[Federal Register Volume 64, Number 181 (Monday, September 20, 1999)]
[Notices]
[Pages 50850-50851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24350]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41858; File No. SR-NASD-99-38]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the National Association of 
Securities Dealers, Inc., To Increase the Examination Development Fee 
Payable to the New York Stock Exchange, Inc.

September 10, 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 August 6, 1999, the National Association of Securities Dealers, Inc. 
(``NASD'' or ``Association'') 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 NASD. 
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.
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I. Self Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The NASD proposes to amend Section 2(d) of Schedule A of the NASD 
By-Laws to reflect a recent increase to the examination development fee 
payable to the New York Stock Exchange, Inc. (``NYSE''), by NASD 
members taking the General Securities Representative Examination 
(``Series 7 Exam''). Additions are italicized; deletions are bracketed.

Section 2--Fees

* * * * *
    (d) There shall be a New York Stock Exchange examination 
development fee of [$40.00] $90.00 assessed as to each individual who 
takes a Series 7 examination for registration as a general securities 
representative. This fee is in addition to the registration and 
examination fees described in paragraphs (b) and (c) respectively.
* * * * *

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 NASD 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 NASD 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 NASD proposes to amend Schedule A of its By-Laws to reflect an 
increase in the NYSE Series 7 Exam development fee from $40 to $90.\3\ 
The NASD has represented that it collects this fee from its members in 
connection with its administration of the Central Registration 
Depository (``CRD'') program.\4\ After it collects the fee, the NASD 
passes the proceeds of the fee to the NYSE to cover the costs of 
providing qualification examination programs.
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    \3\ The NYSE charges its members and member organizations an 
examination development fee for each individual taking the Series 7 
Exam to recover the costs of providing qualification examination 
programs. On June 17, 1999, the NYSE filed a proposed rule change 
with the Commission increasing its examination development fee from 
$40 to $90. See Securities Exchange Act Rel. No. 41548 (June 22, 
1999), 64 FR 35231 (June 30, 1999). The NYSE initially adopted in 
1986 an examination development fee of $10; it increased this fee to 
$40 in 1990.
    \4\ Telephone conversation between Mary Dunbar, Associate 
General Counsel, National Association of Securities Dealers 
Regulation, Inc. (``NASDR''), and Gordon Fuller, Special Counsel, 
and Matthew Boesch, Paralegal, Division of Market Regulation, 
Commission (August 17, 1999).
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    The NASD proposes to make the rule change effective on or about 
September 15, 1999. The effective date was announced on August 18, 
1999, in a Notice To Members.\5\
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    \5\ Letter from Alden Adkins, Senior Vice President and General 
Counsel, NASDR, to Richard Strasser, Assistant Director, Division of 
Market Regulation, Commission, dated August 20, 1999.
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2. Statutory Basis
    The NASD represents that it believes the proposed rule change is 
consistent with the provisions of Section 15A(b)(5) \6\ of the Act, 
which requires, among other things, that the Association's rules must 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among members and issuers and other persons using any 
facility or system which the Association operates or controls.
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    \6\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The NASD represents that it does not believe that the proposed rule 
change will result in 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

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4 
\8\ thereunder in that it is a change to a due, fee, or other charge 
imposed by the NASD. 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,

[[Page 50851]]

or otherwise in furtherance of the purposes of the Act.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240-19b-4(f)(2).
    \9\ In reviewing this proposal, the Commission has considered 
the proposal's 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 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, 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 
NASD. All submissions should refer to file No. SR-NASD-99-38 and should 
be submitted by October 12, 1999.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-24350 Filed 9-16-99; 8:45 am]
BILLING CODE 8010-01-M