Document ID: SEC-2010-0804-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2010-06-02T04:00Z

[Federal Register: June 2, 2010 (Volume 75, Number 105)]
[Notices]               
[Page 30890-30892]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jn10-143]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62159; File No. SR-NYSE-2010-36]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Exchange Price List

May 24, 2010.
    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 May 7, 2010, New York Stock Exchange LLC (``NYSE'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. 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 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its 2010 Price List to delete 
references to two fees that are no longer applicable. The text of the 
proposed rule change is available on the Exchange's Web site at http://
www.nyse.com, on the Commission's Web site at http://www.sec.gov, and 
at the Commission's Public Reference Room.

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 self-regulatory organization 
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. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange's 2010 Price List includes (i) a fee of $5,000 payable 
in connection with a new application for NYSE membership by a limited 
liability

[[Page 30891]]

company (``LLC'') and (ii) an application fee of $1,000 payable in 
connection with the movement of existing members to non-public 
organizations. The Exchange proposes to delete these fees from the 2010 
Price List as they are no longer applicable. These fees related only to 
circumstances that arose when NYSE membership was required to be held 
by individuals, as opposed to the current structure which is based on 
member organizations. The Exchange ceased to be a member-owned 
organization in 2006 at the time of its merger with Archipelago 
Holdings, Inc. In connection with the merger, NYSE members received 
shares in the new publicly-traded parent company (NYSE Group, Inc., the 
predecessor to the NYSE's current publicly-traded parent company, NYSE 
Euronext). Since this demutualization, member organizations obtain the 
right to have their employees on the NYSE trading floor by purchasing 
trading licenses.
    As a consequence of the demutualization, the categories of 
membership contemplated by the above-described fees no longer exist. 
The LLC category of membership was created in 2005 to enable an 
individual member who was retiring to retain an ownership interest in 
the Exchange for estate planning purposes.\3\ The $5,000 application 
fee was instituted because the Exchange believed that there were 
additional costs to the Exchange in connection with memberships held by 
LLCs rather than individuals, so the Exchange believed that it was 
appropriate to charge a higher application fee than the $2,500 fee that 
would have otherwise applied.\4\ The existing members to non-public 
organizations fee of $1,000 was adopted in 1990 and was applied to an 
individual member who was associated with a member organization and who 
left that member organization to become an independent floor broker 
without a public business or to become associated with a new member 
organization without a public business that was comprised of existing 
members.\5\ It also applied to an application for membership by any new 
floor brokerage entity without a public business that consisted of 
existing individual members. All NYSE members are now corporations or 
other legal entities and are subject to the applicable application fees 
for the various categories of new members: $20,000 for carrying firms, 
$7,500 for introducing firms, and $2,500 for non-public organizations 
(i.e., floor broker member organizations that do not have a public 
business). Consequently, it is the admission of a corporate entity as a 
member organization which gives rise to a registration fee under 
current NYSE rules and the movement of floor personnel from one member 
organization to another is not subject to registration fees, as those 
individuals are not members in their own right. The reference to 
individuals in the line of the 2010 Price List with respect to non-
public organizations will be deleted, as it is also inapplicable under 
the current NYSE membership structure.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 52891 (December 5, 
2005), 70 FR 73503 (December 12, 2005) (SR-NYSE-2005-83).
    \4\ See note 1 [sic] supra.
    \5\ See Securities Exchange Act Release No. 28129 (June 19, 
1990) (SR-NYSE-90-27).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 \6\ of the Act in general and furthers 
the objectives of Section 6(b)(4) \7\ in particular, in that it is 
designed provide for the equitable allocation of reasonable dues, fees 
and other charges among its members and other persons using its 
facilities. The Exchange believes that the proposal does not constitute 
an inequitable allocation of dues, fees and other charges, as the fees 
being eliminated related to categories of NYSE members that no longer 
exist under the current membership structure.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 purpose of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.

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

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2010-36 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2010-36. This file 
number should be included on the subject line if e-mail 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 Web site viewing and 
printing 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 will also 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 No. SR-NYSE-2010-36 and should be 
submitted on or before June 23, 2010.

[[Page 30892]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2010-13161 Filed 6-1-10; 8:45 am]
BILLING CODE 8011-01-P