[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Notices]
[Pages 77952-77953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31684]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43664; File No. SR-NYSE-00-50]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., To Revise Its Fee Schedule for Equity Transaction Fees

December 4, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 77953]]

(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice hereby is given 
that on November 29, 2000, 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, II, 
and III 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.
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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 NYSE proposes to revise its fee schedule for Equity Transaction 
Fees to be effective January 1, 2001. This fee revision would raise the 
monthly transaction fee cap to $500,000 per member firm and increases 
the rate for the first 5,000 shares of a trade to $.0023 from $.0019 
per share. The proposed rule change is available at the principal 
office of the NYSE and at the Commission's Public Reference Room.

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 regarding the proposed rule change. 
The text of these statements may be examined at the places specified in 
Item IV 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
    In 1996, the NYSE established a cap on transaction charges of 
$400,000 per month per firm.\3\ According to the Exchange, it initially 
planned to increase the cap each year in proportion to the increase in 
trading volume. Had it invoked the indexing provision each year, the 
cap for 2001 would be approximately $1,100,000. The increase in volume 
during 2000 compared with 1999 is about 24 percent.
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    \3\ See Securities Exchange Act Release No. 36465 (November 8, 
1995), 60 FR 57473 (November 15, 1995) (File No. SR-NYSE-95-38).
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    Commencing January 1, 2001, the Exchange proposes to establish the 
cap at $500,000 per firm per month, representing an increase in 
proportion to the above described increase in trading volume. The 
Exchange also proposes, effective January 1, 2001, to increase the rate 
charged for transactions in the 5,000 share and under category from 
$.0019 per share to $.0023 per share. The $.0019 rate was also 
established in 1996 and has not been changed since then. This increase 
is roughly in the same proportion as the increase in the cap and 
ensures that the firms that do and do not reach the cap will be treated 
equitably.
2. Statutory Basis
    The NYSE believes that the basis under the Act for the proposed 
rule change is the requirement under section 6(b)(4) \4\ 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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    \4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The NYSE believes that the proposed rule change would 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

    The NYSE has neither solicited nor received written comments on the 
proposed rule change. The NYSE has not received any unsolicited written 
comments from members or other interested parties.

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

    The foregoing rule change establishes or changes a due, fee, or 
other charge imposed by the Exchange and therefore has become effective 
on filing pursuant to section 19(B)(3)(A)(ii) of the Act \5\ and 
subparagraph (f)(2) of Rule 19b-4 \6\ thereunder. At any time within 60 
days of the filing of such 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 furtherance of the 
purpose of the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(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 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 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-00-50 and 
should be submitted by January 3, 2001.

    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. 00-31684 Filed 12-12-00; 8:45 am]
BILLING CODE 8010-01-M