[Federal Register Volume 66, Number 139 (Thursday, July 19, 2001)]
[Notices]
[Pages 37715-37716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18065]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44554; File No. SR-NYSE-2001-19]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Closed End Fund Listing Fees

July 13, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ (``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 6, 2001, 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, II, and III below, which items have been prepared by the NYSE. 
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 Exchange proposes to cap the total listing fees payable by any 
one family of closed-end funds, with respect to new or additional 
listings in 2001, once the family has paid 2001 fees aggregating at 
least $1,250,00.

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. The 
text of these statements may be examined at the places specified in 
Item IV below and is set forth in Sections A, B, and C below.

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

1. Purpose
    Most closed end investment companies, or closed end funds, that are 
listed on the Exchange are sponsored by one of a number of companies 
that specialize in this area. Many of these are household names such as 
Morgan Stanley Van Kampen; Nuveen; or Merrill Lynch Asset Management, 
to name the three with the largest number of closed end funds listed on 
the NYSE. The Exchange is actively engaged in reviewing the listing 
fees that we charge to closed end funds, and will likely propose a 
maximum that will apply to the aggregate of initial and annual fees 
paid by all the funds affiliated with a particular fund sponsor, or 
``family.'' While Exchange management has not completed this review and 
is not yet ready to put forward a definitive proposal, it is far enough 
along to consider it appropriate to put in place a maximum that will 
apply for the remainder of this year, so that fund families can be 
confident that additional listings this year will not incur fees beyond 
the level at which we anticipate a cap will be enacted.
    Accordingly, from and after the effective date of this proposal, no 
fund family will be required to pay any additional listing fees with 
respect to new or additional listings in 2001 once the family has paid 
2001 fees aggregating at least $1,250,000. A family that has paid 
aggregate fees in excess of that amount prior to the effective date 
hereof will not receive a refund, but will not be required to pay any 
additional fees with respect to this year beyond what it has paid to 
that date.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(4) \3\ 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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    \3\ 15 U.S.C. 78f(b)(4).
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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. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing proposed rule: (1) Does not significantly 
affect the protection of investors or the public interest; (2) does not 
impose any significant burden on competition; and (3) does not become 
operative for 30 days or such shorter time as the Commission may 
designate, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \4\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\5\
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    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission notes that under Rule 19b-4(f)(6)(iii),\6\ the 
proposal does not become operative for 30 days after date of its 
filing, or such shorter time as the Commission may designate if 
consistent with the protection of investors and the public interest. 
The Exchange requested that the Commission designate that the proposed 
rule change does not become operative for 15 days after the date of its 
filing so that the benefits of the proposed rule change are available 
to closed end funds more quickly. The Commission believes that 
designating the operative date of the proposal for 15 days after the 
date of the proposal's filing is consistent with the protection of 
investors and the public interest.\7\
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    \6\ 17 CFR 240.19b-4(f)(6).
    \7\ For purposes only of accelerating the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, as amended, the Commission may summarily abrogate such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the

[[Page 37716]]

public interest, for the protection of investors, or otherwise in 
furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 the SR-NYSE-2001-19 and should be submitted by August 9, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-18065 Filed 7-18-01; 8:45 am]
BILLING CODE 8010-01-M