68 FR 22 pgs. 5324-5325 - Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the New York Stock Exchange, Inc. Relating to Transaction Fees for Certain Exchange Traded Funds
Type: NOTICEVolume: 68Number: 22Pages: 5324 - 5325
Docket number: [Release No. 34-47273; File No. SR-NYSE-2003-03]
FR document: [FR Doc. 03-2482 Filed 1-31-03; 8:45 am]
Agency: Securities and Exchange Commission
Official PDF Version: PDF Version
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47273; File No. SR-NYSE-2003-03]
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the New York Stock Exchange, Inc. Relating to Transaction Fees for Certain Exchange Traded Funds
January 29, 2003.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 ("Act"),1and rule 19b-4 thereunder,2notice is hereby given that on January 21, 2003, the New York Stock Exchange, Inc. ("NYSE") filed with the Securities and Exchange Commission ("SEC" or "Commission") the proposed rule change as described in items I and II below, which items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change.
Footnotes:
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 charge transaction fees for shares of Fresco SM Dow Jones STOXX 50 SM Fund and Fresco SM Dow Jones EURO STOXX 50 SM Fund, that are listed and traded on the Exchange. The fees will be the same transaction fees charged for other exchange traded funds listed and traded on the Exchange. Proposed new language is italicized ; proposed deletions are in [brackets].
| Exchange Traded Funds | Amount |
|---|---|
| Exchange Traded Funds-Public Agency and Principal TransactionsBroker/Dealer-price per round-lot | $0.60 |
| Maximum price per trade | 100 |
| System Orders under 5,100 shares1 | No Charge. |
| Specialists and other on-floor proprietary trading-price per round-lot | 0.63 |
| Maximum price per trade | 300 |
| Exchange Traded Funds admitted to dealings on an unlisted trading privileges (UTP) basis | No Charge.2 |
| [Specific NYSE Listed Exchange Traded Funds: | |
| Fresco SM Dow Jones STOXX 50 SM | No Charge.2 |
| Fresco SM Dow Jones EURO STOXX 50 SM | No Charge.2 ] |
| 1 Not inclusive of orders of a member or member organization trading as an agent for the account of a non-member competing market maker. | |
| Competing Market Maker: a specialist or market-maker registered as such on a registered stock exchange (other than the NYSE), or a market-maker bidding and offering over-the-counter, in a New YorkStock Exchange-traded security. | |
| 2 This "fee holiday" is intended to be temporary. The Exchange expects to file a specific schedule of transaction charges at a future date. | |
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 NYSE 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 Fresco SM Dow Jones STOXX 50 SM Fund and Fresco SM Dow Jones EURO STOXX 50 SM ("Fresco Funds") were listed and commenced trading on the Exchange on October 21, 2002.3At the time of listing, the Exchange implemented a temporary "fee holiday," constituting zero transaction charges, for Fresco Funds for trading them on the Exchange.4The Exchange now proposes that starting February 1, 2003, transaction fees will be charged for trading of Fresco Funds. The fees will be the same transaction fees charged for other exchange traded funds listed and traded on the Exchange.5
Footnotes:
3 Securities Exchange Act Release No. 46686 (October 18, 2002), 67 FR 65388 (October 24, 2002).
4 Securities Exchange Act Release No. 46786 (November 7, 2002), 67 FR 69280 (November 15, 2002).
5 15 U.S.C. 78f(b)(4).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act6in general, and furthers the objectives of section 6(b)(4)7in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities.
Footnotes:
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.
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 comments on the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
The proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act,8and rule 19b-4(f)(2) thereunder,9in that it establishes or changes a due, fee, or other charge imposed by the Exchange. At any time within 60 days of the filing of such proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors or otherwise in furtherance of the purposes of the Act.
Footnotes:
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFT 240.19b-4(f)(2).
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. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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 at the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All submissions should refer to File No. SR-NYSE-2003-03 and should be submitted by February 24, 2003.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10
Footnotes:
10 17 CFR 200.30-3(a)(12).
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-2482 Filed 1-31-03; 8:45 am]
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