[Federal Register Volume 63, Number 145 (Wednesday, July 29, 1998)]
[Notices]
[Pages 40577-40578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20191]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40249; File No. SR-PCX-98-32]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change and Amendment No. 1 Thereto by the Pacific Exchange, Inc. 
Relating to Listing and Maintenance Fees for Nasdaq Listings

July 22, 1998.
    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 July 14, 1998, the Pacific Exchange, Inc. (``PCX'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'' or 
``SEC'') the proposed rule change as described in Items I, II and III 
below, which Items have been prepared by the Exchange.\3\ 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) (1994).
    \2\ 17 CFR 240.19b-4 (1997).
    \3\ The proposed rule change was originally filed on June 19, 
1998 pursuant to Section 19(b)(3)(A)(ii) of the Act. The amendment 
converted the proposed rule change to a filing pursuant to Section 
19(b)(2) of the Act because the proposed rule change modifies fees 
that apply to issuers. Letter from Robert P. Pacileo, Staff 
Attorney, Regulatory Policy, PCX to Kelly McCormick, Attorney, 
Office of Market Supervision, Division of Market Regulation, 
Commission, dated July 10, 1998.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to modify its listing and maintenance fees so 
that certain issues listed on both the PCX and the Nasdaq Stock Market, 
Inc. (``Nasdaq'') will be deemed to be ``dually listed'' for purposes 
of the Exchange's Listing Fee Schedule. The text of the proposed rule 
change is set out below. Additions are italicized. Deletions are 
bracketed.

                          Listing Fee Schedule                          
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Original Listing Fees--Original Listing fees are fixed                  
 fees in that they are not charged by the number of                     
 shares being listed:                                                   
Common Stock, dually listed on NYSE [or] AMEX, or Nasdaq                
 National Market........................................      $10,000.00
Common Stock, not listed on NYSE [or] AMEX, or Nasdaq                   
 National Market........................................       20,000.00
Annual Maintenance Listing Fee (Billed and payable                      
 January of each year following initial listing):                       
For one issue, dually listed on NYSE [or] AMEX, or                      
 Nasdaq National Market.................................       $1,000.00
For one issue, not listed on NYSE [or] AMEX, or Nasdaq                  
 National Market........................................        2,000.00
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[[Page 40578]]

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 PCX 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 PCX 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
    Currently, under the exchange's listing fee schedule, common stock 
that is dually listed on both the PCX and either the New York Stock 
Exchange (``NYSE'') or the American Stock Exchange (``Amex'') is 
subject to an original listing fee of $10,000.00. Common stock not 
dually listed on both the PCX and either the NYSE or the Amex is 
subject to an original listing fee of $20,000.00. The Exchange 
recognizes that Nasdaq is a primary listing association and that Nasdaq 
bears the primary obligation to ensure that its issuers meet the 
appropriate listing standards. Therefore, the PCX will be conducting 
listing maintenance reviews for Nasdaq issues on an annual basis along 
with other dually listed issues (i.e., those listed on the NYSE and 
Amex) and not on a quarterly basis. The Exchange believes that the 
proposal will encourage issuers listed on Nasdaq to list on the PCX.

Proposed Fee Change

    To reflect the cost of dual listings and annual maintenance listing 
reviews, the PCX is proposing to change the following fees. Currently, 
the listing fee for an original listing of any Nasdaq common stock 
issue (Nasdaq National Market (``NNM'') and Nasdaq SmallCap Market 
(``SCM'')) is $20,000.00. Under the proposal, the fee would be reduced 
to $10,000.00 for NNM issues. Currently, the annual maintenance listing 
fee for any one Nasdaq listed issue is $2,000.00. Under the proposal, 
the fee would be reduced to $1,000.00 for any one NNM issue.\4\
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    \4\ The original listing fee and annual maintenance fee for SCM 
securities would remain unchanged. The listing maintenance review 
for SCM securities will also remain unchanged, and continue to be 
conducted quarterly. Telephone call between Robert P. Pacileo, 
Attorney, PCX and Kelly McCormick, Attorney, Division of Market 
Regulation, SEC, July 6, 1998.
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2. Basis
    The Exchange believes that this proposal is consistent with Section 
6(b) of the Act,\5\ in general, and Section 6(b)(4),\6\ in that it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its members, issuers and other persons 
using its facilities.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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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

    Written comments on the proposed rule change were neither solicited 
nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the PCX consents, the Commission will:
    (A) by order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth street, NW, Washington, DC 20549. 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. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
PCX. All submissions should refer to File No. SR-PCX-98-32 and should 
be submitted by August 19, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-20191 Filed 7-28-98; 8:45 am]
BILLING CODE 8010-01-M