[Federal Register: May 25, 1999 (Volume 64, Number 100)] [Notices] [Page 28225-28226] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr25my99-118] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-41412; File No. SR-BSE-99-5] Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Boston Stock Exchange Relating to Its Transaction Fee Schedule May 17, 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 April 29, 1999, the Boston Stock Exchange (``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 Exchange. 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). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its transaction fee schedule to implement a maximum transaction fee cap for floor broker-entered orders executed on the Exchange. 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 Exchange 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 [[Page 28226]] places specified in Item IV below. The Exchange 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 Exchange's transaction fee schedule to improve the Exchange's overall competitive position in the marketplace. The transaction fee schedule encompasses the trade recording and comparison charges and the value charges that the Exchange applies to orders that member firms send to the Exchange for execution. The Exchange proposes to amend the schedule by implementing a maximum transaction fee cap of $.35 per 100 average monthly shares on all floor broker-entered orders executed on the Exchange. The Exchange will apply this cap to floor broker-entered orders prior to applying the existing total volume transaction fee cap of $.45 per 100 average monthly shares.\3\ --------------------------------------------------------------------------- \3\ To calculate the total transaction fees for all order flow, the Exchange will add the total fees for electronic trades (capped at $50,000 per month) to the total fees for broker-entered trades (capped at the new rate of $.35 per 100 average monthly shares). The Exchange then will apply the total volume cap of $.45 per 100 average monthly shares to that sum. Telephone conversation between Kathy Marshall, Assistant Vice President, Finance, Boston Stock Exchange, and Joshua Kans, Attorney, and Matthew Boesch, Paralegal, Division of Market Regulation, Commission, May 7, 1999. --------------------------------------------------------------------------- (2) Basis The basis for the proposed rule change in section 6(b)(5) of the Act,\4\ in that the proposed rule change is designed to promote just and equitable principles of trade; to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities; to remove impediments to and perfect the mechanism of a free and open market and a national market system; and, in general, to protect investors and the public interest; and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 that is not necessary or appropriate in furtherance of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change establishes or changes a due, fee or other charge imposed by the Exchange, it has become effective on filing, for implementation on May 1, 1999, pursuant to section 19(b)(3)(A) of the Act \5\ and subparagraph (f) of 19b-4 thereunder.\6\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A). \6\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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.\7\ Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 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 above-mentioned Exchange. All submissions should refer to File No. SR-BSE-99-5 and should be submitted by June 15, 1999. --------------------------------------------------------------------------- \7\ In reviewing these rules, the Commission has considered the effect of the proposed rule change on efficiency, competition and capital formation. 15 U.S.C. 78c(f). For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 99-13110 Filed 5-24-99; 8:45 am] BILLING CODE 8010-01-M