Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Sections 1203(a) and 1205(b) of the NYSE MKT Company Guide (“Company Guide”) To Increase the Fees Applicable to Issuers Requesting Review of a Determination To Limit or Prohibit the Continued Listing of Their Securities on the Exchange, 59442-59444 [2012-23766]
Download as PDF
59442
Federal Register / Vol. 77, No. 188 / Thursday, September 27, 2012 / Notices
unsolicited written comments from its
Members or other interested parties.
investors, or otherwise in furtherance of
the purposes of the Act.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) 7 of the Act and Rule
19b–4(f)(6) thereunder.8
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.9 However, Rule 19b–
4(f)(6)(iii) 10 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Exchange notes that waiver
of these requirements will allow the
Exchange to offer the Edge Routed
Liquidity Report, with the revised and
clarified distinction of the features
available in each of the Reports, on or
about the Filing’s operative date. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver
would immediately provide additional
information necessary for the operation
of the Exchange’s rules regarding the
Edge Routed Liquidity Report. For this
reason, the Commission designates the
proposed rule change to be operative
upon the operative date of the Filing.11
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
IV. Solicitation of Comments
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change at least five business
days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
10 Id.
11 For the purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
erowe on DSK2VPTVN1PROD with
8 17
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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–
EDGA–2012–42 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–EDGA–2012–42. 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
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–EDGA–
2012–42 and should be submitted on or
before October 18, 2012.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–23768 Filed 9–26–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67907; File No. SR–
NYSEMKT–2012–45]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Sections
1203(a) and 1205(b) of the NYSE MKT
Company Guide (‘‘Company Guide’’)
To Increase the Fees Applicable to
Issuers Requesting Review of a
Determination To Limit or Prohibit the
Continued Listing of Their Securities
on the Exchange
September 21, 2012.
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
September 7, 2012, NYSE MKT LLC
(‘‘NYSE MKT’’ 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 the selfregulatory organization. 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
Sections 1203(a) and 1205(b) of the
NYSE MKT Company Guide (‘‘Company
Guide’’) to increase the fees applicable
to issuers requesting review of a
determination to limit or prohibit the
continued listing of their securities on
the Exchange. The text of the proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\27SEN1.SGM
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Federal Register / Vol. 77, No. 188 / Thursday, September 27, 2012 / Notices
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
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
Statutory Basis for, the Proposed Rule
Change
erowe on DSK2VPTVN1PROD with
1. Purpose
Part 12 of the Company Guide
provides that issuers may request a
written or oral hearing to review a
determination by the staff of NYSE
Regulation, Inc. (the ‘‘Staff’’) to limit or
prohibit the continued listing of their
securities. A Listing Qualifications
Panel (the ‘‘Panel’’) comprised of at least
two, but generally three, members of the
NYSE Amex Committee on Securities
(the ‘‘Committee’’) conducts the hearing.
Currently, Section 1203(a) of the
Company Guide provides that the fee
charged to the issuer for a written
hearing is $4,000, and the fee for an oral
hearing is $5,000. Issuers may also
request a review of a Panel decision by
the Committee as a whole. The
Committee as a whole considers the
written record and, in its discretion,
may hold additional oral hearings.
Currently, Section 1205(b) of the
Company Guide provides that the fee for
the Committee’s review is $5,000. The
Exchange last increased the delisting
appeal fees in March 2004.3
The Exchange believes that the fees
should be increased at this time because
the costs incurred in preparing for and
conducting appeals have increased
significantly since the fees were last
revised in 2004.
The Exchange believes that the costs
of an appeal typically far exceed the
current permitted fees. In the case of
both written hearings and oral hearings,
as well as all appeals heard by the
Committee as a whole, these costs
include the utilization of NYSE
Regulation staff resources to prepare for
appeals, including the drafting of
written submissions, the time devoted
3 See Securities Exchange Act Release No. 49344
(March 1, 2004), 69 FR 10773 (March 8, 2004) (SR–
Amex–2003–111).
VerDate Mar<15>2010
15:00 Sep 26, 2012
Jkt 226001
to the coordination of appeals by staff
from NYSE Euronext’s Office of the
Corporate Secretary and Legal
Department, and the time spent by
attorneys in the Legal Department in
their role as counsel to the Committee.
In addition, in both written and oral
hearings, as well as appeals heard by the
Committee as a whole, the Exchange
incurs expenses in relation to the
copying and mailing of documents and
other miscellaneous expenses. In the
case of oral hearings by a Panel or the
Committee as a whole, the Exchange
also incurs the additional cost of
engaging a court reporter and utilizes
Exchange staff and other resources in
hosting the oral hearing at the offices of
the Exchange.
All of the foregoing expenses have
increased since 2004, but another
significant factor is that, in many cases,
appeals have become more complicated
and contentious since the fees were last
modified. Consequently, NYSE
Regulation staff devote more time now
to a typical appeal than was historically
the case, including more involvement
by NYSE Regulation senior management
and attorneys within NYSE Regulation.
Furthermore, in response to the
increasing complexity of appeals, NYSE
Regulation has in recent times engaged
outside counsel in connection with
appeals more frequently than was
historically the case. Accordingly, the
Exchange proposes to increase the fees
for Panel hearings to $8,000 for a
written hearing and $10,000 for an oral
hearing and for Committee appeals to
$10,000. The text of the proposed
amendments to Sections 1203.(a) [sic]
and 1205(b) will specify that the revised
fees will only be applicable to issuers
that initially submit their hearing
request on or after September 17, 2012.
The current fees will remain in effect for
any hearing requests submitted before
that date.
While the Exchange does not expect
that the proposed revised fees would
cover all of its costs associated with the
appeal process, the proposed revised
fees would cover a much larger portion
of those costs than the current appeal
fees. In that regard, the Exchange notes
that, while the proposed fees would be
twice the amount of the current fees,
they would be consistent with or lower
than the appeal fees of other national
securities exchanges, depending on the
process that the other national securities
exchange uses. For example, Section
804.00 of the NYSE Listed Company
Manual provides that a listed company
must pay a $20,000 fee in connection
with a delisting appeal.
The Exchange also believes that the
proposed fee increases are consistent
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
59443
with the provision by the Exchange of
a fair procedure for companies to
challenge a delisting determination. In
particular, the Exchange believes that
the proposed amended fees should not
deter listed issuers from availing [sic] of
their due process rights to appeal
Exchange delisting determinations
because the increased fees will still be
set at a level that will be affordable for
listed companies.
2. Statutory Basis
Securities Exchange Act of 1934 (the
‘‘Act’’),4 in general, and furthers the
objectives of Section 6(b)(5) of the Act,5
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
Specifically, the proposed fee
increases are consistent with the
investor protection objectives of Section
6(b)(5) in that they are designed to
provide adequate resources for
appropriate preparation for and conduct
of Panel hearings and Committee
appeals, which help to assure that the
Exchange’s continued listing standards
are properly enforced and investors in
companies subject to delisting are
protected.
In addition, the Exchange believes
that the proposed rule change is
consistent with Section 6(b)(4) of the
Act 6 in that it provides for the equitable
allocation of reasonable dues, fees and
other charges among members and
issuers and other persons using its
facilities. In particular, the Exchange
notes that the proposed fee increases
constitute a reasonable allocation of fees
under Section 6(b)(4) because: (i) Even
after the proposed increases, the
Exchange’s appeal fees will still only
partially cover its actual costs of
conducting appeals; and (ii) the
Exchange only charges appeal fees to
companies that make an appeal.
The Exchange also believes that the
proposed fee increases are consistent
with Section 6(b)(7) of the Act 7 in that
the proposed fees are in accordance
with the provisions of Section 6(d) of
the Act,8 and in general, are consistent
with the provision by the Exchange of
a fair procedure for the prohibition or
limitation by the exchange of any
4 15
U.S.C. 78a.
U.S.C. 78f(b)(5).
6 15 U.S.C. 78f(b)(4).
7 15 U.S.C. 78f(b)(7).
8 15 U.S.C. 78f(d).
5 15
E:\FR\FM\27SEN1.SGM
27SEN1
59444
Federal Register / Vol. 77, No. 188 / Thursday, September 27, 2012 / Notices
person with respect to access to services
offered by the Exchange. In particular,
the Exchange believes that the proposed
amended fees should not deter listed
issuers from availing [sic] of their due
process rights to appeal Exchange
delisting determinations because the
increased fees will still be set a level
that will be affordable for listed
companies.
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) 9 of the Act and
subparagraph (f)(2) of Rule 19b–4 10
thereunder, because it establishes a due,
fee, or other charge imposed by NYSE
MKT.
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
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–NYSEMKT–2012–45. 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
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 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
publicly available. All submissions
should refer to File Number SR–
NYSEMKT–2012–45 and should be
submitted on or before October 18,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
Electronic Comments
erowe on DSK2VPTVN1PROD with
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:
BILLING CODE 8011–01–P
[FR Doc. 2012–23766 Filed 9–26–12; 8:45 am]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEMKT–2012–45 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67903; File No. SR–CBOE–
2012–082]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Small Order
Preference Priority Overlay
September 21, 2012.
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
September 12, 2012, the Chicago Board
Options Exchange, Incorporated
(‘‘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 has designated the proposal as
a ‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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 the Substance
of the Proposed Rule Change
The Exchange is proposing to amend
Rules 6.45A, Priority and Allocation of
Equity Option Trades on the CBOE
Hybrid System, and 6.45B, Priority and
Allocation of Trades in Index Options
and Options on ETFs on the CBOE
Hybrid System, to expand on the
description of the existing operation of
the small order preference priority
overlay. The text of the proposed rule
change is available on the Exchange’s
Web site (www.cboe.org/Legal), 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
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15:00 Sep 26, 2012
11 17
Jkt 226001
PO 00000
CFR 200.30–3(a)(12).
Frm 00073
Fmt 4703
Sfmt 4703
E:\FR\FM\27SEN1.SGM
27SEN1
Agencies
[Federal Register Volume 77, Number 188 (Thursday, September 27, 2012)]
[Notices]
[Pages 59442-59444]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-23766]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67907; File No. SR-NYSEMKT-2012-45]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Sections
1203(a) and 1205(b) of the NYSE MKT Company Guide (``Company Guide'')
To Increase the Fees Applicable to Issuers Requesting Review of a
Determination To Limit or Prohibit the Continued Listing of Their
Securities on the Exchange
September 21, 2012.
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 September 7, 2012, NYSE MKT LLC (``NYSE MKT'' 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 the self-regulatory organization. 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 Sections 1203(a) and 1205(b) of the
NYSE MKT Company Guide (``Company Guide'') to increase the fees
applicable to issuers requesting review of a determination to limit or
prohibit the continued listing of their securities on the Exchange. The
text of the proposed rule change is available on the Exchange's Web
site at www.nyse.com, at the principal office of the Exchange, and at
the Commission's Public Reference Room.
[[Page 59443]]
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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
Part 12 of the Company Guide provides that issuers may request a
written or oral hearing to review a determination by the staff of NYSE
Regulation, Inc. (the ``Staff'') to limit or prohibit the continued
listing of their securities. A Listing Qualifications Panel (the
``Panel'') comprised of at least two, but generally three, members of
the NYSE Amex Committee on Securities (the ``Committee'') conducts the
hearing. Currently, Section 1203(a) of the Company Guide provides that
the fee charged to the issuer for a written hearing is $4,000, and the
fee for an oral hearing is $5,000. Issuers may also request a review of
a Panel decision by the Committee as a whole. The Committee as a whole
considers the written record and, in its discretion, may hold
additional oral hearings. Currently, Section 1205(b) of the Company
Guide provides that the fee for the Committee's review is $5,000. The
Exchange last increased the delisting appeal fees in March 2004.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 49344 (March 1,
2004), 69 FR 10773 (March 8, 2004) (SR-Amex-2003-111).
---------------------------------------------------------------------------
The Exchange believes that the fees should be increased at this
time because the costs incurred in preparing for and conducting appeals
have increased significantly since the fees were last revised in 2004.
The Exchange believes that the costs of an appeal typically far
exceed the current permitted fees. In the case of both written hearings
and oral hearings, as well as all appeals heard by the Committee as a
whole, these costs include the utilization of NYSE Regulation staff
resources to prepare for appeals, including the drafting of written
submissions, the time devoted to the coordination of appeals by staff
from NYSE Euronext's Office of the Corporate Secretary and Legal
Department, and the time spent by attorneys in the Legal Department in
their role as counsel to the Committee. In addition, in both written
and oral hearings, as well as appeals heard by the Committee as a
whole, the Exchange incurs expenses in relation to the copying and
mailing of documents and other miscellaneous expenses. In the case of
oral hearings by a Panel or the Committee as a whole, the Exchange also
incurs the additional cost of engaging a court reporter and utilizes
Exchange staff and other resources in hosting the oral hearing at the
offices of the Exchange.
All of the foregoing expenses have increased since 2004, but
another significant factor is that, in many cases, appeals have become
more complicated and contentious since the fees were last modified.
Consequently, NYSE Regulation staff devote more time now to a typical
appeal than was historically the case, including more involvement by
NYSE Regulation senior management and attorneys within NYSE Regulation.
Furthermore, in response to the increasing complexity of appeals, NYSE
Regulation has in recent times engaged outside counsel in connection
with appeals more frequently than was historically the case.
Accordingly, the Exchange proposes to increase the fees for Panel
hearings to $8,000 for a written hearing and $10,000 for an oral
hearing and for Committee appeals to $10,000. The text of the proposed
amendments to Sections 1203.(a) [sic] and 1205(b) will specify that the
revised fees will only be applicable to issuers that initially submit
their hearing request on or after September 17, 2012. The current fees
will remain in effect for any hearing requests submitted before that
date.
While the Exchange does not expect that the proposed revised fees
would cover all of its costs associated with the appeal process, the
proposed revised fees would cover a much larger portion of those costs
than the current appeal fees. In that regard, the Exchange notes that,
while the proposed fees would be twice the amount of the current fees,
they would be consistent with or lower than the appeal fees of other
national securities exchanges, depending on the process that the other
national securities exchange uses. For example, Section 804.00 of the
NYSE Listed Company Manual provides that a listed company must pay a
$20,000 fee in connection with a delisting appeal.
The Exchange also believes that the proposed fee increases are
consistent with the provision by the Exchange of a fair procedure for
companies to challenge a delisting determination. In particular, the
Exchange believes that the proposed amended fees should not deter
listed issuers from availing [sic] of their due process rights to
appeal Exchange delisting determinations because the increased fees
will still be set at a level that will be affordable for listed
companies.
2. Statutory Basis
Securities Exchange Act of 1934 (the ``Act''),\4\ in general, and
furthers the objectives of Section 6(b)(5) of the Act,\5\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78a.
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Specifically, the proposed fee increases are consistent with the
investor protection objectives of Section 6(b)(5) in that they are
designed to provide adequate resources for appropriate preparation for
and conduct of Panel hearings and Committee appeals, which help to
assure that the Exchange's continued listing standards are properly
enforced and investors in companies subject to delisting are protected.
In addition, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act \6\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using its facilities. In
particular, the Exchange notes that the proposed fee increases
constitute a reasonable allocation of fees under Section 6(b)(4)
because: (i) Even after the proposed increases, the Exchange's appeal
fees will still only partially cover its actual costs of conducting
appeals; and (ii) the Exchange only charges appeal fees to companies
that make an appeal.
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\6\ 15 U.S.C. 78f(b)(4).
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The Exchange also believes that the proposed fee increases are
consistent with Section 6(b)(7) of the Act \7\ in that the proposed
fees are in accordance with the provisions of Section 6(d) of the
Act,\8\ and in general, are consistent with the provision by the
Exchange of a fair procedure for the prohibition or limitation by the
exchange of any
[[Page 59444]]
person with respect to access to services offered by the Exchange. In
particular, the Exchange believes that the proposed amended fees should
not deter listed issuers from availing [sic] of their due process
rights to appeal Exchange delisting determinations because the
increased fees will still be set a level that will be affordable for
listed companies.
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\7\ 15 U.S.C. 78f(b)(7).
\8\ 15 U.S.C. 78f(d).
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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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by NYSE MKT.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
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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-NYSEMKT-2012-45 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-NYSEMKT-2012-45. 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 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 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 publicly available. All
submissions should refer to File Number SR-NYSEMKT-2012-45 and should
be submitted on or before October 18, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-23766 Filed 9-26-12; 8:45 am]
BILLING CODE 8011-01-P