[Federal Register Volume 61, Number 4 (Friday, January 5, 1996)]
[Notices]
[Pages 436-437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-170]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36658; File No. SR-NYSE-95-47]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by New York Stock Exchange, Inc., Relating to the Exclusion of
Certain Orders From Trading at No Charge
December 29, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 29, 1995, the New
York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes that, effective January 2, 1996, certain
orders be excluded from the specified system orders between 100 and
2,099 shares that are eligible to be traded at no charge as set forth
in companion filing (SR-NYSE-95-46).\2\ The ineligible orders to be
excluded are those with the following descriptions:
\2\ Securities Exchange Act Release No. 36659 (December 29,
1995). The Commission notes that pursuant to File No. SR-95-46, the
NYSE revised its equity transaction charges, effective January 2,
1996, to eliminate the exclusion currently in place that precludes
orders for competing market makers from the no charge provision for
system orders between 100 to 2099 shares. This revision had the
effect of removing all NYSE equity transaction charges on competing
market maker system orders between 100 to 2099 shares. If approved,
the NYSE's current filing (SR-NYSE-95-47) would reimpose a charge of
$0.00190 on such share volume, retroactive to January 2, 1996.
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An order of a member or member organization trading as agent for
the account of a non-member competing market maker. Competing Market
Maker: a specialist or market maker registered as such on a
registered stock exchange (other than the NYSE), or a market maker
bidding and offering over-the-counter, in a New York Stock Exchange-
traded security.
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 this filing is to seek approval to exclude specific
orders defined in Item I. above from those eligible system orders to be
traded at no charge.
2. Statutory Basis
The basis under the Act for the proposed rule change is the
requirement under Section 6(b)(4) that an Exchange have rules that
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers and other persons using its
services.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that this proposed fee change will not impose
any burden on competition that is not necessary or appropriate in the
furtherance of the purposes of the Act. The proposed fee change is
structured to maintain the current relationship between member
proprietary and non-member market maker activities in Exchange-listed
securities. In this regard, the Exchange is not seeking to give
additional encouragement to members to send to the Exchange proprietary
orders of competing market makers, which the Exchange believes would
inappropriately promote the direct competitive activities of non-member
market makers.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments regarding the proposed rule change. The Exchange has not
received any unsolicited written comments from members or other
interested parties.\3\
\3\ The Commission notes that the equity transaction charge of
$0.00190 that this filing would impose upon competing market maker
system share volume on orders between 100 to 2099 shares was first
introduced by the NYSE pursuant to File No. SR-NYSE-95-38, which was
noticed for comment in Securities Exchange Act Release No. 36465
(November 8, 1995) 60 FR 57473. The Commission received three
comment letters in connection with that filing. These letters are
available in File No. SR-NYSE-95-38.
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III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing.
[[Page 437]]
Persons making written submissions should file six copies thereof with
the Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW., Washington, DC 20549. 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. Copies of
such filing will also be available for inspection and copying at the
principal office of the NYSE. All submissions should refer to the File
Number SR-NYSE-95-47 and should be submitted by February 20, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-170 Filed 1-4-96; 8:45 am]
BILLING CODE 8010-01-M
