[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Notices]
[Pages 14041-14042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6353]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35462; File No. SR-BSE-95-1]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc., Relating to the Value Charges on Intermarket Trading System
Trades
March 8, 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 February
3, 1995, 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 self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange seeks to make permanent the portion of its fee
schedule pertaining to value charges on non-specialist Intermarket
Trading System (``ITS'') trades and the waiver of ITS user fees. By a
filing, which the Commission noticed on November 24, 1992, the Exchange
amended its fee schedule to provide for a $.003 per share user fee on
net outbound specialist trades, value charges of $.002 per share for
BSE executions up to and including 2,000 shares, and a range of value
charges per $1,000 contract values for all BSE executions over 2,000
shares.\1\
\1\See Securities Exchange Act Release No. 31515 (Nov. 24,
1992), 57 FR 56937 (notice of immediate effectiveness of File No.
SR-BSE-92-9).
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Moreover, the Exchange amended its fee schedule to provide for
value charges, and waive user fees, on all non-specialist ITS trades
for a one-year period.\2\
\2\The portion of the proposed rule change that was amended for
a one-year period was intended to replace the ITS user fee of $.003
per share on ``outbound trades only.''
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By a filing, which the Commission noticed on November 10, 1993, the
Exchange extended the value charges on non-specialist ITS trades and
the waiver of the non-specialist ITS user fees for a six-month
period.\3\ The Exchange now proposes to amend permanently its fee
schedule to impose value charges, and waive user fees, on all non-
specialist ITS trades as follows:
\3\See Securities Exchange Act Release No. 33184 (Nov. 10,
1993), 58 FR 60709 (notice of immediate effectiveness of File No.
SR-BSE-93-22).
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Value Charges
First $10 million per month--$.16 per $1,000 contract value
Next $40 million per month--$.13 per $1,000 contract value
Next $50 million per month--$.10 per $1,000 contract value
Next $100 million per month--$.08 per $1,000 contract value
Next $300 million per month--$.05 per $1,000 contract value
$500.1 + million per month--$.01 per $1,000 contract value
Maximum charge per side (non-cross) $100.00
Maximum charge per side (cross) $75.00
I.T.S. User Fee--No charge for non-specialist firms
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 amend permanently the
Exchange's fee schedule regarding certain ITS fees. At the request of
the Commisson, the Exchange had temporarily amended a portion of its
proposed rule filing SR-BSE-92-9 [[Page 14042]] regarding certain ITS
transactions. The Exchange temporarily amended these fees in 1992 for a
one-year period and extended these fees in 1993 for a six-month period,
pending the outcome of the Market 2000 Study.\4\ The affected fees are
comprised of the value charges instituted on all nonspecialist outbond
ITS trades, which replaces the ITS User Fee of $.003 per share on all
outbound trades incurred by non-specialist firms.
\4\The six-month extension expired in May 1994. BSE did not seek
another extension until this filing.
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2. Statutory Basis
The statutory basis for this proposal is Section 6(b)(4) of the
Securities Exchange Act of 1934.
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.\5\
\5\At the time of the original filing in 1992, the Exchange
solicited comments from the Fee Committee of the Board of Governors,
comprised of representatives of dealer-specialist, retail, and
institutional firms, the Executive Committee, which serves as the
Board of Governors of the Clearing Corporation, and the Board of
Governors of the Exchange. See Securities Exchange Act Release No.
31515 (Nov. 24, 1992), 57 FR 56937 (notice of immediate
effectiveness of File No. SR-BSE-92-9).
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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 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 at 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 Exchange. All
submissions should refer to File No. SR-BSE-95-1 and should be
submitted by April 5, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-6353 Filed 3-14-95; 8:45 am]
BILLING CODE 8010-01-M
