[Federal Register Volume 70, Number 35 (Wednesday, February 23, 2005)]
[Notices]
[Pages 8867-8868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-735]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51190; File No. SR-NYSE-2005-06]


Self-Regulatory Organizations; New York Stock Exchange; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Increase 
Annual Fee to be Paid by Participants in the Medallion Guarantee 
Program

February 11, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 7, 2005, the New 
York Stock Exchange (``NYSE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change described in items 
I, II, and III below, which items have been prepared primarily by the 
NYSE. The Commission is publishing this notice to solicit comments on 
the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to increase the 
application and annual charge to be paid by participants in the 
medallion signature guarantee program maintained by the NYSE from 
$300.00 per year to $1,000.00 per year.

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 NYSE has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of these 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by the NYSE.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule is to change the application and 
annual charge to be paid by participants in the medallion signature 
program (``MSP'') maintained by the NYSE from $300.00 to $1000.00 per 
year. In 1992, the

[[Page 8868]]

Commission approved NYSE's implementation of its signature guarantee 
program, now referred to as the MSP.\3\ At that time, the NYSE 
specified that participants in the MSP would bear the administrative 
expenses in connection with the program, which at that time was a 
charge of $300.00 to be paid upon filing an application to the program 
and annually thereafter. The $300.00 charge to participants in the MSP 
has remained unchanged since 1992.
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    \3\ Securities Exchange Act Release No. 31388 (October 30, 
1992), 57 FR 53366 (November 9, 1992), [SR File No. NYSE-92-16] 
(order approving implementation of a signature guarantee program). 
The MSP is governed by NYSE Rule 200.
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    In recent years the administrative costs for the MSP have increased 
substantially. These increases relate not only to internal costs but 
also to the costs for liability insurance premiums for blanket 
insurance coverage under the program, and for an outside vendor to 
provide administrative assistance, and for a website for use by 
participants in the program. Effective January 2005, the charge to 
members participating in the MSP will increase to $1,000.00 and will be 
payable upon a participant's filing an application to the MSP and 
annually thereafter. The NYSE will bill MSP participants the increased 
fee for 2005 in January 2005.
    The proposed rule change is consistent with the requirements of 
Section 6(b)(4) of the Act \4\ and the rules and regulations thereunder 
applicable to the NYSE because it provides for equitable allocation of 
reasonable dues, fees, and other charges among its members, issuers, 
and other persons using its facilities.
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    \4\ 15 U.S.C. 78f(b)(4).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The NYSE does not believe that the proposed rule change will 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

    No written comments relating to the proposed rule change have been 
solicited or received. The NYSE will notify the Commission of any 
written comments received by the NYSE.

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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2)\6\ 
thereunder because the proposed rule is establishing or changing a due, 
fee, or other charge. At any time within sixty days of the filing of 
such 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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 proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an E-mail to [email protected]. Please include 
File Number SR-FICC-2005-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NYSE-2005-06. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 Section, 450 Fifth 
Street, NW., Washington, DC 20549. Copies of such filing also will be 
available for inspection and copying at the principal office of the 
NYSE and on the NYSE's Web site at http://www.nyse.com. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSE-2005-06 and should be 
submitted on or before March 16, 2005.

    For the Commission by the Division of Market Regulation, 
pursuant to 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. E5-735 Filed 2-22-05; 8:45 am]
BILLING CODE 8010-01-P