[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4336]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33637; File No. SR-CHX-94-4]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Inc., Regarding the Re-extension of the Waiver of Certain Exchange
Transaction Fees for Transactions in Certain Tape B Eligible Issues
February 17, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 2, 1994, the
Chicago Stock Exchange, Inc. (``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. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CHX proposes to re-extend the waiver of certain transaction
fees, and not re-extend the waiver of certain other 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\ The
Exchange proposes to extend the waiver of certain transaction fees for
Tape B eligible issues executed through the Midwest Automated Execution
System (``MAX''), but not extend the waiver for otherwise eligible
issues not executed through MAX. The Exchange had waived these fees
through December 31, 1993, on both MAX and non-MAX executed trades\3\
and now proposes to extend the waiver on MAX executed trades through
December 31, 1994.
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\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. Securities Exchange Act Release
No. 21583 (December 18, 1984), 50 FR 730 (January 7, 1985).
\3\See Securities Exchange Act Release No. 31636 (December 22,
1992), 57 FR 62406 (December 30, 1992) (approving File No. SR-MSE-
92-15). Previously, the Exchange waived these fees for the time
period of February 7, 1991 through December 31, 1991 in Securities
Exchange Act Release No. 28916 (February 25, 1991), 56 FR 9028
(March 4, 1991) (approving File No. SR-MSE-91-7). The Exchange also
waived these fees for the time period of August 31 through December
31, 1990. See Securities Exchange Act Release No. 28402 (August 31,
1990), 55 FR 37389 (September 11, 1990) (approving File No. SR-MSE-
90-14). The Commission did not receive any comments in connection
with these filings.
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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 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
The purpose of the proposed rule change is to continue the
Exchange's efforts to attract additional order flow in Tape B eligible
securities in order 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.
The proposed rule change is consistent with section 6(b)(4) of the
Act in that it provides for the equitable allocation of reasonable
dues, fees, and other charges among its members and issuers and the
persons using its facilities.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that no burden will be placed on competition
as a result of the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Comments were neither solicited nor received.
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 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, NW., Washington, DC 20549.
Copies of the submissions, 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 will also be available for
inspection and copying at the principal office of the CHX. All
submissions should refer to File No. SR-CHX-94-4 and should be
submitted by March 18, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-4336 Filed 2-24-94; 8:45 am]
BILLING CODE 8010-01-M
