[Federal Register Volume 61, Number 45 (Wednesday, March 6, 1996)]
[Notices]
[Pages 8996-8997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5156]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36900; File No. SR-NASD-96-06]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by National Association of Securities Dealers, Inc. Relating to
Issuer Hearing Fees
February 28, 1996.
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
22, 1996, the National Association of Securities Dealers, Inc.
(``NASD'' or ``Association'') 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 NASD. 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 NASD is herewith filing a proposed rule change to revise the
issuer hearing fee under Part IV of Schedule D to the NASD By-Laws.\1\
Below is the text of the proposed rule change. Proposed new language is
italicized; proposed deletions are in brackets.
\1\ Pursuant to a new rule numbering system for the NASD Manual
anticipated to be effective no later than May 1, 1996, this rule
will become Rule 4530. See Exchange Act Release No. 36698 (January
11, 1996), 61 FR 1419 (January 19, 1996), order approving new rule
numbering system.
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Part IV
Listing Fees
* * * * *
Issuer Hearing Fee
I. Hearing Fee
1. Each issuer that applies for an exception under Article IX of
the Code of Procedure to the requirements of Parts II or III of
Schedule D to the By-Laws shall pay a fee to the Nasdaq Stock Market,
Inc. to cover the cost of considering such application as follows:
(a) where the application is to be considered on the basis of
written submissions from the issuer, $1,400 [$500]; or
(b) where the application is to be considered on the basis of an
oral hearing, whether in person or by telephone, $2,300 [$1,000].
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 NASD 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 NASD has prepared summaries, set forth in Sections
(A), (B), and (C) below, of the most significant aspects of such
statements.
(A) I. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Parts II and III of Schedule D to the NASD By-Laws set forth the
requirements applicable to issuers for initial and continued inclusion
in the Nasdaq Stock Market. Pursuant to Article IX of the NASD Code of
Procedure, issuers may apply for an exception to these requirements,
which shall be considered by a hearing panel designated by the Board of
Governors. The purpose of the proposed rule change is to increase the
hearing fee from $500 to $1,400 for written applications and from
$1,000 to $2,300 for oral applications.
The costs associated with the hearing process include fixed costs
for all applications and additional variable costs for oral hearing
applications. The increased fees relate directly to these costs and
reflect the recovery of the fixed costs evenly across all hearing
applicants and the recovery of the additional variable costs only from
oral hearing applicants. The fees are designed to be revenue neutral
based on the number of exception applications for the most recent year.
The NASD believes that the proposed rule change is consistent with
the provisions of Section 15A(b)(5) of the Act \2\ in that the fee
increases are allocated equitably to provide a forum for issuers
seeking to retain a Nasdaq listing or issuers seeking to be listed on
Nasdaq under an exception to current listing standards. The new fees
are intended to directly offset the costs associated with the hearing
process, and are distributed among issuers based on the type of hearing
requested.
\2\ 15 U.S.C. 78o-3.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
The NASD does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants, or Others
Written comments were neither solicited nor received.
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 such 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. 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. Copies of such filing will also be
available for inspection and copying at the principal office of the
NASD. All submissions should refer to the file number in the caption
above and should be submitted by March 27, 1996.
[[Page 8997]]
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
\3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-5156 Filed 3-5-96; 8:45 am]
BILLING CODE 8010-01-M
