[Federal Register Volume 65, Number 250 (Thursday, December 28, 2000)]
[Notices]
[Pages 82428-82429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-33121]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-43726; File No. SR-NYSE-00-57]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. to Implement a New Trading Floor Regulatory Fee
December 14, 2000.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 \2\ thereunder, notice hereby is given
that on December 13, 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 Purpose of, and
Statutory Basis for, the Proposed Rule Change
The NYSE proposes to implement a new Trading Floor Regulatory Fee
to be charged to members doing business on the trading floor. Each
specialist firm would contribute according to the number of memberships
associated with the firm. Other floor members would be assessed an
annual fee, subject to a maximum fee per firm. 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
[[Page 82429]]
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
The NYSE's Market Surveillance Division monitors all trading
activity on the trading floor on a real-time basis. This surveillance
applies to all members doing business on the trading floor. Market
Surveillance has become increasingly important, visible, and costly
over recent years. The proposed fee would partially offset that cost.
Specialists would pay a total of $16 million per year to be
allocated among specialist firms based on the number of memberships
affiliated with each specialist firm.\3\ Non-specialist members would
pay $11,000 per membership per year up to a maximum of $50,000 per
member firm.
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\3\ Thus, according to the NYSE, each membership employed in the
business of being a specialist will bear a pro rata portion of the
$16 million fee, and each specialist firm's obligation will be the
sum of the portions ascribable to each specialist membership within
that firm. Telephone conversation between James F. Duffy, Senior
Vice President and Associate General Counsel, and Ricki Spinner,
Principal Analyst, NYSE, and Michael Gaw, Attorney-Adviser, Division
of Market Regulation, Commission, on December 13, 2000.
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The Trading Floor Regulatory Fee will be implemented on January 1,
2001.
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 of Burden on Competition
The NYSE does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose 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.
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
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 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. 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-00-57 and
should be submitted by January 18, 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. 00-33121 Filed 12-27-00; 8:45 am]
BILLING CODE 8010-01-M