[Federal Register Volume 64, Number 125 (Wednesday, June 30, 1999)]
[Notices]
[Page 35231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16646]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41548; File No. SR-NYSE-99-28]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., to Increase the Examination Development Fee for the General 
Securities Representative Examination (Series 7)

June 22, 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 June 17, 1999, the New York Stock Exchange, Incorporated (``NYSE'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated this proposal as one establishing or changing a 
due, fee, or other charge imposed by the NYSE under Section 
19(b)(3)(A)(ii) of the Act,\3\ which renders the proposal effective 
upon filing with the Commission. 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).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to increase from $40 to $90 the examination 
development fee for the General Securities Representative Examination 
(``Series 7 Exam''). The fee will be charged to members and member 
organizations for each person who applies to take the Series 7 Exam.

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

    In its filing with Commission, the Exchange 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 Exchange 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 initial exam development fee of $10 was adopted in 1986 and was 
intended to offset in part the costs of providing qualification 
examination programs by the Exchange. Prior to 1986 the Exchange 
received no fees to cover such expenses. In 1990, the fee was increased 
from $10 to $40.
    The Exchange proposes to increase the fee to $90 to offset, in 
part, the costs of qualification examination and other sales practice 
related services provided by the Exchange. These costs include industry 
meetings, manpower, supplies, overhead, and other expenses associated 
with developing and maintaining the examination as well as costs to 
maintain the Exchange's Sales Practice Review Program including, but 
not limited to, field examinations. The development fee increase would 
also be used for the implementation of enhancements to the Series 7 
Exam program which will ensure that the examination continues to 
reflect sound psychometric principles as well as employs up-to-date 
technology.
2. Statutory Basis
    The statutory basis for the proposed rule change is Section 6(b)(4) 
of the Act,\4\ which requires the rules of an exchange to provide for 
the equitable allocation of reasonable dues fees, and other charges 
among the members, issuers and other persons using its services.
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    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believe that the proposed rule change will not 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

    Comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \5\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\6\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the proposed rule change, the 
Commission may summarily abrogate such rule change if it appears to the 
Commission that such action is necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furthermore 
of the purposes of the Act.\7\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
    \7\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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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 proposal 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 20549-0609. 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 Exchange. All 
submissions should refer to file number SR-NYSE-99-28, and should be 
submitted by July 21, 1999.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-16646 Filed 6-29-99; 8:45 am]
BILLING CODE 8010-01-M