FR 2021-02400

Summary of the Document

The document details a proposed change submitted by the New York Stock Exchange (NYSE) to the Securities and Exchange Commission (SEC). The proposal aims to delete the maximum fee rates established under specific NYSE rules for processing and forwarding proxy materials to beneficial owners of stock. Instead, the member organizations of NYSE would align their fees with the approved charges set by other national securities organizations to which they belong. Initially, the SEC had a 45-day period to make a decision, which concluded on February 4, 2021. However, this period has been extended to March 21, 2021, to allow further consideration and review of public comments on the proposal.

Significant Issues and Concerns

One of the main challenges of the document is its technical nature, filled with legal terminologies and references to the Securities Exchange Act. Understanding the full implications of the proposed rule change could be difficult for those not familiar with financial regulations and securities law. For instance, the references to specific sections and rules may not be entirely clear without access to the actual documents.

Another concern is the potential impact on NYSE's member organizations and how they will navigate fee structures that are subject to the rules of other securities organizations, which are not specifically named in the document. This lack of specificity might create confusion and implementation challenges. Additionally, there could be questions about potential conflicts of interest or the influence of one organization over another.

Impact on the Public

Broadly speaking, the document could impact investors who are the beneficial owners of stocks, as it addresses the costs associated with forwarding proxy materials. If the proposal goes through, it might lead to changes in the fees these investors indirectly pay, depending on how member organizations decide to structure their charges in alignment with other organizations' fee schedules.

Impact on Specific Stakeholders

For NYSE member organizations, the proposed changes might provide more flexibility or clarity by standardizing fees with other securities organizations. However, this could also lead to administrative adjustments and the need to keep up-to-date with different fees set by various organizations potentially resulting in varying compliance and operational costs.

For the SEC, extending the decision period implies careful consideration is being given to the proposal and the feedback received—indicating a desire to make a decision that is fair and beneficial to the public and the market.

Overall, while the changes could streamline processes by aligning with national standards, they also open the door to uncertainties about fee structures and compliance across different organizations. Being attentive to how these changes unfold will be essential for investors, NYSE member organizations, and policymakers alike.