[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Notices]
[Page 41079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19582]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44622; File No. SR-NYSE-2001-20]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange 
Inc. Relating to Charges for Exchange Traded Funds Admitted to Dealings 
on a Unlisted Trading Privileges Basis

July 30, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on July 10, 2001, 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 NYSE. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change form interested persons.
---------------------------------------------------------------------------

    \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 that at this time no transactions fees will be 
charged for investment company units (more commonly referred to as 
``exchange traded funds'' or ``ETFs'') admitted to dealings on the 
Exchange on an unlisted trading privilege (``UTP'') basis.
    The text of the proposed rule change is available at the NYSE and 
at the Commission.

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 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 IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant parts of such 
statements.

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

1. Purpose
    The Exchange anticipates that it will shortly admit ETFs to 
dealings on the Exchange pursuant to UTP. The Exchange desires to 
garner experience in providing a market for these high-volume EFTs on a 
UTP basis before determining the transaction fee schedule to apply to 
these products. The current competitive environment includes payment 
for order flow made by certain other markets trading these securities. 
Accordingly, the Exchange proposes to implement a ``fee holiday,'' 
constituting zero transactions charges, for the ETFs admitted to 
dealings on the Exchange on a UTP basis for the initial months of 
trading. The Exchange expects to file a specific schedule of 
transaction charges at a future date.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6 of the Act \3\ in general, and furthers the objectives 
of Section 6(b)(4) of the Act \4\ in particular, because it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members, issuers, and other persons using its 
facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C 78f.
    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    NYSE does not believe that the proposed fee change will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Exchange Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Because the proposed rule change is designated by the NYSE as 
establishing or changing a due, fee, or other charge, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A)(ii) or the 
Act \5\ and Rule 19b-4(f)(2) \6\ thereunder.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.

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 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-2001-20 and 
should be submitted by August 27, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-19582 Filed 8-3-01; 8:45 am]
BILLING CODE 8010-01-M