[Federal Register Volume 70, Number 1 (Monday, January 3, 2005)]
[Notices]
[Pages 126-128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28669]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50928; File No. SR-BSE-2004-59]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Boston Stock Exchange,
Inc. To Amend the Exchange's Rule Relating to its Regulatory
Transaction Fee
December 23, 2004.
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 December 17, 2004, the Boston Stock Exchange, Inc. (``BSE'' 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 Exchange. The
proposed rule change has been filed by BSE as a ``non-controversial''
rule change pursuant to 19(b)(3)(A) of the Act\3\ and Rule 19b-4(f)(6)
thereunder,\4\ which tenders the proposal effective on 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\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
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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 chapter XXIII, section 2 of the BSE
Rules relating to the Exchange's regulatory transaction fee.
The text of the proposed rule change is set forth below. Proposed
new language is italicized; deletions are bracketed.
* * * * *
Rules of the Boston Stock Exchange Chapter XXIII: Stamp Taxes--
Transaction Fee
Sec. 1--No change.
Regulatory Transaction Fee [Under Securities Exchange Act of 1934]
Sec. 2. So long as the Exchange shall be registered as a national
securities exchange, there shall be paid to the Exchange by each member
of member-organization monthly in such manner and at such time as the
Exchange shall direct, a regulatory transaction fee. The monthly
regulatory transaction fee shall equal the member's aggregate dollar
amount of covered sales occurring that month (other than those
resulting from options transactions) divided by the Exchange's
aggregate dollar amount of covered sales (other than those resulting
from options transactions) occurring that month, multiplied by the
Section 31 fees payable by the Exchange to the Commission for that
month, multiplied by the Section 31 fees payable by the Exchange to the
Commission for that month (other than those resulting from options
transactions). [the sum of one cent for each $300 or fraction thereof
of the dollar volume of the sales of securities upon the Exchange
(whether or not cleared through the Boston Stock Exchange Clearing
Corporation) by such member or member-organization during the preceding
month]. [Any such member or member-organization required by the
foregoing Rule to pay any sum to the Exchange in respect of any sale
upon the Exchange shall charge and collect from the person for whom he
or it was acting in making such transaction, the sum of one cent for
each $300 or fraction thereof of the dollar amount involved in such
transaction.]
Sec. 3--No change.
* * * * *
[[Page 127]]
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 parts of such
statements.
A. Self-Regulatory Organizations's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend chapter XXIII, section 2 of the BSE
Rules regarding transaction fees to change language in the rule to
represent that the Exchange will be assessing a fee to each member for
sales of securities on the Exchange and that the aggregate amount of
all such fees assessed to Exchange members will reflect as nearly as
possible the fee assessed to the Exchange by the Commission pursuant to
section 31 of the Act.\5\ The transaction fee covered by this rule is
applicable to equity securities only. The Exchange anticipates filing a
rule in the future to assess a transaction fee for options
transactions.
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\5\ 15 U.S.C. 78ee.
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The regulatory transaction fee, similar to the fee the Exchange has
collected in the past, will equal as nearly as possible, the member's
aggregate dollar amount of cover sales \6\ occurring that month (other
than those resulting from options transactions) divided by the
Exchange's aggregate dollar amount of covered sales (other than those
resulting from options transactions) occurring that month, multiplied
by the amount of section 31 fees payable by the Exchange to the
Commission for that month (other than those resulting from options
transactions). To the extent that additional funds are collected, they
will be used for other proper regulatory purposes.
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\6\ See 17 CFR 240.31(a)(6).
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The Exchange is also proposing eliminating language in chapter
XXIII, section 2 of the BSE Rules, which directs BSE members to charge
persons for whom the member makes a transaction on the Exchange an
amount equivalent to the charge which the member is assessed. Since
fees assessed under section 31 of the Act are the responsibility of the
Exchange, BSE will not require, by rule or otherwise, that its members
charge their customers in any manner a fee for which the ultimate
customer is not responsible.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\7\ in general, and section 6(b)(4) of the
Act,\8\ in particular, in that it provides for the equitable allocation
of reasonable dues, fees, and other charges among its members.
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\7\ 15 U.S.C. 78f(b).
\8\ 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
impose any inappropriate burden on competition
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 in
connection with the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because, the foregoing proposed rule change (1) does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms, does not become operative until 30 days from the
date on which it was filed, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, and the Exchange provided the Commission with written notice
of its intent to file the proposed rule change at least five business
days prior to the date of filing of the proposed rule change, it has
become effective pursuant to section 19(b)(3)(A) of the Act \9\ and
Rule 19b-4(f)(6) thereunder.\10\
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\9\ 19 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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BSE has requested that the Commission waive the 30-day operative
delay. The Commission believes waiving the 30-day operative delay is
consistent with the protection of investors and the public interest,
because doing so will make chapter XXIII, section 2 of the BSE Rules
consistent with the Commission's guidance on section 31 of the Act as
quickly as possible. For these reasons, the Commission hereby
designates the proposal to be effective and operative upon filing with
the Commission.\11\
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\11\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
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At any time within 60 days of the filing of this 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, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected].
Please include File Number SR-BSE-2004-59 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-BSE-2004-59. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 also will be
available for inspection and copying at the principal
[[Page 128]]
office of BSE. All comments received will be posted without change; the
Commission does not edit personal identify8ing information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-BSE-
2004-59 and should be submitted on or before January 24, 2009.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-28669 Filed 12-30-04; 8:45 am]
BILLING CODE 8010-01-M