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SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-57006; File No. SR-NYSE-2007-116]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY: Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by the New York Stock Exchange LLC Relating to NYSE Rule 300 (Trading Licenses)
DOCUMENT SUMMARY: December 20, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b4 thereunder,\2\
[[Page 73952]]
notice is hereby given that on December 18, 2007, the New York Stock
Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule changes as
described in Items I, II, and III below, which items have been
substantially prepared by the NYSE. NYSE has designated the proposed
rule change as one establishing or changing a due, fee, or other
charge, pursuant to Section 19b(3)(A)(ii) of the Act \3\ and Rule 19b
4(f)(2) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. 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 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange is proposing to: (i) amend NYSE Rule 300 (Trading Licenses) to charge an annualized rate of $40,000 per trading license purchased during the annual offering; and (ii) reinstate the fee related to the approval of a prequalified substitute employee.
The text of the proposed rule change is available on the Exchange's
Web site (http://www.nyse.com), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
Through this filing, the Exchange seeks to amend section (b) of NYSE Rule 300 to charge a fixed price of $40,000 for each trading license purchased in the annual offering for the following calendar year and make conforming changes to section (d) of the rule which pertains to trading licenses purchased after the annual offering. The Exchange further proposes to create subsection (b)(i) to NYSE Rule 300 to provide that a member organization that wishes to maintain for the following calendar year the same number of trading licenses that they currently hold will be charged the fixed price of $40,000 per trading license by the Exchange. Additionally, the Exchange proposes to reinstate the fee related to the approval of a prequalified substitute employee.
Currently, section (b) of NYSE Rule 300 provides that in each annual offering, up to 1366 trading licenses for the following calendar year are to be sold at the fixed price of $50,000 per trading license. Section (d) of the rule governs the sale of trading licenses any time after the annual offering. It provides that the Exchange will sell additional trading licenses expiring at the end of the calendar year at a price of $55,000, prorated for the time remaining in the year. The price of $55,000 encompasses a premium of $5,000 or 10% above the fixed price of $50,000. No additional trading licenses will be sold by the Exchange if such sale would cause the number of trading licenses to exceed 1366.
The Exchange proposes to amend section (b) of the rule to reduce
the fixed price from $50,000 to $40,000. Proposed section (b) of the
rule will now provide that in each annual offering, up to 1366 trading
licenses for the following calendar year will be sold annually at a
price of $40,000 per trading license. The Exchange also proposes to
create a new subsection (b)(i) to state that a member organization that
holds a number of trading licenses in the current calendar year and
wishes to maintain that same number of trading licenses in the
following calendar year shall be presumed to have applied for the same
number of trading licenses that it currently holds and will be charged
by the Exchange the fixed price of $40,000 per trading license pursuant
to section (b) and subject to the provisions of section (c) of the
rule.\5\ Thus, a member organization that holds 5 trading licenses in
the calendar year 2007 and wishes to maintain 5 trading licenses in
calendar year 2008 will be charged $40, 000 per trading license for the
5 trading licenses.\6\ Should the member organization subsequently
decide to purchase additional trading licenses, section (d) of the rule as proposed will apply.
\5\ Section (c) of the rule describes the allocation process of
trading licenses among member organizations during the annual offering.
\6\ The Exchange has filed separately to amend NYSE Rule 325 to
eliminate the requirement of section (e) which requires any member
organization that employs individuals to execute orders on the
Exchange Floor provide evidence of financial responsibility in the
amount of $100,000 for each such individual. See SRNYSE2007108.
The Exchange further seeks to make a conforming amendment to section (d) to adjust the fixed price and then calculate the appropriate premium accordingly. Proposed section (d) of the rule will therefore be amended to state that after the annual offering and anytime thereafter during the following calendar year, the Exchange shall sell additional trading licenses at a price of $44,000. The $44,000 reflects a premium $4,000 which is 10% above the fixed price of $40,000 per trading license, prorated to reflect the portion of the year during which the trading license will be outstanding. The Exchange will not sell additional licenses if such sale would cause the number of licenses to exceed 1366.
On or about October 2007,\7\ the Exchange filed with the Securities
and Exchange Commission (``Commission'') an amendment to the Exchange's
2007 Price List to waive for the remainder of 2007, effective
retroactively on September 1, 2007, the $5,000 fee with respect to the approval of a prequalified substitute employee.\8\
\7\ See Securities Exchange Act Release No. 56607 (October 3, 2007), 72 FR 57624 (October 10, 2007) (SRNYSE200791).
\8\ According to SRNYSE200791, a prequalified substitute
employee is an employee of a member organization who has been
approved to work on the Exchange trading floor and can be assigned
to work on the trading floor at anytime that the member organization has a trading license available for use.
Prior to the waiver of this fee in September 2007, the $5,000 fee was billed to the member organization who was the new employer of (i) any new member or prequalified substitute not transferring from another member organization, (ii) any approved member who changes employment and continues as a member with that member organization, or (iii) any prequalified substitute who changes employment and continues as a prequalified substitute with that member organization. This fee reflects the costs to the Exchange of processing such new memberships or transfers including checking that the member organization has a license for its new employee or approving the purchase of a license, ensuring that the member is not subject to any regulatory restriction, checking that the member's new employer has put in place the required financial guarantee, and issuing or resetting the member's badge and handheld.
[[Page 73953]]
The Exchange proposes through this filing to reinstate this fee in its entirety starting in the calendar year 2008. Although this proposed rule change is immediately effective, the reinstatement of this fee will not be implemented until January 1, 2008. The price and the terms of the $5,000 fee will remain the same.
2. Statutory Basis
The Exchange believes that the basis for the proposed rule change
is the requirement under Section 6(b)(4) of the Act \9\ that an
exchange have rules that provide for the equitable allocation of
reasonable dues, fees, and other charges among its members and other persons using its facilities.
\9\ 15 U.S.C. 78f(b)(4).
B. SelfRegulatory 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. SelfRegulatory 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 has become effective pursuant to Section
19(b)(3)(A)(ii) \10\ of the Act and subparagraph (f)(2) \11\ thereunder
because it establishes or changes a due, fee, or other charge. 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.
\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRNYSE2007116. This file number should be included on the subject line if email 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 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 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 Number SRNYSE2007116 and should be submitted on or before January 18, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12 \
\12\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E725188 Filed 122707; 8:45 am]
BILLING CODE 801101P
SUMMARY: New York Stock Exchange LLC,
DOCUMENT BODY 2: December 20, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b4 thereunder,\2\
[[Page 73952]]
notice is hereby given that on December 18, 2007, the New York Stock
Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule changes as
described in Items I, II, and III below, which items have been
substantially prepared by the NYSE. NYSE has designated the proposed
rule change as one establishing or changing a due, fee, or other
charge, pursuant to Section 19b(3)(A)(ii) of the Act \3\ and Rule 19b
4(f)(2) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. 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 240.19b4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b4(f)(2).
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Exchange is proposing to: (i) amend NYSE Rule 300 (Trading Licenses) to charge an annualized rate of $40,000 per trading license purchased during the annual offering; and (ii) reinstate the fee related to the approval of a prequalified substitute employee.
The text of the proposed rule change is available on the Exchange's
Web site (http://www.nyse.com), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
Through this filing, the Exchange seeks to amend section (b) of NYSE Rule 300 to charge a fixed price of $40,000 for each trading license purchased in the annual offering for the following calendar year and make conforming changes to section (d) of the rule which pertains to trading licenses purchased after the annual offering. The Exchange further proposes to create subsection (b)(i) to NYSE Rule 300 to provide that a member organization that wishes to maintain for the following calendar year the same number of trading licenses that they currently hold will be charged the fixed price of $40,000 per trading license by the Exchange. Additionally, the Exchange proposes to reinstate the fee related to the approval of a prequalified substitute employee.
Currently, section (b) of NYSE Rule 300 provides that in each annual offering, up to 1366 trading licenses for the following calendar year are to be sold at the fixed price of $50,000 per trading license. Section (d) of the rule governs the sale of trading licenses any time after the annual offering. It provides that the Exchange will sell additional trading licenses expiring at the end of the calendar year at a price of $55,000, prorated for the time remaining in the year. The price of $55,000 encompasses a premium of $5,000 or 10% above the fixed price of $50,000. No additional trading licenses will be sold by the Exchange if such sale would cause the number of trading licenses to exceed 1366.
The Exchange proposes to amend section (b) of the rule to reduce
the fixed price from $50,000 to $40,000. Proposed section (b) of the
rule will now provide that in each annual offering, up to 1366 trading
licenses for the following calendar year will be sold annually at a
price of $40,000 per trading license. The Exchange also proposes to
create a new subsection (b)(i) to state that a member organization that
holds a number of trading licenses in the current calendar year and
wishes to maintain that same number of trading licenses in the
following calendar year shall be presumed to have applied for the same
number of trading licenses that it currently holds and will be charged
by the Exchange the fixed price of $40,000 per trading license pursuant
to section (b) and subject to the provisions of section (c) of the
rule.\5\ Thus, a member organization that holds 5 trading licenses in
the calendar year 2007 and wishes to maintain 5 trading licenses in
calendar year 2008 will be charged $40, 000 per trading license for the
5 trading licenses.\6\ Should the member organization subsequently
decide to purchase additional trading licenses, section (d) of the rule as proposed will apply.
\5\ Section (c) of the rule describes the allocation process of
trading licenses among member organizations during the annual offering.
\6\ The Exchange has filed separately to amend NYSE Rule 325 to
eliminate the requirement of section (e) which requires any member
organization that employs individuals to execute orders on the
Exchange Floor provide evidence of financial responsibility in the
amount of $100,000 for each such individual. See SRNYSE2007108.
The Exchange further seeks to make a conforming amendment to section (d) to adjust the fixed price and then calculate the appropriate premium accordingly. Proposed section (d) of the rule will therefore be amended to state that after the annual offering and anytime thereafter during the following calendar year, the Exchange shall sell additional trading licenses at a price of $44,000. The $44,000 reflects a premium $4,000 which is 10% above the fixed price of $40,000 per trading license, prorated to reflect the portion of the year during which the trading license will be outstanding. The Exchange will not sell additional licenses if such sale would cause the number of licenses to exceed 1366.
On or about October 2007,\7\ the Exchange filed with the Securities
and Exchange Commission (``Commission'') an amendment to the Exchange's
2007 Price List to waive for the remainder of 2007, effective
retroactively on September 1, 2007, the $5,000 fee with respect to the approval of a prequalified substitute employee.\8\
\7\ See Securities Exchange Act Release No. 56607 (October 3, 2007), 72 FR 57624 (October 10, 2007) (SRNYSE200791).
\8\ According to SRNYSE200791, a prequalified substitute
employee is an employee of a member organization who has been
approved to work on the Exchange trading floor and can be assigned
to work on the trading floor at anytime that the member organization has a trading license available for use.
Prior to the waiver of this fee in September 2007, the $5,000 fee was billed to the member organization who was the new employer of (i) any new member or prequalified substitute not transferring from another member organization, (ii) any approved member who changes employment and continues as a member with that member organization, or (iii) any prequalified substitute who changes employment and continues as a prequalified substitute with that member organization. This fee reflects the costs to the Exchange of processing such new memberships or transfers including checking that the member organization has a license for its new employee or approving the purchase of a license, ensuring that the member is not subject to any regulatory restriction, checking that the member's new employer has put in place the required financial guarantee, and issuing or resetting the member's badge and handheld.
[[Page 73953]]
The Exchange proposes through this filing to reinstate this fee in its entirety starting in the calendar year 2008. Although this proposed rule change is immediately effective, the reinstatement of this fee will not be implemented until January 1, 2008. The price and the terms of the $5,000 fee will remain the same.
2. Statutory Basis
The Exchange believes that the basis for the proposed rule change
is the requirement under Section 6(b)(4) of the Act \9\ that an
exchange have rules that provide for the equitable allocation of
reasonable dues, fees, and other charges among its members and other persons using its facilities.
\9\ 15 U.S.C. 78f(b)(4).
B. SelfRegulatory 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. SelfRegulatory 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 has become effective pursuant to Section
19(b)(3)(A)(ii) \10\ of the Act and subparagraph (f)(2) \11\ thereunder
because it establishes or changes a due, fee, or other charge. 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.
\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b4(f)(2).
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
Paper Comments
All submissions should refer to File Number SRNYSE2007116. This file number should be included on the subject line if email 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 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 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 Number SRNYSE2007116 and should be submitted on or before January 18, 2008.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12 \
\12\ 17 CFR 200.303(a)(12).
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E725188 Filed 122707; 8:45 am]
BILLING CODE 801101P
Common CFR Searches
14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 26 CFR Part 1 40 CFR Part 180 47 CFR Part 73 50 CFR Part 17 33 CFR Part 117 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 33 CFR Part 100 40 CFR Part 63 50 CFR Part 622 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 50 CFR Part 660 44 CFR Part 65 40 CFR Parts 52 and 81 40 CFR Part 271 47 CFR Part 64 50 CFR Part 665 47 CFR Part 76 50 CFR Part 229 14 CFR Part 23 14 CFR Part 25 21 CFR Part 522