[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Notices]
[Pages 57497-57498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25075]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48547; File No. SR-NYSE-2003-24]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 Thereto by the New York Stock Exchange, Inc. 
to Reduce Initial and Annual Branch Office Registration Fees, 
Retroactive to January 1, 2003, Charged to Member Organizations With 
More Than One Thousand Branch Offices

September 25, 2003.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Exchange Act'') and Rule 19b-4 \2\ thereunder, notice is 
hereby given that on August 21, 2003, the New York Stock Exchange, Inc. 
(``NYSE'' or the ``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 
Exchange. On September 8, 2003, the Exchange filed Amendment No. 1 to 
the proposed rule change.\3\ The Commission is publishing this notice 
to solicit comments on the proposed rule change, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Darla C. Stuckey, Secretary, NYSE, to Nancy 
J. Sanow, Assistant Director, Division of Market Regulation, 
Commission, dated September 5, 2003 (``Amendment No. 1''). In 
Amendment No. 1, the Exchange replaced the original rule filing in 
its entirety, converted it from a 19(b)(3)(A) filing to a 19(b)(2) 
filing, and requested accelerated approval.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Changes

    The Exchange proposes to amend its 2003 Price List to reduce its 
branch office registration fees for member organizations with more than 
one thousand branch offices.

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

    In its filing with the Commission, the Exchange 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
    The Exchange increased its registration and maintenance fees 
applicable to member organization branch offices, effective January 1, 
2003.\4\ The Exchange charges an initial fee upon the opening of a new 
branch office and an annual maintenance fee for each active branch 
office. A three-tiered fee structure is used for assessment of such 
fees in which a stepped-down rate is charged based on the applicable 
tier level. This structure provides an incremental reduction in fees 
for those branch offices that exceed the level of each breakpoint.
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    \4\ See Securities Exchange Act Release No. 47174; 68 FR 2606 
(January 17, 2003) (SR-NYSE-2002-66).
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    Prior to the January 1, 2003 increases, the following fee schedule 
was in effect for both initial and annual maintenance fees:
    [sbull] $250 for each of the first 250 branch offices;
    [sbull] $150 for each of the next 250 branch offices;
    [sbull] $125 for each branch office over 500.
    The January 1, 2003 fee structure amendments resulted in the 
following schedule, which is currently in effect:
    [sbull] $350 for each of the first 1,000 branch offices;
    [sbull] $250 for each of the next 2,000 branch offices;
    [sbull] $225 for each branch office over 3,000.
    Some member organizations have raised concerns regarding the 
current branch office fee schedule, contending it is unduly burdensome 
for certain business models, which have more offices than the average 
member firm but only one or two persons staffing each office.\5\
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    \5\ Telephone call between Leah Mesfin, Attorney, Division of 
Market Regulation, Commission, and Mary Ann Furlong, Director, Rule 
and Interpretive Standards, NYSE on September 24, 2003.

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[[Page 57498]]

    In response to these concerns, the Exchange proposes reductions of 
initial and annual branch office fees, retroactive to January 1, 2003, 
as follows:
    [sbull] $350 for each of the first 1,000 branch offices 
(unchanged);
    [sbull] $150 for each of the next 2,000 branch offices (reduced 
from $250);
    [sbull] $125 for each branch office over 3,000 (reduced from $225).
2. Statutory Basis
    The proposed rule change is consistent with the requirement under 
section 6(b)(4)\6\ of the Exchange Act, which require 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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    \6\ 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 proposal does not impose any burden 
on competition that is 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

    The Exchange did not receive or solicit any written comments on the 
proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 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 
Exchange. All submissions should refer to File No. SR-NYSE-2003-24 and 
should be submitted by October 24, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to the delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-25075 Filed 10-2-03; 8:45 am]
BILLING CODE 8010-01-P