Document ID: SEC-2006-0985-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2006-08-02T04:00Z

[Federal Register: August 2, 2006 (Volume 71, Number 148)]
[Notices]               
[Page 43833]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au06-129]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54223; File No. SR-NYSE-2006-43]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving Proposed Rule Change To Amend Section 902.02 of the Listed 
Company Manual To Exempt Companies Transferring From NYSE Arca From 
Initial Listing Fees and the Annual Fee for the Year of Such Transfer

July 26, 2006.
    On June 7, 2006, 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 Section 902.02 of its Listed Company 
Manual to provide that there shall be no initial listing and no 
prorated annual fee payable with respect to the first partial calendar 
year of listing for any company listed on NYSE Arca, Inc. (``NYSE 
Arca'') that transfers the listing of its primary class of common 
shares to the Exchange. The Commission published notice of the proposal 
in the Federal Register on June 26, 2006.\3\ The Commission received no 
comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 54008 (June 16, 2006), 
71 FR 36370.
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    The Commission has reviewed carefully the proposed rule change and 
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\ and, in particular, the requirements 
of Section 6 of the Act \5\ and the rules and regulations thereunder. 
The Commission finds specifically that the proposed rule change is 
consistent with Sections 6(b)(4) \6\ and 6(b)(5) of the Act,\7\ which 
require 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, and are designed to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and are not designed to permit unfair 
discrimination between issuers. The Commission believes that the fee 
waiver is reasonable, given the NYSE's representation that its review 
of companies transferring from NYSE Arca to the Exchange will be less 
costly than the review of a transfer from other self-regulatory 
organizations. While the Commission understands that the Exchange will 
rely on the baseline review of any NYSE Arca listed company performed 
by NYSE Regulation, the Commission notes that the Exchange must conduct 
a thorough regulatory review of companies transferring from NYSE Arca 
to the Exchange to ensure that the Exchange can independently confirm 
that such companies qualify for listing on the Exchange. The Commission 
also believes the proposed waiver may enhance competition by making 
NYSE Arca a more attractive listing venue and a viable alternative to 
listing on Nasdaq.
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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. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
,\8\ that the proposed rule change (SR-NYSE-2006-43) be, and it hereby 
is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6-12427 Filed 8-1-06; 8:45 am]

BILLING CODE 8010-01-P