53356 Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices

1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78f(b)(4).

3 15 U.S.C. 78s(b)(3)(A).

4 17 CFR 240.19b–4(e).

5 17 CFR 240.30–3(a)(12).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–27040 Filed 10–10–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39191; File No. SR–AMEX–

97–34]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by American

Stock Exchange, Inc. Relating to

Revised Equity Fee Schedule

October 3, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Exchange Act’’),1 notice is hereby

given that on September 24, 1997, the

American Stock Exchange, Inc.

(‘‘Amex’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the fee 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 fee change from

interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The American Stock Exchange has

revised its schedule of fees imposed on

trades in exchange-traded fund products

(‘‘EXTRA Funds’’) executed on the

Exchange.

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 fee change and

discussed any comments it received on

the fee 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 the

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange currently imposes a

transaction charge and a regulatory fee

on trades in equity securities executed

on the Exchange. The Exchange’s equity

transaction charge is a two-part fee

consisting of a share charge and a value

charge, based on the total number of

shares traded and the value of such

shares, respectively. All equity trades

executed through the Exchange’s Post

Execution Reporting (‘‘PER’’) order

routing system up to 1,099 shares are

exempt from Exchange equity

transaction charges (excluding only

those for the account of nonmember

competing dealers). The Exchange also

imposes a separate regulatory fee on all

equity trades calculated at $.00005

times the value of shares traded.

The Exchange currently lists a

number of exchange-traded fund

products, which are subject to the

Exchange’s equity fee schedule.

Standard & Poor’s Depositary Receipts

(‘‘SPDRs’’) is a fund product based on

the S&P 500 Index that has traded on

the Exchange since 1993. MidCap

SPDRs and World Equity Benchmark

Shares (‘‘WEBS’’) are also currently

traded, with additional fund products

expected to be traded in the future.

The Exchange is revising its schedule

of equity fees to exempt customer (i.e.,

non broker-dealer) PER trades in

exchange-traded fund products up to

5,099 shares from both the equity

transaction charge and the regulatory

fee. We believe that these changes are

necessary in order to make the cost of

trading on the Exchange comparable to

the economics of trading these products

in other markets.

The revised equity fee schedule will

be implemented starting with

transactions effected on September 26,

1997 or as soon as practical thereafter.

The Exchange will notify member firms

as to the date of effectiveness and as to

any necessary modifications to provide

for proper identification of orders

entitled to the fee exemption.

(2) Statutory Basis

The fee change is consistent with

Section 6(b) of the Exchange Act in

general and furthers the objectives of

Section 6(b)(4) 2 in particular in that is

intended to assure the equitable

allocation of reasonable dues, fees, and

other charges among members, issuers,

and other persons using the Exchange’s

facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The fee change will impose no burden

on competition.

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 fee

change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The fee change has become effective

pursuant to Section 19(b)(3)(A) of the

Exchange Act 3 and subparagraph (e)(2)

of Exchange Act Rule 19b–4.4 At any

time within 60 days of the filing of such

fee change, the Commission may

summarily abrogate such fee 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 Exchange 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 fee change that are

filed with the Commission, and all

written communications relating to the

fee 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 in Washington, D.C. Copies of

such filing will also be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to file number SR–AMEX–

97–34 and should be submitted by

November 4, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5
Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices 53357

1Telephone conversation between Kathy

Marshall, Boston Stock Exchange, and Christine

Richardson, Division of Market Regulation,

Commission (Sep. 17, 1997).

2For example, assume Member Firm ABC

generated $100,000 in total transaction fees,

$60,000 of which were associated with electronic

order flow. Assume further that this $100,000

related to 200,000 total shares traded during the

month. Under the new fee maximum, ABC’s

electronic order flow fees would be capped at

$50,000 and any electronic order flow executed

beyond this maximum would be assessed at $0.00

throughout the remainder of the month. At the end

of the month, the Exchange would calculate the

total fees generated by ABC’s account, here $90,000

($50,000 in electronic order flow plus $40,000 in

non-electronic order flow), and divide it by the total

number of shares traded during the month. Here,

the Exchange would divide $90,000 by 200,000

shares, which would equate to a rate of $.45 per 100

average monthly shares. Thus ABC would pay a

total of $90,000 in transaction fees for that month.

If, however, the resulting rate were greater than $.45

per 100 average monthly shares, the total

transaction fees would be further reduced to this

maximum. Telephone Conversation between Kathy

Marshall, Boston Stock Exchange, and Christine

Richardson, Division of Market Regulation,

Commission (Sep. 24, 1997).

3For example, assume Member Firm ABC

executed 2,500,000 multiple automated cross trade

shares in a month comprised of 21 trading days.

Under the new proposal, the cost structure of the

first 2,100,000 multiple automated cross trade

shares (21 trading days × 100,000 average daily

shares) would not change. However, for every share

of this type executed above and beyond 100,000

average daily shares (in this example, 2,100,000

shares), the cost per share would be the lesser of

$.0025 per share or the original rate per share at the

time of execution. If a 7,500 share cross trade

generated a total fee of $30.00 ($.0040 per share),

the total fee of this trade would be capped at $18.75

($.0025 per share) for a reduction in the cost of the

trade of $11.25. If the same trade generated a total

fee of $15.00 ($.0020 per share), the total cost of the

trade would remain at $15.00. Telephone

Conversation between Kathy Marshall, Boston

Stock Exchange, and Christine Richardson, Division

of Market Regulation, Commission (Oct. 1, 1997).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27041 Filed 10–10–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 39199; File No. SR–BSE–97–

05]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Boston Stock Exchange Relating to Its

Transaction Fee Schedule

October 3, 1997.

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 September 4, 1997,

the Boston Stock Exchange, Inc. (‘‘BSE’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) 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 on the Terms of Substance of

the Proposed Rule Change

The Exchange seeks to amend its

transaction fee schedule to implement

two additional transaction fee

maximums.

The text of the proposed rule change

is available at the Office of the

Secretary, BSE 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

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 purpose of the proposed fee

revision is to respond to the needs of the

Exchange’s constituents with respect to

overall competitive market conditions

and customer satisfaction. As such, the

Exchange intends to implement two

additional transaction fee maximums.

A monthly transaction fee maximum

(including both Trade Recording and

Comparison and Value Charge fees) of

$50,000 per member firm for all

electronic order flow (both incoming

and outgoing trades) is being

implemented. The monthly electronic

transaction fee maximum of $50,000

will precede the existing total volume

maximum of $.45 per 100 average

monthly shares. Member firms will

continue to pay the current rate for

Trade Recording and Comparison and

Value Charge fees on all electronic

trades up to the maximum charge of

$50,000 for this type of order flow. Any

electronic trading beyond the $50,000

electronic transaction fee cap will be

assessed at $0.00 per 100 average

monthly shares throughout the

remainder of the month.1 If at month’s

end, a member firm’s fee for electronic

order flow has reached the $50,000

maximum and its total volume rate per

100 average monthly shares exceeds

$.45, the firm’s transaction fees will

then be capped at $.45 per 100 average

monthly shares.2

A transaction fee maximum

(including both Trade Recording and

Comparison and Value Charge fees) for

multiple automated cross trades is also

being implemented. The transaction fee

maximum of $.25 per 100 shares will

apply once a firm has executed 100,000

average daily multiple automated cross

trade shares. This maximum is in

addition to the maximum rate per trade

side of $25.00 for Trade Recording and

Comparison fees and $50.00 for Value

Charge fees. Member firms will pay the

lesser of $.25 per 100 shares or the

original rate per share at the time of

execution.3

2. Statutory Basis

The basis for the proposed rule

change is Section 6(b)(5) of the Act, in

that the proposed rule change is

designed to promote just and equitable

principles of trade; to foster cooperation

and coordination with persons engaged

in regulating clearing, settling,

processing information with respect to,

and facilitating transactions in

securities; to remove impediments to

and perfect the mechanism of a free and

open market and a national market

system; and, in general, to protect

investors and the public interest; and is

not designed to permit unfair

discrimination between customers,

issuers, brokers or dealers.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange 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

The Exchange has neither solicited

nor received comments on the proposed

rule change.

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 change 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