[Federal Register Volume 65, Number 250 (Thursday, December 28, 2000)]
[Notices]
[Pages 82428-82429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-33121]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43726; File No. SR-NYSE-00-57]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. to Implement a New Trading Floor Regulatory Fee

December 14, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice hereby is given 
that on December 13, 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 Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The NYSE proposes to implement a new Trading Floor Regulatory Fee 
to be charged to members doing business on the trading floor. Each 
specialist firm would contribute according to the number of memberships 
associated with the firm. Other floor members would be assessed an 
annual fee, subject to a maximum fee per firm. 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

[[Page 82429]]

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
    The NYSE's Market Surveillance Division monitors all trading 
activity on the trading floor on a real-time basis. This surveillance 
applies to all members doing business on the trading floor. Market 
Surveillance has become increasingly important, visible, and costly 
over recent years. The proposed fee would partially offset that cost.
    Specialists would pay a total of $16 million per year to be 
allocated among specialist firms based on the number of memberships 
affiliated with each specialist firm.\3\ Non-specialist members would 
pay $11,000 per membership per year up to a maximum of $50,000 per 
member firm.
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    \3\ Thus, according to the NYSE, each membership employed in the 
business of being a specialist will bear a pro rata portion of the 
$16 million fee, and each specialist firm's obligation will be the 
sum of the portions ascribable to each specialist membership within 
that firm. Telephone conversation between James F. Duffy, Senior 
Vice President and Associate General Counsel, and Ricki Spinner, 
Principal Analyst, NYSE, and Michael Gaw, Attorney-Adviser, Division 
of Market Regulation, Commission, on December 13, 2000.
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    The Trading Floor Regulatory Fee will be implemented on January 1, 
2001.
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 of Burden on Competition

    The NYSE does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purpose 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.

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 
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 purposes 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-00-57 and 
should be submitted by January 18, 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. 00-33121 Filed 12-27-00; 8:45 am]
BILLING CODE 8010-01-M