BSE-2002-12]


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

September 11, 2002.
    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 August 8, 2002, the Boston Stock Exchange, Incorporated (``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 the 
Exchange. On August 20, 2002, the BSE amended the proposal.\3\ The 
Exchange has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the BSE under section 
19(b)(3)(A)(ii) of the Act,\4\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See August 19, 2002 letter from John A. Boese, Assistant 
Vice President, Legal and Regulatory, BSE, to Nancy Sanow, Assistant 
Director, Division of Market Regulation, SEC, and attachments 
(``Amendment No. 1''). Amendment No. 1 completely replaces and 
supersedes the original filing. For purposes of calculating the 60-
day abrogation period, the Commission considers the period to have 
commenced on August 20, 2002, the date the BSE filed Amendment No. 
1.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The BSE proposes to amend its Floor Operations Fees Schedule. The 
text of the proposed rule change is available at the BSE and at the 
Commission.

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 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 
Floor Operation Fees schedule to ensure that the Exchange recovers the 
fixed costs of providing services to floor members. Generally, the fee 
changes reflect a pass-through of direct costs in certain expense areas 
which are not fully paid for by floor members today. These fees that 
the BSE is amending in this proposed rule change apply to members only, 
and the changes are applied on a non-discriminatory basis.
    The proposed changes to the Floor Operation Fees schedule are (1) 
increasing the Specialist/Floor Trader Technology Fee (per BEACON 
terminal per month) from $250 to $500; (2) implementing a Designated 
Examining Authority (``DEA'') fee of $400 per month per firm where the 
Exchange is not the primary examining authority, and $600 per month per 
firm where the Exchange is the primary examining authority; (3) 
implementing a $100 SRO Fee (per specialist account); (4) implementing 
a $250 Floor Facility Fee (per month per person who regularly accesses 
the trading floor); (5) increasing the Specialist Post Clearing and 
Cashiering fee from $500 to $750 (per account for the first 3 accounts 
a specialist firm has and $100 for any accounts a firm may have in 
excess of 3); (6) decreasing the Round Lot fee (per order) from $.75 to 
$.50 and; (7) implementing a Clearing Fee (per order) of $.05.
    The Exchange is seeking these fee increases, and direct cost 
reimbursements to, in part, fund technology initiatives. However, the 
Exchange seeks to charge its members in an equitable and fair manner 
for its products and services while funding these initiatives, and at 
the same time

[[Page 58664]]

continue to provide a high quality marketplace at competitive prices. 
The Exchange's decreasing of its Round Lot Fee, as well as its 
relatively minor adjustments to other fees, is reflective of this 
objective.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act,\5\ in general, and furthers the objectives of 
section 6(b)(4) of the Act,\6\ in particular, in that the proposed rule 
change provides for the equitable allocation of reasonable dues, fees, 
and other charges among the BSE's members.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 proposed rule change has become effective pursuant to section 
19(b)(3)(A)(ii) of the Act \7\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\8\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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 in 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 number SR-BSE-2002-12, and should be 
submitted by October 8, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-23602 Filed 9-16-02; 8:45 am]
BILLING CODE 8010-01-P