[Federal Register Volume 63, Number 145 (Wednesday, July 29, 1998)]
[Notices]
[Pages 40577-40578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20191]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40249; File No. SR-PCX-98-32]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change and Amendment No. 1 Thereto by the Pacific Exchange, Inc.
Relating to Listing and Maintenance Fees for Nasdaq Listings
July 22, 1998.
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 July 14, 1998, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'' or
``SEC'') the proposed rule change as described in Items I, II and III
below, which Items have been prepared by the Exchange.\3\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1) (1994).
\2\ 17 CFR 240.19b-4 (1997).
\3\ The proposed rule change was originally filed on June 19,
1998 pursuant to Section 19(b)(3)(A)(ii) of the Act. The amendment
converted the proposed rule change to a filing pursuant to Section
19(b)(2) of the Act because the proposed rule change modifies fees
that apply to issuers. Letter from Robert P. Pacileo, Staff
Attorney, Regulatory Policy, PCX to Kelly McCormick, Attorney,
Office of Market Supervision, Division of Market Regulation,
Commission, dated July 10, 1998.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to modify its listing and maintenance fees so
that certain issues listed on both the PCX and the Nasdaq Stock Market,
Inc. (``Nasdaq'') will be deemed to be ``dually listed'' for purposes
of the Exchange's Listing Fee Schedule. The text of the proposed rule
change is set out below. Additions are italicized. Deletions are
bracketed.
Listing Fee Schedule
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Original Listing Fees--Original Listing fees are fixed
fees in that they are not charged by the number of
shares being listed:
Common Stock, dually listed on NYSE [or] AMEX, or Nasdaq
National Market........................................ $10,000.00
Common Stock, not listed on NYSE [or] AMEX, or Nasdaq
National Market........................................ 20,000.00
Annual Maintenance Listing Fee (Billed and payable
January of each year following initial listing):
For one issue, dually listed on NYSE [or] AMEX, or
Nasdaq National Market................................. $1,000.00
For one issue, not listed on NYSE [or] AMEX, or Nasdaq
National Market........................................ 2,000.00
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[[Page 40578]]
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 PCX 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 PCX 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
Currently, under the exchange's listing fee schedule, common stock
that is dually listed on both the PCX and either the New York Stock
Exchange (``NYSE'') or the American Stock Exchange (``Amex'') is
subject to an original listing fee of $10,000.00. Common stock not
dually listed on both the PCX and either the NYSE or the Amex is
subject to an original listing fee of $20,000.00. The Exchange
recognizes that Nasdaq is a primary listing association and that Nasdaq
bears the primary obligation to ensure that its issuers meet the
appropriate listing standards. Therefore, the PCX will be conducting
listing maintenance reviews for Nasdaq issues on an annual basis along
with other dually listed issues (i.e., those listed on the NYSE and
Amex) and not on a quarterly basis. The Exchange believes that the
proposal will encourage issuers listed on Nasdaq to list on the PCX.
Proposed Fee Change
To reflect the cost of dual listings and annual maintenance listing
reviews, the PCX is proposing to change the following fees. Currently,
the listing fee for an original listing of any Nasdaq common stock
issue (Nasdaq National Market (``NNM'') and Nasdaq SmallCap Market
(``SCM'')) is $20,000.00. Under the proposal, the fee would be reduced
to $10,000.00 for NNM issues. Currently, the annual maintenance listing
fee for any one Nasdaq listed issue is $2,000.00. Under the proposal,
the fee would be reduced to $1,000.00 for any one NNM issue.\4\
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\4\ The original listing fee and annual maintenance fee for SCM
securities would remain unchanged. The listing maintenance review
for SCM securities will also remain unchanged, and continue to be
conducted quarterly. Telephone call between Robert P. Pacileo,
Attorney, PCX and Kelly McCormick, Attorney, Division of Market
Regulation, SEC, July 6, 1998.
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2. Basis
The Exchange believes that this proposal is consistent with Section
6(b) of the Act,\5\ in general, and Section 6(b)(4),\6\ in that it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members, issuers and other persons
using its facilities.
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\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
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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
Written comments on the proposed rule change 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 PCX 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, 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, 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 Room. Copies of such filing will also be
available for inspection and copying at the principal office of the
PCX. All submissions should refer to File No. SR-PCX-98-32 and should
be submitted by August 19, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-20191 Filed 7-28-98; 8:45 am]
BILLING CODE 8010-01-M
