[Federal Register Volume 59, Number 12 (Wednesday, January 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1169]
[[Page Unknown]]
[Federal Register: January 19, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33455; File No. SR-NASD-94-1]
Self-Regulatory Organizations; Notice and Immediate Effectiveness
of Proposed Rule Change by the National Association of Securities
Dealers, Inc., Relating to a Waiver of ITS/CAES Service Fees for
November and December 1993
January 11, 1994.
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 January
6, 1994, the National Association of Securities Dealers, Inc.
(``NASD'') 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 NASD. The purpose
of the proposed rule change is to authorize the waiver of member
service fees associated with the operation of the NASD's Intermarket
Trading System/Computer Assisted Execution System (``ITS/CAES'') for
November and December 1993. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASD is submitting this rule filing to authorize the waiver of
member service fees associated with the operation of the NASD's ITS/
CAES for November and December 1993. Specifically, the service fees
proposed to be waived are contained in NASD's By-Laws, Schedule D, Part
VIII, Section A.4.
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 NASD 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 NASD 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
This rule change reflects the NASD's determination to temporarily
waive the collection of ITS/CAES service fees for November and December
1993.\1\ Such action has resulted from the positive financial and
operational developments experienced in the equities marketplace
generally in 1993, including members' increased usage of ITS/CAES.\2\
The waiver of ITS/CAES service fees for November and December of 1993
will maintain total revenue from ITS/CAES at levels believed to be
reasonable in relation to recovery of the development and ongoing
operational costs associated with the system.
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\1\The NASD only is proposing to waive the ITS/CAES service
fees; the equipment related charges noted in section A.4. are not
being waived for November and December 1993.
\2\See also Securities Exchange Act Release No. 33143 (November
3, 1993), 58 FR 59773.
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The NASD believes that the proposed rule change is consistent with
and in furtherance of section 15A(b)(5) of the Act. Section 15A(b)(5)
requires that the rules of a national securities association provide
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which the association operates or controls. By waiving ITS/CAES
service fees for a limited two-month period, the NASD believes that the
total fees assessed for ITS/CAES usage by members will remain at levels
sufficient to ensure satisfaction of the statutory mandate that these
fees be reasonably and equitably allocated.
B. Self-Regulatory Organization's Statement on Burden on Competition
The NASD believes that the proposed rule change will not 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to section
19(b)(3)(A) of the Act and subparagraph (e) of Rule 19b-4 thereunder
because the proposal establishes or changes a due, fee, or other charge
imposed by the NASD. At any time within 60 days of the filing of such
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.
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 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
NASD. All submissions should refer to the file number in the caption
above and should be submitted by February 9, 1994.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-1169 Filed 1-18-94; 8:45 am]
BILLING CODE 8010-01-M