Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27895 

14 17 CFR 200.30–3(a)(12) 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55430 

(March 8, 2007), 72 FR 12651 (the ‘‘Notice’’). 

4 In its filing, the Exchange stated that typically, 

such companies are otherwise in good standing 

with a national securities exchange, but fell behind 

on their reporting obligations under the Act because 

their auditors or the Commission required 

restatements of their financial statements. The 

Commission notes that the timely filing of accurate 

financial reports under the Act is critical to 

investors and our national market and assures that 

investors receive up to date financial information 

about listed companies. 

5See supra note 3. 

6 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). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78f(b)(5). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E7–9438 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55743; File No. SR–

NYSEArca–2007–24] 

Self-Regulatory Organizations; NYSE 

Arca Inc.; Order Approving a Proposed 

Rule Change to Waive Certain Listing 

Fees 

May 10, 2007 

I. Introduction 

On February 28, 2007, NYSE Arca, 

Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’), 

through its wholly owned subsidiary, 

NYSE Arca Equities, Inc., filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and 

Rule 19b–4 thereunder,2 a proposal to 

waive certain listing fees. The proposal 

was published for comment in the 

Federal Register on March 16, 2007.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to amend its 

listing fee schedule to provide that there 

shall be no initial listing fee applicable 

to (i) any company listing following 

emergence from bankruptcy, or (ii) any 

company listing its primary class of 

common stock that is not listed on a 

national securities exchange but is 

registered under the Act. 

The Exchange believes that the initial 

listing fee waiver for companies listing 

upon emergence from bankruptcy is 

justified the unique circumstances of 

those issuers, which, according to the 

NYSE, among other things, tend to be 

more sensitive to the initial and 

continued costs associated with listing 

because of the desire in bankruptcy 

proceedings to ensure creditors are paid 

as much as possible. According to the 

Exchange, because bankrupt companies 

face unique challenges in the listing 

process, and because the number of 

companies that will benefit from the fee 

waiver will be very limited, the 

Exchange does not believe that the 

treatment this proposal would afford to 

bankrupt companies constitutes an 

inequitable or unfairly discriminatory 

allocation of fees. 

In addition, the Exchange believes 

that waiving initial listing fees for a 

company listing its primary class of 

common stock which is registered under 

that Act but not listed on a national 

securities exchange is appropriate and 

does not constitute an inequitable or 

unfairly discriminatory allocation of 

fees. The Exchange anticipates that most 

companies taking advantage of this 

waiver will be formerly-listed 

companies that were delisted as a result 

of a failure to timely file annual reports 

with the Commission. These companies 

usually seek to re-list on the Exchange 

as soon as their filings are up to date.4

According to the Exchange, because 

such companies had previously paid 

initial listing fees to the Exchange or to 

another national securities exchange, 

the Exchange believes that to make them 

pay these fees again would further 

penalize them unnecessarily. 

The Exchange stated that other 

companies trading in the over-thecounter market that have not previously 

been listed on a national securities 

exchange may seek to qualify for the 

waiver of initial listing fees. However, 

the Exchange believes that not many of 

these companies will be able to meet its 

quantitative initial listing standards, 

and thus does not believe that waiving 

initial listing fees for such companies 

will have a meaningful effect on the 

Exchange’s revenue or constitute an 

inequitable or unfairly discriminatory 

allocation of fees. 

The Exchange has represented that 

the proposed rule change will not affect 

the Exchange’s commitment of 

resources to its regulatory oversight of 

the listing process or its regulatory 

programs. Companies that benefit from 

one of the proposed waivers will be 

reviewed for compliance with Exchange 

listing standards in the same manner as 

any other company that applies to be 

listed on the Exchange. The Exchange 

will conduct a full and independent 

review of each issuer’s compliance with 

the Exchange’s listing standards. 

The Exchange also has represented 

that it does not expect the financial 

impact of this proposed rule change to 

be material, either in terms of increased 

levels of annual fees from transferring 

issuers or in terms of diminished initial 

listing fee revenues. A limited number 

of companies are qualified and seek to 

list on the Exchange that are either 

emerging from bankruptcy or have a 

registered class of common stock but are 

not currently listed on another market. 

Accordingly, the proposed rule change 

will not impact the Exchange’s resource 

commitment to its regulatory oversight 

of the listing process or its regulatory 

programs. 

Following their approval, the 

Exchange would apply the amendments 

contained in the proposal retroactively 

to February 28, 2007, the date of filing 

of the proposed rule change.5

III. Discussion 

After careful review, the Commission 

finds that the proposed rule change, as 

amended, is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.6 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(4) of the Act,7 which requires 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. The Commission also finds 

that the proposal is consistent with 

Section 6(b)(5) of the Act,8 which 

requires, inter alia, that the rules of a 

national securities exchange be 

designed to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system and not designed to permit 

unfair discrimination between issuers. 

The Commission has not received any 

comments on the proposal. This order 

approves the proposed rule change. 

The Commission notes that 

companies who re-list upon emerging 

from bankruptcy or who re-list upon a 

return to good standing following 

delisting have usually paid listing fees 

to either the Exchange or to another 

national securities exchange at the time 

of their initial listing. For this reason, 

the Exchange argues, the waiver of 

listing fees constitutes an equitable 

allocation of reasonable fees. 

The Commission recognizes that, as 

drafted, the initial fee waiver would 

extend to companies that have never 


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27896 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 

9See supra note 3. 

10 Id. 

11 17 CFR 200.30–3(a)(12). 

listed on a national securities exchange, 

which thus have never paid listing fees. 

In this regard, the Exchange 

acknowledges that some companies 

other than those returning to good 

standing after recent delisting—e.g., a 

company trading on the over-thecounter market—may seek to take 

advantage of the waiver of listing fees 

for companies not listed on a national 

securities exchange but registered under 

the Act. However, the Exchange expects 

the number of such companies eligible 

for the waiver to be very small, since not 

many of these companies would meet 

the Exchange’s quantitative listing 

requirements. 

The Commission also notes that the 

Exchange has represented that the 

waiver of listing fees should not have a 

material financial impact on the 

exchange, or impact the Exchange’s 

resource commitment to its regulatory 

oversight of the listing process or its 

regulatory programs. 

Further, the proposal does not have 

any impact on whether a company is 

actually eligible to list on the Exchange. 

The Commission expects, and the 

Exchange has represented, that a full 

and independent review of compliance 

with listing standards will be conducted 

for any company seeking to take 

advantage of either of the fee waivers, 

just as for any company that applies for 

listing on the Exchange. 

In light of these arguments, the 

Commission agrees that the proposed 

waivers, which are retroactively 

effective to February 28, 2007, the date 

of the filing of the proposed rule 

change,9 do not constitute an 

inequitable allocation of reasonable 

dues, fees, and other charges, do not 

permit unfair discrimination between 

issuers, and are generally consistent 

with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (File No. SR–

NYSEArca–2007–24) be, and it hereby 

is, approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E7–9439 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10859] 

Maine Disaster Number ME–00007 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 2. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Maine (FEMA–1693–DR), 

dated 04/25/2007. 

Incident: Severe Storms and Inland 

and Coastal Flooding. 

Incident Period: 04/15/2007 through 

04/23/2007. 

Effective Date: 05/04/2007. 

Physical Loan Application Deadline 

Date: 06/25/2007. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of Maine, 

dated 04/25/2007, is hereby amended to 

establish the incident period for this 

disaster as beginning 04/15/2007 and 

continuing through 04/23/2007. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Herbert L. Mitchell, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–9486 Filed 5–16–07; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10859] 

Maine Disaster Number ME–00007 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Maine (FEMA–1693–DR), 

dated 04/25/2007. 

Incident: Severe Storms and Inland 

and Coastal Flooding. 

Incident Period: 04/15/2007 and 

continuing. 

Effective Date: 04/30/2007. 

Physical Loan Application Deadline 

Date: 06/25/2007. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road Fort, Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of Maine, 

dated 04/25/2007, is hereby amended to 

include the following areas as adversely 

affected by the disaster. 

Primary Counties: Franklin, Hancock, 

Lincoln, Sagadahoc, Somerset, and 

Waldo. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Herbert L. Mitchell, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–9488 Filed 5–16–07; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10871 and #10872] 

Maine Disaster #ME–00008 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for the State of Maine ( FEMA–

1693–DR), dated 05/09/2007. 

Incident: Severe Storms and Inland 

and Coastal Flooding. 

Incident Period: 04/15/2007 through 

04/23/2007. 

Effective Date: 05/09/2007. 

Physical Loan Application Deadline 

Date: 07/09/2007. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 02/11/2008. 

ADDRESSES: Submit completed loan 

applications to : U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 


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