[Federal Register Volume 68, Number 159 (Monday, August 18, 2003)]
[Notices]
[Pages 49535-49536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20957]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48295; File No. SR-CSE-2003-08]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange, 
Inc. Relating to Its Schedule of Fees

August 7, 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 July 21, 2003, the Cincinnati Stock Exchange, Inc. (``CSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') the proposed rule change as described in 
Items I, II and III below, which the CSE has prepared. The CSE has 
designated this proposal as one establishing or changing a due, fee, or 
other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of 
the Act,\3\ which renders the proposal 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\ 15 U.S.C. 78s(b)(3)(A)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange hereby proposes to amend its schedule of fees to 
address recent developments in the cost of doing

[[Page 49536]]

business on the CSE.\4\ The text of the proposed rule change is below. 
Proposed additions are in italics and proposed deletions are in 
brackets.
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    \4\ These costs include, for example, increased hardware and 
software expenses, increased capacity and technical support costs, 
and personnel-related expenses. Telephone call between Jennifer M. 
Lamie, Assistant General Counsel, CSE and Ian K. Patel, Staff 
Attorney, Commission (August 5, 2003).
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* * * * *

Chapter XI Trading Rules

Rule 11.10 National Securities Trading System Fees

A. Trading Fees
    (a)-(l) No change.
    (m) DD Issue/Book Fees. Designated Dealers will be charged a 
monthly book fee based on the following incremental schedule:

------------------------------------------------------------------------
                    Number of issues                      Fee per issue
------------------------------------------------------------------------
0 to 150...............................................       $[25]30.00
151 to 300.............................................        [15]20.00
301 to 500.............................................        [10]15.00
50[0]1 and higher......................................          [1]2.00
------------------------------------------------------------------------

    (n) No change to text.
    (o) Technology Fee. Every Member of the Exchange shall be assessed 
a fee of $[750]1,250.00 per month to help offset technology expenses 
incurred by the Exchange.
    (p)-(q) No change.
    (r) Workstation Fee. Every member using the Exchange Workstation 
shall be charged $[500]750.00 per device per month.
    B.-C. No change.
* * * * *

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 its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The CSE 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 Exchange is proposing three amendments to the CSE Rules 
governing fees. The first proposed rule change amends subsection (m) to 
CSE Rule 11.10(A), Designated Dealer Issue/Book Fees. Subsection (m) 
currently provides that Designated Dealers will be charged a monthly 
book fee of $25 per each of the first 150 issues, $15 for each of the 
next 150 issues, $10 for each of the next 200 issues, and $1 for each 
remaining issue. The amended rule will provide that Designated Dealers 
will now be charged $30, $20, $15 and $2 per each of the respective 
increments. The second proposed rule change amends subsection (o) to 
CSE Rule 11.10(A), Technology Fee. Subsection (o) currently provides 
that every member be assessed a fee of $750 per month to help offset 
technology expenses incurred by the Exchange. The amended rule will 
provide that members be charged $1,250 per month. The third proposed 
rule change amends subsection (r) to CSE Rule 11.10(A), Workstation 
Fee. Subsection (r) currently provides that every member using the 
Exchange Workstation be assessed a fee of $500 per device per month. 
The amended rule will provide that members using the Workstation will 
now be charged $750 per device per month.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act in general,\5\ and Section 6(b)(4) \6\ in 
particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges among Exchange 
members on a pro rata basis.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The CSE does not believe that the proposed fee change will impose 
any inappropriate burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to 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 establishes or changes a due, fee, or other 
charge imposed by the CSE. 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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 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 CSE. All 
submissions should refer to file number SR-CSE-2003-08 and should be 
submitted by September 8, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-20957 Filed 8-15-03; 8:45 am]
BILLING CODE 8010-01-P