[Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
[Notices]
[Pages 13838-13839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6916]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41171; File No. SY-NYSE-99-8]


Self-Regulatory Organization; Notice of Filing and Order Granting 
Accelerated Approval to a Proposed Rule Change by the New York Stock 
Exchange, Inc. Relating to Continuing Annual Listing Fees

March 15, 1999.
    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 February 16, 1999, 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 NYSE. The Commission is 
publishing this notice and order to solicit comments on the proposed 
rule change from interested persons and to grant accelerated approval 
to the 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

    Paragraph 902.02(C) of the Exchange's Listed Company Manual 
(``Manual'') contains the schedule of current continuing annual listing 
fees for NYSE-listed companies. The Exchange proposes to amend 
Paragraph 902.02(c) of the Manual.Paragraph 902.02(C) currently 
establishes a maximum continuing annual listing fee of $500,000 for 
each issue (i.e., security) listed by an issuer. The NYSE proposes to 
amend Paragraph 902.02(C) to apply a $500,000 cap to all securities 
listed by an issuer, other than derivative products, fixed-income 
products, and closed-end funds. The Exchange seeks accelerated approval 
of the proposed

[[Page 13839]]

amendment to Paragraph 902.02(C) of the Manual.
    The text of the proposed rule change is available at the Office of 
the Secretary, NYSE and at the Commission.

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 NYSE 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 NYSE has prepared summaries, set forth in Sections 
A, B, and C below, of the most significant aspect of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

Purpose
    The proposed rule change amends the listed company fee schedule, 
set forth in Paragraph 902.02 of the Manual, as it applies to 
continuing annual listing fees. Specifically, the Exchange seeks to 
amend the current capped fee structure, whereby the continuing annual 
listing fee for each issue (i.e., security) is capped at $500,000. 
Under the proposal, the $500,000 cap will apply to all issues combined 
for each issuer. Thus, in computing the continuing annual listing fee 
for a particular issuer, the Exchange will sum up the fees for each 
class (or series) of security for a listed company and cap the feed for 
the issuer at $500,000. For purposes of this calculation, derivative 
products and fixed-income products will not be subject to the $500,000 
cap and will continue to be billed separately, above and beyond the 
cap. In addition, closed-end funds will continue to be treated 
separately.
2. Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(4) \3\ that an exchange have rules that 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its members and issuers and other persons using its 
facilities.
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    \3\ 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange, and in 
particular, with the requirements of Section 6 of the Act.\4\ More 
specifically, the Commission believes that the reduction in continuing 
annual listing fees is consistent with Section 6(b)(4) of the Act,\5\ 
which requires that the rules of an exchange assure the equitable 
allocation of reasonable dues, fees, and other charges among members, 
issuers, and other persons using its facilities.\6\ The Commission 
believes that the proposal may ease the financial burden for NYSE-
listed companies that list multiple issues on the Exchange, thus 
facilitating capital formation and furthering competition among the 
Exchange and other market centers.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ In approving the proposal, the Commission has considered its 
impact on efficiency, competition, and capital formation, 15 U.S.C. 
78c(f).
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    The Commission finds good cause for approving the proposal prior to 
the thirtieth day after the date of publication of notice thereof in 
the Federal Register. Accelerated approval will permit Exchange-listed 
issuers to take advantage of the Exchange's reduction in continuing 
annual listing fees. Accordingly, the Commission believes that good 
cause exists, consistent with Section 6(b)(5) and Section 19(b)(2) of 
the Act, to grant accelerated approval to the proposal.\7\
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    \7\ 15 U.S.C. 78f(b)(5) and 78s(b)(2).
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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 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 at 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of the NYSE. All 
submissions should refer to File No. SR-NYSE-99-8 and should be 
submitted by April 12, 1999.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSE-99-8) is approved on an 
accelerated basis.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-6916 Filed 3-19-99; 8:45 am]
BILLING CODE 8010-01-M