[Federal Register Volume 60, Number 220 (Wednesday, November 15, 1995)]
[Notices]
[Pages 57473-57474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28168]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36465; File No. SR-NYSE-95-38]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. Relating to the Revision of Equity Transaction Charges
Nobember 8, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 7, 1995 the New
York Stock Exchange, Inc. (``NYSE'' 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. 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 NYSE plans to implement, as of January 1996 trading, rate
revisions to its equity transaction charges. Included in this revision
are the elimination of all system credits, a reduction of charges for
shares 5,000 and under, the elimination of charges for non-market maker
system orders from 100 to 2,099 shares, the elimination of the growth
limitation of 4% over 1988 levels, and the implementation of a monthly
$400,000 transaction charge cap per firm. The text of the proposed rule
change is set forth below [new text is italicized; deleted text is
bracketed]:
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Equity Transaction Charges 1995 1996
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Per Share Charge--per transaction:
System Orders from 100-2,099 shares \1\....... $0.00265 No Charge
Floor Executed Trades and System Trades--
greater than 2,099 shares:
First 5,000 shares........................ $0.00265 $0.00190
5001 to 710,000 (previously 672,500)...... $0.00010 $0.00010
Subsequent shares............................. No charge No charge
System Credits:
Credit per eligible order placed through CMS
(100-2,099 shares)........................... $0.30 None
Additional credit--Individual or Agency Market
order from 100-2,099 shares [(1)]............ $1.30 None
Floor Brokerage: Credit on Floor Brokerage Paid
Out (percent).................................... 1.2 1.2
Fee Limitations:
Equity Commissions (percent).................. 2 2
Percent Growth over 1988 (percent)............ 4 None
Monthly Fee \2\............................... None $400,000
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\1\ Not inclusive of orders of a member or member organization trading
as an agent for the account of a nonmember 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.
\2\ Monthly Fee Limitation will be removed January 1, 1999 and will be
indexed annually to average daily volume.
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
[[Page 57474]]
Sections A, B, an 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 change is to respond to the needs of the
Exchange's constituents with respect to overall competitive market
conditions and customer satisfaction.
2. Statutory Basis
The basis under the Act for the proposed rule change is the
requirement under Section 6(b)(4) \2\ that the 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.
\2\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the 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.
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.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change constitutes 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 \3\ and
subparagraph (e) of Rule 19b-4 thereunder.\4\
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4.
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At any time within sixty 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 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. Sec. 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 also will be available
for inspection and copying at the principal office of the New York
Stock Exchange. All submissions should refer to File No. SR-NYSE-95-38
and should be submitted by December 6, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-28168 Filed 11-14-95; 8:45 am]
BILLING CODE 8010-01-M
