[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Notices]
[Pages 24937-24938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11446]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35668; File No. SR-CSE-95-05]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange,
Inc., Relating to National Securities Trading System Fees
May 3, 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 April
24, 1995, the Cincinnati Stock Exchange, Inc. (``CSE'' 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 hereby amends Rule 11.10 regarding fees imposed by the
Exchange. The text of the proposed rule change is as follows [new text
is italicized; deleted text is bracketed]:
Rule 11.10 NATIONAL SECURITIES TRADING SYSTEM FEES
G. PROPRIETARY (principal) TRANSACTIONS
1. Designated Dealers will be charged $0.0075 per share ($0.75/
100 shares) for principal transactions unless acting as Dealer of
the Day, a Preferencing Dealer or a Contributing Dealer except, ITS
Transactions will be billed $0.0050 per share on outbound trades and
$0.0000 per share on inbound trades subject to paragraph 5 below.
(Billable shares shall not exceed 650,000 shares times the number of
trading days in any given month.)
2. Designated Dealers acting as ``Dealer of the Day'' will be
charged $0.005 per share ($0.50/100 shares) for principal
transactions.
3. Contributing Dealers will be charged $0.02 per share ($2.00/
100 shares) for principal transactions.
4. Members executing principal transactions in securities for
which they are not registered as a Designated or Contributing Dealer
will be charged $0.02 per share ($2.00/100 shares).
5. Designated Dealers (DD) shall have the following minimum
average per share charge applied to their aggregate monthly DD
transactions using the DD's average volume per trading day:
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Per share
Designated dealer's average share volume per day minimum
charge
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[1 to 1,350,000]................................. [$0.0046]
[1,350,000] 1 to 2,000,000....................... [$0.0040] $0.0038
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2,000,001 and higher............................. $0.0030
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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 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 Exchange has determined to adjust its inter-market transaction
fees as they relate to Designated Dealers\1\ to reflect costs for
similar trading on other markets. The fee changes impact Designated
Dealer trades (other than those transacted as Dealer of the Day,\2\
Preferencing Dealer\3\ or Contributing Dealer\4\ and place the
Exchange's fees in [[Page 24938]] line with those of other markets. The
fees are effective on settlement date May 1, 1995.
\1\A Designated Dealer is a proprietary member who maintains a
minimum net capital of at least the greater of $100,000 or the
amount required under Rule 15c3-1 of the Act, and who has been
approved by the Exchange's Securities Committee to perform market
functions by entering bids and offers for securities designated by
the Securities Committee to be traded in the CSE's National
Securities Trading System (``designated issue'') into that System.
See CSE Rule 11.9(a)(3).
\2\The CSE's Rules provide that if there are two or more
Designated Dealers in a designated issue, unless the Exchange's
Securities Committee has approved one member as a primary Designated
Dealer, the guarantee obligations under the Rules rotate among such
Designated Dealers on a daily basis. See CSE Rule 11.9(c)(iv).
\3\A Preferencing Dealer is an Approved Dealer who enters
principal bids and offers into the National Securities Trading
System for execution against public agency orders that such Approved
Dealer is representing as agent pursuant to CSE Rule 11.9(u). An
Approved Dealer is a Designated Dealer, a Contributing Dealer, or a
specialist or market maker registered as such with another exchange
with respect to any designated issue. See CSE Rule 11.9(a)(2).
\4\A Contributing Dealer is a proprietary member who maintains a
minimum net capital of at least the greater of $50,000 or the amount
required under Rule 15c3-1 of the Act, is registered with the
Exchange with respect to one or more designated issues, and provides
to all users (members of the Exchange or Approved Dealers) through
the National Securities Trading System, during Exchange trading
hours, regular bids and offers for round lots of designated issues
for which he is registered. See CSE Rule 11.9(a)(4).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
in general and furthers the objectives of Section 6(b)(5) in that it is
designed to protect investors and the public interest.
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.
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-CSE-95-05 and should be
submitted by May 31, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11446 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M
