[Federal Register Volume 70, Number 1 (Monday, January 3, 2005)]
[Notices]
[Pages 126-128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28669]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50928; File No. SR-BSE-2004-59]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Boston Stock Exchange, 
Inc. To Amend the Exchange's Rule Relating to its Regulatory 
Transaction Fee

December 23, 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 December 17, 2004, the Boston Stock Exchange, Inc. (``BSE'' or 
``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. The 
proposed rule change has been filed by BSE as a ``non-controversial'' 
rule change pursuant to 19(b)(3)(A) of the Act\3\ and Rule 19b-4(f)(6) 
thereunder,\4\ which tenders the proposal effective on 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).
    \4\ 17 CFR 240.19b-4(f)(6).
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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 chapter XXIII, section 2 of the BSE 
Rules relating to the Exchange's regulatory transaction fee.
    The text of the proposed rule change is set forth below. Proposed 
new language is italicized; deletions are bracketed.
* * * * *

Rules of the Boston Stock Exchange Chapter XXIII: Stamp Taxes--
Transaction Fee

    Sec. 1--No change.
Regulatory Transaction Fee [Under Securities Exchange Act of 1934]
    Sec. 2. So long as the Exchange shall be registered as a national 
securities exchange, there shall be paid to the Exchange by each member 
of member-organization monthly in such manner and at such time as the 
Exchange shall direct, a regulatory transaction fee. The monthly 
regulatory transaction fee shall equal the member's aggregate dollar 
amount of covered sales occurring that month (other than those 
resulting from options transactions) divided by the Exchange's 
aggregate dollar amount of covered sales (other than those resulting 
from options transactions) occurring that month, multiplied by the 
Section 31 fees payable by the Exchange to the Commission for that 
month, multiplied by the Section 31 fees payable by the Exchange to the 
Commission for that month (other than those resulting from options 
transactions). [the sum of one cent for each $300 or fraction thereof 
of the dollar volume of the sales of securities upon the Exchange 
(whether or not cleared through the Boston Stock Exchange Clearing 
Corporation) by such member or member-organization during the preceding 
month]. [Any such member or member-organization required by the 
foregoing Rule to pay any sum to the Exchange in respect of any sale 
upon the Exchange shall charge and collect from the person for whom he 
or it was acting in making such transaction, the sum of one cent for 
each $300 or fraction thereof of the dollar amount involved in such 
transaction.]
    Sec. 3--No change.
* * * * *

[[Page 127]]

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 parts of such 
statements.

A. Self-Regulatory Organizations's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend chapter XXIII, section 2 of the BSE 
Rules regarding transaction fees to change language in the rule to 
represent that the Exchange will be assessing a fee to each member for 
sales of securities on the Exchange and that the aggregate amount of 
all such fees assessed to Exchange members will reflect as nearly as 
possible the fee assessed to the Exchange by the Commission pursuant to 
section 31 of the Act.\5\ The transaction fee covered by this rule is 
applicable to equity securities only. The Exchange anticipates filing a 
rule in the future to assess a transaction fee for options 
transactions.
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    \5\ 15 U.S.C. 78ee.
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    The regulatory transaction fee, similar to the fee the Exchange has 
collected in the past, will equal as nearly as possible, the member's 
aggregate dollar amount of cover sales \6\ occurring that month (other 
than those resulting from options transactions) divided by the 
Exchange's aggregate dollar amount of covered sales (other than those 
resulting from options transactions) occurring that month, multiplied 
by the amount of section 31 fees payable by the Exchange to the 
Commission for that month (other than those resulting from options 
transactions). To the extent that additional funds are collected, they 
will be used for other proper regulatory purposes.
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    \6\ See 17 CFR 240.31(a)(6).
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    The Exchange is also proposing eliminating language in chapter 
XXIII, section 2 of the BSE Rules, which directs BSE members to charge 
persons for whom the member makes a transaction on the Exchange an 
amount equivalent to the charge which the member is assessed. Since 
fees assessed under section 31 of the Act are the responsibility of the 
Exchange, BSE will not require, by rule or otherwise, that its members 
charge their customers in any manner a fee for which the ultimate 
customer is not responsible.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\7\ in general, and section 6(b)(4) of the 
Act,\8\ in particular, in that it provides for the equitable allocation 
of reasonable dues, fees, and other charges among its members.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 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 
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

    The Exchange has neither solicited nor received comments in 
connection with the proposed rule change.

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

    Because, the foregoing proposed rule change (1) does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms, does not become operative until 30 days from the 
date on which it was filed, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, and the Exchange provided the Commission with written notice 
of its intent to file the proposed rule change at least five business 
days prior to the date of filing of the proposed rule change, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \9\ and 
Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 19 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    BSE has requested that the Commission waive the 30-day operative 
delay. The Commission believes waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest, 
because doing so will make chapter XXIII, section 2 of the BSE Rules 
consistent with the Commission's guidance on section 31 of the Act as 
quickly as possible. For these reasons, the Commission hereby 
designates the proposal to be effective and operative upon filing with 
the Commission.\11\
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    \11\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
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    At any time within 60 days of the filing of this 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.

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. Comments may 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-BSE-2004-59 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-BSE-2004-59. 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal

[[Page 128]]

office of BSE. All comments received will be posted without change; the 
Commission does not edit personal identify8ing information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-BSE-
2004-59 and should be submitted on or before January 24, 2009.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-28669 Filed 12-30-04; 8:45 am]
BILLING CODE 8010-01-M