[Federal Register Volume 60, Number 71 (Thursday, April 13, 1995)]
[Notices]
[Pages 18865-18866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9078]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35568; File No. SR-NYSE-95-03]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Fees for the Initial Comparison of Equity Security Trade
Sides Submitted for Comparison Through the On-Line Comparison System
April 5, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 21, 1995, the New
York Stock Exchange, Inc. (``NYSE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change (File No.
SR-NYSE-95-03) as described in Items I, II, and III below, which Items
have been prepared primarily by NYSE. 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The rule change modifies NYSE's fee structure for trade comparison.
Commencing on or about March 1, 1995, NYSE will charge participants for
the comparison of each side of a trade in an equity security\2\
submitted to it on the day of the trade (``initial trade data'')
through its On-Line Comparison System (``OCS''). NYSE has not
previously charged for this service.
\2\For the purposes of this rule proposal, NYSE is using the
term ``side'' to mean a purchase or a sale that consists of two or
more separate transactions made with the same firm, in the same
security, at the same price, on the same side of the market, and
which have been added together and submitted for comparison as one
item. NYSE refers to this process as summarization.
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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, NYSE 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. NYSE 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
On August 15, 1994, NYSE began requiring its clearing members to
submit listed equity comparison data to NYSE's OCS within two hours of
the time of a trade's execution or at two-hour intervals (e.g., 12:00
noon, 2:00 p.m., 4:00 p.m., and 6:00 p.m.) on each business day.\3\
Under this procedure, by the end of each trading day NYSE forwards the
day's initial trade data, which consists of both compared and
uncompared trades, to a qualified clearing agency for final
processing.\4\
\3\For background on NYSE's trade date comparison procedure,
refer to Securities Exchange Act Release No. 34153 (June 3, 1994),
59 FR 30071 [File No. SR-NYSE-94-08] (order approving proposed rule
change).
\4\For the purpose of this rule proposal, the term ``qualified
clearing agency'' means a clearing agency that: (1) is registered
under the Act, (2) maintains facilities through which NYSE's trades
may be compared or settled, (3) has agreed to supply NYSE with data
in connection with NYSE's compliance duties under the Act, and (4)
has agreed to establish rules and procedures to facilitate the
comparison of transactions as provided in NYSE Rule 130 (i.e.,
NYSE's principal rule governing trade comparison). NYSE Rule 130,
Supplementary Material .10 and NYSE Rule 132, Supplementary Material
.10.
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From August 1994 to date, NYSE has provided these OCS services to
its clearing members without charge. NYSE states, however, that its
costs for providing these services have been rising due to increased
usage and that it now proposes to recoup some of these additional costs
by charging a processing fee based on the number of shares per sides.
While the NYSE will continue charging no fee for sides from one share
to 999 shares, the fee for each side from 1,000 shares to 2,999 shares
will be $0.06, and the fee for each side for 3,000 shares to any higher
amount will be $0.18. As noted, the NYSE will commence charging this
new fee on or about March 1, 1995.
NYSE believes the rule change provides for the equitable allocation
of fees among its members. Therefore, NYSE believes the rule change is
consistent with the requirements of the Act and particularly with
Section 6(b)(4) of the Act.\5\
\5\15 U.S.C. 78q-1(f)(b)(4) (1988).
B. Self-Regulatory Organization's Statement on Burden on Competition
NYSE believes that the proposed rule changes will not impose any
burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
NYSE has neither solicited nor received any written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act\6\ and subparagraph (e)(2) of Rule 19b-4
thereunder because it establishes a due, fee, or other charge imposed
by NYSE.\7\ At any time within sixty 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.
\6\15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\7\17 CFR 204.19b-4(e)(4) (1994).
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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
[[Page 18866]]
proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Section, 450 Fifth Street,
N.W., Washington, D.C. 20549. Copies of such filing will also be
available for inspection and copying at the principal office of NYSE.
All submissions should refer to File No. SR-NYSE-95-03 and should be
submitted by May 4, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 95-9078 Filed 4-12-95; 8:45 am]
BILLING CODE 8010-01-M
