[Federal Register Volume 60, Number 138 (Wednesday, July 19, 1995)]
[Notices]
[Pages 37113-37115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17667]
-----------------------------------------------------------------------
[[Page 37114]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35960; File No. SR-BSE-95-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Pertaining to Its Transaction Fee and Specialist Trade Processing
Fee Schedules
July 12, 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 June 1,
1995, the Boston Stock Exchange, Inc. (``BSE'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change, and amended such proposed rule change on July 7,
1995,\1\ 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.
\1\ The amendment made a number of clarifying changes to the
original filing. See letter from Karen A. Aluise, Assistant Vice
President, Boston Stock Exchange, to Glen Barrentine, Senior
Counsel, Division of Market Regulation, SEC (July 7, 1995).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its fee schedules pertaining to
transaction fees and specialist trade processing fees. The text of the
proposed rule change is as follows [new text is italicized; deleted
text is bracketed]:
Transaction Fees
* * * * * * * * *
(2) Trade Recording and Comparison Charges
BSE single-sided executions up to and including [2]5,000 No charge.
shares.
BSE cross trade executions up to and including 2,000 No charge.
shares.
All other executions
First 2,500 trades per month................................... $.29 per 100 shares.
Next 2,500 trades per month.................................... .25 per 100 shares.
Next 2,500 trades per month.................................... .15 per 100 shares.
Over 7,500 trades per month.................................... .05 per 100 shares.
Maximum charge per side ([non-cross] single-sided)......... 50.00.
Maximum charge per side (cross]............................ 100.00.
(All trades accumulate for volume discounts)
* * * * * * * * *
(3) Value Charges
BSE single-sided executions up to and including [2]5,000 $.20 per 100 shares.
shares.
BSE cross trade executions up to and including 2,000 .20 per 100 shares.
shares.
All other executions (including ITS trades)
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] single-sided)......... 100.00.
Maximum charge per side (cross)............................ 75.00.
(Contract value on these trades accumulate for volume discounts)
* * * * * * * * *
Floor Operation Fees
* * * * * * * * *
(3) Specialist Trade Processing
Pre-Opening Trades................................................. No Charge.
Trades in CTA Securities ranked 1,001 and above.................... No Charge.
Market Orders
Self-directed......................................... No Charge.
All other orders from 100-2,500 shares inclusive in .50 per trade.
top 1,000 CTA ranked stocks.
Round[-] lot/Odd[-] lot Trades..................................... .75 per order [trade].
Trading Accounts Trades............................................ 1.50 per order [5.00 per trade].
CSI Trades (pilot)
Maximum Total Round lot/Odd lot Charges
Competing Specialist....................................... 250.00 per issue.
Primary Specialist......................................... 250.00 per issue (if Competing Specialist
reaches maximum).
Credit
Primary Specialist......................................... .50 per trade (based on Competing
Specialist trade volume).
(Total of the assessed fees for round lot/odd lot trades and trade credits will not be less than zero on a per
issue basis)
[[Page 37115]]
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 several of the
Exchange's fee schedules in order to capitalize on the competitive
niches it currently enjoys and to improve the Exchange's competitive
position in the overall marketplace. (1) The existing Value Charge and
Trade Recording rates on single-sided BSE executions from 2,001 to
5,000 shares will be replaced with a $.20 per 100 shares Value Charge
rate. No Trade Recording fees will be charged on these trades. These
new rates are consistent with the fee structure currently in place for
BSE executions up to 2,000 shares. These changes will reduce members'
costs of executing mid-sized trades on the BSE. (2) Specialist Trading
Account fees will be reduced from $5.00 per trade to $1.50 per order.
(3) Specialist Trade Processing (round lot/odd lot/trading account)
fees will be levied on a per order rather than a per trade basis. (4)
Maximum total Specialist Trade Processing fees for round lot/odd lot
trades will be capped at $250.00 per month per issue for both the
competing and primary specialists in Competing Specialist Initiative
(``CSI'') issues. If, however, the competing specialist does not
generate $250.00 per month in round lot/odd lot fees in his or her
competing issue, the primary specialist will not be eligible for the
cap and, therefore, will be charged regular total trade processing
(round lot/odd lot) fees. In addition, each primary specialist will
receive a $.50 per trade credit based on the total trading volume of
the competing specialist. The total of the assessed fees for round lot/
odd lot trades and trade credits in competitive issues will not be less
than zero on a per issue basis. Due to the temporary nature of the CSI
pilot program, the Exchange proposes that this fee apply concurrently
with the CSI pilot program, which is scheduled to expire on October 2,
1995.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(4) of the
Securities Exchange Act of 1934 because it provides for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes 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
Comments were neither solicited nor 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.\2\
\2\ For the purposes of the foregoing, the Commission considers
this proposed rule change to have been filed on July 7, 1995, the
date that Amendment No. 1 was made.
---------------------------------------------------------------------------
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 Boston Stock
Exchange. All submissions should refer to File No. SR-BSE-95-11 and
should be submitted by August 9, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-17667 Filed 7-18-95; 8:45 am]
BILLING CODE 8010-01-M
