[Federal Register Volume 68, Number 94 (Thursday, May 15, 2003)]
[Notices]
[Pages 26361-26363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12147]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47816; File No. SR-BSE-2003-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Incorporated, Relating to Its Floor Operations Fee Schedule

May 8, 2003.
    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 March 24, 2003, the Boston Stock Exchange, Incorporated 
(``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. On April 
22, 2003, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ The Exchange has designated

[[Page 26362]]

this proposal as one establishing or changing a due, fee or other 
charge imposed by the self-regulatory organization under section 
19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ 
which renders the proposed rule change effective upon filing with the 
Commission. 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\ In Amendment No. 1, the Exchange amended the proposal (i) to 
clarify the language in the proposed rule change and (ii) to seek 
immediate effectiveness of the proposed rule change pursuant to 
section 19(b)(3)(A) of the Act and subparagraph (f)(2) of Rule 19b-4 
thereunder. See letter dated April 22, 2003, from John Boese, Vice 
President, Legal and Compliance, Exchange, to Katherine England, 
Assistant Director, Division of Market Regulation, Commission. For 
purposes of calculating the 60-day period within which the 
Commission may summarily abrogate the proposed rule change under 
section 19(b)(3)(C) of the Act, the Commission considers that the 
period to commence on April 22, 2003, the date the Exchange filed 
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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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 Floor Operations Fee Schedule to 
include a provision for the pass-through of miscellaneous trading 
related fees. The text of the proposed rule change is below. Proposed 
new language is in italics.
* * * * *

          Floor Operation Fees
 
(1) Occupancy/Technology:
    Occupancy Fee......................  $500.00 per post per month.
    Specialist/Floor Trader Technology   $500.00 per Beacon terminal per
     Fee.                                 month.
    Floor Broker Technology Fee........  $100.00 per Beacon terminal per
                                          month.
    Security Routing Fee...............  $500.00 per month per Beacon
                                          user-ID that has stocks routed
                                          to it.
    Floor Facility Fee.................  $250.00 per person that
                                          regularly accesses the trading
                                          floor.
    Electronic Trading Permit Fee......  $1,000.00 per trader trading
                                          from a remote location per
                                          month.
(2) Specialist Post Clearing and
 Cashiering:
    Post Cashiering Fee................  $750.00 per specialist book for
                                          first 3 books per firm.
                                         $100.00 per specialist book for
                                          any books in excess of 3 per
                                          firm.
    Clearing Fee.......................  $.05 per trade.
(3) Listed Specialist Trade Processing
 Fees/Credits:
    Pre-Opening Trades.................  No Charge.
    Trades in CTA Securities ranked      No Charge (BSE executions
     1,001 and greater.                   only).
    Round lot..........................  $.50 per order.
    Odd Lot Trades (includes CSI         $.05 per order ($400 maximum
     Issues).                             per account).
    Trading Account Trades.............  $1.50 per order.
    ETF Trade Credit...................  $2.00 per trade (maximum annual
                                          credit capped at total amount
                                          paid in upfront annual
                                          registration fees).
           Listed Securities
 
A. Maximum Total Round lot/Odd lot
 charges:
CTA Trade Rank:                          Monthly Transaction Fee Maximum
     1-50..............................  $400.
    51-100.............................  $300.
    101-500............................  $250.
    501+...............................  $0*.
* Includes BSE executions only. For all other executions, the applicable
 trade rate will apply..
B. Credit:
    Primary Specialist.................  $.50 per trade (based on
                                          Competing Specialist trade
                                          volume).
 
(Total of the assessed fees for round lot/odd lot trades and trade
 credits will not be less than zero on a per issue basis).
(4) Other Charges:
    ITS User Fee.......................  $.003 per share on net outbound
                                          specialist trades (charge for
                                          outgoing trades offset by
                                          cumulative credit for incoming
                                          trades); No charge for non-
                                          specialist firms.
    Quotation Services.................  Member assumes 100% of cost.
    Specialist Margin Account Financing  Charged daily at current broker
                                          call rate.
    Solely Listed Issue Credit.........  $50.00 Credit per issue traded.
    Miscellaneous Trading Charges......  Direct pass through of all
                                          miscellaneous trading charges,
                                          such as Nasdaq fees, other
                                          market center access fees, ECN
                                          access fees, trading-related
                                          telecommunications charges,
                                          market data service charges,
                                          and other similar fees and
                                          charges.
    Miscellaneous Administrative         At cost for phone, postage,
     Charges.                             courier service, fax usage,
                                          after hours BSE staff
                                          assistance and other
                                          applicable items.
    Late Fees..........................  1.5% will be charged on
                                          outstanding balances as of the
                                          last calendar day of the
                                          month.
 

* * * * *

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 Fee schedule to include a

[[Page 26363]]

provision for the pass-through of all miscellaneous fees to its members 
who incur such charges as a result of trading activity on the Exchange. 
The provision would allow for, among other things, as applicable, the 
pass-through of all Nasdaq fees, other market center access fees, ECN 
access fees, trading-related telecommunications charges, market data 
service charges, and other similar charges.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6 of the Act,\6\ in general, and section 6(b)(4) of the 
Act,\7\ in particular, in that it provides for the equitable allocation 
of reasonable dues, fees, and other charges among its members.
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    \6\ 15 U.S.C. 78f.
    \7\ 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 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes 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

    The proposed rule change has become immediately effective pursuant 
to section 19(b)(3)(A)(ii) of the Act,\8\ and subparagraph (f)(2) of 
Rule 19b-4 thereunder,\9\ in that it establishes or changes a due, fee, 
or other charge imposed by the self-regulatory organization. At any 
time within 60 days of the filing of such proposed rule change, the 
Commission may summarily abrogate the 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 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 No. SR-BSE-2003-03 and 
should be submitted by June 5, 2003.

    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. 03-12147 Filed 5-14-03; 8:45 am]
BILLING CODE 8010-01-P