[Federal Register Volume 62, Number 4 (Tuesday, January 7, 1997)]
[Notices]
[Pages 1012-1013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-234]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38095; File No. SR-NYSE-96-39]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., Relating to Extending the Current $400,000 Limit on Transaction 
Charges through 1997

December 30, 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 December 
18, 1996, the New York Stock Exchange, Inc. (``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. 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

    In January 1996, the NYSE implemented a rate revision to its equity 
transaction charges. The revision included the elimination of all 
systems credits, a reduction of charges for shares 5,000 and under, the 
elimination of charges for non-market-maker system orders from 100 to 
2,099 shares, the elimination of the growth limitation of 4% over 1988 
levels, and the implementation of a monthly $400,000 transaction charge 
cap per firm, a limitation which would be indexed annually to average 
daily volume, and would be removed January 1, 1999.\1\ The proposed 
revision for the 1997 transaction charge extends the current $400,000 
cap rather than raising the cap based on the increase in volume from 
1995 to 1996.
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    \1\ Securities Exchange Act Release No. 36465 (November 8, 
1995), 60 FR 57473 (November 15, 1995).
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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 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

[[Page 1013]]

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 change is to respond to the needs of our 
constituents with respect to overall competitive market conditions and 
customer satisfaction.
(2) Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(4) that an Exchange have rules that 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its members, issuers and other persons using its 
services.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed fee change will 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

    The Exchange has not solicited, and does not intend to solicit, 
comments regarding the proposed rule change. The Exchange has not 
received any unsolicited written comments from members or other 
interested parties.

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. 
At any time within 60 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, N.W., Washington, D.C. 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, N.W., 
Washington, D.C. Copies of such filing will also be available for 
inspection and copying at the principal office of the above-mentioned 
self-regulatory organization. All submissions should refer to File No. 
SR-NYSE-96-39 and should be submitted by January 28, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-234 Filed 1-6-97; 8:45 am]
BILLING CODE 8010-01-M