[Federal Register Volume 68, Number 22 (Monday, February 3, 2003)]
[Notices]
[Pages 5324-5325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2482]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47273; File No. SR-NYSE-2003-03]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Transaction Fees for Certain Exchange Traded Funds

January 29, 2003.
    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 January 21, 2003, the New York Stock Exchange, Inc. (``NYSE'') 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.
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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 charge transaction fees for shares of 
FrescoSM Dow Jones STOXX 50 SM Fund and 
FrescoSM Dow Jones EURO STOXX 50SM Fund, that are 
listed and traded on the Exchange. The fees will be the same 
transaction fees charged for other exchange traded funds listed and 
traded on the Exchange. Proposed new language is italicized; proposed 
deletions are in [brackets].
* * * * *

                            Transaction Fees
------------------------------------------------------------------------
                 Exchange Traded Funds                       Amount
------------------------------------------------------------------------
Exchange Traded Funds--Public Agency and Principal                 $0.60
 Transactions Broker/Dealer--price per round-lot......
    Maximum price per trade...........................               100
    System Orders under 5,100 shares \1\..............        No Charge.
Specialists and other on-floor proprietary trading--                0.63
 price per round-lot..................................
    Maximum price per trade...........................               300
Exchange Traded Funds admitted to dealings on an          No Charge. \2\
 unlisted trading privileges (UTP) basis..............
[Specific NYSE Listed Exchange Traded Funds:
    FrescoSM Dow Jones STOXX 50SM.....................    No Charge. \2\
    FrescoSM Dow Jones EURO STOXX 50SM................  No Charge. \2\]
------------------------------------------------------------------------
\1\ Not inclusive of orders of a member or member organization trading
  as an agent for the account of a non-member competing market maker.

[[Page 5325]]

 
Competing Market Maker: a specialist or market-maker registered as such
  on a registered stock exchange (other than the NYSE), or a market-
  maker bidding and offering over-the-counter, in a New York Stock
  Exchange-traded security.
\2\ This ``fee holiday'' is intended to be temporary. The Exchange
  expects to file a specific schedule of transaction charges at a future
  date.

* * * * *

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 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 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 FrescoSM Dow Jones STOXX 50SM Fund and 
FrescoSM Dow Jones EURO STOXX 50SM (``Fresco 
Funds'') were listed and commenced trading on the Exchange on October 
21, 2002.\3\ At the time of listing, the Exchange implemented a 
temporary ``fee holiday,'' constituting zero transaction charges, for 
Fresco Funds for trading them on the Exchange.\4\ The Exchange now 
proposes that starting February 1, 2003, transaction fees will be 
charged for trading of Fresco Funds. The fees will be the same 
transaction fees charged for other exchange traded funds listed and 
traded on the Exchange.\5\
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    \3\ Securities Exchange Act Release No. 46686 (October 18, 
2002), 67 FR 65388 (October 24, 2002).
    \4\ Securities Exchange Act Release No. 46786 (November 7, 
2002), 67 FR 69280 (November 15, 2002).
    \5\ 15 U.S.C. 78f(b)(4).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act \6\ in general, and furthers the 
objectives of section 6(b)(4) \7\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees and other charges 
among its members and other persons using its facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 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.

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 proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act,\8\ and rule 19b-4(f)(2) thereunder,\9\ in that 
it establishes or changes a due, fee, or other charge imposed by the 
Exchange. 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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFT 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-2003-03 and 
should be submitted by February 24, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-2482 Filed 1-31-03; 8:45 am]
BILLING CODE 8010-01-P