Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Its Listed Company Manual To Apply Listing and Annual Fees to Foreign Private Issuers of Certain Debt Securities, 75573-75575 [2011-30983]
Download as PDF
Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Notices
number should be included on the
subject line if email 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 Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the 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–Phlx–
2011–159 and should be submitted on
or before December 23, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30981 Filed 12–1–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65840; File No. SR–BX–
2011–071]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Order
Approving Proposed Rule Change
With Respect to an Amendment to the
By-Laws of The NASDAQ OMX Group,
Inc.
2 17
jlentini on DSK4TPTVN1PROD with NOTICES
November 28, 2011.
On October 11, 2011, NASDAQ OMX
BX, Inc. (‘‘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
9 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
VerDate Mar<15>2010
17:03 Dec 01, 2011
thereunder,2 a proposed rule change to
amend the by-laws of its parent
corporation, The NASDAQ OMX Group,
Inc. (‘‘NASDAQ OMX’’). The proposed
rule change was published for comment
in the Federal Register on October 28,
2011.3 The Commission received no
comments on the proposal.
After careful review, 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 4 and, in particular,
the requirements of Section 6(b)(5) of
the Act.5 The proposal will allow the
NASDAQ OMX Board of Directors
(‘‘Board’’) to determine the size of its
Audit Committee, so long as the Audit
Committee includes at least three
directors, as well as the size of its
Nominating & Governance Committee,
so long as the Nominating & Governance
Committee includes at least two
directors. The proposal is intended to
provide greater flexibility to the
NASDAQ OMX Board to determine the
appropriate size for these committees.
The Commission notes that the
proposed rule change maintains
compliance with the Exchange’s listing
standards. The proposal does not
change any other compositional
requirements of either the Audit
Committee or the Nominating &
Governance Committee, including
independence requirements. Moreover,
the Commission notes that the proposal
does not alter the application of Section
10A of the Exchange Act 6 and Rule
10A–3 thereunder 7 to the NASDAQ
OMX Audit Committee. The proposal
also deletes an obsolete section from,
and corrects a typographical error in,
the NASDAQ OMX by-laws, which are
clarifying revisions. For the foregoing
reasons, the Commission believes that
the proposed rule change is consistent
with the Act.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–BX–2011–
071) be, and it hereby is, approved.
Jkt 226001
CFR 240.19b–4.
Securities Exchange Act Release No. 65603
(October 21, 2011), 76 FR 67013.
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
6 15 U.S.C. 78j–1.
7 17 CFR 240.10A–3.
8 15 U.S.C. 78s(b)(2).
3 See
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75573
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30982 Filed 12–1–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65845; File No. SR–NYSE–
2011–59]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending Its
Listed Company Manual To Apply
Listing and Annual Fees to Foreign
Private Issuers of Certain Debt
Securities
November 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on
November 18, 2011, the New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Listed Company Manual to include a fee
that it believes was inadvertently
omitted. In particular, the Exchange
proposes to apply Listing and Annual
fees to foreign private issuers of debt
securities listed under Section 103.05 of
the Listed Company Manual. The text of
the proposed rule change is available at
the Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\02DEN1.SGM
02DEN1
75574
Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Notices
on the proposed rule change. The text
of those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE proposes to amend the Listed
Company Manual to include a fee that
it believes was inadvertently omitted. In
particular, the Exchange proposes to
apply Listing and Annual Fees to
foreign private issuers of debt securities
listed under Section 103.05 of the Listed
Company Manual.
Debt Securities Listed Under Section
102.03 or 103.05
Under Section 102.03 of the Listed
Company Manual, a debt security for a
domestic company may be listed on the
Exchange if it has an aggregate market
value or principal amount of no less
than $5,000,000 and meets certain other
requirements.3 Under Section 103.05, a
debt security of a foreign private issuer
also may be listed on the Exchange if it
has an aggregate market value or
principal amount of no less than
$5,000,000 and meets certain
requirements substantially similar to
those applicable to a domestic debt
security.4
The Listing and Annual Fees for debt
securities listed under Section 102.03
are set forth in Section 902.08. For the
non-listed debt securities of NYSE
equity issuers and affiliated companies,
and for the domestic debt securities of
issuers exempt from registration under
[sic] Securities and Exchange Act of
jlentini on DSK4TPTVN1PROD with NOTICES
3 The
debt security must be characterized by one
of the following conditions: (a) The issuer of the
debt security has equity securities listed on the
Exchange; (b) an issuer of equity securities listed on
the Exchange directly or indirectly owns a majority
interest in, or is under common control with, the
issuer of the debt security; (c) an issuer of equity
securities listed on the Exchange has guaranteed the
debt security; (d) a nationally recognized securities
rating organization (‘‘NRSRO’’) has assigned a
current rating to the debt security that is no lower
than an S&P Corporation ‘‘B’’ rating or an
equivalent rating by another NRSRO; or (e) if no
NRSRO has assigned a rating to the issue, an
NRSRO has currently assigned (i) an investment
grade rating to a senior issue, or (ii) a rating that
is no lower than an S&P Corporation ‘‘B’’ rating, or
an equivalent rating by another NRSRO, to a pari
passu or junior issue.
4 The only difference in the requirements is that
under Section 102.03, a convertible debt issue must
have an aggregate market value or principal amount
of no less than $10,000,000 and may be listed only
if the underlying equity securities are subject to
real-time last sale reporting in the United States.
VerDate Mar<15>2010
17:03 Dec 01, 2011
Jkt 226001
1934 (the ‘‘Act’’), no fees are charged.
For the listed debt securities of NYSE
equity issuers and affiliated companies,
an initial Listing Fee of $5,000 and an
Annual Fee of $5,000 are charged. For
all other debt securities listed under
Section 102.03, an initial Listing Fee of
$5,000 and an Annual Fee of $5,000 are
charged.
Under Section 902.02, certain Listing
and Annual Fees that may be billed to
an issuer in a calendar year are
currently capped at $500,000. Listing
and Annual Fees for securities listed
under Section 102.03 are currently
subject to the $500,000 cap in Section
902.02.
The Exchange proposes to amend
Section 902.08 to make it also
applicable to debt securities listed
under Section 103.05; the Exchange
believes that such a reference to Section
103.05 was inadvertently omitted
because the Exchange intended to treat
these similarly situated securities in the
same way for fee purposes. The
Exchange believes that there is no
substantial difference between the
listing support, regulatory, and
administrative activities that must be
carried out for securities listed under
Section 102.03 or 103.05 and
accordingly these securities should be
charged the same fees.5
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),6 in general, and Section 6(b)(4)
of the Act,7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities. The
Exchange believes that the proposed
fees for foreign private issuers of debt
are reasonable and equitably allocated
because they are the same fees that are
charged to issuers of domestic debt
listed under substantially the same
criteria. The Exchange engages in the
same listing support, regulatory, and
administrative activities for domestic
securities listed under Section 102.03 as
it does for foreign securities listed under
Section 103.05.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
5 Like securities listed under Section 102.03,
Listing and Annual Fees for securities listed under
Section 103.05 would be subject to the $500,000
cap in Section 902.02.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange. At any time within 60 days
of the filing of such proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2011–59 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2011–59. This file
number should be included on the
subject line if email 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
8 15
9 17
E:\FR\FM\02DEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
02DEN1
Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Notices
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 20549–1090. Copies of the filing will
also be available for inspection and
copying at the NYSE’s principal office
and on its Internet Web site at https://
www.nyse.com. 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–
2011–59 and should be submitted on or
before December 23, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30983 Filed 12–1–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65835; File No. SR–CBOE–
2011–105]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to MarketMakers’ Continuous Electronic
Quoting Obligations and Adjusted
Option Series
jlentini on DSK4TPTVN1PROD with NOTICES
November 28, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
18, 2011, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:03 Dec 01, 2011
Jkt 226001
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) 4 thereunder. 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 Exchange proposes to amend its
rules to indicate that Market-Makers
will not be obligated to maintain
continuous electronic quotes in adjusted
option series and to define the term
adjusted option series. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE proposes to amend its rules to
indicate that Market-Makers will not be
obligated to maintain continuous
electronic quotes in adjusted option
series and to define the term adjusted
option series. The proposal is based on
recent rule changes of NYSE Amex LLC
(‘‘NYSE Amex’’), NYSE Arca, Inc.
(‘‘NYSE Arca’’) and NASDAQ OMX
PHLX, Inc. (‘‘PHLX’’).5
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release Nos. 65572
(October 14, 2011), 76 FR 65310 (October 20, 2011)
(SR–NYSEAmex-2011–61) (order granting approval
of proposed rule change concerning market maker
continuous quoting obligations and adjusted option
series); 65573 (October 14, 2011), 76 FR 65305
(October 20, 2011) (SR–NYSEArca-2011–59) (order
granting approval of proposed rule change
concerning market maker continuous quoting
obligations and adjusted option series); and 61095
(December 2, 2009), 74 FR 64786 (December 8, 2009
(SR–PHLX–2009–99).
4 17
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
75575
Rules 8.7, 8.13, 8.15A, 8.85, and 8.93
impose certain obligations on MarketMakers, Preferred Market-Makers, Lead
Market-Makers (‘‘LMMs’’), Designated
Primary Market-Makers (‘‘DPMs’’), and
electronic-DPMs (‘‘e-DPMs’’),
respectively (collectively, ‘‘MarketMakers’’).
These rules require that MarketMakers maintain continuous electronic
quotes 6 as follows:
• Rule 8.7(d)(ii)(B) requires that
Market-Makers maintain continuous
electronic quotes in 60% of the series of
the Market-Maker’s appointed class that
have a time to expiration of less than
nine months;
• Rule 8.13(d) requires that Preferred
Market-Makers, among other things,
provide continuous electronic quotes in
at least 90% of the series of each class
for which it receives Preferred MarketMaker orders;
• Rule 8.15A(b)(i) requires that LMMs
provide continuous electronic quotes
that comply with the bid/ask differential
requirements determined by the
Exchange on a class-by-class basis in
90% of the option series within their
assigned classes;7
• Rule 8.85(a)(i) requires DPMs to
provide continuous electronic quotes in
at least 90% of the series of each
multiply listed option class allocated to
it and in 100% of the series of each
singly listed option class allocated to it;
and
• Rule 8.93 requires that e-DPMs
provide continuous electronic quotes in
at least 90% of the series of each
allocated class.8
The Exchange proposes to relieve
Market-Makers of the obligation to
6 Rule 1.1(ccc) provides that a Market-Maker who
is obligated to provide continuous electronic quotes
on CBOE’s Hybrid Trading System will be deemed
to have provided ‘‘continuous electronic quotes’’ if
the Market-Maker provides electronic two-sided
quotes for 99% of the time that the Market-Maker
is required to provide electronic quotes in an
appointed option class on a given trading day. The
rule also provides that if a technical failure or
limitation of a system of the Exchange prevents the
Market-Maker from maintaining, or prevents the
Market-Maker from communicating to the
Exchange, timely and accurate electronic quotes in
a class, the duration of such failure will not be
considered in determining whether the MarketMaker has satisfied the 99% quoting standard with
respect to that option class. The Exchange may
consider other exceptions to this continuous
electronic quote obligation based on demonstrated
legal or regulatory requirements or other mitigating
circumstances.
7 This rule also provides that in option classes in
which both an on-floor LMM and an off-floor LMM
have been appointed, the on-floor LMM will only
be obligated to comply with obligations of MarketMakers in hybrid classes set forth in Rule 8.7(d).
8 Alternatively, an e-DPM must provide
continuous electronic quotes in at least 98% of
requests for quotes if such functionality is enabled
as determined by the Exchange.
E:\FR\FM\02DEN1.SGM
02DEN1
Agencies
[Federal Register Volume 76, Number 232 (Friday, December 2, 2011)]
[Notices]
[Pages 75573-75575]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30983]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65845; File No. SR-NYSE-2011-59]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Amending Its Listed Company Manual To Apply Listing and Annual Fees to
Foreign Private Issuers of Certain Debt Securities
November 28, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 18, 2011, the New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Listed Company Manual to include
a fee that it believes was inadvertently omitted. In particular, the
Exchange proposes to apply Listing and Annual fees to foreign private
issuers of debt securities listed under Section 103.05 of the Listed
Company Manual. The text of the proposed rule change is available at
the Exchange, the Commission's Public Reference Room, and https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received
[[Page 75574]]
on the proposed rule change. The text of those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE proposes to amend the Listed Company Manual to include a fee
that it believes was inadvertently omitted. In particular, the Exchange
proposes to apply Listing and Annual Fees to foreign private issuers of
debt securities listed under Section 103.05 of the Listed Company
Manual.
Debt Securities Listed Under Section 102.03 or 103.05
Under Section 102.03 of the Listed Company Manual, a debt security
for a domestic company may be listed on the Exchange if it has an
aggregate market value or principal amount of no less than $5,000,000
and meets certain other requirements.\3\ Under Section 103.05, a debt
security of a foreign private issuer also may be listed on the Exchange
if it has an aggregate market value or principal amount of no less than
$5,000,000 and meets certain requirements substantially similar to
those applicable to a domestic debt security.\4\
---------------------------------------------------------------------------
\3\ The debt security must be characterized by one of the
following conditions: (a) The issuer of the debt security has equity
securities listed on the Exchange; (b) an issuer of equity
securities listed on the Exchange directly or indirectly owns a
majority interest in, or is under common control with, the issuer of
the debt security; (c) an issuer of equity securities listed on the
Exchange has guaranteed the debt security; (d) a nationally
recognized securities rating organization (``NRSRO'') has assigned a
current rating to the debt security that is no lower than an S&P
Corporation ``B'' rating or an equivalent rating by another NRSRO;
or (e) if no NRSRO has assigned a rating to the issue, an NRSRO has
currently assigned (i) an investment grade rating to a senior issue,
or (ii) a rating that is no lower than an S&P Corporation ``B''
rating, or an equivalent rating by another NRSRO, to a pari passu or
junior issue.
\4\ The only difference in the requirements is that under
Section 102.03, a convertible debt issue must have an aggregate
market value or principal amount of no less than $10,000,000 and may
be listed only if the underlying equity securities are subject to
real-time last sale reporting in the United States.
---------------------------------------------------------------------------
The Listing and Annual Fees for debt securities listed under
Section 102.03 are set forth in Section 902.08. For the non-listed debt
securities of NYSE equity issuers and affiliated companies, and for the
domestic debt securities of issuers exempt from registration under
[sic] Securities and Exchange Act of 1934 (the ``Act''), no fees are
charged. For the listed debt securities of NYSE equity issuers and
affiliated companies, an initial Listing Fee of $5,000 and an Annual
Fee of $5,000 are charged. For all other debt securities listed under
Section 102.03, an initial Listing Fee of $5,000 and an Annual Fee of
$5,000 are charged.
Under Section 902.02, certain Listing and Annual Fees that may be
billed to an issuer in a calendar year are currently capped at
$500,000. Listing and Annual Fees for securities listed under Section
102.03 are currently subject to the $500,000 cap in Section 902.02.
The Exchange proposes to amend Section 902.08 to make it also
applicable to debt securities listed under Section 103.05; the Exchange
believes that such a reference to Section 103.05 was inadvertently
omitted because the Exchange intended to treat these similarly situated
securities in the same way for fee purposes. The Exchange believes that
there is no substantial difference between the listing support,
regulatory, and administrative activities that must be carried out for
securities listed under Section 102.03 or 103.05 and accordingly these
securities should be charged the same fees.\5\
---------------------------------------------------------------------------
\5\ Like securities listed under Section 102.03, Listing and
Annual Fees for securities listed under Section 103.05 would be
subject to the $500,000 cap in Section 902.02.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Securities Exchange Act of
1934 (the ``Act''),\6\ in general, and Section 6(b)(4) of the Act,\7\
in particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
members and other persons using its facilities. The Exchange believes
that the proposed fees for foreign private issuers of debt are
reasonable and equitably allocated because they are the same fees that
are charged to issuers of domestic debt listed under substantially the
same criteria. The Exchange engages in the same listing support,
regulatory, and administrative activities for domestic securities
listed under Section 102.03 as it does for foreign securities listed
under Section 103.05.
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\6\ 15 U.S.C. 78f(b).
\7\ 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 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange. At any time within 60 days of the filing of
such proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2011-59 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2011-59. This file
number should be included on the subject line if email 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
[[Page 75575]]
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
20549-1090. Copies of the filing will also be available for inspection
and copying at the NYSE's principal office and on its Internet Web site
at https://www.nyse.com. 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-2011-59 and should be submitted on or before December 23, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30983 Filed 12-1-11; 8:45 am]
BILLING CODE 8011-01-P