[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Notices]
[Pages 312-313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-41]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42270; File No. SR-NYSE-99-41]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the New York 
Stock Exchange, Inc. To Amend Paragraph 902.02 of the Exchange's Listed 
Company Manual

December 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 October 20, 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 Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons. For the reasons discussed 
below, the Commission is granting accelerated approval of the proposed 
rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The NYSE proposes to amend Paragraph 902.02 of the Exchange's 
Listed Company Manual (``Manual''). Paragraph 902.2 contains the 
schedule of current listing fees for companies listing securities on 
the Exchange.

[[Page 313]]

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 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 proposed rule change amends the listed company fee schedule, 
set forth in Paragraph 902.02 of the Manual, as it applies to original 
listing fees. Specifically, the Exchange seeks: (1) To delete the 
current fee cap benchmark of 125 million shares; and (2) to implement a 
$500,000 fee cap in its place levied on shares in conjunction with an 
original listing. This fee cap includes the $36,800 special charge and 
encompasses all classes of securities. The Exchange represents that the 
proposed rule change will result in a reduction of the maximum initial 
listing fee for companies seeking to list on the NYSE.\3\
---------------------------------------------------------------------------

    \3\ Conversation between Catherine R. Kinney, Group Executive 
Vice President, NYSE, and Joseph P. Corcoran, Attorney, Commission 
on December 15, 1999.
---------------------------------------------------------------------------

2. Statutory Basis
    The NYSE represents that the basis for the proposed rule change is 
Section 6(b)(4) \4\ of the Act which requires 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.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
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 NYSE. All 
submissions should refer to File No. SR-NYSE-99-41 and should be 
submitted by January 25, 2000.

IV. 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.\5\ In particular, the Commission 
finds the proposal is consistent with Section 6(b)(4) \6\ of the Act, 
which requires that the rules of an exchange provide for the equitable 
allocation of reasonable dues, fees, and other charges among its 
members and issuers and other persons using its facilities. 
Specifically, the Commission believes that the proposal may ease the 
financial burden for companies seeking to list on the Exchange, thus 
facilitating capital formation and furthering competition among the 
Exchange and other market centers.
---------------------------------------------------------------------------

    \5\ Pursuant to Section 3(f) of the Act, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    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 companies 
seeking to list on the NYSE to take advantage of the Exchange's 
reduction in initial listing fees. Accordingly, the Commission believes 
that good cause exists, consistent with Section 6(b)(5) and Section 
19(b)(2) of the Act,\7\ to grant accelerated approval of the proposed 
rule change.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5) and 78s(b)(2).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSE-99-41) is hereby 
approved on an accelerated basis.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-41 Filed 1-3-00; 8:45 am]
BILLING CODE 8010-01-M