[Federal Register Volume 75, Number 105 (Wednesday, June 2, 2010)]
[Notices]
[Pages 30890-30892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13161]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62159; File No. SR-NYSE-2010-36]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange Price List
May 24, 2010.
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 May 7, 2010, 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 prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its 2010 Price List to delete
references to two fees that are no longer applicable. The text of the
proposed rule change is available on the Exchange's Web site at http://www.nyse.com, on the Commission's Web site at http://www.sec.gov, 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 self-regulatory organization
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's 2010 Price List includes (i) a fee of $5,000 payable
in connection with a new application for NYSE membership by a limited
liability
[[Page 30891]]
company (``LLC'') and (ii) an application fee of $1,000 payable in
connection with the movement of existing members to non-public
organizations. The Exchange proposes to delete these fees from the 2010
Price List as they are no longer applicable. These fees related only to
circumstances that arose when NYSE membership was required to be held
by individuals, as opposed to the current structure which is based on
member organizations. The Exchange ceased to be a member-owned
organization in 2006 at the time of its merger with Archipelago
Holdings, Inc. In connection with the merger, NYSE members received
shares in the new publicly-traded parent company (NYSE Group, Inc., the
predecessor to the NYSE's current publicly-traded parent company, NYSE
Euronext). Since this demutualization, member organizations obtain the
right to have their employees on the NYSE trading floor by purchasing
trading licenses.
As a consequence of the demutualization, the categories of
membership contemplated by the above-described fees no longer exist.
The LLC category of membership was created in 2005 to enable an
individual member who was retiring to retain an ownership interest in
the Exchange for estate planning purposes.\3\ The $5,000 application
fee was instituted because the Exchange believed that there were
additional costs to the Exchange in connection with memberships held by
LLCs rather than individuals, so the Exchange believed that it was
appropriate to charge a higher application fee than the $2,500 fee that
would have otherwise applied.\4\ The existing members to non-public
organizations fee of $1,000 was adopted in 1990 and was applied to an
individual member who was associated with a member organization and who
left that member organization to become an independent floor broker
without a public business or to become associated with a new member
organization without a public business that was comprised of existing
members.\5\ It also applied to an application for membership by any new
floor brokerage entity without a public business that consisted of
existing individual members. All NYSE members are now corporations or
other legal entities and are subject to the applicable application fees
for the various categories of new members: $20,000 for carrying firms,
$7,500 for introducing firms, and $2,500 for non-public organizations
(i.e., floor broker member organizations that do not have a public
business). Consequently, it is the admission of a corporate entity as a
member organization which gives rise to a registration fee under
current NYSE rules and the movement of floor personnel from one member
organization to another is not subject to registration fees, as those
individuals are not members in their own right. The reference to
individuals in the line of the 2010 Price List with respect to non-
public organizations will be deleted, as it is also inapplicable under
the current NYSE membership structure.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 52891 (December 5,
2005), 70 FR 73503 (December 12, 2005) (SR-NYSE-2005-83).
\4\ See note 1 [sic] supra.
\5\ See Securities Exchange Act Release No. 28129 (June 19,
1990) (SR-NYSE-90-27).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 \6\ of the Act in general and furthers
the objectives of Section 6(b)(4) \7\ in particular, in that it is
designed provide for the equitable allocation of reasonable dues, fees
and other charges among its members and other persons using its
facilities. The Exchange believes that the proposal does not constitute
an inequitable allocation of dues, fees and other charges, as the fees
being eliminated related to categories of NYSE members that no longer
exist under the current membership structure.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 purpose of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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.
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-2010-36 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2010-36. 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 Web site viewing and
printing 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 will also be available for
inspection and copying at the principal office of the Exchange. 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 No. SR-NYSE-2010-36 and should be
submitted on or before June 23, 2010.
[[Page 30892]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. 2010-13161 Filed 6-1-10; 8:45 am]
BILLING CODE 8011-01-P