[Federal Register Volume 61, Number 129 (Wednesday, July 3, 1996)]
[Notices]
[Pages 34918-34919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16925]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37373; File No. SR-PSE-96-22]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Pacific Stock Exchange,
Inc. Relating to the Establishment of a $50 Fee for One-Day Transfers
of Membership
June 26, 1996.
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 June 21,
1996, the Pacific Stock Exchange, Inc. (``PSE'' 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 PSE. 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
Currently, the PSE's Schedule of Rates for Exchange Services
(``Schedule of Rates'') provides a fee of $100 for temporary intrafirm
or interfirm transfers of membership.\1\ The PSE proposes to amend the
Schedule of Rates to: (1) establish a fee of $50 for one-day intrafirm
transfers of membership; (2) specify that a ``temporary'' transfer of
membership is for a period of less than 30 days; \2\ and (3) eliminate
a reference to ``interfirm'' temporary transfers of membership, so that
the $100 fee for temporary membership transfers will apply solely to
temporary intrafirm transfers of membership.\3\
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\1\ Currently, PSE Rule 1.10(a), ``Initial, Transfer and
Processing Fees,'' also provides for interfirm and intrafirm
transfer fees. In a separate rule filing, the PSE has proposed to
delete the transfer fees from PSE Rule 1.10(a). Under that proposal,
PSE Rule 1.23, ``Transfer of Membership,'' will govern membership
transfers but will not contain a fee schedule. See Securities
Exchange Act Release No. 37076 (April 5, 1996), 61 FR 16152 (April
11, 1996) (notice of filing of proposed rule change for File No. SR-
PSE-96-07).
\2\ The $100 fee for temporary membership transfers applies to
transfers lasting for a consecutive period lasting from two days to
less than 30 days.
\3\ According to the PSE, temporary transfers of membership
occur only between members of the same firm, not between firms.
Thus, the proposal eliminates an inaccurate reference to temporary
``interfirm'' transfers of membership. Telephone conversation
between Michael Pierson, Senior Attorney, Market Regulation, PSE,
and Yvonne Fraticelli, Attorney, Office of Market Supervision,
Division of Market Regulation, Commission, on June 24, 1996.
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The text of the proposed rule change is available at the Office of
the Secretary, PSE, and at the Commission.
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 prices 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 the
Statutory Basis for, the Proposed Rule Change
Purpose
The PSE proposes to adopt a $50 fee for members who transfer their
membership rights, on a one-day basis, to other members of the same
firm. This change is intended to address situations where floor members
are unable to be present on the trading floor for one day and need to
have substitute coverage on the floor for that day. Under the proposal,
members who expect to be away from the floor for one day will notify
the Exchange of the proposed transfer and the Exchange will bill them
$50.
The Schedule of Rates currently provides for a fee of $100 for
``temporary'' transfers of membership.\4\ That fee is intended to cover
transfers of membership that last longer than one day (but less than 30
days), such as when a floor member takes a vacation. The Exchange
believes that the proposed one-day intrafirm transfer fee will provide
an equitable alternative to the $100 temporay transfer fee for members
who are away from the floor for just one day. In addition, the PSE
notes that the proposal will address more directly situations in which
a member transfers his or her membership to another person, one a one-
day basis, on more than two separate occasions during a 30-day period.
In such situations, the member would be charged $50 for each one-day
transfer of membership. In addition, if a member notifies the PSE of a
one-day transfer, and that member is later unable to return to the
floor for a consecutive period of from two to 30 days, that member
would be charged a maximum fee of $100.
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\4\ In addition, the Schedule of Rates provides a $250 fee for
permanent intrafirm or interfirm transfers of membership.
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The Exchange also proposes to amend its Schedule of Rates with
regard to ``temporary'' transfers of membership by specifying that such
transfers are for a period of less than 30 days.\5\ In addition, the
PSE proposes to eliminate a reference in the provision governing
temporary transfers to ``interfirm'' transfers of membership, so that
the $100 fee will apply solely to temporary ``intrafirm'' transfers of
membership.\6\
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\5\ The $100 fee for a temporary transfer of membership was
implemented in 1995. See Securities Exchange Act Release No. 35817
(September 5, 1995), 60 FR 47417 (September 12, 1995) (Notice of
filing and immediate effectiveness for File No. SR-PSE-95-19).
\6\ See note 3, supra.
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Statutory Basis
The PSE believes that the proposal is consistent with Section 6(b)
of the Act, in general, and with Section 6(b)(4), in particular, in
that it provides for the equitable allocation of reasonable charges
among its members.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The PSE does not believe that the proposed rule change will 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
Written comments on the proposed rule change were neither solicited
or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change establishes or changes a due, fee
or other charge imposed by the Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the Act and subparagraph (e) of Rule
19b-4 thereunder. At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears
[[Page 34919]]
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 Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the Exchange. All
submissions should refer to the file number in the caption above and
should be submitted by July 24, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12) (1995).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-16925 Filed 7-2-96; 8:45 am]
BILLING CODE 8010-01-M