[Federal Register Volume 64, Number 42 (Thursday, March 4, 1999)]
[Notices]
[Pages 10516-10517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5372]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41108; File No. SR-BSE-99-2]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Relating to Its Trade Reporting and Comparison Fee Schedule
February 25, 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 January 29, 1999, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Item I, II,
and III below, which Items have been prepared by BSE. The BSE has
designated this proposed rule change as establishing or changing a due,
fee or other charge under Section 19(b)(3)(A) of the Act, which renders
the proposed rule change effective upon receipt of this filing by the
Commission.\3\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The BSE proposes to amend its Trade Recording and Comparison Fee
Schedule to reduce the rate charged for non-specialist trades executed
by a floor broker on another exchange and then transferred into an
account at the Exchange for clearing purposes. The text of the proposed
rule change is available at the Office of the Secretary, BSE, and at
the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 Sections A,
B, and C below, of the most significant aspects of such statements.
[[Page 10517]]
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 Trade
Recording and Comparison Fee Schedule to reduce the rate charged for
non-specialist trades executed by a floor broker on another exchange
and then transferred into an account at the Exchange for clearing
purposes. Because the floor broker is simply facilitating the clearance
of the trade at the Exchange, his side of the trade will be reduced to
a flat $0.05 per 100 shares from the current volume based rates he
currently incurs. This change will more accurately reflect the cost of
executing different types of business through the Exchange facilities
and systems.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b)(5) \4\ of the Act, in that the proposed rule change is
designed to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities; to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest;
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\4\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate
in 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
Written comments on the proposed rule change 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) \5\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\6\ 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.\7\
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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-4(f)(2).
\7\ In reviewing this proposal, the Commission has considered
the proposal's impact on efficiency, competition, and capital
formation. 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, 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 Room. Copies of such
filing also will be available for inspection and copying at the
principal office of BSE. All submissions should refer to File No. SR-
BSE-99-2 and should be submitted by March 25, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-5372 Filed 3-3-99; 8:45 am]
BILLING CODE 8010-01-M
