[Federal Register Volume 68, Number 228 (Wednesday, November 26, 2003)]
[Notices]
[Pages 66520-66521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29575]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48808; File No. SR-NYSE-2003-35]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. to Extend the 30-Day Free Trial Period for Broker Volume

November 19, 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 November 14, 2003, 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 Exchange. The 
Exchange filed the proposal pursuant to Section 19(b)(3)(A)(ii) of the 
Act,\3\ and Rule 19b-4(f)(2) thereunder \4\ as one establishing or 
changing a due, fee or other charge imposed by the self-regulatory 
organization, which renders the proposal effective upon filing with the 
Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the free 30-day trial period for 
its NYSE Broker Volume Report service, a service that permits 
subscribers to view Broker Volume Reports of broker share volume 
information that the NYSE produces from the NYSE Broker Volume 
Database. 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 NYSE included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. 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
    By order dated June 13, 2003, the Commission approved a proposed 
rule change (the ``Web Service Fee Filing'') by which the NYSE 
established a monthly $300 fee for a subscriber's receipt of access to 
NYSE Broker Volume information that the NYSE makes available via a web-
based service (the ``NYSE Broker Volume Web Service'').\5\ That service 
enables subscribers to log-on to the NYSE Web site (http://www.nysedata.com) and to receive formatted displays containing 
aggregate broker-dealer volume rankings in NYSE-traded securities.
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    \5\ See Securities Exchange Act Release No. 48060 (June 19, 
2003), 68 FR 37889 (June 25, 2003)(SR-NYSE-2003-11)(approval order).
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    In the Web Service Fee Filing, NYSE agreed to waive the NYSE Broker 
Volume Web Service fee for 30 days (the ``Free Trial Period'') for any 
individual that first subscribed to the NYSE Broker Volume Web Service 
on or prior to October 1, 2003.
    The NYSE has found the Free Trial Period to constitute a successful 
marketing tool. More than half of all subscribers that subscribe to the 
NYSE Broker Volume Web Service for the 30-day Free Trial Period 
continue to subscribe after the Free Trial Period ends. For that 
reason, the NYSE proposes to extend the application of the 30-day Free 
Trial Period to subscribers that first subscribe to the NYSE Free Trial 
Period on or prior to April 1, 2004. To avoid a lapse in the 
application of the Free Trial Period, the Exchange is making the 
proposed rule change effective retroactively to October 1, 2003.\6\
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    \6\ The Commission notes that the NYSE should have filed the 
instant proposed rule change before the expiration of the original 
period approved for the 30-day free trial period in SR-NYSE-2003-11. 
To ensure uniformity in the fees paid by subscribers to the NYSE's 
Broker Volume Report service, the Commission has, in this isolated 
case, allowed the NYSE to file the instant proposed rule change 
pursuant to Section 19(b)(3)(A)(ii) and Rule 19b-4(f)(2) thereunder, 
and to apply it retroactively to October 1, 2003. The Commission 
expects that, in the future, the NYSE will monitor its proposed rule 
changes to ensure that there are no lapses that would require the 
application of a proposed rule change retroactively.
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    The NYSE proposes to continue to apply the Free Trial Period on a 
rolling basis, determined by the date on which the NYSE first entitles 
a new individual subscriber or potential individual subscriber to 
receive the NYSE Broker

[[Page 66521]]

Volume Web Service. As before, a specific individual subscriber may 
only receive the fee waiver one time.
    Exhibit A to the proposed rule change reflects the NYSE Broker 
Volume fee schedule as modified by the proposed rule change.
2. Statutory Basis
    The Exchange believes that the proposed rule is consistent with the 
provisions of Section 6(b)(4) of the Act,\7\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using its facilities.
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    \7\ 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 proposed rule change will not impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes 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 not solicited, and does not intend to solicit, 
comments regarding the proposed rule change. The Exchange has not 
received any unsolicited written comments from members or other 
interested parties.

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)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\9\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of the 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)(ii).
    \9\ 17 CFR 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 proposal 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 number SR-NYSE-2003-35 and should be 
submitted by December 17, 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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-29575 Filed 11-25-03; 8:45 am]
BILLING CODE 8010-01-P