[Federal Register Volume 66, Number 233 (Tuesday, December 4, 2001)]
[Notices]
[Pages 63086-63087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29987]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45112; File No. SR-NYSE-2001-47]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by New York Stock Exchange, Inc. 
To Implement Three CRD Processing Fees and a One-Time System Transition 
Fee in Connection with the Administration of Forms U-4 and U-5

November 28, 2001.
    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 6, 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 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 proposed rule change implements three Web CRD processing fees 
and a one-time System Transition Fee charged to NYSE members and member 
organizations who are not members of the National Association of 
Securities Dealers, Inc. (``NASD'') in connection with the 
administration and processing of Forms U-4 or U-5 through the Web CRD 
system.

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

    In its filing with the Commission, 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, The Exchange 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
    Prior to November 13, 2000, Exchange members and member 
organizations who were not members of NASD were required to manually 
file Form U-4 \3\ and Form U-5 \4\ with the Exchange's Qualifications 
and Registrations Department. These members and member organizations 
primarily conduct business on the Floor of the Exchange and are not 
required to be registered with NASD.
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    \3\ Uniform Application for Securities Industry Registration or 
Transfer.
    \4\ Uniform Termination Notice for Securities Industry 
Registration.
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    Effective November 13, 2000, Exchange members and member 
organizations who are not members of the NASD are required to submit 
(in connection with NYSE Rules 345.12 and .18) Forms U-4 and U-5 
through NASD Regulation, Inc.'s (``NASDR'') Web CRD system (``Web 
CRD''). The filings are processed electronically through the Internet. 
Specific details regarding the filing procedures associated with this 
transition were published in NYSE Information Memo Number 00-25 \5\ 
dated October 13, 2000. Including associated persons of NYSE-only 
members and member organizations in Web CRD enables the Exchange to 
more efficiently perform its regulatory responsibilities for all 
members and member organizations and ultimately enhances investor 
protection.
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    \5\ A follow-up Information Memo will be issued to reaffirm the 
registration filing process for NYSE-only members and member 
organizations and to update the fee schedule. The NYSE submitted a 
draft Information Memorandum and Fee Schedule that reflected such 
registration process and updated fee schedule. E-mail dated November 
21, 2001 from Mary Anne Furlong, Director, Rule and Interpretive 
Standards, NYSE, to John Riedel, Attorney Adviser, Division of 
Market Regulation (``Division''), to Commission.
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    The proposed rule change implements three processing fees and a 
one-time system transition fee imposed upon NYSE-only members and 
member organizations resulting from the Exchange's directive that 
registration filing be submitted to Web CRD. Members and member 
organizations will be instructed to pay the CRD processing fees 
directly to NASDR through Web CRD. NASDR will collect the appropriate 
fees directly to NASDR through Web CRD. NASDR will collect the 
appropriate processing fees at the time the NYSE member or member 
organization effects a registration transaction through Web CRD.
    The three processing fees are the same as those charged dual NYSE/
NASD registrants, and are as follows:
    First, the proposed rule change implements an $85 CRD Processing 
Fee charged for all Initial, Transfer, and Re-license Form U-4 filings. 
This fee, combined with current, corresponding NYSE fees, will bring 
the total amount paid to NASDR for Initial Individual Registration to 
$150 ($65 NYSE Standard Application Fee + $85 CRD Processing Fee). The 
total amount paid for Transfer and Re-licensing will amount to $128 
($43 NYSE Standard Application Fee + $85 CRD Processing Fee). The NYSE 
Application Fees of $65 (for Initial Individual Registration) and $43 
(for Transfers and for Re-licensing) will be passed on to the NYSE by 
NASDR.\6\ This is the same process and fee structure that already 
applies to dual NASD/NYSE members and member organizations filing 
through Web CRD.
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    \6\ These fees offset the costs to the NYSE for the review and 
processing of all applications. Telephone call between Mary Anne 
Furlong, Director, Rule and Interpretive Standards, NYSE, and John 
Riedel, Attorney Adviser, Division, Commission, dated November 20, 
2001.
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    Second, the proposed rule change implements a $95-CRD Disclosure 
Processing Fee charged in connection with Forms U-4 and U-5 for all 
filings with new or amended disclosure information. (There is no 
corresponding NYSE fee.)
    Thirdly, the proposed rule change implements an annual $30 CRD 
System Processing Fee. Therefore, the total annual processing/
maintenance cost per registered person will be $82, which includes the 
current $52 NYSE annual maintenance fee that will be passed on to the 
NYSE.\7\
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    \7\ This is an annual maintenance fee to cover costs associated 
with the registration program. Telephone call between Mary Anne 
Furlong, Director, Rule and Interpretive Standards, NYSE, Elizabeth 
Badaway, Accountant, Division, Commission, and Terri Evans, 
Assistant Director, Division, Commission, dated November 26, 2001.
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    In addition to the fees outlined above, sole NYSE members and 
member organizations will be required to pay a one-time System 
Transition Fee of $115 per registered person as of December 31, 2001, 
payable January, 2002.\8\
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    \8\ This is a fee payable to the NASD to cover special 
arrangements for NYSE-only members filing through Web CRD. Telephone 
call between Mary Anne Furlong, Division, Commission, and Terri 
Evans, Assistant Director, Division, Commission, dated November 26, 
2001.
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2. Statutory Basis
    The statutory basis for the proposed rule change in section 6(b)(4) 
of the Act \9\ that permits the rules of an

[[Page 63087]]

exchange to provide for the equitable allocation of reasonable dues, 
fees and other charges among the members, issuers and other persons 
using its facilities.
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    \9\ 15 U.S.C. 78(f)(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change does not 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 Exchange has neither solicited nor received comments on the 
proposed rule change.

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

    The Exchange has designated the proposed rule change as a fee 
change pursuant to section 19(b)(3)(A)(ii) of the Act \10\ and 
subparagraph (f) of Rule 19b-4 thereunder.\11\ Accordingly, the 
proposed rule change has become effective upon filing. 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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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f).
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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 in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of NYSE. 
All submissions should refer to the File Number SR-NYSE-2001-47 and 
should be submitted by December 26, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to the delegated authority.\12\
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    \12\ 17 CFR 200.3-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-29987 Filed 12-3-01; 8:45 am]
BILLING CODE 8010-01-M