[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