Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Boston Stock Exchange, Inc., Relating to the Value Charges on Intermarket Trading System Trades

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35462; File No. SR-BSE-95-1]

Self-Regulatory Organizations; Notice of Filing and Immediate

Effectiveness of Proposed Rule Change by the Boston Stock Exchange,

Inc., Relating to the Value Charges on Intermarket Trading System

Trades

March 8, 1995.

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 February

3, 1995, 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 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 seeks to make permanent the portion of its fee

schedule pertaining to value charges on non-specialist Intermarket

Trading System (``ITS'') trades and the waiver of ITS user fees. By a

filing, which the Commission noticed on November 24, 1992, the Exchange

amended its fee schedule to provide for a $.003 per share user fee on

net outbound specialist trades, value charges of $.002 per share for

BSE executions up to and including 2,000 shares, and a range of value

charges per $1,000 contract values for all BSE executions over 2,000

shares.\1\

\1\See Securities Exchange Act Release No. 31515 (Nov. 24,

1992), 57 FR 56937 (notice of immediate effectiveness of File No.

SR-BSE-92-9).

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Moreover, the Exchange amended its fee schedule to provide for

value charges, and waive user fees, on all non-specialist ITS trades

for a one-year period.\2\

\2\The portion of the proposed rule change that was amended for

a one-year period was intended to replace the ITS user fee of $.003

per share on ``outbound trades only.''

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By a filing, which the Commission noticed on November 10, 1993, the

Exchange extended the value charges on non-specialist ITS trades and

the waiver of the non-specialist ITS user fees for a six-month

period.\3\ The Exchange now proposes to amend permanently its fee

schedule to impose value charges, and waive user fees, on all non-

specialist ITS trades as follows:

\3\See Securities Exchange Act Release No. 33184 (Nov. 10,

1993), 58 FR 60709 (notice of immediate effectiveness of File No.

SR-BSE-93-22).

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Value Charges

First $10 million per month--$.16 per $1,000 contract value

Next $40 million per month--$.13 per $1,000 contract value

Next $50 million per month--$.10 per $1,000 contract value

Next $100 million per month--$.08 per $1,000 contract value

Next $300 million per month--$.05 per $1,000 contract value

$500.1 + million per month--$.01 per $1,000 contract value

Maximum charge per side (non-cross) $100.00

Maximum charge per side (cross) $75.00

I.T.S. User Fee--No charge for non-specialist firms

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 amend permanently the

Exchange's fee schedule regarding certain ITS fees. At the request of

the Commisson, the Exchange had temporarily amended a portion of its

proposed rule filing SR-BSE-92-9 [[Page 14042]] regarding certain ITS

transactions. The Exchange temporarily amended these fees in 1992 for a

one-year period and extended these fees in 1993 for a six-month period,

pending the outcome of the Market 2000 Study.\4\ The affected fees are

comprised of the value charges instituted on all nonspecialist outbond

ITS trades, which replaces the ITS User Fee of $.003 per share on all

outbound trades incurred by non-specialist firms.

\4\The six-month extension expired in May 1994. BSE did not seek

another extension until this filing.

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2. Statutory Basis

The statutory basis for this proposal is Section 6(b)(4) of the

Securities Exchange Act of 1934.

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.\5\

\5\At the time of the original filing in 1992, the Exchange

solicited comments from the Fee Committee of the Board of Governors,

comprised of representatives of dealer-specialist, retail, and

institutional firms, the Executive Committee, which serves as the

Board of Governors of the Clearing Corporation, and the Board of

Governors of the Exchange. See Securities Exchange Act Release No.

31515 (Nov. 24, 1992), 57 FR 56937 (notice of immediate

effectiveness of File No. SR-BSE-92-9).

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III. Date of Effectiveness of the Proposed Rule Change and Timing

for Commission Action

The foregoing rule change establishes 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 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 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 Exchange. All

submissions should refer to File No. SR-BSE-95-1 and should be

submitted by April 5, 1995.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95-6353 Filed 3-14-95; 8:45 am]

BILLING CODE 8010-01-M