[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Page 57676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27891]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-42034; File No. SR-BSE-99-14]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Amending its Revenue Sharing Program
October 19, 1999.
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 September 30, 1999, 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 BSE. 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.
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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 its Transaction Fee Schedule to
revise the monthly transaction related revenue the BSE must generate
before it shares excess revenue with eligible member firms.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with Commission, the BSE 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 BSE has prepared summaries, set forth in Section 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 amend the Revenue
Sharing Program highlighted on the BSE's Transaction Fee Schedule.
Currently, the minimum amount of monthly transaction related revenue
that the BSE must generate before it shares excess revenue with
eligible member firms is $1,300,000.\3\ The BSE proposes to revise this
amount to $1,400,000 to meet the budgeted costs of operating the
Exchange in the upcoming fiscal year.
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\3\ Eligible member firms receive excess revenue in the form of
a credit that is applied toward each firm's total monthly
transaction fees. See Securities Exchange Act Release No. 40591
(Oct. 22, 1998), 63 FR 58078 (Oct. 29, 1998). A member firm that
generates at least $50,000 in BSE automated transaction fees is
eligible to share in excess revenue. See Securities Exchange Act
Release No. 41809 (Aug. 30, 1999), 64 FR 48887 (Sept. 8, 1999).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\4\ in general, and furthers the objectives of Section 6(b)(4),\5\
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members.\6\
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
\6\ The Commission notes that the filing may raise questions
concerning payment for order flow. To the extent that it does raise
such issues, Exchange members should consider any associated
disclosure obligations, namely pursuant to Rules 10b-10 and 11Ac1-3
under the Act, 17 CFR 240.10b-10 and 17 CFR 240.11Ac1-3,
respectively.
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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 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 not solicited or received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The proposed rule change establishes or changes a due, fee, or
other charge imposed by the BSE and, therefore, has become effective
upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule
19b-4(f)(2) \8\ thereunder. 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.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
\9\ In reviewing this rule change, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation, consistent with Section 3 of the Act. 15 U.S.C. 78c(f).
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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 is consistent with the Act. 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-
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 at the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the principal office of the
BSE. All submissions should refer to the File No. SR-BSE-99-14 and
should be submitted by November 16, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc 99-27891 Filed 10-25-99; 8:45 am]
BILLING CODE 8010-01-M
