Document ID: SEC-2008-0053-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange LLC
Posted Date: 2008-01-09T05:00Z

[Federal Register: January 9, 2008 (Volume 73, Number 6)]
[Notices]               
[Page 1654-1656]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja08-79]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57093; File No. SR-NYSE-2007-127]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Eliminate Certain Regulatory Fees

January 3, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 31, 2007, the 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 substantially prepared by the 
NYSE. The NYSE has designated the proposed rule change as one concerned 
solely with the administration of the Exchange pursuant to section 
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3) thereunder,\4\ 
which renders the proposed rule change effective upon filing with the 
Commission. 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).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to eliminate, effective January 1, 2008, certain 
regulatory fees that NYSE Regulation, Inc. (``NYSE Regulation'') 
currently remits to the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') and which FINRA has determined should be eliminated 
effective January 1, 2008. The text of the proposed rule change is 
available on NYSE's Web site at http://www.nyse.com, at NYSE's 

principal office, and at the Commission's Public Reference Room.

[[Page 1655]]

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 NYSE 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 proposes to eliminate, effective January 1, 2008, 
certain regulatory fees that are charged to member organizations, 
including registered persons fees, branch office registration fees, 
credit extension fees, and certain other regulatory and testing fees.
    On July 30, 2007, NYSE Regulation and the National Association of 
Securities Dealers, Inc. (``NASD'') consolidated their member 
regulation operations into a combined organization, FINRA. In 
connection with that transaction, NYSE Regulation agreed to remit to 
FINRA certain registration and regulatory fees that NYSE charges its 
member organizations. Because the regulatory activities associated with 
those fees are now performed by FINRA, those fees compensate FINRA for 
the regulatory services it assumed as a result of the regulatory 
consolidation.
    The NYSE registration and regulatory fees currently remitted to 
FINRA include:
     Branch Office Fees, which are charged, per branch, $350.00 
for the first 1,000 branches, $150.00 for the next 2,000 branches, and 
$125.00 for over 3,000 branches; \5\
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    \5\ See NYSE Rule 342.11; see also FINRA By-Laws, Section 4(a) 
of Schedule A.
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     Registered Persons Fees, which are $65.00 for a new 
applicant, $43 for a transfer applicant, and $52.00 for annual 
maintenance, per person; \6\
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    \6\ See NYSE Rule 345.14; see also FINRA By-Laws, Section 4(b) 
of Schedule A.
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     Regulation T Credit Extensions, which are $4.00 per 
extension; \7\
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    \7\ See NYSE Rule 434; see also FINRA By-Laws, Section 8 of 
Schedule A.
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     Statutory Disqualification Filing Fee, which is $1,500; 
\8\
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    \8\ See NYSE Rule 346(f); see also FINRA By-Laws, Section 12 of 
Schedule A.
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     Statutory Disqualification Review Fee, which is $1,000; 
\9\
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    \9\ See NYSE Rule 346(f); see also FINRA By-Laws, Section 12 of 
Schedule A.
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     FOCUS Feedback, which is $250.00 each or $900 for four 
quarters; \10\
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    \10\ See NYSE Rule 416.10.
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     Regulatory Element Fee, which is $75.00; \11\ and
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    \11\ See NYSE Rule 345A; see also FINRA By-Laws, Section 4(f) of 
Schedule A.
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     Series 7 Qualification Exam, which is $100.\12\
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    \12\ See NYSE Rule 345; see also FINRA By-Laws, Section 4(c) of 
Schedule A.
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    The foregoing fees are charged under the authority of NYSE rules 
that have been designated as ``Common Rules'' under the 17d-2 
Allocation Plan that NYSE entered into with FINRA.\13\ FINRA has 
informed NYSE Regulation that it has reviewed the above-listed 
registration and regulatory fees and has determined to cease charging 
those fees effective January 1, 2008. FINRA will make a parallel filing 
with the Commission to reflect this determination. Accordingly, as 
contemplated by the 17d-2 Agreement, the NYSE is filing to amend its 
Price List to eliminate the above-listed fees, effective January 1, 
2008.
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    \13\ Pursuant to Rule 17d-2 under Act, NYSE, NYSE Regulation, 
Inc., and NASD entered into an agreement to reduce regulatory 
duplication for firms that are members of FINRA and also members of 
NYSE on or after July 30, 2007, by allocating to FINRA certain 
regulatory responsibilities for selected NYSE rules (the ``17d-2 
Agreement''). The Agreement includes a list of those rules (``Common 
Rules'') for which FINRA has assumed regulatory responsibilities. 
See Securities Exchange Act Release No. 56148 (July 26, 2007), 72 FR 
42146 (August 1, 2007) (Notice of Filing and Order Approving and 
Declaring Effective a Plan for the Allocation of Regulatory 
Responsibilities).
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2. Statutory Basis
    The Exchange believes that the basis under the Act for this 
proposed rule change is the requirement under section 6(b)(5) \14\ that 
an Exchange have rules that are designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system and, in general, 
to protect investors and the public interest.
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    \14\ 15 U.S.C. 78f(b)(5).
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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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The foregoing rule change is concerned solely with the 
administration of the Exchange and has, therefore, become effective 
pursuant to section 19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-
4(f)(3) thereunder.\16\ At any time within 60 days of the filing of 
such 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.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
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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-2007-127 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSE-2007-127. 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

[[Page 1656]]

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, 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 also will be available for inspection and copying at the 
principal office of the NYSE. 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 Number SR-NYSE-2007-127 and should be submitted on or before 
January 30, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-156 Filed 1-8-08; 8:45 am]

BILLING CODE 8011-01-P