[Federal Register: May 15, 2003 (Volume 68, Number 94)]
[Notices]
[Page 26361-26363]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my03-116]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47816; File No. SR-BSE-2003-03]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Incorporated, Relating to Its Floor Operations Fee Schedule
May 8, 2003.
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 March 24, 2003, the Boston Stock Exchange, Incorporated
(``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. On April
22, 2003, the Exchange filed Amendment No. 1 to the proposed rule
change.\3\ The Exchange has designated
[[Page 26362]]
this proposal as one establishing or changing a due, fee or other
charge imposed by the self-regulatory organization under section
19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\
which renders the proposed rule change effective upon filing with the
Commission. The Commission is publishing this notice to 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 240.19b-4.
\3\ In Amendment No. 1, the Exchange amended the proposal (i) to
clarify the language in the proposed rule change and (ii) to seek
immediate effectiveness of the proposed rule change pursuant to
section 19(b)(3)(A) of the Act and subparagraph (f)(2) of Rule 19b-4
thereunder. See letter dated April 22, 2003, from John Boese, Vice
President, Legal and Compliance, Exchange, to Katherine England,
Assistant Director, Division of Market Regulation, Commission. For
purposes of calculating the 60-day period within which the
Commission may summarily abrogate the proposed rule change under
section 19(b)(3)(C) of the Act, the Commission considers that the
period to commence on April 22, 2003, the date the Exchange filed
Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C).
\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Floor Operations Fee Schedule to
include a provision for the pass-through of miscellaneous trading
related fees. The text of the proposed rule change is below. Proposed
new language is in italics.
* * * * *
Floor Operation Fees
(1) Occupancy/Technology:
Occupancy Fee...................... $500.00 per post per month.
Specialist/Floor Trader Technology $500.00 per Beacon terminal per
Fee. month.
Floor Broker Technology Fee........ $100.00 per Beacon terminal per
month.
Security Routing Fee............... $500.00 per month per Beacon
user-ID that has stocks routed
to it.
Floor Facility Fee................. $250.00 per person that
regularly accesses the trading
floor.
Electronic Trading Permit Fee...... $1,000.00 per trader trading
from a remote location per
month.
(2) Specialist Post Clearing and
Cashiering:
Post Cashiering Fee................ $750.00 per specialist book for
first 3 books per firm.
$100.00 per specialist book for
any books in excess of 3 per
firm.
Clearing Fee....................... $.05 per trade.
(3) Listed Specialist Trade Processing
Fees/Credits:
Pre-Opening Trades................. No Charge.
Trades in CTA Securities ranked No Charge (BSE executions
1,001 and greater. only).
Round lot.......................... $.50 per order.
Odd Lot Trades (includes CSI $.05 per order ($400 maximum
Issues). per account).
Trading Account Trades............. $1.50 per order.
ETF Trade Credit................... $2.00 per trade (maximum annual
credit capped at total amount
paid in upfront annual
registration fees).
Listed Securities
A. Maximum Total Round lot/Odd lot
charges:
CTA Trade Rank: Monthly Transaction Fee Maximum
1-50.............................. $400.
51-100............................. $300.
101-500............................ $250.
501+............................... $0*.
* Includes BSE executions only. For all other executions, the applicable
trade rate will apply..
B. 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).
(4) Other Charges:
ITS User Fee....................... $.003 per share on net outbound
specialist trades (charge for
outgoing trades offset by
cumulative credit for incoming
trades); No charge for non-
specialist firms.
Quotation Services................. Member assumes 100% of cost.
Specialist Margin Account Financing Charged daily at current broker
call rate.
Solely Listed Issue Credit......... $50.00 Credit per issue traded.
Miscellaneous Trading Charges...... Direct pass through of all
miscellaneous trading charges,
such as Nasdaq fees, other
market center access fees, ECN
access fees, trading-related
telecommunications charges,
market data service charges,
and other similar fees and
charges.
Miscellaneous Administrative At cost for phone, postage,
Charges. courier service, fax usage,
after hours BSE staff
assistance and other
applicable items.
Late Fees.......................... 1.5% will be charged on
outstanding balances as of the
last calendar day of the
month.
* * * * *
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 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
Floor Operation Fee schedule to include a
[[Page 26363]]
provision for the pass-through of all miscellaneous fees to its members
who incur such charges as a result of trading activity on the Exchange.
The provision would allow for, among other things, as applicable, the
pass-through of all Nasdaq fees, other market center access fees, ECN
access fees, trading-related telecommunications charges, market data
service charges, and other similar charges.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6 of the Act,\6\ in general, and section 6(b)(4) of the
Act,\7\ in particular, in that it provides for the equitable allocation
of reasonable dues, fees, and other charges among its members.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes 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
The proposed rule change has become immediately effective pursuant
to section 19(b)(3)(A)(ii) of the Act,\8\ and subparagraph (f)(2) of
Rule 19b-4 thereunder,\9\ in that it establishes or changes a due, fee,
or other charge imposed by the self-regulatory organization. At any
time within 60 days of the filing of such proposed rule change, the
Commission may summarily abrogate the 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.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
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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, 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 in the
Commission's Public Reference Room. 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-BSE-2003-03 and
should be submitted by June 5, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-12147 Filed 5-14-03; 8:45 am]
BILLING CODE 8010-01-P