[Federal Register Volume 73, Number 6 (Wednesday, January 9, 2008)]
[Notices]
[Pages 1654-1656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-156]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57093; File No. SR-NYSE-2007-127]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Eliminate Certain Regulatory Fees
January 3, 2008.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 31, 2007, the New York Stock Exchange LLC (``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 substantially prepared by the
NYSE. The NYSE has designated the proposed rule change as one concerned
solely with the administration of the Exchange pursuant to section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\
which renders the proposed rule change 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).
\4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NYSE proposes to eliminate, effective January 1, 2008, certain
regulatory fees that NYSE Regulation, Inc. (``NYSE Regulation'')
currently remits to the Financial Industry Regulatory Authority, Inc.
(``FINRA'') and which FINRA has determined should be eliminated
effective January 1, 2008. The text of the proposed rule change is
available on NYSE's Web site at http://www.nyse.com, at NYSE's
principal office, and at the Commission's Public Reference Room.
[[Page 1655]]
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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to eliminate, effective January 1, 2008,
certain regulatory fees that are charged to member organizations,
including registered persons fees, branch office registration fees,
credit extension fees, and certain other regulatory and testing fees.
On July 30, 2007, NYSE Regulation and the National Association of
Securities Dealers, Inc. (``NASD'') consolidated their member
regulation operations into a combined organization, FINRA. In
connection with that transaction, NYSE Regulation agreed to remit to
FINRA certain registration and regulatory fees that NYSE charges its
member organizations. Because the regulatory activities associated with
those fees are now performed by FINRA, those fees compensate FINRA for
the regulatory services it assumed as a result of the regulatory
consolidation.
The NYSE registration and regulatory fees currently remitted to
FINRA include:
Branch Office Fees, which are charged, per branch, $350.00
for the first 1,000 branches, $150.00 for the next 2,000 branches, and
$125.00 for over 3,000 branches; \5\
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\5\ See NYSE Rule 342.11; see also FINRA By-Laws, Section 4(a)
of Schedule A.
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Registered Persons Fees, which are $65.00 for a new
applicant, $43 for a transfer applicant, and $52.00 for annual
maintenance, per person; \6\
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\6\ See NYSE Rule 345.14; see also FINRA By-Laws, Section 4(b)
of Schedule A.
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Regulation T Credit Extensions, which are $4.00 per
extension; \7\
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\7\ See NYSE Rule 434; see also FINRA By-Laws, Section 8 of
Schedule A.
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Statutory Disqualification Filing Fee, which is $1,500;
\8\
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\8\ See NYSE Rule 346(f); see also FINRA By-Laws, Section 12 of
Schedule A.
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Statutory Disqualification Review Fee, which is $1,000;
\9\
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\9\ See NYSE Rule 346(f); see also FINRA By-Laws, Section 12 of
Schedule A.
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FOCUS Feedback, which is $250.00 each or $900 for four
quarters; \10\
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\10\ See NYSE Rule 416.10.
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Regulatory Element Fee, which is $75.00; \11\ and
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\11\ See NYSE Rule 345A; see also FINRA By-Laws, Section 4(f) of
Schedule A.
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Series 7 Qualification Exam, which is $100.\12\
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\12\ See NYSE Rule 345; see also FINRA By-Laws, Section 4(c) of
Schedule A.
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The foregoing fees are charged under the authority of NYSE rules
that have been designated as ``Common Rules'' under the 17d-2
Allocation Plan that NYSE entered into with FINRA.\13\ FINRA has
informed NYSE Regulation that it has reviewed the above-listed
registration and regulatory fees and has determined to cease charging
those fees effective January 1, 2008. FINRA will make a parallel filing
with the Commission to reflect this determination. Accordingly, as
contemplated by the 17d-2 Agreement, the NYSE is filing to amend its
Price List to eliminate the above-listed fees, effective January 1,
2008.
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\13\ Pursuant to Rule 17d-2 under Act, NYSE, NYSE Regulation,
Inc., and NASD entered into an agreement to reduce regulatory
duplication for firms that are members of FINRA and also members of
NYSE on or after July 30, 2007, by allocating to FINRA certain
regulatory responsibilities for selected NYSE rules (the ``17d-2
Agreement''). The Agreement includes a list of those rules (``Common
Rules'') for which FINRA has assumed regulatory responsibilities.
See Securities Exchange Act Release No. 56148 (July 26, 2007), 72 FR
42146 (August 1, 2007) (Notice of Filing and Order Approving and
Declaring Effective a Plan for the Allocation of Regulatory
Responsibilities).
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2. Statutory Basis
The Exchange believes that the basis under the Act for this
proposed rule change is the requirement under section 6(b)(5) \14\ that
an Exchange have rules that are designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system and, in general,
to protect investors and the public interest.
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\14\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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
The Exchange 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 is concerned solely with the
administration of the Exchange and has, therefore, become effective
pursuant to section 19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-
4(f)(3) thereunder.\16\ 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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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
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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-NYSE-2007-127 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2007-127. 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
[[Page 1656]]
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, 100 F Street, NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the NYSE. 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-2007-127 and should be submitted on or before
January 30, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-156 Filed 1-8-08; 8:45 am]
BILLING CODE 8011-01-P