[Federal Register Volume 65, Number 250 (Thursday, December 28, 2000)]
[Notices]
[Pages 82429-82430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-33127]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43741; File No. SR-NYSE-00-47]


Self-Regulatory Organizations; Notice of Filing and Order 
Granting Accelerated Approval of Proposed Rule Change by the New York 
Stock Exchange, Inc. Relating to Listed Company Fees

December 19, 2000.
    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 November 29, 2000, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 and to approve the 
proposal on an accelerated basis.
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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 amend Paragraphs 902.02 through .04 of the 
Exchange's Listed Company Manual (the ``Manual''), conforming the 
minimum original listing fee for overseas companies to that applied to 
domestic companies earlier this year, increasing the minimum continuing 
listing fee applicable to domestic companies, and adopting a specific 
schedule for closed-end funds. The text of the proposed rule change is 
available at the Office of the Secretary, the NYSE, and at the 
Commission.

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

    In its filing with the 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 III below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

[[Page 82430]]

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

1. Purpose
    Earlier this year the Exchange amended its listing fee schedule to 
implement a minimum original listing fee for each domestic issuer 
(excluding closed-end funds).\3\ Having had a positive experience with 
this matter, and to achieve greater consistency in the minimum fee 
applicable to domestic and overseas companies, the Exchange proposes to 
raise the minimum original listing fee for overseas companies to 
$150,000 as well, from its present level of $100,000.
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    \3\ See Securities Exchange Act Release No. 42604 (March 31, 
2000), 65 FR 18415 (April 7, 2000) (SR-NYSE-00-10).
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    The Exchange also imposes on listed companies continuing annual 
fees, generally based on the number of shares listed on the Exchange. 
Currently the Exchange imposes a minimum continuing fee for overseas 
companies of $35,000, while the minimum for domestic companies is 
$16,170. Again, having had a positive experience with the minimum 
continuing annual fee applicable to overseas companies, the Exchange 
proposes to raise the minimum continuing annual fee for domestic 
companies to the same level, $35,000. Companies with more than one 
class of common stock where both issues are below the new minimum fee 
would incur an increased fee only on the issue with the most shares 
outstanding. The other class would be charged at the per share and 
minimum rate in effect today. In addition, companies that listed during 
2000 will be billed for the year 2001 only at the per share and minimum 
rate in effect today, moving to the new schedule in 2002.
    The minimum continuing fee for closed-end funds would be $25,000 
for funds with ten million shares or less; those with greater than ten 
million shares would pay a minimum of $35,000. Families of funds with 
from five to fifteen funds outstanding would receive a discount of 5%, 
while those with greater than fifteen funds listed on the Exchange 
would receive a 10% discount on the continuing annual fee applied to 
each fund.
    The Exchange has a separate schedule of fees for ``short-term 
securities,'' which are securities having a term of seven years or less 
(e.g., index warrants, foreign currency warrants, contingent value 
rights, etc.). The minimum continuing annual fee for short-term 
securities is being raised to $17,500, in line with the increase 
discussed above for regular common stock.
    Finally, the Exchange considers it appropriate to specify a 
separate annual continuing fee minimum of $3,600 for other equity 
issues as specified in Section 902.02 of the Manual.
    The Exchange proposes to implement all the foregoing changes as of 
January 1, 2001.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
Section 6(b) of the Act \4\ in general, and furthers the objectives of 
Section 6(b)(4) of the Act \5\ in particular, in that it provides 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).
    \5\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed fee change will not impose 
any burden on competition that is not necessary or appropriate in the 
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 neither solicited nor received any 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 
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 
NYSE. All submissions should refer to File No. SR-NYSE-00-47 and should 
be submitted by January 18, 2001.

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 and the rules and regulations 
thereunder applicable to a national securities exchange. In particular, 
the Commission finds that the proposed rule change is consistent with 
Section 6(b)(4) of the Act, which provides for the equitable allocation 
of reasonable dues, fees, and other charges among an exchange's members 
and issuers and other persons using its facilities.\6\ The Commission 
believes that the Exchange's changes to its listing fees are not 
unreasonable.
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    \6\ 15 U.S.C. 78f(b)(4).
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    Finally, the Commission, pursuant to Section 19(b)(2) of the 
Act,\7\ finds good cause for approving the proposed rule change prior 
to the thirtieth day after the date of publication of notice thereof in 
the Federal Register.\8\ The Commission notes that granting accelerated 
approval to this proposal will allow the NYSE to implement the fee 
changes by January 1, 2001. Accordingly, the Commission finds that 
there is good cause, consistent with Section 19(b)(2) of the Act,\9\ to 
approve the proposal on an accelerated basis.
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    \7\ 15 U.S.C. 78s(b)(2).
    \8\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \9\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (SR-NYSE-00-47) is hereby 
approved on an accelerated basis.
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    \10\ Id.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-33127 Filed 12-27-00; 8:45 am]
BILLING CODE 8010-01-M