[Federal Register Volume 62, Number 209 (Wednesday, October 29, 1997)]
[Notices]
[Pages 56219-56220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28569]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39264; File No. SR-NYSE-97-26]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the New York 
Stock Exchange, Inc. Relating to Listing Fees for Short-Term 
Instruments

October 22, 1997.
    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 September 18, 1997, 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 self-regulatory 
organization. The Commission is published this notice to solicit 
comments on the proposed rule change from interested persons. The 
Commission is also granting accelerated approval to this proposed rule 
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange is proposing to amend its rule regarding listing fees 
for short-term instruments contained in Paragraph 902.03 of the Listed 
Company Manual. Currently, the Exchange charges reduced listing fees 
for short term instruments with terms of less than five years. Pursuant 
to the proposed rule change, the Exchange will charge such reduced 
listing fees for instruments with a term of up to seven years.
    The Exchange requests the Commission to find good cause, pursuant 
to Section 19(b)(2) of the Act, for approving the proposed rule change 
prior to the thirtieth day after publication in the Federal Register 
because this rule change will benefit issuers and investors by reducing 
listing fees on certain short-term instruments and that accelerated 
approval will provide such benefits in an expedited fashion.

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 III 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 Exchange has listing standards for a variety of short-term 
special purpose securities (e.g., index warrants, foreign current 
warrants, contingent value rights). By their terms, these are 
instruments that will be listed on the Exchange for only a short period 
of time. Accordingly, in 1990 the Exchange adopted reduced listing fees 
for such short-term securities and defined such securities as having a 
term of less than five years.\1\ Issuers now are seeking to list 
special purpose securities with a life of up to seven years. Thus, the 
purpose of this filing is to amend the definition of short-term 
securities to cover securities with a life of seven years or less. This 
effectively will reduce the listing fees for instruments with a term of 
five to seven years.
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    \1\ File No. SR-NYSE-91-01.
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2. Statutory Basis
    The Exchange believes that the basis under the Act for this 
proposed rule change is the requirement under Section 6(b)(4) \2\ that 
an exchange have rules that provide for the equitable allocation of 
reasonable dues, fees and other charges among its members and other 
persons using its facilities.
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    \2\ 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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    No written comments were either solicited or received.

III. 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.,

[[Page 56220]]

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 at the Commission's Public 
Reference Room. 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-NYSE-97-26 and should be 
submitted by November 19, 1997.

IV. Commission's Findings and Order Granting Accelerated Approval 
of Proposed Rule Change

    The Commission finds that the NYSE's proposed rule change is 
consistent with the requirements of Section 6(b) of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange. Specifically, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(4) of the Act \3\ which provides 
that an exchange have rules that provide for the equitable allocation 
of reasonable dues, fees and other charges among its members and other 
persons using its facilities.\4\ The Commission believes that the 
proposed rule change to amend the definition of short-term security, 
for purposes of listing fees only, is reasonable because it could help 
benefit issuers and investors by reducing listing fees on certain 
short-term products. The Commission notes that the NYSE has represented 
that this proposed change would not effect any other NYSE rules.\5\
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    \3\ 15 U.S.C. 78f(b)(4).
    \4\ In approving this rule, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ Telephone conversation between Vincent A. Pattent, Assistant 
Vice President, NYSE, and Heather Seidel, Attorney, Market 
Regulation, Commission, on October 7, 1997,
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    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice of filing thereof in the Federal Register. The Commission 
believes that accelerated approval of the proposal is appropriate 
because it will provide benefits to investors in an expedited way. 
Further, the Commission believes that the proposed rule change does not 
raise any new regulatory issues.
    It is therefore ordered, pursuant to Section 19(b)(2) \6\ that the 
proposed rule change is hereby approved on an accelerated basis.

    \6\ 15 U.S.C. 78s(b)(2).
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    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. 97-28569 Filed 10-28-97; 8:45 am]
BILLING CODE 8010-01-M