[Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
[Notices]
[Pages 13838-13839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6916]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41171; File No. SY-NYSE-99-8]
Self-Regulatory Organization; Notice of Filing and Order Granting
Accelerated Approval to a Proposed Rule Change by the New York Stock
Exchange, Inc. Relating to Continuing Annual Listing Fees
March 15, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 16, 1999, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the NYSE. The Commission is
publishing this notice and order to solicit comments on the proposed
rule change from interested persons and to grant accelerated approval
to the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
Paragraph 902.02(C) of the Exchange's Listed Company Manual
(``Manual'') contains the schedule of current continuing annual listing
fees for NYSE-listed companies. The Exchange proposes to amend
Paragraph 902.02(c) of the Manual.Paragraph 902.02(C) currently
establishes a maximum continuing annual listing fee of $500,000 for
each issue (i.e., security) listed by an issuer. The NYSE proposes to
amend Paragraph 902.02(C) to apply a $500,000 cap to all securities
listed by an issuer, other than derivative products, fixed-income
products, and closed-end funds. The Exchange seeks accelerated approval
of the proposed
[[Page 13839]]
amendment to Paragraph 902.02(C) of the Manual.
The text of the proposed rule change is available at the Office of
the Secretary, NYSE 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 NYSE 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 III below. The NYSE has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspect of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Purpose
The proposed rule change amends the listed company fee schedule,
set forth in Paragraph 902.02 of the Manual, as it applies to
continuing annual listing fees. Specifically, the Exchange seeks to
amend the current capped fee structure, whereby the continuing annual
listing fee for each issue (i.e., security) is capped at $500,000.
Under the proposal, the $500,000 cap will apply to all issues combined
for each issuer. Thus, in computing the continuing annual listing fee
for a particular issuer, the Exchange will sum up the fees for each
class (or series) of security for a listed company and cap the feed for
the issuer at $500,000. For purposes of this calculation, derivative
products and fixed-income products will not be subject to the $500,000
cap and will continue to be billed separately, above and beyond the
cap. In addition, closed-end funds will continue to be treated
separately.
2. Statutory Basis
The basis under the Act for the proposed rule change is the
requirement under Section 6(b)(4) \3\ that an exchange have rules that
provide for the equitable allocation of reasonable dues, fees and other
charges among its members and issuers and other persons using its
facilities.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 written comments on
the proposed rule change.
III. Commission's Findings and Order Granting Accelerated Approval
of Proposed Rule Change
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange, and in
particular, with the requirements of Section 6 of the Act.\4\ More
specifically, the Commission believes that the reduction in continuing
annual listing fees is consistent with Section 6(b)(4) of the Act,\5\
which requires that the rules of an exchange assure the equitable
allocation of reasonable dues, fees, and other charges among members,
issuers, and other persons using its facilities.\6\ The Commission
believes that the proposal may ease the financial burden for NYSE-
listed companies that list multiple issues on the Exchange, thus
facilitating capital formation and furthering competition among the
Exchange and other market centers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
\6\ In approving the proposal, the Commission has considered its
impact on efficiency, competition, and capital formation, 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
The Commission finds good cause for approving the proposal prior to
the thirtieth day after the date of publication of notice thereof in
the Federal Register. Accelerated approval will permit Exchange-listed
issuers to take advantage of the Exchange's reduction in continuing
annual listing fees. Accordingly, the Commission believes that good
cause exists, consistent with Section 6(b)(5) and Section 19(b)(2) of
the Act, to grant accelerated approval to the proposal.\7\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5) and 78s(b)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. 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 Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the NYSE. All
submissions should refer to File No. SR-NYSE-99-8 and should be
submitted by April 12, 1999.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-NYSE-99-8) is approved on an
accelerated basis.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-6916 Filed 3-19-99; 8:45 am]
BILLING CODE 8010-01-M
