[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Notices]
[Pages 359-361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-79]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36631; File No. SR-CSE-95-08]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Cincinnati Stock Exchange,
Inc. Relating to Exchange Rule 11.10, National Securities Trading
System Fees
December 21, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 16, 1995 the
Cincinnati Stock
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Exchange, Inc. (``CSE'' or ``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 self-regulatory organization. On December 1, 1995, the Exchange
submitted Amendment No. 1 text to the proposed rule change.\2\ On
December 20, 1995, the Exchange submitted Amendment No. 2 to the
proposed rule change.\3\ 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\ See Letter from Robert Ackermann, Vice President Regulatory
Services, CSE, to Glen Barrentine, Team Leader, Division of Market
Regulation, SEC, dated December 1, 1995. In Amendment No. 1, the
Exchange clarified that Designated Dealer (``DD'') transactions
resulting from trades assigned to the DD acting as ``Dealer of the
Day'' are charged at the rate of $0.005 per share.
\3\ See Letter from Robert Ackermann, Vice President Regulatory
Services, CSE, to Glen Barrentine, Team Leader, Division of Market
Regulation, SEC, dated December 20, 1995. In Amendment No. 2, the
Exchange submitted revised text to proposed CSE Rule 11.10 G(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange hereby amends Rule 11.10 regarding fees imposed by the
Exchange. The text of the proposed rule change is as follows [new text
is italicized; deleted text is bracketed]:
Rule 11.10 National Securities Trading System Fees
A. Agency Transactions.
Except for Preferenced transactions, members acting as an agent
will be charged $0.0025 per share ($0.25/100 shares) for public
agency transactions. [except that there will be no transaction fee
charge for public agency limit orders executed from the CSE limit
order book.]
B. through F. No. Change.
G. Proprietary (principal) Transactions.
1. All Designated Dealers, except those acting as Preferencing
Dealers or Contributing Dealers, will be charged $0.005 per share
($0.50/100 shares) [$.0075 per share ($0.75/100 shares)] for
principal transactions excluding ITS transactions. [unless acting as
Dealer of the Day, a Preferencing Dealer or a Contributing Dealer
except, ITS Transactions] Designated Dealers will be billed $0.0050
per share on outbound ITS trades and $0.0000 per share on inbound
ITS trades. All Designated Dealers' charges are subject to the
minimum charges set forth in paragraph 5 below. (Billable shares
shall not exceed 650,000 shares times the number of trading days in
any given month.)
2. through 5. No Change.
H. through M. No Change.
II. Self-Regulatory Organization's Statement of the Purpose of and
Statutory Basis for, the Proposed Rule Change
1. Purpose
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 Exchange has determined to amend the fee charged limit orders
executed through the facilities of the Exchange's limit order book such
that the fee charged for market orders and limit orders executed
through that facility will be the same.\4\ Additionally, the fee
charged Designated Dealers \5\ has been lowered.
\4\ In order to encourage all members to place public agency
limit orders on the CSE book, the Exchange in August 1994 amended
Rule 11.10 to eliminate the transaction charge on public agency
limit orders. See Securities Exchange Act Release No. 34493, (August
5, 1994), 59 FR 41531 (August 12, 1994) (approving File No. SR-CSE-
94-6).
\5\ A Designated Dealer (``DD'') is a proprietary member who
maintains a minimum net capital of at least the greater of $100,000
or the amount required under Rule 15c3-1 of the Act, and who has
been approved by the Exchange's Securities Committee to perform
market functions by entering bids and offers for securities
designated by the Securities Committee to be traded in the CSE's
National Securities Trading System (``designated issues'') into that
System. See CSE Rule 11.9(a)(3). The DD status obligates the dealer
to guarantee execution of all public agency market orders and agency
limit orders up to 2,099 shares. See Release No. 34493, supra note
4.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the Act
\6\ in general and furthers the objectives of Section 6(b)(4) \7\ in
particular in that it provides for the equitable allocation of
reasonable dues, fees, and other charges among the Exchange's members
and other persons using its facilities.
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change constitutes 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 \8\ and
subparagraph (e) of Rule 19b-4 thereunder.\9\
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4.
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At any time within sixty 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.
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 also will be available for
inspection and copying at the principal office of the Cincinnati Stock
Exchange. All submissions should refer to File No. SR-CSE-95-08 and
should be submitted by January 25, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-79 Filed 1-3-96; 8:45 am]
BILLING CODE 8010-01-M