[Federal Register Volume 68, Number 54 (Thursday, March 20, 2003)]
[Notices]
[Page 13745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6658]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47471; File No. SR-CSE-2003-01]


Self-Regulatory Organizations; The Cincinnati Stock Exchange, 
Inc.; Order Granting Approval of Proposed Rule Change and Amendment No. 
1 Thereto To Amend the CSE's Market Data Revenue Sharing Program for 
Tape B Securities

March 7, 2003.
    On January 6, 2003, the Cincinnati Stock Exchange, Inc. (``CSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'')\1\ and rule 19b-4 thereunder,\2\ a 
proposed rule change to modify the Exchange's schedule of transaction 
fees to amend its market data revenue sharing program for Type B 
securities traded on the Exchange. On January 24, 2003, the CSE amended 
the proposal.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See January 23, 2003, letter from Jennifer M. Lamie, 
Esquire, CSE, to Katherine England, Assistant Director, Division of 
Market Regulation, Commission (``Amendment No. 1''). In Amendment 
No. 1, the CSE changed the text of the proposed rule to address 
omissions that were made in the original rule filing.
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    The proposed rule change, as amended, was published for comment in 
the Federal Register on February 3, 2003.\4\ The Commission received no 
comments on the proposal.
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    \4\ See Securities Exchange Act Release No. 47258 (January 27, 
2003), 68 FR 5316.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange \5\ 
and, in particular, the requirements of section 6 of the Act \6\ and 
the rules and regulations thereunder. The Commission finds specifically 
that the proposed rule change, as amended, is consistent with section 
6(b)(4) of the Act \7\ because it provides for the equitable allocation 
of reasonable dues, fees and other charges among Exchange members by 
crediting members on a pro-rata basis. However, as set forth in its 
July 2, 2002, Order of Summary Abrogation (``Abrogation Order''),\8\ 
the Commission will continue to examine the issues surrounding market 
data fees, the distribution of market data rebates, and the impact of 
market data revenue sharing programs on both the accuracy of market 
data and on the regulatory functions of self-regulatory organizations. 
The decision to allow the CSE to establish the market data revenue 
sharing program described in this proposed rule change is narrowly 
drawn, and should not be construed as resolving the issues raised in 
the Abrogation Order, and does not suggest what, if any, future actions 
the Commission may take with regard to market data revenue sharing 
programs.
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    \5\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ See Securities Exchange Act Release No. 46159 (July 2, 
2002), 67 FR 45775 (July 10, 2002)(File Nos. SR-NASD-2002-61, SR-
NASD-2002-68, SR-CSE-2002-06, and SR-PCX-2002-37)(Order of Summary 
Abrogation).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change, as amended, (SR-CSE-2003-01) be, 
and it hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-6658 Filed 3-19-03; 8:45 am]
BILLING CODE 8010-01-P