[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Notices]
[Pages 24935-24936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11447]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35669; File No. SR-BSE-95-04]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order
Granting Approval to Proposed Rule Change Relating to the Permanent
Approval of BEACON Subscriber Credits
May 3, 1995.
On February 13, 1995, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``SEC'') or ``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change seeking permanent approval of the
BEACON subscriber credits. On March 13, 1995, the Exchange submitted to
the Commission Amendment No. 1 to the proposed rule change,\3\ and on
March 23, 1995, the Exchange submitted Amendment No. 2 to the proposed
rule change.\4\
\1\15 U.S.C. 78s(b)(1) (1988).
\2\17 CFR 240.19b-4 (1994).
\3\See letter from Karen Aluise, Assistant Vice President, BSE,
to Jennifer Choi, Attorney, Division of Market Regulation, SEC,
dated March 9, 1995. Amendment No. 1 corrected Exhibit 2 by
referencing the BEACON subscriber Credits as the fee being amended
and deleting unnecessary language.
\4\See letter from Karen Aluise, Assistant Vice President, BSE,
to Jennifer Choi, Attorney, Division of Market Regulation, SEC,
dated March 22, 1995. Amendment No. 2 corrected Exhibit 2 by moving
the phrase ``all trades accumulate for volume discounts'' below the
schedule of volume discounts.
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The proposed rule change, including Amendment Nos. 1 and 2, was
published for comment in Securities Exchange Act Release No. 35529
(Mar. 23, 1995), 60 FR 16216 (Mar. 29, 1995). No comments were received
on the proposal.\5\
\5\After the Commission published the proposed rule change for
comment, the Exchange, pursuant to Section 19(b)(3)(A) of the Act,
filed a rule change further amending the language of the portion of
its fee schedule entitled ``Transaction Fees'' that relate to trade
recording and comparison charges, which is the subject of the
current filing. See Securities Exchange Act Release No. 35630 (Apr.
19, 1995) 60 FR 20541 (Apr. 26, 1995) (noticing the filing and
immediate effectiveness of the proposed rule change). Although the
changes made by the filing did not affect the substance of this
proposed rule change, they did alter the text of the proposed rule
change as attached in Exhibit 2 of the BSE's filing. See File No.
SR-BSE-95-04.
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The Exchange seeks to obtain permanent approval of a portion of its
fee schedule that provides credits of $.25 per trade to all non-self-
directed, electronically routed, Exchange executed trades. The
aggregate credit per firm is limited to the total monthly layoff
transaction fees charged to that firm.\6\ For purposes of the per trade
credit, ``non-self-directed'' means entered by a BEACON subscriber in a
stock in which the routing firm has no affiliation with or financial
interest in the specialist operation registered in such stock.
\6\The layoff transaction fees refer to the trade recording and
comparison charges incurred by a firm as a result of executing
trades through layoff terminals on the floor of the Exchange. These
terminals are firm proprietary systems that are integrated with the
order routing system of the New York Stock Exchange (``NYSE'') and
route orders directly to the NYSE. Telephone conversation with Karen
Aluise and Ken Meeden, BSE, and Glen Barrentine and Jennifer S.
Choi, SEC, on May 3, 1995.
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The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and, in
particular, with the [[Page 24936]] requirements of Section 6(b).\7\
The Commission believes that the proposed rule change is consistent
with the Section 6(b)(4) requirements that the rules of an exchange
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuer and other persons using its
facilities. Moreover, the Commission believes the proposal is
consistent with the Section 6(b)(5) requirements that the rules of an
exchange be designed to promote just and equitable principles of trade,
to prevent fraudulent and manipulative acts, and, in general, to
protect investors and the public interest. The Commission also believes
the proposal is consistent with the Section 6(b)(8) requirements that
the rules of the exchange do not impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act.
\7\15 U.S.C. 78f(b) (1988 & Supp. v 1993).
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The Commission believes that the proposal, which was designed to
encourage routing order flow to the Exchange, is consistent with the
requirements of the Act because the proposed rule change is adequately
circumscribed by the limitation on the aggregate amount of credit that
could be received and does not make executions off the Exchange
prohibitively expensive. The Commission, however, will continue to
review carefully all proposed rule changes, especially those governing
fees and credits on fees, for consistency with, among other things, the
requirements of Sections 6(b)(4), 6(b)(5), and 6(b)(8).
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-BSE-95-04) is approved.
\8\15 U.S.C. 78s(b)(2) (1988).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
\9\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-11447 Filed 5-9-95; 8:45 am]
BILLING CODE 8010-01-M
