[Federal Register Volume 61, Number 74 (Tuesday, April 16, 1996)]
[Notices]
[Page 16662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9303]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37088; File No. SR-NASD-96-06]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by National Association of Securities Dealers, Inc., Relating to 
Issuer Hearing Fees

April 9, 1996.
    On February 22, 1996, the National Association of Securities 
Dealers, Inc. (``NASD'' or ``Association'') filed a proposed rule 
change with the Securities and Exchange Commission (``SEC'' or 
``Commission'') pursuant to Section 19(b)(1) of the Securities Exchange 
Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The proposed 
rule change increases the hearing fees for issuers seeking continued or 
initial inclusion on The Nasdaq Stock Market.
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    \1\ 15 U.S.C. Sec. 78s(b)(1).
    \2\ CFR 240.19b-4.
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    Notice of the proposed rule change, together with the substance of 
the proposal as initially filed, was provided by issuance of a 
Commission release (Securities Exchange Act Release No. 36900, February 
28, 1996) and by publication in the Federal Register (61 FR 8996, March 
6, 1996). No comment letters were received. This order approves 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. Part IV of Schedule D to the NASD By-Laws sets forth the 
applicable fees for an issuer's application for an exception.\3\ These 
fees are being increased from $500 to $1,400 for written applications 
and from $1,000 to $2,300 for oral applications.
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    \3\ Pursuant to a new rule numbering system for the NASD Manual 
that the NASD anticipates to put into effect 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 the new rule numbering system.
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    The costs associated with the hearing process include fixed costs 
for all applications and additional variable costs for oral hearing 
applications. The NASD states that 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 Commission finds that the proposed rule change is consistent 
with the provisions of Section 15A(b)(5) of the Act \4\ because the 
fees are an equitable allocation of the costs of providing a forum for 
issuers seeking to maintain or establish inclusion in The Nasdaq Stock 
Market. The fees are designed to be revenue neutral and directly offset 
the costs associated with providing an issuer with the type of hearing 
requested.
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    \4\ 15 U.S.C. Sec. 78o-3.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that File No. SR-NASD-96-06 be, and hereby is, approved.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-9303 Filed 4-15-96; 8:45 am]
BILLING CODE 8010-01-M