[Federal Register Volume 69, Number 155 (Thursday, August 12, 2004)]
[Notices]
[Pages 49926-49927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18415]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50145; File No. SR-NSX-2004-11]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by National Stock Exchange 
Relating to Workstation Fee

August 4, 2004.
    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 June 30, 2004, National Stock Exchange\SM\ (the ``Exchange'' or 
``NSX'') filed with the Securities and Exchange Commission (the 
``Commission'') a proposed rule change. On July 15, 2004, NSX filed 
Amendment No. 1 to the proposed rule change.\3\ The proposed rule 
change, as amended, is described in Items I, II and III below, which 
Items have been prepared by the Exchange. The Exchange filed the 
proposal pursuant to Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 
19b-4(f)(2) \5\ thereunder, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from James C. Yong, Senior Vice President, 
Regulation and General Counsel of NSX, to Nancy Sanow, Assistant 
Director, Division of Market Regulation, Commission, dated July 14, 
2004 (``Amendment No. 1''). In Amendment No. 1, NSX made 
typographical corrections to its rule text.
    \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 is proposing to amend its schedule of fees to increase 
its Workstation Fee. The Exchange implemented these proposed changes, 
as amended, on July 1, 2004.
    Below is the text of the proposed rule change. Proposed new 
language is italicized; proposed deletions are in brackets.
* * * * *

Rules of National Stock Exchange

* * * * *

Chapter XI

Trading Rules
* * * * *
    Rule 11.10 National Securities Trading System Fees.
    A. Trading Fees.

[[Page 49927]]

    (a)-(q) No change.
    (r) Workstation Fee. Every member using the Exchange Workstation 
shall be charged [$750.00]$1,000.00 per device per month.
    B. No change.
    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 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
    In addition to utilizing proprietary or third party software, 
member specialists may connect to NSX's National Securities Trading 
System or ``NSTS,'' by utilizing an Exchange-supplied Workstation for a 
monthly fee. Subsection (r) of NSX Rule 11.10(A) currently provides 
that every member using the Exchange Workstation shall be charged a fee 
of $750 per device per month. This fee will increase to $1,000 per 
device per month beginning July 1, 2004. The Exchange believes that the 
fee increase is reasonable and ensures that each member pays an 
equitable share of the costs associated with operating the Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act,\6\ in general, and with Section 6(b)(4),\7\ in 
particular, in that it is designed to provide for the equitable 
allocation of reasonable dues, fees, and other charges. The Exchange 
believes the proposed change, as amended, is also consistent with 
Section 6(b)(5) of the Act \8\ in that it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
and, in general, to protect investors and the public interest.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, 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 in connection with 
the proposed rule change.

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

    The foregoing rule change, as amended, has become effective 
pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and subparagraph 
(f)(2) of Rule 19b-4 \10\ thereunder because it involves a member due, 
fee or other charge. At any time within sixty (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 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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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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, as amended, is consistent with the Act. Comments should be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an E-mail to [email protected]. Please include 
File Number SR-NSX-2004-011 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NSX-2004-011. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filings will also be 
available for inspection and copying at the principal office of the 
Exchange. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
publicly available. All submissions should refer to file number SR-NSX-
2004-011 and should be submitted on or before September 2, 2004.

    For the Commission by the Division of Market Regulation, 
pursuant to the delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-18415 Filed 8-11-04; 8:45 am]
BILLING CODE 8010-01-P