[Federal Register: December 3, 2007 (Volume 72, Number 231)]
[Notices]
[Page 67990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03de07-125]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56842; File No. SR-NYSE-2007-77]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Approving a Proposed Rule Change, as Modified by Amendment Nos. 1, 2,
and 3 Thereto, To Amend Listing Fees for Structured Products
November 27, 2007.
On August 24, 2007, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend certain provisions of its Listed Company
Manual (``Manual'') governing structured product fees. Except as
described below, the proposed changes would apply retroactively as of
October 3, 2007. On October 3, 2007, the Exchange filed Amendment No. 1
to the proposed rule change. On October 12, 2007, the Exchange filed
Amendment No. 2 to the proposed rule change. On October 22, 2007, the
Exchange filed Amendment No. 3 to the proposed rule change. The
proposed rule change and Amendments Nos. 1, 2, and 3 thereto were
published for comment in the Federal Register on October 26, 2007.\3\
The Commission received no comments on the proposal. This order
approves the proposed rule change, as modified by Amendment Nos. 1, 2,
and 3.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 56688 (October 23,
2007), 72 FR 60924.
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Section 902.06 of the Manual sets forth the listing and annual fees
for ``short-term'' securities, i.e., those having a term of seven years
or less. The Exchange proposes to revise Section 902.06 to clarify the
scope of the rule's coverage. For example, proposed Section 902.06
excludes from its coverage certain short-term securities--namely,
securities listed pursuant to Sections 703.15 (Foreign Currency
Warrants and Currency Index Warrants), 703.17 (Stock Index Warrants
Listing Standards), and 703.22 (Equity Index-Linked Securities,
Commodity-Linked Securities and Currency-Linked Securities and
Currency-Linked Securities)--that would instead be subject to lower
fees set forth in proposed new Section 902.09.
The proposed listing fees applicable to securities subject to
Section 902.09 of Manual are based on the total number of shares
outstanding. The proposed fees would apply each time an issuer lists a
security of one of the classes specified in Section 902.09 of the
Manual and also to subsequent listings of additional shares of the same
security. The Exchange would treat each series of the security as a
separate issue. Proposed Section 902.09 would also establish annual
fees based on the total number of shares outstanding. The proposed
annual fees would be billed in January for the forthcoming year.
Additionally, a $2,500 fee for certain changes that involve
modifications to Exchange records would apply.
The Exchange also proposes to amend Section 902.05 of the Manual to
provide that the fees applicable to: (1) Structured products listed
under the debt criteria set out in Section 703.19 (Other Securities)
and traded on NYSE Bonds are set forth in Section 902.08 (Listings Fees
for Debt Securities); and (2) short-term structured products are set
forth in Section 902.06.
Additionally, the Exchange seeks to codify its existing practice
whereby it applies the fee schedules set forth in Sections 902.05 and
902.06 of the Manual to securities listed pursuant to Sections 703.15,
703.17 and 703.22 of the Manual. However, Sections 902.05 and 902.06 of
the Manual do not identify Sections 703.15, 703.17 and 703.22 as
securities to which the fees would apply. Through this proposed rule
change, the Exchange proposes to apply retroactively for the period
from June 7, 2006 to October 2, 2007 the fee schedules set forth in
Sections 902.05 and 902.06 of the Manual to all securities previously
listed pursuant to Sections 703.15, 703.17 and 703.22 of the Manual.
Therefore, beginning October 3, 2007, all securities listed pursuant to
Sections 703.15, 703.17 and 703.22 of the Manual would be subject to
the fee schedule set forth in Section 902.09 of the Manual.
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\4\ In
particular, the Commission believes that the proposal is consistent
with Section 6(b)(4) of the Act,\5\ which requires, among other things,
that the rules of a national securities exchange be designed to provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its
facilities. The Commission notes that no comments have been received
regarding the proposed rule change, and that the proposed fees are
similar to those it approved for the American Stock Exchange LLC.\6\
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\4\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(b)(4).
\6\ See Securities Exchange Act Release No. 45403 (February 6,
2002), 67 FR 6553 (February 12, 2002) (SR-Amex-2001-100).
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-NYSE-2007-77), as
modified by Amendment Nos. 1, 2, and 3 thereto, be, and hereby is,
approved.
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\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-23317 Filed 11-30-07; 8:45 am]
BILLING CODE 8011-01-P