Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendments No. 1 and No. 2 Thereto Relating to Member Organization Increases in Arbitration Filing Fees and Member Organization Surcharges in Arbitration Claims Filed by Customers, 30986-30988 [E5-2723]
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30986
Federal Register / Vol. 70, No. 103 / Tuesday, May 31, 2005 / Notices
decided by an arbitration panel.’’ 51 The
Commission reiterates that it is not
approving the 2001 Agreement.52
IV. Conclusion
The Commission received two
requests for the Commission to extend
the comment period for this proposed
rule change. The reasons for these
requests were for ‘‘additional time to
study and comment on the April 18th
release as it pertains to these rule
filings,’’ 53 and to permit the public time
to submit comments in response to the
CBOE’s May 6, 2005 letter filed in
response to the two earlier comment
letters.54 The proposed rule change was
publicly available on March 7, 2005
when the CBOE filed it. On April 7,
2005, the proposal was published in the
Federal Register along with
Amendment No. 1, which included a
technical amendment and the opinion
letter from CBOE’s Delaware counsel.55
The Commission sees no reason to delay
action on the CBOE’s current proposed
rule change to accommodate
commenters’ review of the
Commission’s order denying
reconsideration of a separate filing. In
addition, the Commission believes that
the public has had sufficient time to
review the substance of the CBOE’s
proposed rule change and provide the
Commission with comments.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the
Exchange Act and the rules and
regulations thereunder applicable to a
national securities exchange, and in
particular, with Section 6(b)(5) of the
Exchange Act.56
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,57
that the proposed rule change (SR–
CBOE–2005–19), as amended, be, and it
hereby is, approved.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–2717 Filed 5–27–05; 8:45 am]
BILLING CODE 8010–01–P
51 Joint
Letter, supra note 5, at 1–2.
the CBOE comes to believe that any of the
conditions in the 2001 Agreement, as amended, are
no longer satisfied by the CBOT or CBOT Holdings,
Inc. such that the interpretation the Commission is
today approving is no longer proper, the CBOE
would be required to file with the Commission any
subsequent interpretation of Article Fifth(b).
53 Joint Letter, supra note 5, at 7. See also
Securities Exchange Act Release No. 51568 (Apr.
18, 2005), 70 FR 20953 (Apr. 22, 2005) (order
denying motion for reconsideration of the
Commission’s order approving SR–CBOE–2004–16).
54 See Mills Letter, supra note 9.
55 See supra note 3.
56 15 U.S.C. 78f(b)(5).
57 15 U.S.C. 78s(b)(2).
52 If
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Jkt 205001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51729; File No. SR–NYSE–
2004–57]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change and
Amendments No. 1 and No. 2 Thereto
Relating to Member Organization
Increases in Arbitration Filing Fees
and Member Organization Surcharges
in Arbitration Claims Filed by
Customers
May 24, 2005.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’), and Rule 19b–4 2
thereunder, notice is hereby given that
on October 12, 2004 and on April 4,
2005 (Amendment No. 1) and on April
11, 2005 (Amendment No. 2), the New
York Stock Exchange, Inc. (‘‘NYSE’’ or
the ‘‘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 Exchange.
For the purposes of Section
19(b)(3)(A)(ii) of the Exchange Act 3 and
Rule 19b–4(f)(2) thereunder,4 NYSE has
designated the proposed rule change as
one establishing or changing a due, fee,
or other charge imposed by the selfregulatory organization on its members,
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 proposed rule change consists of
amendments to Rule 629 concerning
arbitration filing fees and hearing
deposits, and the imposition of member
organization surcharges pertaining to
arbitration claims. Below is the text of
the proposed rule change to Rule 629.
Proposed new language is in italics;
proposed deletions are in brackets.
Rule 629
Schedule of Fees
*
*
*
*
*
(c)(1) The arbitrators, in their award,
may determine the amount chargeable
to the parties as forum fees and shall
determine who shall pay such forum
fees. Forum fees chargeable to the
PO 00000
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
Frm 00066
Fmt 4703
Sfmt 4703
parties shall be assessed on a per
hearing session basis and the aggregate
for each hearing session may equal but
shall not exceed the amount of the
largest initial hearing deposit deposited
by any party. [,e] Except that in a case
where claims have been joined
subsequent to filing [in which cases
hearing session], forum fees for any
party other than a customer shall be
computed as provided in paragraph (d),
and forum fees for a customer in
connection with any industry claim
shall be computed as provided in this
paragraph (c)(1). [The arbitrators may
determine in the award that a party
shall reimburse to another party any
non-refundable filing fee it has paid.]
If a customer is assessed forum fees in
connection with an industry claim,
[forum fees assessed against] the
customer’s forum fees shall be based on
the [hearing deposit required under the
industry claims schedule for the] total
amount awarded to industry parties to
be paid by the customer and not based
on the size of the industry claim. The
maximum fee per session for purposes
of calculating any forum fees that may
be assessed against the customer in
connection with an industry claim shall
be:
Amount of award (excluding
interest expenses)
Maximum persession customer fee
amount
$25,001 to $100,000 ............
$100,001 to $500,000 ..........
$500,001 to $5,000,000 .......
Over $5,000,000 ...................
$600
750
1,000
1,500
(c)(2) The arbitrators, in their award,
may determine that a party shall
reimburse to another party any nonrefundable filing fee it has paid; any
such filing fee assessed against a
customer in connection with an industry
claim shall not exceed $500.00.
No fees shall be assessed against a
customer in connection with an
industry claim that is dismissed;
however, in cases where there is also a
customer claim, the customer may be
assessed forum fees based on the
customer claim under the procedure set
out above. Amounts deposited by a
party as hearing deposits shall be
applied against forum fees, if any.
In addition to forum fees, the
arbitrator(s) may determine in the award
the amount of costs incurred pursuant
to Rules 617, 619 and 623 and, unless
applicable law directs otherwise, other
costs and expenses of the parties. The
arbitrator(s) shall determine by whom
such costs shall be borne[.], provided
that the following schedule of hearing
deposits shall be used to calculate any
E:\FR\FM\31MYN1.SGM
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Federal Register / Vol. 70, No. 103 / Tuesday, May 31, 2005 / Notices
industry party shall be $500. The
hearing session deposit to be remitted
by a party shall be $600 or such greater
or lesser amounts as the Director of
Hearing
Arbitration or the panel of arbitrators
deposit
may require, but shall not exceed
$600 $1,500.
*
*
*
*
750 *
1,000
(h) The fee for a pre-hearing
1,500 conference with an arbitrator shall be:
costs assessable against the customer
pursuant to Rule 617 in connection with
an industry claim.
Amount of dispute
(excluding interest expenses)
$25,001 to $100,000 ............
$100,001 to $500,000 ..........
$500,001 to $5,000,000 .......
Over $5,000,000 ...................
If the [hearing session] forum fees are
not assessed against a party who had
made a hearing deposit, the hearing
deposit will be refunded unless the
arbitrators determine [otherwise] that a
hearing deposit paid by a party other
than a customer should not be
refunded. In no event shall the
arbitrators determine not to refund a
hearing deposit to a customer against
whom forum fees are not assessed.
*
*
*
*
*
(e) If the dispute, claim or controversy
does not involve, disclose or specify a
money claim, the non-refundable filing
fee for a public customer will be $250
and the non-refundable filing fee for an
SCHEDULE FOR PRE-HEARING
CONFERENCE WITH ONE ARBITRATOR 1
Conference fee
Amount in
controversy
For customers
$1,000 or less ...........
$1,001 up to $2,500
$2,501 up to $5,000
$5,001 up to $10,000
$10,001 up to
$25,000 .................
Over $25,000 ............
(i) Schedule of Fees.
For purposes of the schedule of fees
the term ‘‘claim’’ includes Claims,
Counterclaims, Third-Party Claims or
Cross-Claims. Any such claim submitted
by a customer is a customer claim. Any
such claim submitted by a member,
allied member, registered
representative, member firm or member
corporation against a customer or other
non-member is an industry claim.
For claims of $25,000 or less see
schedule of fees in Rule 601 Simplified
Arbitration.
For industry
$15.00
25.00
100.00
200.00
$25.00
50.00
125.00
250.00
300.00
450.00
300.00
450.00
1 Fee for pre-hearing conference with three
arbitrators shall be based on applicable hearing session deposit fee.
CUSTER AS CLAIMANT
Amount of dispute
(excluding interest
and expenses)
Filing fee
$25,001 to $50,000 ..
$50,001 to $100,000
$100,001 to $500,000
$500,001 to
$5,000,000 ............
Over $5,000,000 .......
Hearing
deposit
$120
150
200
$400
500
750
250
300
1,000
1,500
INDUSTRY AS CLAIMANT*
Amount of dispute
(excluding interest expenses)
Industry
hearing deposit 3
Arbs.
Filing fee
$25,001 to $100,000 ........................................................................................................
$100,001 to $500,000 ......................................................................................................
$500,001 to $5,000,000 ...................................................................................................
Over $5,000,000 ..............................................................................................................
$5,000,001 to $10,000,000 ..............................................................................................
Over $10,000,000 ............................................................................................................
$[500] 1,000
[500] 1,000
[500] 1,500
[500]
2,500
5,000
$[600] 750
[750] 1,125
[1,000] 1,200
[1,500]
1,500
1,500
Customer hearing deposit
3 Arbs.
$600
750
1000
1500
* This is the fee schedule for claims submitted by members, member firms, member corporations or allied members against members, member
firms, member corporations or allied members, customers, registered representatives or non-members other than customers, and for claims submitted by registered representatives or non-members other than customers against members, member firms, member corporations, allied members or non-members.
(j) Member Surcharges
Each member, member firm, member
corporation or allied member
(hereinafter referred to as any ‘‘entity’’)
that is named as a party to an
arbitration proceeding, whether in a
Claim, Counterclaim, Cross-Claim or
Third-Party Claim, shall be assessed a
member surcharge pursuant to the
schedule below upon receipt of the
claim naming such entity as a party to
the proceeding. For each associated
person who is named, the member
surcharge shall be assessed against the
entity or entities that employed the
associated person at the time of the
events which gave rise to the dispute,
claim or controversy. No entity shall be
assessed more than a single member
surcharge in any arbitration proceeding.
The member surcharge will be refunded
by the Exchange in an arbitration filed
by a customer if the arbitration panel:
VerDate jul<14>2003
16:14 May 27, 2005
Jkt 205001
(1) denies all of a customer’s claims
against the entity or associated person,
and (2) allocates all forum fees assessed
pursuant to Rules 601 and 629 against
the customer.
Amount in Dispute
Up to $2,500 .............................
$2,501 to $5,000 ......................
$5,001 to $10,000 ....................
$10,001 to $25,000 ..................
$25,001 to $30,000 ..................
$30,001 to $50,000 ..................
$50,001 to $100,000 ................
$100,001 to $500,000 ..............
$500,001 to $1,000,000 ...........
$1,000,001 to $5,000,000 ........
$5,000,001 to $10,000,000 ......
Over $10,000,000 .....................
Member
Surcharge
$150
200
325
425
600
875
1,100
1,700
2,250
2,800
3,350
3,750
If the dispute, claim or controversy
does not involve, disclose, or specify a
monetary claim, the member surcharge
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
shall be $1,500 or such greater or lesser
amount as the Director of Arbitration or
the panel of arbitrators may require, but
shall not exceed the maximum amount
specified in the schedule of member
surcharges.
*
*
*
*
*
A. 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,
E:\FR\FM\31MYN1.SGM
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Federal Register / Vol. 70, No. 103 / Tuesday, May 31, 2005 / Notices
of the most significant aspects of such
statements.
1. Purpose
The proposed rule change would raise
existing fees associated with filing
arbitration claims for member
organizations and associated persons,
and would impose a new surcharge on
member organizations that are the
subject of arbitration claims, or whose
associated person(s) are the subject of
such claims. Under the proposed rule
change, filing fees and hearing deposits
would be increased only for cases
initiated by members and member
organizations, and the filing fees and
hearing deposits for claims initiated by
public customers would not be
increased.
When a party files an arbitration
claim at the Exchange, a non-refundable
filing fee and a hearing deposit is
required. Fees are also required when
filing counterclaims, cross-claims and
third party claims. The amount of the
fee and deposit varies based on the
amount in dispute. At the conclusion of
the hearings, the arbitrators assess
forum fees against the claimant(s) or
respondent(s), or both. The forum fees
are computed by multiplying the total
number of hearing sessions by the initial
hearing deposit. These fees are payable
to the Exchange and offset the cost of
maintaining the arbitration forum.
As the arbitration caseload has
increased significantly over the past
several years, the attendant costs to the
Exchange in maintaining the arbitration
forum have also increased. This fee
increase will offset a portion of those
increased costs.
2. Statutory Basis
The basis under the Exchange Act for
this proposed rule change is the
requirement under Section 6(b)(4) 5 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.
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 not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
5 15
U.S.C. 78f(b)(4).
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16:14 May 27, 2005
Jkt 205001
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 has become
effective pursuant to Section
19(b)(3)(A)(ii) 6 of the Exchange Act and
Rule 19b–4(f)(2) 7 thereunder, in that it
establishes or changes a due, fee, or
other charge imposed by the Exchange
on its members. At any time within 60
days of the filing of this 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 Exchange Act.8
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Exchange 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 e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2004–57 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–2004–57. 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
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
8 For purposes of calculating the 60-day
abrogation period, the Commission considers the
proposed rule change to have been filed on April
11, 2005, when Amendment No. 2 was filed.
PO 00000
6 15
7 17
Frm 00068
Fmt 4703
Sfmt 4703
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 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–2004–57 and should be
submitted by June 21, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–2723 Filed 5–27–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51723; File No. SR–PCX–
2005–52]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendments No. 1
and 2 Thereto Making Certain
Administrative Changes to the PCX
Rules
May 20, 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 April 12,
2005, the Pacific Exchange, Inc. (‘‘PCX’’
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 PCX. On May 5, 2005, the Exchange
filed Amendment No. 1 to the proposed
rule change.3 On May 9, 2005, the
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange corrected
typographical errors and made clarifying changes to
the proposed rule text. Amendment No. 1
superseded and replaced the original proposed rule
change in its entirety. Telephone Conference on
May 19, 2005 between Tania Blanford, Regulatory
1 15
E:\FR\FM\31MYN1.SGM
31MYN1
]]>Agencies
[Federal Register Volume 70, Number 103 (Tuesday, May 31, 2005)]
[Notices]
[Pages 30986-30988]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2723]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51729; File No. SR-NYSE-2004-57]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
and Amendments No. 1 and No. 2 Thereto Relating to Member Organization
Increases in Arbitration Filing Fees and Member Organization Surcharges
in Arbitration Claims Filed by Customers
May 24, 2005.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Exchange Act''), and Rule 19b-4 \2\ thereunder, notice is
hereby given that on October 12, 2004 and on April 4, 2005 (Amendment
No. 1) and on April 11, 2005 (Amendment No. 2), the New York Stock
Exchange, Inc. (``NYSE'' or the ``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 Exchange. For the purposes of Section
19(b)(3)(A)(ii) of the Exchange Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ NYSE has designated the proposed rule change as one
establishing or changing a due, fee, or other charge imposed by the
self-regulatory organization on its members, 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 proposed rule change consists of amendments to Rule 629
concerning arbitration filing fees and hearing deposits, and the
imposition of member organization surcharges pertaining to arbitration
claims. Below is the text of the proposed rule change to Rule 629.
Proposed new language is in italics; proposed deletions are in
brackets.
Rule 629 Schedule of Fees
* * * * *
(c)(1) The arbitrators, in their award, may determine the amount
chargeable to the parties as forum fees and shall determine who shall
pay such forum fees. Forum fees chargeable to the parties shall be
assessed on a per hearing session basis and the aggregate for each
hearing session may equal but shall not exceed the amount of the
largest initial hearing deposit deposited by any party. [,e] Except
that in a case where claims have been joined subsequent to filing [in
which cases hearing session], forum fees for any party other than a
customer shall be computed as provided in paragraph (d), and forum fees
for a customer in connection with any industry claim shall be computed
as provided in this paragraph (c)(1). [The arbitrators may determine in
the award that a party shall reimburse to another party any non-
refundable filing fee it has paid.]
If a customer is assessed forum fees in connection with an industry
claim, [forum fees assessed against] the customer's forum fees shall be
based on the [hearing deposit required under the industry claims
schedule for the] total amount awarded to industry parties to be paid
by the customer and not based on the size of the industry claim. The
maximum fee per session for purposes of calculating any forum fees that
may be assessed against the customer in connection with an industry
claim shall be:
------------------------------------------------------------------------
Maximum per-
session
Amount of award (excluding interest expenses) customer fee
amount
------------------------------------------------------------------------
$25,001 to $100,000..................................... $600
$100,001 to $500,000.................................... 750
$500,001 to $5,000,000.................................. 1,000
Over $5,000,000......................................... 1,500
------------------------------------------------------------------------
(c)(2) The arbitrators, in their award, may determine that a party
shall reimburse to another party any non-refundable filing fee it has
paid; any such filing fee assessed against a customer in connection
with an industry claim shall not exceed $500.00.
No fees shall be assessed against a customer in connection with an
industry claim that is dismissed; however, in cases where there is also
a customer claim, the customer may be assessed forum fees based on the
customer claim under the procedure set out above. Amounts deposited by
a party as hearing deposits shall be applied against forum fees, if
any.
In addition to forum fees, the arbitrator(s) may determine in the
award the amount of costs incurred pursuant to Rules 617, 619 and 623
and, unless applicable law directs otherwise, other costs and expenses
of the parties. The arbitrator(s) shall determine by whom such costs
shall be borne[.], provided that the following schedule of hearing
deposits shall be used to calculate any
[[Page 30987]]
costs assessable against the customer pursuant to Rule 617 in
connection with an industry claim.
------------------------------------------------------------------------
Hearing
Amount of dispute (excluding interest expenses) deposit
------------------------------------------------------------------------
$25,001 to $100,000..................................... $600
$100,001 to $500,000.................................... 750
$500,001 to $5,000,000.................................. 1,000
Over $5,000,000......................................... 1,500
------------------------------------------------------------------------
If the [hearing session] forum fees are not assessed against a
party who had made a hearing deposit, the hearing deposit will be
refunded unless the arbitrators determine [otherwise] that a hearing
deposit paid by a party other than a customer should not be refunded.
In no event shall the arbitrators determine not to refund a hearing
deposit to a customer against whom forum fees are not assessed.
* * * * *
(e) If the dispute, claim or controversy does not involve, disclose
or specify a money claim, the non-refundable filing fee for a public
customer will be $250 and the non-refundable filing fee for an industry
party shall be $500. The hearing session deposit to be remitted by a
party shall be $600 or such greater or lesser amounts as the Director
of Arbitration or the panel of arbitrators may require, but shall not
exceed $1,500.
* * * * *
(h) The fee for a pre-hearing conference with an arbitrator shall
be:
Schedule for Pre-Hearing Conference With One Arbitrator \1\
------------------------------------------------------------------------
Conference fee
---------------------
Amount in controversy For For
customers industry
------------------------------------------------------------------------
$1,000 or less.................................... $15.00 $25.00
$1,001 up to $2,500............................... 25.00 50.00
$2,501 up to $5,000............................... 100.00 125.00
$5,001 up to $10,000.............................. 200.00 250.00
$10,001 up to $25,000............................. 300.00 300.00
Over $25,000...................................... 450.00 450.00
------------------------------------------------------------------------
\1\ Fee for pre-hearing conference with three arbitrators shall be based
on applicable hearing session deposit fee.
(i) Schedule of Fees.
For purposes of the schedule of fees the term ``claim'' includes
Claims, Counterclaims, Third-Party Claims or Cross-Claims. Any such
claim submitted by a customer is a customer claim. Any such claim
submitted by a member, allied member, registered representative, member
firm or member corporation against a customer or other non-member is an
industry claim.
For claims of $25,000 or less see schedule of fees in Rule 601
Simplified Arbitration.
Custer as Claimant
------------------------------------------------------------------------
Amount of dispute (excluding interest and Filing Hearing
expenses) fee deposit
------------------------------------------------------------------------
$25,001 to $50,000................................ $120 $400
$50,001 to $100,000............................... 150 500
$100,001 to $500,000.............................. 200 750
$500,001 to $5,000,000............................ 250 1,000
Over $5,000,000................................... 300 1,500
------------------------------------------------------------------------
Industry as Claimant*
----------------------------------------------------------------------------------------------------------------
Industry
Amount of dispute (excluding interest expenses) Filing fee hearing deposit Customer hearing
3 Arbs. deposit 3 Arbs.
----------------------------------------------------------------------------------------------------------------
$25,001 to $100,000....................................... $[500] 1,000 $[600] 750 $600
$100,001 to $500,000...................................... [500] 1,000 [750] 1,125 750
$500,001 to $5,000,000.................................... [500] 1,500 [1,000] 1,200 1000
Over $5,000,000........................................... [500] [1,500] 1500
$5,000,001 to $10,000,000................................. 2,500 1,500
Over $10,000,000.......................................... 5,000 1,500
----------------------------------------------------------------------------------------------------------------
* This is the fee schedule for claims submitted by members, member firms, member corporations or allied members
against members, member firms, member corporations or allied members, customers, registered representatives or
non-members other than customers, and for claims submitted by registered representatives or non-members other
than customers against members, member firms, member corporations, allied members or non-members.
(j) Member Surcharges
Each member, member firm, member corporation or allied member
(hereinafter referred to as any ``entity'') that is named as a party to
an arbitration proceeding, whether in a Claim, Counterclaim, Cross-
Claim or Third-Party Claim, shall be assessed a member surcharge
pursuant to the schedule below upon receipt of the claim naming such
entity as a party to the proceeding. For each associated person who is
named, the member surcharge shall be assessed against the entity or
entities that employed the associated person at the time of the events
which gave rise to the dispute, claim or controversy. No entity shall
be assessed more than a single member surcharge in any arbitration
proceeding. The member surcharge will be refunded by the Exchange in an
arbitration filed by a customer if the arbitration panel: (1) denies
all of a customer's claims against the entity or associated person, and
(2) allocates all forum fees assessed pursuant to Rules 601 and 629
against the customer.
------------------------------------------------------------------------
Member
Amount in Dispute Surcharge
------------------------------------------------------------------------
Up to $2,500............................................... $150
$2,501 to $5,000........................................... 200
$5,001 to $10,000.......................................... 325
$10,001 to $25,000......................................... 425
$25,001 to $30,000......................................... 600
$30,001 to $50,000......................................... 875
$50,001 to $100,000........................................ 1,100
$100,001 to $500,000....................................... 1,700
$500,001 to $1,000,000..................................... 2,250
$1,000,001 to $5,000,000................................... 2,800
$5,000,001 to $10,000,000.................................. 3,350
Over $10,000,000........................................... 3,750
------------------------------------------------------------------------
If the dispute, claim or controversy does not involve, disclose, or
specify a monetary claim, the member surcharge shall be $1,500 or such
greater or lesser amount as the Director of Arbitration or the panel of
arbitrators may require, but shall not exceed the maximum amount
specified in the schedule of member surcharges.
* * * * *
A. 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,
[[Page 30988]]
of the most significant aspects of such statements.
1. Purpose
The proposed rule change would raise existing fees associated with
filing arbitration claims for member organizations and associated
persons, and would impose a new surcharge on member organizations that
are the subject of arbitration claims, or whose associated person(s)
are the subject of such claims. Under the proposed rule change, filing
fees and hearing deposits would be increased only for cases initiated
by members and member organizations, and the filing fees and hearing
deposits for claims initiated by public customers would not be
increased.
When a party files an arbitration claim at the Exchange, a non-
refundable filing fee and a hearing deposit is required. Fees are also
required when filing counterclaims, cross-claims and third party
claims. The amount of the fee and deposit varies based on the amount in
dispute. At the conclusion of the hearings, the arbitrators assess
forum fees against the claimant(s) or respondent(s), or both. The forum
fees are computed by multiplying the total number of hearing sessions
by the initial hearing deposit. These fees are payable to the Exchange
and offset the cost of maintaining the arbitration forum.
As the arbitration caseload has increased significantly over the
past several years, the attendant costs to the Exchange in maintaining
the arbitration forum have also increased. This fee increase will
offset a portion of those increased costs.
2. Statutory Basis
The basis under the Exchange Act for this proposed rule change is
the requirement under Section 6(b)(4) \5\ 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.
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\5\ 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 not necessary or appropriate in
furtherance of the purposes of the Exchange 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 has become effective pursuant to Section
19(b)(3)(A)(ii) \6\ of the Exchange Act and Rule 19b-4(f)(2) \7\
thereunder, in that it establishes or changes a due, fee, or other
charge imposed by the Exchange on its members. At any time within 60
days of the filing of this 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 Exchange Act.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
\8\ For purposes of calculating the 60-day abrogation period,
the Commission considers the proposed rule change to have been filed
on April 11, 2005, when Amendment No. 2 was filed.
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change, as amended, is consistent with the Exchange 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 e-mail to rule-comments@sec.gov. Please include File
Number SR-NYSE-2004-57 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-2004-57. 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 Room. Copies of such
filing will also 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-2004-57 and should be submitted by June 21, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-2723 Filed 5-27-05; 8:45 am]
BILLING CODE 8010-01-P
