Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Notices 2851

4 17 CFR 240.19b–4(e)(5). 1 15 U.S.C. 78s(b)(1).

2The Commission notes that the CHX has

decided to terminate the clearance and settlement

services offered by several of its subsidiaries. See

Securities Exchange Act Release No. 36684 (Jan. 5,

1995), 61 FR 1195 (approving the necessary

proposed rule changes and providing details of the

CHX’s agreement not to engage in the businesses

from which it has decided to withdraw).

3The Commission notes that the National

Association of Securities Dealers, Inc. refers to such

securities as ‘‘Nasdaq National Market Securities.’’

However, the Exchange, in order to maintain

consistency within its rules, still utilizes the term

‘‘NASDAQ/NMS Securities.’’ The Exchange intends

to update this aspect of its rules at a later date.

Telephone conversation between David T. Rusoff,

Attorney, Foley & Lardner, and Anthony P. Pecora,

Attorney, SEC (Jan. 16, 1996).

4MAX stands for ‘‘Midwest Automated Execution

System.’’ This system may be used to provide

automated delivery and execution of certain orders.

See Chicago Stock Exchange Guide, Article XX,

Rule 37.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b)(5) of the

Act in that it is designed to promote just

and equitable principles of trade, to

remove impediments and to perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest. This rule change is

designed to perfect the mechanism of a

free and open market in that it enhances

the information provided to investors by

displaying to them the dollar value of

the price improvement their orders may

have received when executed on the

CHX.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that no burden

will be placed on competition as a result

of the proposed rule change. In fact, the

Exchange believes that the NATIONAL

BEST program can reasonably be

expected to enhance competition by

disclosing to investors the amount of

savings they may realize as a result of

the price improvement their orders may

receive when executed on the CHX.

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.

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) does not have the effect of limiting

access to or availability of any Exchange

order entry or trading system, the

NATIONAL BEST program has become

effective pursuant to Section

19(b)(3)(A)(iii) of the Act and Rule 19b–

4(e)(5) thereunder.4 At any time within

60 days of the filing of such 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

purpose 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 will also be available for

inspection and copying at the principal

office of the CHX. All submissions

should refer to File No. SR–CHX–96–03

and should be submitted by February

20, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1566 Filed 1–26–96: 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36753; File No. SR–CHX–

95–30]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange, Incorporated

Relating to Order Processing Fees and

Transaction Fees

January 22, 1996.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

January 2, 1996 the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ 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. 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

The Exchange proposes to amend

Section (c), add a new Section (d), and

make conforming renumbering changes

to existing Sections (d) through (o) of its

Membership Dues and Fees Schedule.

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 rule

change is to simplify the Exchange’s

order processing and transaction fee

schedule. The new fee schedule

contemplates two types of fees. First,

the CHX will assess a processing fee for

odd lot orders and limit orders that are

placed on a specialist’s book and are

executed subsequently. The odd lot

processing fee is similar to the current

odd lot transaction fee, except that it

will not include applicable trade

recording fees.2 It will be $.35 per trade,

up to a maximum of $400.00 per month.

The open limit order processing fee will

be $.25 per limit order that is executed.

Orders in NASDAQ/NMS Securities 3

will not be assessed any order

processing fees.

Second, the Exchange will assess

certain transaction fees for orders

executed on the CHX. Market orders

sent via MAX 4 will not be assessed any
2852 Federal Register / Vol. 61, No. 19 / Monday, January 29, 1996 / Notices

5The language contained in the Exchange’s

current fee schedule refers to a ‘‘per trade’’ cap, but

the Exchange’s practice has been to interpret this

as a ‘‘per side’’ cap. Therefore, the practical effect

of this filing would be to align the language

contained in the CHX’s fee schedule with its

current interpretation. Telephone conversation

between David T. Rusoff, Attorney, Foley &

Lardner, and Glen Barrentine, Senior Counsel/Team

Leader, SEC (Jan. 18, 1996).

6See supra note 2.

7The Consolidated Tape, operated by the

Consolidated Tape Association (‘‘CTA’’), compiles

current last sale reports in certain listed securities

and disseminates these reports to vendors on a

consolidated basis. The CTA is comprised of the

New York, American, Boston, Cincinnati, Chicago,

Pacific, and Philadelphia Stock Exchanges, as well

as the Chicago Board Options Exchange and the

National Association of Securities Dealers, Inc.

Transactions in American Stock Exchange listed

stocks and qualifying regional listed stocks are

reported on CTA Tape B. See Securities Exchange

Act Release No. 35239, (Jan. 19, 1995), 60 FR 4935

(extending the waiver transaction fees for Tape B

eligible issues that are executed through MAX).

8 15 U.S.C. 78f(b).

9 15 U.S.C. 78f(b)(4).

10 15 U.S.C. 78s(b)(3)(A).

11 17 CFR 240.19b–4.

12 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1) (1988).

2Letter from Piku K. Thakkar, Assistant Counsel,

DTC, to Mark Steffensen, Esq., Division of Market

Regulation (‘‘Division’’), Commission (October 26,

1995).

3Securities Exchange Act Release No. 36545

(December 1, 1995), 60 FR 63554.

transaction fees. All other orders (except

orders of specialists, orders in

NASDAQ/NMS Securities, and orders of

a floor broker acting in the capacity as

a principal) will be charged a

transaction fee on a sliding scale. There

will be no charge for the first 500 shares;

a $.0075 per share charge for the next

2000 shares; a $.005 per share charge for

the next 7500 shares; and a $.004 per

share charge for the remaining shares of

an order. This transaction fee will be

capped at a maximum of $100.00 per

side. This cap is similar to the cap on

round lot trades today 5 except that it

will not include applicable trade

recording fees.6 The Exchange will

impose a maximum cap of $7,000 per

month for transaction fees on orders

sent via MAX that are executed. Also,

for these fees, the Exchange will impose

maximum monthly transaction fees of

$45,000 for firms with a floor broker or

market maker presence on the floor of

the Exchange and $65,000 for orders of

all-floor members. The Exchange will

continue to waive transaction fees for

orders in Tape B eligible issues that are

executed through MAX.7 In addition, all

transaction fees for orders in NASDAQ/

NMS Securities will be waived.

Fees for specialists will remain

unchanged.

Floor brokers acting in the capacity as

a principal will be charged a transaction

fee for each such order on a sliding

scale. There will be no charge for the

first 500 shares; a $.0015 per share

charge for the next 2000 shares; a $.001

per share charge for the next 7500

shares; and a $.0008 per share charge for

the remaining shares of an order. The

transaction fee will be capped at a

maximum of $20.00 per side. However,

there will be no monthly cap on these

transaction fees.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act 8

in general and furthers the objectives of

Section 6(b)(4) 9 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.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes the proposed

rule change does not impose any 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 written comments on 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 10 and

subparagraph (e) of Rule 19b–4

thereunder. 11

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 CHX. All submissions

should refer to File No. SR–CHX–95–30

and should be submitted by February

20, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1473 Filed 1–26–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35750; File No. SR–DTC–

95–18]

Self-Regulatory Organizations; The

Depository Trust Company; Order

Approving a Proposed Rule Change

Seeking to Establish a Coupon

Collection Service for Municipal Bearer

Bonds

January 22, 1996.

On September 18, 1995, The

Depository Trust Company (‘‘DTC’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) a

proposed rule change (File No. SR–

DTC–95–18) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’).1 On October 30, 1995,

DTC filed an amendment to the

proposed rule change.2 Notice of the

proposal was published in the Federal

Register on December 11, 1995.3 No

comment letters were received. For the

reasons discussed below, the

Commission is approving the proposed

rule change.

I. Description

The proposed rule change establishes

a service for the collection of interest

relating to the coupons from municipal

bearer bonds. This service includes

collection of coupons which are due in

the future as well as past-due coupons

for DTC eligible and ineligible

municipal issues payable in the United

States. Past-due coupons will be

accepted for up to three years after the

payable date.

DTC participants using this service

must deposit coupons in a standard