[Federal Register Volume 60, Number 16 (Wednesday, January 25, 1995)]
[Notices]
[Pages 4935-4936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1784]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35239; File No. SR-CHX-95-2]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to the Extension of the Waiver of Certain
Exchange Transaction Fees for Transactions in Certain Tape B Eligible
Issues
January 19, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), 15 U.S.C. 78s(b)(1), notice is hereby given that on January
9, 1955, the Chicago Stock Exchange, Incorporated (``CHX'' 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 self-regulatory
organization. On January 18, 1995, the Exchange submitted to the
Commission Amendment No. 1 to the proposed rule change, which is also
described below.\1\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
\1\See letter from David T. Rusoff, Counsel, Chicago Stock
Exchange, to Glen Barrentine, Senior Counsel, Division of Market
Regulations, SEC, dated January 18, 1995. See infra note 4 for a
description of Amendment No. 1.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the waiver of certain transaction
fees, as set out in Section (c) (Transaction Fee Schedule) of its
Membership Dues and Fees, for transactions in Tape B eligible
issues.\2\ executed through the Midwest Automated Execution System
(``MAX''). The Exchange had waived these fees through December 31,
1994\3\ and now proposes to extend the waiver on MAX executed trades
through December 31, 1995. The text of the proposed rule change is as
follows [new text is italicized; deleted text is bracketed]:
\2\The Consolidated Tape, operated by the Consolidated Tape
Association (``CTA''), compiles current last sale reports in certain
listed securities from all exchanges and market makers trading such
securities and disseminates these reports to vendors on a
consolidated basis. The CTA is comprised of the New York, American,
Boston, Cincinnati, Chicago, Pacific, and Philadelphia Stock
Exchanges, as well as the Chicago Board Options Exchange and the
National Association of Securities Dealers, Inc. Transactions in
American Stock Exchange listed stocks and qualifying regional listed
stocks are reported on CTA Tape B.
\3\See Securities Exchange Act Release No. 33637 (Feb. 17,
1994), 59 FR 9261 (approving File No. SR-CHX-94-4). The Exchange has
waived these fees for several consecutive years. See Securities
Exchange Act Release No. 31636 (Dec. 22, 1992), 57 FR 62406
(approving File No. SR-MSE-92-15); Securities Exchange Act Release
No. 30154 (Jan. 6, 1992), 57 FR 1291 (approving File No. SR-MSE-91-
17); Securities Exchange Act Release No. 28916 (Feb. 25, 1991), 56
FR 9028 (approving File No. SR-MSE-91-7).
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(c) Transaction Fee Schedule
Round Lots/Mixed Lots
45 cents per 100 shares.
$100.00 maximum per trade.
Odd Lots
35 cents per trade.
$400.00 maximum monthly fees.
The above fees include all applicable trade recording fees, as set
out in the Midwest Clearing Corporation (MCC) ``Services and Schedule
of Charges'' bulletin, relating to floor executed trades.
The above fees shall not apply to transactions in Tape B eligible
issues which are executed through the Midwest Automated Execution
System (``MAC'') through December 31, 199[4]5; however, all applicable
trade recording fees relating to Tape B trades will be assessed as set
out in the MCC ``Services and Schedule of Charges'' bulletin.\4\
\4\Amendment No. 1 deleted a reference in the Transaction Fee
Schedule that limited the applicability of such fees on round lots/
mixed lots and odd lots to transactions in New York Stock Exchange
listed issues. This reference was included inadvertently in the
Exchange's filings requesting the waiver of these fees for calendar
years 1992, 1993, and 1994.
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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 self-regulatory organization
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 self-regulatory organization
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 continue the
Exchange's efforts to attract additional order flow in Tape B eligible
securities to enhance the Exchange's competitive position in these
issues. Limiting the waiver of fees to MAX trades recognizes the
economies of scale and cost savings achieved through electronic order
routing versus manually processed trades.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(4) of the
Securities Exchange Act of 1934 in that it provides for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and persons using its facilities.
B. Self-Regulatory Organization's Statement on Burden on Competition
The fee change will impose no 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
fee change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change establishes or changes a due, fee, or
other charge imposed by the Exchange and, therefore, has become
effective pursuant to Section 19(b)(3)(A) of the Act and subparagraph
(e) of Rule 19b-4 thereunder. At any time within 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of the submission, all subsequent amendments, all written
statements [[Page 4936]] 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 at the Commission's Public Reference Section, 450 Fifth
Street, N.W., Washington, D.C. 20549. Copies of such filing will also
be available for inspection and copying at the principal office of the
Chicago Stock Exchange. All submissions should refer to File No. SR-
CHX-95-2 and should be submitted by February 15, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-1784 Filed 1-24-95; 8:45 am]
BILLING CODE 8010-01-M
