[Federal Register Volume 68, Number 204 (Wednesday, October 22, 2003)]
[Notices]
[Page 60431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26644]


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SECURITIES AND EXHANGE COMMISSION

[Release No. 34-48632; File No. SR-NYSE-2003-25]


Self Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval to Proposed Rule Change Relating to Continuing 
Annual Fees for ``Repackaged'' Securities

October 15, 2003.
    On August 28, 2003, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder, \2\ a 
proposed rule change to amend Section 902.02 of the NYSE's Listed 
Company Manual to implement certain changes to the continuing annual 
listing fees payable in connection with certain structured products 
called ``repackaged'' securities (``Repacks''), and to reinstate the 
Exchange's ``15-year'' policy with respect to previously listed 
Repacks.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on September 10, 2003.\3\ The Commission received no comments 
on the proposal.
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    \3\ See Securities Exchange Act Release No. 48429 (September 3, 
2003), 68 FR 53411.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with Section 6(b) of the Act, \6\ 
and in particular with Section 6(b)(4) of the Act, \7\ in that it is 
designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members and issuers and other persons 
using its facilities. The Commission believes that reinstatement of the 
``15-year'' policy for Repacks listed prior to January 1, 2003, should 
eliminate the unintended consequence of imposing an economic burden on 
Repack trusts that do not have sufficient funding to pay continuing 
annual listing fees because the trust had relied on the policy. The 
Commission notes that, with respect to Repacks listed after January 1, 
2003, the continuing annual listing fees will be applicable to Repacks 
at the time of listing and will remain in effect for the life of the 
security (i.e., the ``15-year'' policy will not apply). The Commission 
believes that the proposed rule change should provide guidance as to 
applicable fees for present and future Repacks \8\ and should provide 
trust depositors with notice for Repacks listed after January 1, 2003 
to reserve funding to pay continuing annual listing fees.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ The proposed rule change is effective from the date of this 
approval order and cannot be applied retroactively.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
\9\ that the proposed rule change (File No. SR-NYSE-2003-25) be, and it 
hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).
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    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).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-26644 Filed 10-21-03; 8:45 am]
BILLING CODE 8010-01-U