82_FR_18576 82 FR 18502 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposal To Adopt a Fee Schedule for Acquisition Companies

82 FR 18502 - Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposal To Adopt a Fee Schedule for Acquisition Companies

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 74 (April 19, 2017)

Page Range18502-18504
FR Document2017-07876

Federal Register, Volume 82 Issue 74 (Wednesday, April 19, 2017)
[Federal Register Volume 82, Number 74 (Wednesday, April 19, 2017)]
[Notices]
[Pages 18502-18504]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07876]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80456; File No. SR-NYSE-2017-14]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposal To Adopt a Fee 
Schedule for Acquisition Companies

April 13, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on April 4, 2017, 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 self-

[[Page 18503]]

regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a fee schedule for Acquisition 
Companies. 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.

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to adopt a flat initial listing fee for 
Acquisition Companies and exempt Acquisition Companies from the 
Exchange's Initial Application Fee. Acquisition Companies (commonly 
referred to in the marketplace as ``special purpose acquisition 
companies'' or ``SPACs'') are listed pursuant to Section 102.06 of the 
NYSE Listed Company Manual (the ``Manual''). Currently, Acquisition 
Companies are subject to the initial listing and annual fee schedule 
set forth in Section 902.03 of the Manual and applied generally to 
listed operating companies.
    The Exchange proposes to adopt new Section 902.11 of the Manual to 
establish a separate listing fee schedule for Acquisition Companies. 
Under proposed Section 902.11, Acquisition Companies would be subject 
to a flat fee of $85,000 upon initial listing. Proposed Section 902.11 
would specify that the common stock and warrants listed by Acquisition 
Companies would continue to be subject to the annual listing fees set 
forth for those categories of securities in Section 902.03.
    Acquisition Companies typically sell units in their initial public 
offering, consisting of a common equity security and a whole or 
fractional warrant to purchase common stock.\4\ Holders of Acquisition 
Company units typically have the right to separate the units shortly 
after the IPO and the Exchange lists the common equity securities and 
the warrants (in addition to the units) upon separation.
---------------------------------------------------------------------------

    \4\ The number of warrants included in the units sold in an 
Acquisition Company IPO varies. Sometimes there is a warrant to 
purchase one common share included as part of each unit. Recently 
the units sold in some Acquisition Company IPOs have included a 
fractional warrant to purchase a share. In order to exercise these 
fractional warrants or trade them separate from the units, an 
investor would need to acquire sufficient warrants to be able to 
exercise them for whole numbers of shares.
---------------------------------------------------------------------------

    The flat initial listing fee in proposed Section 902.11 would be 
lower than the minimum initial listing fee applicable to Acquisition 
Companies under Section 902.03.\5\ The Exchange notes that Acquisition 
Companies differ in some important respects from traditional operating 
companies and believes that these differences make it reasonable to 
adopt a separate initial listing fee schedule for Acquisition 
Companies.
---------------------------------------------------------------------------

    \5\ A new class of common stock listed on the NYSE is subject to 
a minimum initial listing fee of $125,000 and an additional one-time 
special charge of $50,000. As such, the minimum aggregate initial 
listing fees an Acquisition Company must pay in relation to its 
common stock alone amounts to $175,000. In addition, an Acquisition 
Company has to pay initial listing fees for its warrants under the 
schedule set forth for short-term securities (i.e., securities with 
a maximum life of no more than seven years) in Section 902.06. 
Consequently, the minimum fees currently charged in connection with 
an Acquisition Company initial listing far exceed the proposed flat 
fee of $85,000.
---------------------------------------------------------------------------

    An Acquisition Company's listing often lasts for a brief period of 
time. Under the Acquisition Company structure, the company's charter 
provides that it must either enter into a business combination within a 
specified limited period of time (typically two years or less, but no 
longer than three years is permitted under Section 102.06) or return 
the funds held in trust to the company's shareholders and dissolve the 
company.\6\ Acquisition Company business combinations do not always 
result in a continued listing of the post-business combination entity, 
as the resultant entity may be a private company or list on another 
exchange or the Acquisition Company may be acquired by another company 
that is already listed. In contrast to an Acquisition Company, when an 
operating company lists, it is reasonable to expect that it will likely 
remain listed for many years. A listed operating company can therefore 
view the upfront cost of paying initial listing fees as relating to the 
benefits it receives from its NYSE listing over an extended period, 
including such things as the prestige associated with a listing, the 
liquid trading market, access to the NYSE's physical facilities, the 
NYSE's technological infrastructure, and the Exchange's regulatory 
program. Acquisition Companies, on the other hand, must assess the 
economic value of a listing on the basis of a potentially very brief 
period of listing. Given the much shorter average length of an 
Acquisition Company's listing, the Exchange believes it is reasonable 
to charge Acquisition Companies lower initial listing fees than 
operating companies.
---------------------------------------------------------------------------

    \6\ An Acquisition Company which remains listed upon 
consummation of its business combination is not subject to 
additional initial listing fees at that time, although it must pay 
supplemental listing fees with respect to any additional shares of 
common stock issued in connection with the business combination. An 
Acquisition Company transferring from another national securities 
exchange is not required to pay initial listing fees.
---------------------------------------------------------------------------

    Proposed Section 902.11 would make clear that Acquisition Companies 
would not be subject to the $25,000 Initial Application Fee charged to 
applicants under Section 902.03. Given the significantly lower initial 
listing fees that would be charged to Acquisition Company applicants 
under proposed Section 902.11, a $25,000 Initial Application Fee would 
represent a much higher percentage of the initial listing fees payable 
upon listing than it would for an operating company applicant. In 
addition, the Initial Application Fee is used to reduce the initial 
listing fees an applicant pays upon listing. The Exchange has also 
observed that Acquisition Company IPOs are significantly more likely to 
be completed than proposed operating company IPOs, so the likelihood 
that the Exchange will forego revenue if it does not charge the Initial 
Application Fee to Acquisition Companies is significantly reduced.
    The Exchange does not expect the financial impact of these two 
proposed amendments to be material in terms of the level of listing 
fees collected from issuers on the Exchange. Specifically, the Exchange 
notes that Acquisition Companies represent a relatively small number of 
potential listings and therefore anticipates that only a limited number 
of Acquisition Companies will list. Accordingly, the Exchange believes 
that the proposed rule change will not impact the Exchange's resource 
commitment to its regulatory oversight of the listing process or its 
regulatory programs.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 18504]]

Section 6(b) of the Exchange Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) \8\ of the Exchange Act, in particular, 
in that it is designed to provide for the equitable allocation of 
reasonable dues, fees, and other charges and is not designed to permit 
unfair discrimination among its members and issuers and other persons 
using its facilities. The Exchange also believes that the proposed rule 
change is consistent with Section 6(b)(5) of the Exchange Act, in 
particular in that it is designed to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is consistent 
with Sections 6(b)(4) and 6(b)(5) of the Exchange Act in that it 
represents an equitable allocation of fees and does not unfairly 
discriminate among listed companies. In particular, the Exchange notes 
that the proposed amendment is not unfairly discriminatory as 
Acquisition Companies frequently have a much shorter period of listing 
on the Exchange than operating companies. It is not unfairly 
discriminatory to exempt Acquisition Companies from the Initial 
Application Fee because the Initial Application Fee would represent a 
significantly larger percentage of the initial listing fees payable by 
an Acquisition Company upon listing and Acquisition Companies are more 
likely than operating companies to successful complete their IPO so the 
Exchange is less likely to forego revenue if they do not pay the 
Initial Application Fee.

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. The proposed rule change is 
designed to adopt reduced initial listing fees for Acquisition 
Companies and will therefore increase the competition for the listing 
of those companies by making the NYSE a more attractive listing venue 
for them.

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 the Exchange.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2017-14 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2017-14. 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 (http://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 
10:00 a.m. and 3:00 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-NYSE-2017-14 and should be 
submitted on or before May 10, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2017-07876 Filed 4-18-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                  18502                        Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices

                                                  indexes, related futures or options on                  B. Self-Regulatory Organization’s                     post all comments on the Commission’s
                                                  futures, and any related derivative                     Statement on Burden on Competition                    Internet Web site (http://www.sec.gov/
                                                  instruments (including the Shares).                       The Exchange does not believe that                  rules/sro.shtml). Copies of the
                                                     The proposed rule change is designed                 the proposed rule change will impose                  submission, all subsequent
                                                  to promote just and equitable principles                any burden on competition that is not                 amendments, all written statements
                                                  of trade and to protect investors and the               necessary or appropriate in furtherance               with respect to the proposed rule
                                                  public interest in that there is a                      of the purposes of the Act. The                       change that are filed with the
                                                                                                          Exchange believes the proposed rule                   Commission, and all written
                                                  considerable amount of gold price and
                                                                                                          change will enhance competition by                    communications relating to the
                                                  gold market information available on
                                                                                                          accommodating Exchange trading of an                  proposed rule change between the
                                                  public Web sites and through
                                                                                                          additional exchange-traded product                    Commission and any person, other than
                                                  professional and subscription services.
                                                                                                          relating to physical gold.                            those that may be withheld from the
                                                  Investors may obtain on a 24-hour basis                                                                       public in accordance with the
                                                  gold pricing information based on the                   C. Self-Regulatory Organization’s                     provisions of 5 U.S.C. 552, will be
                                                  spot price for an ounce of gold from                    Statement on Comments on the                          available for Web site viewing and
                                                  various financial information service                   Proposed Rule Change Received From                    printing in the Commission’s Public
                                                  providers. Investors may obtain gold                    Members, Participants, or Others                      Reference Room, 100 F Street NE.,
                                                  pricing information based on the spot                                                                         Washington, DC 20549, on official
                                                  price for an ounce of gold from various                   No written comments were solicited
                                                                                                          or received with respect to the proposed              business days between the hours of
                                                  financial information service providers.                                                                      10:00 a.m. and 3:00 p.m. Copies of the
                                                  Current spot prices also are generally                  rule change.
                                                                                                                                                                filing also will be available for
                                                  available with bid/ask spreads from gold                III. Date of Effectiveness of the                     inspection and copying at the principal
                                                  bullion dealers. In addition, the Funds’                Proposed Rule Change and Timing for                   office of the Exchange. All comments
                                                  Web site will provide pricing                           Commission Action                                     received will be posted without change;
                                                  information for gold spot prices and the                   Within 45 days of the date of                      the Commission does not edit personal
                                                  Shares. Market prices for the Shares will               publication of this notice in the Federal             identifying information from
                                                  be available from a variety of sources                  Register or within such longer period                 submissions. You should submit only
                                                  including brokerage firms, information                  up to 90 days (i) as the Commission may               information that you wish to make
                                                  Web sites and other information service                 designate if it finds such longer period              available publicly. All submissions
                                                  providers. The NAV of the Funds will                    to be appropriate and publishes its                   should refer to File Number SR–
                                                  be published by the Sponsor on each                     reasons for so finding or (ii) as to which            NYSEArca–2017–33, and should be
                                                  day that the NYSE Arca is open for                      the self-regulatory organization                      submitted on or before May 10, 2017.
                                                  regular trading and will be posted on                   consents, the Commission will:                          For the Commission, by the Division of
                                                  the Funds’ Web site. The IIV relating to                   (A) By order approve or disapprove                 Trading and Markets, pursuant to delegated
                                                  the Shares will be widely disseminated                  the proposed rule change, or                          authority.37
                                                  by one or more major market data                           (B) institute proceedings to determine             Brent J. Fields,
                                                  vendors at least every 15 seconds during                whether the proposed rule change                      Secretary.
                                                  the Core Trading Session. In addition,                  should be disapproved.                                [FR Doc. 2017–07877 Filed 4–18–17; 8:45 am]
                                                  the LBMA Gold Price is publicly
                                                                                                          IV. Solicitation of Comments                          BILLING CODE 8011–01–P
                                                  available at no charge at
                                                  www.lbma.org.uk. The Funds’ Web site                       Interested persons are invited to
                                                  will also provide the Funds’ prospectus,                submit written data, views, and                       SECURITIES AND EXCHANGE
                                                  as well as the two most recent reports                  arguments concerning the foregoing,                   COMMISSION
                                                  to stockholders. In addition, the                       including whether the proposed rule
                                                                                                          change, as modified by Amendment No.                  [Release No. 34–80456; File No. SR–NYSE–
                                                  Exchange will make available over the
                                                                                                          1, is consistent with the Act. Comments               2017–14]
                                                  Consolidated Tape quotation
                                                  information, trading volume, closing                    may be submitted by any of the                        Self-Regulatory Organizations; New
                                                  prices and NAV for the Shares from the                  following methods:                                    York Stock Exchange LLC; Notice of
                                                  previous day.                                           Electronic Comments                                   Filing and Immediate Effectiveness of
                                                     The proposed rule change is designed                   • Use the Commission’s Internet                     Proposal To Adopt a Fee Schedule for
                                                  to perfect the mechanism of a free and                  comment form (http://www.sec.gov/                     Acquisition Companies
                                                  open market and, in general, to protect                 rules/sro.shtml); or                                  April 13, 2017.
                                                  investors and the public interest in that                 • Send an email to rule-comments@                      Pursuant to Section 19(b)(1) 1 of the
                                                  it will facilitate the listing and trading              sec.gov. Please include File Number SR–               Securities Exchange Act of 1934 (the
                                                  of an additional type of exchange-traded                NYSEArca–2017–33 on the subject line.                 ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                  product that will enhance competition                                                                         notice is hereby given that, on April 4,
                                                  among market participants, to the                       Paper Comments
                                                                                                                                                                2017, New York Stock Exchange LLC
                                                  benefit of investors and the marketplace.                  • Send paper comments in triplicate
                                                                                                                                                                (‘‘NYSE’’ or the ‘‘Exchange’’) filed with
                                                  As noted above, the Exchange has in                     to Secretary, Securities and Exchange
                                                                                                                                                                the Securities and Exchange
                                                  place surveillance procedures relating to               Commission, 100 F Street NE.,
                                                                                                                                                                Commission (the ‘‘Commission’’) the
                                                  trading in the Shares and may obtain                    Washington, DC 20549–1090.
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                                                                                proposed rule change as described in
                                                  information via ISG from other                          All submissions should refer to File                  Items I, II, and III below, which Items
                                                  exchanges that are members of ISG or                    Number SR–NYSEArca–2017–33. This                      have been prepared by the self-
                                                  with which the Exchange has entered                     file number should be included on the
                                                  into a comprehensive surveillance                       subject line if email is used. To help the              37 17 CFR 200.30–3(a)(12).
                                                  sharing agreement. In addition, as noted                Commission process and review your                      1 15 U.S.C. 78s(b)(1).
                                                  above, investors will have ready access                 comments more efficiently, please use                   2 15 U.S.C. 78a.

                                                  to information regarding gold pricing.                  only one method. The Commission will                    3 17 CFR 240.19b–4.




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                                                                               Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices                                               18503

                                                  regulatory organization. The                            consisting of a common equity security                   Acquisition Company, when an
                                                  Commission is publishing this notice to                 and a whole or fractional warrant to                     operating company lists, it is reasonable
                                                  solicit comments on the proposed rule                   purchase common stock.4 Holders of                       to expect that it will likely remain listed
                                                  change from interested persons.                         Acquisition Company units typically                      for many years. A listed operating
                                                                                                          have the right to separate the units                     company can therefore view the upfront
                                                  I. Self-Regulatory Organization’s
                                                                                                          shortly after the IPO and the Exchange                   cost of paying initial listing fees as
                                                  Statement of the Terms of Substance of
                                                                                                          lists the common equity securities and                   relating to the benefits it receives from
                                                  the Proposed Rule Change
                                                                                                          the warrants (in addition to the units)                  its NYSE listing over an extended
                                                     The Exchange proposes to adopt a fee                 upon separation.                                         period, including such things as the
                                                  schedule for Acquisition Companies.                        The flat initial listing fee in proposed              prestige associated with a listing, the
                                                  The proposed rule change is available                   Section 902.11 would be lower than the                   liquid trading market, access to the
                                                  on the Exchange’s Web site at                           minimum initial listing fee applicable to                NYSE’s physical facilities, the NYSE’s
                                                  www.nyse.com, at the principal office of                Acquisition Companies under Section                      technological infrastructure, and the
                                                  the Exchange, and at the Commission’s                   902.03.5 The Exchange notes that                         Exchange’s regulatory program.
                                                  Public Reference Room.                                  Acquisition Companies differ in some                     Acquisition Companies, on the other
                                                  II. Self-Regulatory Organization’s                      important respects from traditional                      hand, must assess the economic value of
                                                  Statement of the Purpose of, and                        operating companies and believes that                    a listing on the basis of a potentially
                                                  Statutory Basis for, the Proposed Rule                  these differences make it reasonable to                  very brief period of listing. Given the
                                                  Change                                                  adopt a separate initial listing fee                     much shorter average length of an
                                                                                                          schedule for Acquisition Companies.                      Acquisition Company’s listing, the
                                                     In its filing with the Commission, the                  An Acquisition Company’s listing                      Exchange believes it is reasonable to
                                                  self-regulatory organization included                   often lasts for a brief period of time.                  charge Acquisition Companies lower
                                                  statements concerning the purpose of,                   Under the Acquisition Company                            initial listing fees than operating
                                                  and basis for, the proposed rule change                 structure, the company’s charter                         companies.
                                                  and discussed any comments it received                  provides that it must either enter into a                   Proposed Section 902.11 would make
                                                  on the proposed rule change. The text                   business combination within a specified                  clear that Acquisition Companies would
                                                  of those statements may be examined at                  limited period of time (typically two                    not be subject to the $25,000 Initial
                                                  the places specified in Item IV below.                  years or less, but no longer than three                  Application Fee charged to applicants
                                                  The Exchange has prepared summaries,                    years is permitted under Section 102.06)                 under Section 902.03. Given the
                                                  set forth in sections A, B, and C below,                or return the funds held in trust to the                 significantly lower initial listing fees
                                                  of the most significant parts of such                   company’s shareholders and dissolve                      that would be charged to Acquisition
                                                  statements.                                             the company.6 Acquisition Company                        Company applicants under proposed
                                                  A. Self-Regulatory Organization’s                       business combinations do not always                      Section 902.11, a $25,000 Initial
                                                  Statement of the Purpose of, and the                    result in a continued listing of the post-               Application Fee would represent a
                                                  Statutory Basis for, the Proposed Rule                  business combination entity, as the                      much higher percentage of the initial
                                                  Change                                                  resultant entity may be a private                        listing fees payable upon listing than it
                                                                                                          company or list on another exchange or                   would for an operating company
                                                  1. Purpose                                              the Acquisition Company may be                           applicant. In addition, the Initial
                                                     The Exchange proposes to adopt a flat                acquired by another company that is                      Application Fee is used to reduce the
                                                  initial listing fee for Acquisition                     already listed. In contrast to an                        initial listing fees an applicant pays
                                                  Companies and exempt Acquisition                                                                                 upon listing. The Exchange has also
                                                  Companies from the Exchange’s Initial                      4 The number of warrants included in the units        observed that Acquisition Company
                                                  Application Fee. Acquisition                            sold in an Acquisition Company IPO varies.               IPOs are significantly more likely to be
                                                                                                          Sometimes there is a warrant to purchase one             completed than proposed operating
                                                  Companies (commonly referred to in the                  common share included as part of each unit.
                                                  marketplace as ‘‘special purpose                        Recently the units sold in some Acquisition              company IPOs, so the likelihood that
                                                  acquisition companies’’ or ‘‘SPACs’’) are               Company IPOs have included a fractional warrant          the Exchange will forego revenue if it
                                                  listed pursuant to Section 102.06 of the                to purchase a share. In order to exercise these          does not charge the Initial Application
                                                  NYSE Listed Company Manual (the                         fractional warrants or trade them separate from the      Fee to Acquisition Companies is
                                                                                                          units, an investor would need to acquire sufficient
                                                  ‘‘Manual’’). Currently, Acquisition                     warrants to be able to exercise them for whole           significantly reduced.
                                                  Companies are subject to the initial                    numbers of shares.                                          The Exchange does not expect the
                                                  listing and annual fee schedule set forth                  5 A new class of common stock listed on the           financial impact of these two proposed
                                                  in Section 902.03 of the Manual and                     NYSE is subject to a minimum initial listing fee of      amendments to be material in terms of
                                                                                                          $125,000 and an additional one-time special charge       the level of listing fees collected from
                                                  applied generally to listed operating                   of $50,000. As such, the minimum aggregate initial
                                                  companies.                                              listing fees an Acquisition Company must pay in          issuers on the Exchange. Specifically,
                                                     The Exchange proposes to adopt new                   relation to its common stock alone amounts to            the Exchange notes that Acquisition
                                                  Section 902.11 of the Manual to                         $175,000. In addition, an Acquisition Company has        Companies represent a relatively small
                                                  establish a separate listing fee schedule               to pay initial listing fees for its warrants under the   number of potential listings and
                                                                                                          schedule set forth for short-term securities (i.e.,
                                                  for Acquisition Companies. Under                        securities with a maximum life of no more than           therefore anticipates that only a limited
                                                  proposed Section 902.11, Acquisition                    seven years) in Section 902.06. Consequently, the        number of Acquisition Companies will
                                                  Companies would be subject to a flat fee                minimum fees currently charged in connection with        list. Accordingly, the Exchange believes
                                                  of $85,000 upon initial listing. Proposed               an Acquisition Company initial listing far exceed        that the proposed rule change will not
                                                                                                          the proposed flat fee of $85,000.
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                  Section 902.11 would specify that the                      6 An Acquisition Company which remains listed         impact the Exchange’s resource
                                                  common stock and warrants listed by                     upon consummation of its business combination is         commitment to its regulatory oversight
                                                  Acquisition Companies would continue                    not subject to additional initial listing fees at that   of the listing process or its regulatory
                                                  to be subject to the annual listing fees                time, although it must pay supplemental listing fees     programs.
                                                  set forth for those categories of                       with respect to any additional shares of common
                                                  securities in Section 902.03.
                                                                                                          stock issued in connection with the business             2. Statutory Basis
                                                                                                          combination. An Acquisition Company transferring
                                                     Acquisition Companies typically sell                 from another national securities exchange is not            The Exchange believes that the
                                                  units in their initial public offering,                 required to pay initial listing fees.                    proposed rule change is consistent with


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                                                  18504                         Federal Register / Vol. 82, No. 74 / Wednesday, April 19, 2017 / Notices

                                                  Section 6(b) of the Exchange Act,7 in                    C. Self-Regulatory Organization’s                     rules/sro.shtml). Copies of the
                                                  general, and furthers the objectives of                  Statement on Comments on the                          submission, all subsequent
                                                  Sections 6(b)(4) 8 of the Exchange Act,                  Proposed Rule Change Received From                    amendments, all written statements
                                                  in particular, in that it is designed to                 Members, Participants, or Others                      with respect to the proposed rule
                                                  provide for the equitable allocation of                    No written comments were solicited                  change that are filed with the
                                                  reasonable dues, fees, and other charges                 or received with respect to the proposed              Commission, and all written
                                                  and is not designed to permit unfair                     rule change.                                          communications relating to the
                                                  discrimination among its members and                                                                           proposed rule change between the
                                                                                                           III. Date of Effectiveness of the                     Commission and any person, other than
                                                  issuers and other persons using its
                                                                                                           Proposed Rule Change and Timing for                   those that may be withheld from the
                                                  facilities. The Exchange also believes
                                                                                                           Commission Action                                     public in accordance with the
                                                  that the proposed rule change is
                                                  consistent with Section 6(b)(5) of the                      The foregoing rule change is effective             provisions of 5 U.S.C. 552, will be
                                                                                                           upon filing pursuant to Section                       available for Web site viewing and
                                                  Exchange Act, in particular in that it is
                                                                                                           19(b)(3)(A) 9 of the Act and                          printing in the Commission’s Public
                                                  designed to promote just and equitable
                                                                                                           subparagraph (f)(2) of Rule 19b–4 10                  Reference Room, 100 F Street NE.,
                                                  principles of trade, to foster cooperation                                                                     Washington, DC 20549 on official
                                                  and coordination with persons engaged                    thereunder, because it establishes a due,
                                                                                                           fee, or other charge imposed by the                   business days between the hours of
                                                  in regulating, clearing, settling,                                                                             10:00 a.m. and 3:00 p.m. Copies of the
                                                  processing information with respect to,                  Exchange.
                                                                                                              At any time within 60 days of the                  filing also will be available for
                                                  and facilitating transactions in                                                                               inspection and copying at the principal
                                                                                                           filing of such proposed rule change, the
                                                  securities, to remove impediments to                     Commission summarily may                              office of the Exchange. All comments
                                                  and perfect the mechanism of a free and                  temporarily suspend such rule change if               received will be posted without change;
                                                  open market and a national market                        it appears to the Commission that such                the Commission does not edit personal
                                                  system, and, in general, to protect                      action is necessary or appropriate in the             identifying information from
                                                  investors and the public interest.                       public interest, for the protection of                submissions. You should submit only
                                                     The Exchange believes that the                        investors, or otherwise in furtherance of             information that you wish to make
                                                  proposed rule change is consistent with                  the purposes of the Act. If the                       available publicly. All submissions
                                                  Sections 6(b)(4) and 6(b)(5) of the                      Commission takes such action, the                     should refer to File Number SR–NYSE–
                                                  Exchange Act in that it represents an                    Commission shall institute proceedings                2017–14 and should be submitted on or
                                                  equitable allocation of fees and does not                under Section 19(b)(2)(B) 11 of the Act to            before May 10, 2017.
                                                  unfairly discriminate among listed                       determine whether the proposed rule                     For the Commission, by the Division of
                                                  companies. In particular, the Exchange                   change should be approved or                          Trading and Markets, pursuant to delegated
                                                                                                           disapproved.                                          authority.12
                                                  notes that the proposed amendment is
                                                                                                                                                                 Brent J. Fields,
                                                  not unfairly discriminatory as                           IV. Solicitation of Comments
                                                  Acquisition Companies frequently have                                                                          Secretary.
                                                                                                             Interested persons are invited to                   [FR Doc. 2017–07876 Filed 4–18–17; 8:45 am]
                                                  a much shorter period of listing on the
                                                                                                           submit written data, views, and
                                                  Exchange than operating companies. It                                                                          BILLING CODE 8011–01–P
                                                                                                           arguments concerning the foregoing,
                                                  is not unfairly discriminatory to exempt
                                                                                                           including whether the proposed rule
                                                  Acquisition Companies from the Initial                   change is consistent with the Act.                    SECURITIES AND EXCHANGE
                                                  Application Fee because the Initial                      Comments may be submitted by any of                   COMMISSION
                                                  Application Fee would represent a                        the following methods:
                                                  significantly larger percentage of the                                                                         [Release No. 34–80454; File No. SR–DTC–
                                                  initial listing fees payable by an                       Electronic Comments                                   2017–006]
                                                  Acquisition Company upon listing and                       • Use the Commission’s Internet                     Self-Regulatory Organizations; The
                                                  Acquisition Companies are more likely                    comment form (http://www.sec.gov/                     Depository Trust Company; Notice of
                                                  than operating companies to successful                   rules/sro.shtml); or                                  Filing and Immediate Effectiveness of
                                                  complete their IPO so the Exchange is                      • Send an email to rule-comments@                   a Proposed Rule Change To Modify the
                                                  less likely to forego revenue if they do                 sec.gov. Please include File Number SR–               DTC Rules in Order to Enhance
                                                  not pay the Initial Application Fee.                     NYSE–2017–14 on the subject line.                     Transparency With Regard to
                                                  B. Self-Regulatory Organization’s                        Paper Comments                                        Application Criteria and Participation
                                                  Statement on Burden on Competition                         • Send paper comments in triplicate                 Requirements for Applicants and
                                                                                                           to Brent J. Fields, Secretary, Securities             Participants
                                                     The Exchange does not believe that                    and Exchange Commission, 100 F Street                 April 13, 2017.
                                                  the proposed rule change will impose                     NE., Washington, DC 20549–1090.                          Pursuant to Section 19(b)(1) of the
                                                  any burden on competition that is not                    All submissions should refer to File                  Securities Exchange Act of 1934
                                                  necessary or appropriate in furtherance                  Number SR–NYSE–2017–14. This file                     (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
                                                  of the purposes of the Act. The                          number should be included on the                      notice is hereby given that on April 7,
                                                  proposed rule change is designed to                      subject line if email is used. To help the            2017, The Depository Trust Company
                                                  adopt reduced initial listing fees for                   Commission process and review your                    (‘‘DTC’’) filed with the Securities and
                                                  Acquisition Companies and will
jstallworth on DSK7TPTVN1PROD with NOTICES




                                                                                                           comments more efficiently, please use                 Exchange Commission (‘‘Commission’’)
                                                  therefore increase the competition for                   only one method. The Commission will                  the proposed rule change as described
                                                  the listing of those companies by                        post all comments on the Commission’s                 in Items I, II and III below, which Items
                                                  making the NYSE a more attractive                        Internet Web site (http://www.sec.gov/                have been prepared by the clearing
                                                  listing venue for them.
                                                                                                             9 15 U.S.C. 78s(b)(3)(A).                             12 17 CFR 200.30–3(a)(12).
                                                    7 15 U.S.C. 78f(b).                                      10 17 CFR 240.19b–4(f)(2).                            1 15 U.S.C. 78s(b)(1).
                                                    8 15 U.S.C. 78f(b)(4).                                   11 15 U.S.C. 78s(b)(2)(B).                            2 17 CFR 240.19b–4.




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Document Created: 2018-11-14 09:44:02
Document Modified: 2018-11-14 09:44:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 18502 

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