436 Federal Register / Vol. 61, No. 4 / Friday, January 5, 1996 / Notices

13See supra note 11.

14 Id.

15 15 U.S.C. § 78s(b)(2) (1988).

16 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1).

2Securities Exchange Act Release No. 36659

(December 29, 1995). The Commission notes that

pursuant to File No. SR–95–46, the NYSE revised

its equity transaction charges, effective January 2,

1996, to eliminate the exclusion currently in place

that precludes orders for competing market makers

from the no charge provision for system orders

between 100 to 2099 shares. This revision had the

effect of removing all NYSE equity transaction

charges on competing market maker system orders

between 100 to 2099 shares. If approved, the

NYSE’s current filing (SR–NYSE–95–47) would

reimpose a charge of $0.00190 on such share

volume, retroactive to January 2, 1996.

3The Commission notes that the equity

transaction charge of $0.00190 that this filing would

impose upon competing market maker system share

volume on orders between 100 to 2099 shares was

first introduced by the NYSE pursuant to File No.

SR–NYSE–95–38, which was noticed for comment

in Securities Exchange Act Release No. 36465

(November 8, 1995) 60 FR 57473. The Commission

received three comment letters in connection with

that filing. These letters are available in File No.

SR–NYSE–95–38.

Commission.13 Accelerated approval of

the proposed rule change will thereby

provide for the desired uniformity of

equity option hedge exemptions within

the exchange traded options market.

Any other course of action could lead to

unnecessary investor confusion. In

addition, the Chicago Board Options

Exchange, Inc.’s (‘‘CBOE’’) proposal was

noticed for the entire twenty-one day

comment period and generated no

negative responses.14 Lastly, accelerated

approval of the rule proposal will allow

the NASD’s hedge exemption pilot

program to continue on an

uninterrupted basis. Accordingly, the

Commission believes that it is

consistent with Section 15A(b)(6) of the

Act to approve the proposed rule change

on an accelerated bais.

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) 15 of the Act that the

proposed rule change (File No. SR–

BASD–85–56) is hereby approved on an

accelerated basis, and, accordingly, the

hedge exemption pilot program as

expanded herein is extended until

December 31, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.16

Jonathan G. Katz,

Secretary.

[FR Doc. 96–169 Filed 1–4–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36658; File No. SR–NYSE–

95–47]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

New York Stock Exchange, Inc.,

Relating to the Exclusion of Certain

Orders From Trading at No Charge

December 29, 1995.

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

Securities Exchange Act of 1934

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

December 29, 1995, the New York Stock

Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the selfregulatory 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 that, effective

January 2, 1996, certain orders be

excluded from the specified system

orders between 100 and 2,099 shares

that are eligible to be traded at no charge

as set forth in companion filing (SR–

NYSE–95–46).2 The ineligible orders to

be excluded are those with the

following descriptions:

An order of a member or member

organization trading as agent for the account

of a non-member competing market maker.

Competing Market Maker: a specialist or

market maker registered as such on a

registered stock exchange (other than the

NYSE), or a market maker bidding and

offering over-the-counter, in a New York

Stock Exchange-traded security.

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 this filing is to seek

approval to exclude specific orders

defined in Item I. above from those

eligible system orders to be traded at no

charge.

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 this

proposed fee change will not impose

any burden on competition that is not

necessary or appropriate in the

furtherance of the purposes of the Act.

The proposed fee change is structured to

maintain the current relationship

between member proprietary and nonmember market maker activities in

Exchange-listed securities. In this

regard, the Exchange is not seeking to

give additional encouragement to

members to send to the Exchange

proprietary orders of competing market

makers, which the Exchange believes

would inappropriately promote the

direct competitive activities of nonmember market makers.

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.3

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

(A) by order approve the proposed rule

change, or

(B) institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing.
Federal Register / Vol. 61, No. 4 / Friday, January 5, 1996 / Notices 437

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. Copies of such filing

will also be available for inspection and

copying at the principal office of the

NYSE. All submissions should refer to

the File Number SR–NYSE–95–47 and

should be submitted by February 20,

1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 96–170 Filed 1–4–96; 8:45 am]

BILLING CODE 8010–01–M