Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a Specialist Marketing and Investor Education Fee for Investment Company Units, 36683-36685 [E5-3284]
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Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
36683
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3275 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51871; File No. SR–NSCC–
2005–03]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Granting Approval
of a Proposed Rule Change Relating to
the Collecting of Fees for Services
Provided by Other Entities
June 17, 2005.
I. Introduction
On April 26, 2005, National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–NSCC–2005–03
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’).1 Notice of the proposal was
published in the Federal Register on
May 13, 2005.2 No comment letters were
received. For the reasons discussed
below, the Commission is granting
approval of the proposed rule change.
II. Description
NSCC is a subsidiary of the
Depository Trust and Clearing
Corporation (‘‘DTCC’’). Members of
NSCC and their affiliates may from time
to time utilize the services of DTCC
8 17
CFR 200.30–3(a)(12).
1 U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 51674,
(May 9, 2005), 70 FR 25636.
VerDate jul<14>2003
19:06 Jun 23, 2005
Jkt 205001
subsidiaries that are not registered as
clearing agencies with the Commission.
Such subsidiaries include Global Asset
Solutions LLC and DTCC Deriv/Serv
LLC. In addition, members of NSCC and
their affiliates may utilize the services of
other third parties. NSCC has
determined that it would be more
efficient and less costly if the fees that
members agree to pay for such services
were collected by NSCC rather than
through independent billing
mechanisms that would otherwise have
to be established by each subsidiary of
DTCC and third party that is not a
registered clearing agency.
NSCC’s rules currently allow for fee
collection arrangements with respect to
collection of fees from members. The
rule change further clarifies this practice
and makes clear that NSCC may
similarly collect fees and charges for
services provided to affiliates of its
members. NSCC will enter into
appropriate agreements with such
subsidiaries and others regarding the
collection of fees.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
NSCC–2005–03) be and hereby is
approved.
III. Discussion
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
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of NASD. 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 publicly available. All
submissions should refer to File
Number SR–NASD–2005–063 and
should be submitted on or before July
15, 2005.
June 17, 2005.
Section 17A(a)(1)(B) of the Act
provides that inefficient procedures for
clearance and settlement impose
unnecessary costs on investors and
persons facilitating transactions by and
acting on behalf of investors.3 Although
the services provided by unregulated
DTCC subsidiaries and by other third
parties are not core clearance and
settlement services, they are related to
the clearance and settlement operations
of NSCC and of its members. By
streamlining the fee collection process
for these services so that NSCC’s
members will pay these fees to NSCC as
a part of their normal monthly NSCC
bills, the proposed rule change should
help to improve efficiency in the
operations of NSCC members and
thereby should remove unnecessary cost
for NSCC members and for the persons
(i.e., the DTCC subsidiaries and the
other entities providing services to
NSCC members) facilitating transactions
by and acting on behalf of investors.
Accordingly, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 17A of
the Act.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on June 13,
2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II, below, which Items have
been prepared by the Exchange. The
proposed rule change has been filed by
the Exchange as 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)4 thereunder,
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.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 17A of the Act and
the rules and regulations thereunder.
3 15
PO 00000
U.S.C. 78q–1(a)(A)(B).
Frm 00127
Fmt 4703
Sfmt 4703
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority. 4
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3282 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51872; File No. SR–NYSE–
2005–42]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to a
Specialist Marketing and Investor
Education Fee for Investment
Company Units
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to charge a fee
to specialists allocated listed Investment
Company Units (‘‘ICUs’’) in
circumstances where the Exchange
undertakes to provide funds to a third
party for marketing and investor
education in connection with the listing
of those ICUs. Below is the text of the
4 17
CFR 200.30–3(a)(12).
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).
1 15
E:\FR\FM\24JNN1.SGM
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36684
Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
proposed rule change. Proposed new
language is in italics.
*
*
*
*
*
2005 Price List
*
*
*
*
*
Facility and Equipment Fees
*
*
*
*
*
Specialist Marketing and Investor
Education Fee—payment by the
specialist unit allocated an issue of
Investment Company Units of any
amount payable by the Exchange to a
third party for marketing and investor
education expenses in connection with
trading on the Exchange—billed
quarterly.** Five-sixths (83.33%) of the
amount payable by the Exchange.
Notes:
*
*
*
*
*
**The amount paid by a specialist unit will
be apportioned each calendar quarter among
the specialist units allocated ICUs subject to
an Exchange payment to a third party. Such
amount will be apportioned to a specialist
unit based on the specialist unit’s share of
the ‘‘Notional NYSE ADV’’ for the ICUs
subject to the payment. Notional NYSE ADV
is defined as the average daily share volume
on the NYSE for the quarter for an ICU
multiplied by the average consolidated
closing price for the quarter for such ICU.
The following hypothetical
demonstrates how the apportionment
will operate. Assume three ICUs with a
Notional NYSE ADV for the preceding
calendar quarter of 50,000, 100,000 and
150,000, respectively. The three ICUs
are allocated to Specialist Units A, B
and C, respectively. Specialist Units A,
B and C would be billed 16.67%,
33.33% and 50% of the amount
apportioned to the specialist units for
the quarter (i.e., in the aggregate, fivesixths of the amount payable by the
Exchange). Each calendar quarter, the
Exchange will notify each specialist unit
of the amount payable for the preceding
quarter.
*
*
*
*
*
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.
VerDate jul<14>2003
19:06 Jun 23, 2005
Jkt 205001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange anticipates that it may
undertake in the future to provide funds
to third parties for marketing and
investor education with respect to
certain listings of ICUs, also known as
Exchange Traded Funds. In such
circumstances, the Exchange believes it
is appropriate for the specialists
allocated those listed ICUs to participate
in the provision of such funds to the
relevant third party. The Exchange
therefore proposes to implement a
Specialist Marketing and Investor
Education Fee to be imposed in
connection with payments made to
third parties in connection with the
listing of any ICUs subject to such third
party payments. This fee would be
separate from the current Specialist
License Fee.5 The Exchange believes
that the fee would be imposed in a fair
and equitable manner on all specialists
trading the securities subject to a third
party fee or payment.
The amount paid by the specialists
would be calculated and apportioned
following each calendar quarter among
the specialist units allocated ICUs that
are subject to an Exchange payment to
third parties. This amount would
represent five-sixths (83.33%) of the
annual amount payable by the
Exchange, as apportioned for the
quarter. Such amount would be
apportioned to specialist units for each
ICU that is subject to the fee, calculated
based on the ‘‘Notional NYSE ADV’’ for
each relevant ICU. Notional NYSE ADV
would be defined as the average daily
share volume on the NYSE for the
calendar quarter for the particular ICU
multiplied by the average consolidated
closing price for the quarter for such
ICU.
The following hypothetical
demonstrates how the apportionment
would operate. Assume three ICUs with
a Notional NYSE ADV for the preceding
calendar quarter of 50,000, 100,000, and
150,000, respectively. Also assume that
the three ICUs are allocated to Specialist
Units A, B, and C, respectively.
Specialist Units A, B, and C would be
billed 16.67%, 33.33% and 50% of the
amount apportioned to the specialist
units for the quarter (i.e., in the
aggregate, five-sixths of the amount
payable by the Exchange). Each calendar
quarter, the Exchange would notify each
specialist unit of the amount payable, if
any, under the Specialist Marketing and
Investor Education Fee for the preceding
quarter.
The Exchange believes that the
Notional NYSE ADV is an appropriate
mechanism for allocating the fee among
the specialists as it takes into account
both trading volume and share price.
Therefore, a relatively high-priced ICU
with a relatively low share volume
might be subject to a fee comparable to
a relatively low-priced ICU with
relatively high share volume. According
to the Exchange, the proposed manner
of apportioning the fee among specialist
units attempts to equalize the fee among
ICUs with different trading
characteristics, instead of apportioning
the fee based on a single characteristic
(e.g., NYSE share volume).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act,7 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among its members.
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 proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,8 and
Rule 19b–4(f)(2)9 thereunder, 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 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,
6 15
Securities Exchange Act Release No. 50109
(July 28, 2004), 69 FR 47192 (August 4, 2004) (File
No. SR–NYSE–2004–35)
PO 00000
5 See
Frm 00128
Fmt 4703
Sfmt 4703
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b-4(f)(2).
7 15
E:\FR\FM\24JNN1.SGM
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Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–42 on the
subject line.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3284 Filed 6–23–05; 8:45 am]
Dated: June 17, 2005.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. 05–12572 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
BILLING CODE 4710–08–P
DEPARTMENT OF STATE
DEPARTMENT OF STATE
[Public Notice 5118]
[Public Notice 5119]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Lords
of Creation: the Origins of Sacred
Maya Kingship’’
Notice of Public Meeting FY 2006
Refugee Admissions Program
Department of State.
Notice.
AGENCY:
ACTION:
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
Paper Comments
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
• Send paper comments in triplicate
2459), Executive Order 12047 of March
to Jonathan G. Katz, Secretary,
27, 1978, the Foreign Affairs Reform and
Securities and Exchange Commission,
Restructuring Act of 1998 (112 Stat.
100 F Street, NE., Washington, DC
2681, et seq.; 22 U.S.C. 6501 note, et
20549–9303.
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
All submissions should refer to File
No. 236 of October 19, 1999, as
Number SR–NYSE–2005–42. This file
amended, and Delegation of Authority
number should be included on the
subject line if e-mail is used. To help the No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
Commission process and review your
included in the exhibition ‘‘Lords of
comments more efficiently, please use
Creation: the Origins of Sacred Maya
only one method. The Commission will
post all comments on the Commission’s Kingship,’’ imported from abroad for
temporary exhibition within the United
Internet Web site (https://www.sec.gov/
States, are of cultural significance. The
rules/sro.shtml). Copies of the
objects are imported pursuant to loan
submission, all subsequent
agreements with the foreign lenders. I
amendments, all written statements
also determine that the exhibition or
with respect to the proposed rule
display of the exhibit objects at the Los
change that are filed with the
Angeles County Museum of Art, Los
Commission, and all written
Angeles, CA, from on or about
communications relating to the
September 10, 2005, to on or about
proposed rule change between the
January 2, 2006; Dallas Museum of Art,
Commission and any person, other than Dallas, TX, from on or about February
those that may be withheld from the
12, 2006, to on or about May 7, 2006;
public in accordance with the
Metropolitan Museum of Art, New York,
provisions of 5 U.S.C. 552, will be
NY, from on or about June 11, 2006, to
available for inspection and copying in
on or about September 10, 2006, and at
possible additional venues yet to be
the Commission’s Public Reference
determined, is in the national interest.
Section, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will Public Notice of these Determinations is
ordered to be published in the Federal
be available for inspection and copying
Register.
at the principal office of the Exchange.
FOR FURTHER INFORMATION CONTACT: For
All comments received will be posted
further information, including a list of
without change; the Commission does
the exhibit objects, contact Julianne
not edit personal identifying
Simpson, Attorney-Adviser, Office of
information from submissions. You
the Legal Adviser, U.S. Department of
should submit only information that
you wish to make available publicly. All State, (telephone: (202) 453–8049). The
address is U.S. Department of State, SA–
submissions should refer to File
Number SR–NYSE–2005–42 and should 44, 301 4th Street, SW., Room 700,
be submitted on or before July 15, 2005. Washington, DC 20547–0001.
10 17
VerDate jul<14>2003
19:06 Jun 23, 2005
Jkt 205001
36685
PO 00000
CFR 200.30–3(a)(12).
Frm 00129
Fmt 4703
Sfmt 4703
There will be a meeting on the
President’s FY 2006 Refugee
Admissions Program on Wednesday,
July 13, 2005 from 2 p.m. to 4 p.m. The
meeting will be held at the Refugee
Processing Center, 1401 Wilson
Boulevard, Suite 700, Arlington,
Virginia. The meeting’s purpose is to
hear the views of attendees on the
appropriate size and scope of the FY
2006 Refugee Admissions Program.
Seating is limited. Persons wishing to
attend this meeting must Notify the
Bureau of Population, Refugees, and
Migration at (202) 663–1056 by 5 p.m.
(e.d.t.), Wednesday, July 6, 2005 to
arrange for admission. Persons wishing
to present oral comments or submit
written comments for consideration,
must provide them in writing by 5 p.m.
(e.d.t.), Wednesday, July 6, 2006.
All comments should be faxed to
(202) 663–1364.
Information about the Refugee
Admissions Program may be found at
https://www.state.gov/g/prm/.
Whitney Reitz,
Overseas Program Section Chief, Bureau of
Population, Refugees, and Migration,
Department of State.
[FR Doc. 05–12573 Filed 6–23–05; 8:45 am]
BILLING CODE 4710–33–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
[Docket No. WTO/DS–264]
WTO Dispute Settlement Proceeding
Regarding Final Dumping
Determination on Softwood Lumber
from Canada
Office of the United States
Trade Representative.
ACTION: Notice; request for comments.
AGENCY:
SUMMARY: The Office of the United
States Trade Representative (USTR) is
providing notice that on June 1, 2005, at
the request of Canada, the Dispute
Settlement Body (DSB) of the World
Trade Organization (WTO) established a
E:\FR\FM\24JNN1.SGM
24JNN1
]]>Agencies
[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Pages 36683-36685]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3284]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51872; File No. SR-NYSE-2005-42]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to a Specialist Marketing and Investor Education Fee for
Investment Company Units
June 17, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on June 13, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II, below, which Items have been prepared by the Exchange. The proposed
rule change has been filed by the Exchange as 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)\4\ thereunder, 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 Exchange proposes to charge a fee to specialists allocated
listed Investment Company Units (``ICUs'') in circumstances where the
Exchange undertakes to provide funds to a third party for marketing and
investor education in connection with the listing of those ICUs. Below
is the text of the
[[Page 36684]]
proposed rule change. Proposed new language is in italics.
* * * * *
2005 Price List
* * * * *
Facility and Equipment Fees
* * * * *
Specialist Marketing and Investor Education Fee--payment by the
specialist unit allocated an issue of Investment Company Units of any
amount payable by the Exchange to a third party for marketing and
investor education expenses in connection with trading on the
Exchange--billed quarterly.** Five-sixths (83.33%) of the amount
payable by the Exchange.
Notes:
* * * * *
**The amount paid by a specialist unit will be apportioned each
calendar quarter among the specialist units allocated ICUs subject
to an Exchange payment to a third party. Such amount will be
apportioned to a specialist unit based on the specialist unit's
share of the ``Notional NYSE ADV'' for the ICUs subject to the
payment. Notional NYSE ADV is defined as the average daily share
volume on the NYSE for the quarter for an ICU multiplied by the
average consolidated closing price for the quarter for such ICU.
The following hypothetical demonstrates how the apportionment will
operate. Assume three ICUs with a Notional NYSE ADV for the preceding
calendar quarter of 50,000, 100,000 and 150,000, respectively. The
three ICUs are allocated to Specialist Units A, B and C, respectively.
Specialist Units A, B and C would be billed 16.67%, 33.33% and 50% of
the amount apportioned to the specialist units for the quarter (i.e.,
in the aggregate, five-sixths of the amount payable by the Exchange).
Each calendar quarter, the Exchange will notify each specialist unit of
the amount payable for the preceding quarter.
* * * * *
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
The Exchange anticipates that it may undertake in the future to
provide funds to third parties for marketing and investor education
with respect to certain listings of ICUs, also known as Exchange Traded
Funds. In such circumstances, the Exchange believes it is appropriate
for the specialists allocated those listed ICUs to participate in the
provision of such funds to the relevant third party. The Exchange
therefore proposes to implement a Specialist Marketing and Investor
Education Fee to be imposed in connection with payments made to third
parties in connection with the listing of any ICUs subject to such
third party payments. This fee would be separate from the current
Specialist License Fee.\5\ The Exchange believes that the fee would be
imposed in a fair and equitable manner on all specialists trading the
securities subject to a third party fee or payment.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 50109 (July 28,
2004), 69 FR 47192 (August 4, 2004) (File No. SR-NYSE-2004-35)
---------------------------------------------------------------------------
The amount paid by the specialists would be calculated and
apportioned following each calendar quarter among the specialist units
allocated ICUs that are subject to an Exchange payment to third
parties. This amount would represent five-sixths (83.33%) of the annual
amount payable by the Exchange, as apportioned for the quarter. Such
amount would be apportioned to specialist units for each ICU that is
subject to the fee, calculated based on the ``Notional NYSE ADV'' for
each relevant ICU. Notional NYSE ADV would be defined as the average
daily share volume on the NYSE for the calendar quarter for the
particular ICU multiplied by the average consolidated closing price for
the quarter for such ICU.
The following hypothetical demonstrates how the apportionment would
operate. Assume three ICUs with a Notional NYSE ADV for the preceding
calendar quarter of 50,000, 100,000, and 150,000, respectively. Also
assume that the three ICUs are allocated to Specialist Units A, B, and
C, respectively. Specialist Units A, B, and C would be billed 16.67%,
33.33% and 50% of the amount apportioned to the specialist units for
the quarter (i.e., in the aggregate, five-sixths of the amount payable
by the Exchange). Each calendar quarter, the Exchange would notify each
specialist unit of the amount payable, if any, under the Specialist
Marketing and Investor Education Fee for the preceding quarter.
The Exchange believes that the Notional NYSE ADV is an appropriate
mechanism for allocating the fee among the specialists as it takes into
account both trading volume and share price. Therefore, a relatively
high-priced ICU with a relatively low share volume might be subject to
a fee comparable to a relatively low-priced ICU with relatively high
share volume. According to the Exchange, the proposed manner of
apportioning the fee among specialist units attempts to equalize the
fee among ICUs with different trading characteristics, instead of
apportioning the fee based on a single characteristic (e.g., NYSE share
volume).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(4) of the Act,\7\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\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 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 proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,\8\ and Rule 19b-4(f)(2)\9\
thereunder, 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 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,
[[Page 36685]]
or otherwise in furtherance of the purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 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-2005-42 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NYSE-2005-42. 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 Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will 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 Number SR-NYSE-2005-42 and should be
submitted on or before July 15, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3284 Filed 6-23-05; 8:45 am]
BILLING CODE 8010-01-P
