[Federal Register Volume 64, Number 173 (Wednesday, September 8, 1999)]
[Notices]
[Page 48887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23241]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41809; File No. SR-BSE-99-12]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. Amending Its Revenue Sharing Program
August 30, 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 July 30, 1999, the Boston Stock Exchange, Inc. (``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 BSE. The Commission is publishing this
notice of 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 240.19n-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to revise its Revenue Sharing Program to
exclude non-BSE automated transaction fees.
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 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.
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 Revenue
Sharing Program highlighted on the BSE's Transaction Fee Schedule.
Currently, the Exchange shares 50% of any excess monthly transaction
related revenue above $1,300,000 with those firms that generate $50,000
in both BSE and non-BSE automated transaction fees. The Exchange
proposes to exclude non-BSE automated transaction fees from this
computation.\3\ Thus, under the proposed rule change, only firms that
generate $50,000 in BSE transaction fees will receive a share of excess
revenue.\4\
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\3\ Non-BSE automated transactions refer to trades executed
through the New York Stock Exchange's Designated Order Turnaround
(DOT) system. The Exchange wishes to tailor its Revenue Sharing
Program to apply only to Base executed transactions. Telephone
conversation between Kathy Marshall, Assistant Vice President,
Finance, BSE, Richard Strasser, Assistant Director, Division of
Market Regulation (``Division''), Commission, and Sonia Patton,
Attorney, Division, Commission, on August 26, 1999.
\4\ Eligible firms will receive excess revenue in the form of a
credit that will be applied toward each firm's total monthly
transaction fees. See Securities Exchange Act Release No. 40591
(Oct. 22, 1998), 63 FR 58078 (Oct. 29, 1998).
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\5\ in general, and furthers the objectives of Section 6(b)(4) \6\
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other changes among its
members.\7\
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ The Commission notes that the filing may raise questions
concerning payment for order flow. To the extent that it does raise
such issues, exchange members should consider any associated
disclosure obligations, namely pursuant to Rules 10b-10 and 11 Ac1-3
under the Act, 17 CFR 240.10b-10 and 17 CFR 240.11Ac1-3,
respectively.
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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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited or received comments on the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The proposed rule change establishes or changes a due, fee, or
other charge imposed by the BSE and, therefore, has become effective
upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule
19b-4(f)(2) \9\ 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.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii)
\9\17 CFR 240.19b-4(f)(2).
\10\ In reviewing this rule change, the Commission has
considered the proposal's impact on efficiency, competition, and
capital formation, consistent with Section 3 of the Act. 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, N.W., Washington, D.C. 20549-
0609. 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 will also be
available for inspection and copying at the principal office of the
BSE. All submissions should refer to the File No. SR-BSE-99-12 and
should be submitted by September 29, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-23241 Filed 9-7-99; 8:45 am]
BILLING CODE 8010-01-M
