[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Notices]
[Pages 77952-77953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31684]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43664; File No. SR-NYSE-00-50]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc., To Revise Its Fee Schedule for Equity Transaction Fees
December 4, 2000.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 77953]]
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice hereby is given
that on November 29, 2000, 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
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.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The NYSE proposes to revise its fee schedule for Equity Transaction
Fees to be effective January 1, 2001. This fee revision would raise the
monthly transaction fee cap to $500,000 per member firm and increases
the rate for the first 5,000 shares of a trade to $.0023 from $.0019
per share. The proposed rule change is available at the principal
office of the NYSE and at the Commission's Public Reference Room.
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 regarding 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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
In 1996, the NYSE established a cap on transaction charges of
$400,000 per month per firm.\3\ According to the Exchange, it initially
planned to increase the cap each year in proportion to the increase in
trading volume. Had it invoked the indexing provision each year, the
cap for 2001 would be approximately $1,100,000. The increase in volume
during 2000 compared with 1999 is about 24 percent.
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\3\ See Securities Exchange Act Release No. 36465 (November 8,
1995), 60 FR 57473 (November 15, 1995) (File No. SR-NYSE-95-38).
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Commencing January 1, 2001, the Exchange proposes to establish the
cap at $500,000 per firm per month, representing an increase in
proportion to the above described increase in trading volume. The
Exchange also proposes, effective January 1, 2001, to increase the rate
charged for transactions in the 5,000 share and under category from
$.0019 per share to $.0023 per share. The $.0019 rate was also
established in 1996 and has not been changed since then. This increase
is roughly in the same proportion as the increase in the cap and
ensures that the firms that do and do not reach the cap will be treated
equitably.
2. Statutory Basis
The NYSE believes that the basis under the Act for the proposed
rule change is the requirement under section 6(b)(4) \4\ 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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\4\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The NYSE believes that the proposed rule change would 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 NYSE has neither solicited nor received written comments on the
proposed rule change. The NYSE 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 foregoing rule change establishes or changes a due, fee, or
other charge imposed by the Exchange and therefore has become effective
on filing pursuant to section 19(B)(3)(A)(ii) of the Act \5\ and
subparagraph (f)(2) of Rule 19b-4 \6\ thereunder. 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
purpose 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. 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-00-50 and
should be submitted by January 3, 2001.
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. 00-31684 Filed 12-12-00; 8:45 am]
BILLING CODE 8010-01-M