Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the New York Stock Exchange, Inc. Relating to the Annual Membership Fees Payable by Electronic Access Members of the Exchange, 19138-19140 [E5-1696]
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19138
Federal Register / Vol. 70, No. 69 / Tuesday, April 12, 2005 / Notices
e.d.t. April 8, 2005 through 11:59 p.m.
e.d.t., on April 21, 2005.
SECURITIES AND EXCHANGE
COMMISSION
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–7414 Filed 4–8–05; 1:51 pm]
[Release No. 34–51477; File No. SR–NYSE–
2005–11]
BILLING CODE 8010–01–P
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the New
York Stock Exchange, Inc. Relating to
the Annual Membership Fees Payable
by Electronic Access Members of the
Exchange
April 5, 2005.
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 March 10,
2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or the
‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which items have been prepared
by the NYSE. The proposed rule change
has been filed by the NYSE as a
proposal establishing or changing a due,
fee, or other charge, pursuant to Section
19(b)(3)(A)(ii) of the Act 3 and Rule 19b–
4(f)(2) thereunder,4 which renders the
proposal effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The NYSE proposes to revise its
policy and price list with respect to the
annual membership fees payable by
electronic access members (‘‘EAMs’’).
Below is the text of the proposed rule
change. Proposed new language is in
italics; proposed deletions are in
[brackets].
*
*
*
*
*
EAM ANNUAL FEE POLICY
[Membership fees]
Electronic access
1989
Current price
1990
Existing formula price
1990
Proposed price
$77,000(*) .............................
$70,736 Calculated once per year (November) for the
ensuing year; based on 70 percent of prior 12-month
average (December through November including initiation fee and dues) of Physical Access Membership
fees.
$63,642 (January–March 1990) Calculated quarterly;
based on 70 percent of 6-months average of Physical Access Membership fees, excluding initiation fee
and dues. (First quarter 1990 fee based on April–
September 1989 Physical Access fees.)
* 1988 fee, held constant for 1989.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
VerDate jul<14>2003
18:08 Apr 11, 2005
2005 Price List
Jkt 205001
Section 4 of Art. II of the Constitution
is in excess of, or less than, $5,000, the
amount provided in clause (iii) above
shall be correspondingly increased or
reduced. Such membership fee shall be
paid in full prior to admission to
membership, and prior to any renewal
of such member’s membership.
Notwithstanding the foregoing, in
accordance with Art. X, Section 1(c) of
the Constitution, the membership fee
payable by an electronic access member
with respect to each year of such
membership shall in no event be less
than $13,500.
The Board has approved, for calendar
2005, the effective elimination of the
initiation fee, in a manner to be
administered consistently by the
Exchange, in the event an electronic
access member otherwise becomes an
Exchange member.
*
*
*
*
*
Physical access—calculated
monthly—Function of bona fide lease
prices.
Electronic access—calculated
quarterly—[70 percent of prior 6 month
PAM price] The sum of (i) 90 percent of
the 6 month average of the annual
rentals payable under the bona fide
leases of membership entered into
during each of the six calendar months
prior to the most recently completed
5 For example, the calculation of the EAM fee
charged in the month of November is based on
average lease prices during January-June. The
average lease for each of these months is based on
The membership fee payable by an
electronic access member, with respect
to each year of such membership,
exclusive of fines and of such other
charges as may be imposed pursuant to
the Constitution, shall be the sum of (i)
90 of the 6 month average of the annual
rentals payable under the bona fide
leases of membership entered into
during each of the six calendar months
prior to the most recently completed
quarter,5 (ii) $1,500, and (iii) with
respect to the first year of such
membership only, $5,000; provided,
however, that if at any time the
membership fee payable pursuant to
Section 1(a) of Art. X of the Constitution
is in excess of, or less than, $1,500 per
year, the amount provided in clause (ii)
above shall be correspondingly
increased or reduced, and if the amount
of the fee charged to a new member as
established by the Board pursuant to
the average lease of the six calendar months prior
to the most recently completed quarter, so that the
January average lease is based on the average lease
during April-September of the prior year.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
*
*
*
*
*
Regular Members
Dues—$1,500.00.
Transfer fees for purchased and leased
seat—5 percent of purchase price or last
contracted sale (Minimum $1,000.00
Maximum $5,000).
Other
E:\FR\FM\12APN1.SGM
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Federal Register / Vol. 70, No. 69 / Tuesday, April 12, 2005 / Notices
quarter,1 (ii) $1,500,2 and (iii) with
respect to the first year of such
membership only, $5,000.3
*
*
*
*
*
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
Exchange 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
Exchange 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
Pursuant to Art. X, Section 1(c) of the
Exchange’s Constitution, the Board of
Directors has authority to determine the
membership fee payable by an EAM,
subject to a requirement that the fee not
be less than $13,500 annually.
Currently, the annual membership fee
payable by EAMs is 70 percent of the
average price charged to physical access
members (‘‘PAMs’’) during the two
quarters prior to the most recently
completed quarter. The PAM price for
each month is calculated as the sixmonth average lease price for each of
the prior six months. However, there are
currently no PAMs, as the sole
remaining PAM was converted to a lease
in November 2004. As such, it is
appropriate to adjust the formula for
calculating EAM annual membership
fees to remove references to PAM prices.
In addition, the Exchange has
determined that the difference between
1 For example, the calculation of the EAM fee
charged in the month of November is based on
average lease prices during January–June. The
average lease for each of these months is based on
the average lease of the six calendar months prior
to the most recently completed quarter, so that the
January average lease is based on the average lease
during April–September of the prior year.
2 If at any time the dues payable by regular
members are in excess of, or less than, $1,500 per
year, this amount shall be correspondingly
increased or reduced.
3 If at any time the maximum transfer fees for a
purchased or leased seat payable by a new regular
member are in excess of, or less than, $5,000, this
amount shall be correspondingly increased or
reduced. The Board has approved, for calendar
2005, the effective elimination of this initiation fee,
in a manner to be administered consistently by the
Exchange, in the event an electronic access member
otherwise becomes an Exchange member.
VerDate jul<14>2003
16:48 Apr 11, 2005
Jkt 205001
the cost of leasing and the price of an
EAM should be narrowed. Accordingly,
the proposed new EAM annual fee
policy would increase the annual fee
from 70 percent to 90 percent of what
the PAM fee would have been, subject
to the requirement that the fee not be
less than $13,500 annually. In addition,
the revised EAM fees will include the
standard initiation fee (currently
$5,000) 5 in the first year of membership
and the standard annual membership
dues (currently $1,500).6 The initiation
fee and the annual dues were originally
charged to EAMs, although they had
been removed when EAM fees were
lowered in 1989.7 The Exchange’s Board
has approved, for calendar 2005, the
effective elimination of the initiation
fee, in a manner to be administered
consistently by the Exchange, in the
event an EAM otherwise becomes an
Exchange member. As is currently the
case, EAM fees under the proposed
revised policy will be calculated and
fixed on a quarterly basis.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of Section 6(b) of the
Act,8 in general, and Section 6(b)(4) of
the Act,9 in particular, in that the
proposal is designed so that the rules of
the Exchange provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using its
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would 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.
5 Transfer fees for purchased and leased seats
equal 5% of the purchase price or last contracted
sale of a seat, subject to minimum and maximum
fees of $1,000 and $5,000 respectively. As seat
prices currently exceed $1,000,000, the current
initiation fee is the $5,000 maximum. See
www.nyse.com/pdfs/2005pricelist_a.pdf.
6 See https://www.nyse.com/pdfs/
2005pricelist_a.pdf.
7 See Securities Exchange Act Release No. 27552
(December 19, 1989), 54 FR 53226 (December 27,
1989).
8 8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
19139
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange asserts that the
foregoing proposed rule change has
become effective upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Act 10 and
Rule 19b–4(f)(2) thereunder 11 because it
establishes or changes a due, fee or
other charge imposed by the Exchange.
At any time within 60 days of the filing
of such 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 purpose 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–11 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–NYSE–2005–11. 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 (https://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 inspection and copying in
the Commission’s Public Reference
10 15
11 17
E:\FR\FM\12APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
12APN1
19140
Federal Register / Vol. 70, No. 69 / Tuesday, April 12, 2005 / Notices
Room. 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–2005–11 and should
be submitted on or before May 3, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1696 Filed 4–11–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51476; File No. SR–Phlx–
2004–75]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Order Granting Approval to Proposed
Rule Change Relating to Floor Official
Conflicts of Interest
April 5, 2005.
On November 9, 2004, the
Philadelphia Stock Exchange, Inc.
(‘‘Phlx’’ 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 Exchange Rule 124, Disputes;
and Option Floor Procedure Advices–
27, Floor Official Rulings—Options
(‘‘OFPA F–27’’), to authorize Exchange
staff 3 to disqualify a Floor Official from
participating in a particular ruling
where it appears that such Floor Official
has a conflict of interest. The proposed
rule change was published for comment
in the Federal Register on March 4,
2005.4 The Commission received no
comments on the proposal.
The proposed rule defines a ‘‘conflict
of interest’’ to exist where a Floor
Official is directly or indirectly
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 ‘‘Exchange staff’’ generally refers to staff of the
Exchange’s Office of Market Surveillance present on
the trading floor. Telephone conversation among
Richard Rudolph, Director and Counsel, Phlx,
Gordon Fuller, Counsel to the Assistant Director,
Division of Market Regulation, Commission and
Geraldine Idrizi, Attorney, Division, Commission
on December 15, 2004.
4 See Securities Exchange Act Release No. 51272
(February 28, 2005), 70 FR 10738.
1 15
VerDate jul<14>2003
16:48 Apr 11, 2005
Jkt 205001
affiliated with a party seeking a Floor
Official ruling; is a participant or is
directly or indirectly affiliated with a
participant in a transaction that is the
subject of a Floor Official ruling; is a
debtor or creditor of a party seeking a
Floor Official ruling; or is an immediate
family member of a party seeking a
Floor Official ruling. The proposal does
not propose to limit the term ‘‘conflict
of interest’’ to these four circumstances
and Exchange staff are authorized to
consider other circumstances, on a caseby-case basis, in determining the
eligibility of a particular Floor Official
to participate in a particular ruling.
The Commission 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 5 and, in particular, the
requirements of Section 6(b) of the Act 6
and the rules and regulations
thereunder. The Commission finds
specifically that the proposed rule
change is consistent with Section 6(b)(5)
of the Act,7 in that it is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and to protect investors and the
public interest, by providing expressly
in the Exchange’s rules that Exchange
staff are authorized to disqualify a Floor
Official from participating in a
particular ruling where it appears that
such Floor Official has a conflict of
interest. In the Commission’s view, the
proposed rule change would further the
goal of fair and objective decision
making by Floor Officials, because the
Exchange would be able to take the
steps necessary to prevent a Floor
Official from participating in a
particular ruling where it appears that
the Floor Official has a conflict of
interest.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–Phlx–2004–
75), be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1697 Filed 4–11–05; 8:45 am]
BILLING CODE 8010–01–P
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
8 15
9 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
Frm 00088
Fmt 4703
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DEPARTMENT OF STATE
[Public Notice 5043]
60-Day Notice of Proposed Information
Collections
Notice of request for public
comments.
ACTION:
SUMMARY: The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collections described
below. The purpose of this notice is to
allow 60 days for public comment in the
Federal Register preceding submission
to OMB. This process is conducted in
accordance with the Paperwork
Reduction Act of 1995.
• Title of Information Collection:
Statement of Registration
• OMB Control Number: 1405–0002
• Type of Request: Extension of
Currently Approved Collection
• Originating Office: Bureau of
Political-Military Affairs, Directorate of
Defense Trade Controls, PM/DDTC
• Form Number: DS–2032
• Respondents: Business and nonprofit organizations
• Estimated Number of Respondents:
5,000 (total)
• Estimated Number of Responses:
3,500 (per year)
• Average Hours Per Response: 2
hours
• Total Estimated Burden: 7,000
hours (per year)
• Frequency: Every one or two years
• Obligation to Respond: Mandatory
• Title of Information Collection:
Application/License for Permanent
Export of Unclassified Defense Articles
and Related Unclassified Technical Data
• OMB Control Number: 1405–0003
• Type of Request: Extension of
Currently Approved Collection
• Originating Office: Bureau of
Political-Military Affairs, Directorate of
Defense Trade Controls, PM/DDTC
• Form Number: DSP–5
• Respondents: Business and nonprofit organizations
• Estimated Number of Respondents:
5,000 (total)
• Estimated Number of Responses:
35,000 (per year)
• Average Hours Per Response: 1
hour
• Total Estimated Burden: 35,000
hours (per year)
• Frequency: On occasion
• Obligation to Respond: Required to
Obtain Benefits
• Title of Information Collection:
Application/License for Temporary
Import of Unclassified Defense Articles
• OMB Control Number: 1405–0013
E:\FR\FM\12APN1.SGM
12APN1
]]>Agencies
[Federal Register Volume 70, Number 69 (Tuesday, April 12, 2005)]
[Notices]
[Pages 19138-19140]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1696]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51477; File No. SR-NYSE-2005-11]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. Relating to the Annual Membership Fees Payable by Electronic
Access Members of the Exchange
April 5, 2005.
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 March 10, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or the ``Commission'') the proposed rule change as described
in Items I, II and III below, which items have been prepared by the
NYSE. The proposed rule change has been filed by the NYSE as a proposal
establishing or changing a due, fee, or other charge, pursuant to
Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposal effective upon filing with
the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NYSE proposes to revise its policy and price list with respect
to the annual membership fees payable by electronic access members
(``EAMs'').
Below is the text of the proposed rule change. Proposed new
language is in italics; proposed deletions are in [brackets].
* * * * *
EAM Annual Fee Policy
[Membership fees]
----------------------------------------------------------------------------------------------------------------
Electronic access
-----------------------------------------------------------------------------------------------------------------
1989 Current price 1990 Existing formula price 1990 Proposed price
----------------------------------------------------------------------------------------------------------------
$77,000(*)............................. $70,736 Calculated once per year $63,642 (January-March 1990)
(November) for the ensuing year; Calculated quarterly; based on 70
based on 70 percent of prior 12- percent of 6-months average of
month average (December through Physical Access Membership fees,
November including initiation fee excluding initiation fee and
and dues) of Physical Access dues. (First quarter 1990 fee
Membership fees. based on April-September 1989
Physical Access fees.)
----------------------------------------------------------------------------------------------------------------
* 1988 fee, held constant for 1989.
The membership fee payable by an electronic access member, with
respect to each year of such membership, exclusive of fines and of such
other charges as may be imposed pursuant to the Constitution, shall be
the sum of (i) 90 of the 6 month average of the annual rentals payable
under the bona fide leases of membership entered into during each of
the six calendar months prior to the most recently completed
quarter,\5\ (ii) $1,500, and (iii) with respect to the first year of
such membership only, $5,000; provided, however, that if at any time
the membership fee payable pursuant to Section 1(a) of Art. X of the
Constitution is in excess of, or less than, $1,500 per year, the amount
provided in clause (ii) above shall be correspondingly increased or
reduced, and if the amount of the fee charged to a new member as
established by the Board pursuant to Section 4 of Art. II of the
Constitution is in excess of, or less than, $5,000, the amount provided
in clause (iii) above shall be correspondingly increased or reduced.
Such membership fee shall be paid in full prior to admission to
membership, and prior to any renewal of such member's membership.
---------------------------------------------------------------------------
\5\ For example, the calculation of the EAM fee charged in the
month of November is based on average lease prices during January-
June. The average lease for each of these months is based on the
average lease of the six calendar months prior to the most recently
completed quarter, so that the January average lease is based on the
average lease during April-September of the prior year.
---------------------------------------------------------------------------
Notwithstanding the foregoing, in accordance with Art. X, Section
1(c) of the Constitution, the membership fee payable by an electronic
access member with respect to each year of such membership shall in no
event be less than $13,500.
The Board has approved, for calendar 2005, the effective
elimination of the initiation fee, in a manner to be administered
consistently by the Exchange, in the event an electronic access member
otherwise becomes an Exchange member.
* * * * *
2005 Price List
* * * * *
Regular Members
Dues--$1,500.00.
Transfer fees for purchased and leased seat--5 percent of purchase
price or last contracted sale (Minimum $1,000.00 Maximum $5,000).
Other
Physical access--calculated monthly--Function of bona fide lease
prices.
Electronic access--calculated quarterly--[70 percent of prior 6
month PAM price] The sum of (i) 90 percent of the 6 month average of
the annual rentals payable under the bona fide leases of membership
entered into during each of the six calendar months prior to the most
recently completed
[[Page 19139]]
quarter,\1\ (ii) $1,500,\2\ and (iii) with respect to the first year of
such membership only, $5,000.\3\
---------------------------------------------------------------------------
\1\ For example, the calculation of the EAM fee charged in the
month of November is based on average lease prices during January-
June. The average lease for each of these months is based on the
average lease of the six calendar months prior to the most recently
completed quarter, so that the January average lease is based on the
average lease during April-September of the prior year.
\2\ If at any time the dues payable by regular members are in
excess of, or less than, $1,500 per year, this amount shall be
correspondingly increased or reduced.
\3\ If at any time the maximum transfer fees for a purchased or
leased seat payable by a new regular member are in excess of, or
less than, $5,000, this amount shall be correspondingly increased or
reduced. The Board has approved, for calendar 2005, the effective
elimination of this initiation fee, in a manner to be administered
consistently by the Exchange, in the event an electronic access
member otherwise becomes an Exchange member.
---------------------------------------------------------------------------
* * * * *
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 Exchange 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 Exchange 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
Pursuant to Art. X, Section 1(c) of the Exchange's Constitution,
the Board of Directors has authority to determine the membership fee
payable by an EAM, subject to a requirement that the fee not be less
than $13,500 annually. Currently, the annual membership fee payable by
EAMs is 70 percent of the average price charged to physical access
members (``PAMs'') during the two quarters prior to the most recently
completed quarter. The PAM price for each month is calculated as the
six-month average lease price for each of the prior six months.
However, there are currently no PAMs, as the sole remaining PAM was
converted to a lease in November 2004. As such, it is appropriate to
adjust the formula for calculating EAM annual membership fees to remove
references to PAM prices. In addition, the Exchange has determined that
the difference between the cost of leasing and the price of an EAM
should be narrowed. Accordingly, the proposed new EAM annual fee policy
would increase the annual fee from 70 percent to 90 percent of what the
PAM fee would have been, subject to the requirement that the fee not be
less than $13,500 annually. In addition, the revised EAM fees will
include the standard initiation fee (currently $5,000) \5\ in the first
year of membership and the standard annual membership dues (currently
$1,500).\6\ The initiation fee and the annual dues were originally
charged to EAMs, although they had been removed when EAM fees were
lowered in 1989.\7\ The Exchange's Board has approved, for calendar
2005, the effective elimination of the initiation fee, in a manner to
be administered consistently by the Exchange, in the event an EAM
otherwise becomes an Exchange member. As is currently the case, EAM
fees under the proposed revised policy will be calculated and fixed on
a quarterly basis.
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\5\ Transfer fees for purchased and leased seats equal 5% of the
purchase price or last contracted sale of a seat, subject to minimum
and maximum fees of $1,000 and $5,000 respectively. As seat prices
currently exceed $1,000,000, the current initiation fee is the
$5,000 maximum. See www.nyse.com/pdfs/2005pricelist_a.pdf.
\6\ See https://www.nyse.com/pdfs/2005pricelist_a.pdf.
\7\ See Securities Exchange Act Release No. 27552 (December 19,
1989), 54 FR 53226 (December 27, 1989).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of Section 6(b) of the Act,\8\ in general, and
Section 6(b)(4) of the Act,\9\ in particular, in that the proposal is
designed so that the rules of the Exchange provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and issuers and other persons using its facilities.
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\8\ 8 15 U.S.C. 78f(b).
\9\ 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 would
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 Exchange asserts that the foregoing proposed rule change has
become effective upon filing pursuant to Section 19(b)(3)(A)(ii) of the
Act \10\ and Rule 19b-4(f)(2) thereunder \11\ because it establishes or
changes a due, fee or other charge imposed by the Exchange. At any time
within 60 days of the filing of such 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
purpose of the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 17 CFR 240.19b-4(f)(2).
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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 (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2005-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-NYSE-2005-11. 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 (https://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 inspection
and copying in the Commission's Public Reference
[[Page 19140]]
Room. 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-2005-11 and should be submitted on
or before May 3, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1696 Filed 4-11-05; 8:45 am]
BILLING CODE 8010-01-P
