NYSE Group To Eliminate Member Firm Fee Cap on NYSE-listed Equity Trading and Specialist Commissions on Transactions
- Eliminating $750,000 monthly fee cap for member organizations;
- Establishing flat fee pricing of $0.000275 per share for NYSE-listed securities trading on the NYSE;
- Eliminating specialist commissions on transactions;
- NYSE implementing revenue sharing program and reducing certain specialist fees;
- Changes effective Dec. 1, 2006 pending SEC approval.
New York, Nov. 30, 2006—NYSE Group, Inc. (NYSE: NYX) today filed with the U.S. Securities and Exchange Commission (SEC) a proposal to change pricing on New York Stock Exchange (NYSE) equities transactions for immediate effectiveness. Subject to SEC approval and beginning Dec. 1, 2006 the NYSE will eliminate the $750,000 monthly transaction fee cap for member organizations and establish a flat fee of $0.000275 per share on NYSE-listed transactions. In conjunction with this filing, the NYSE will eliminate specialist commissions on transactions in their assigned NYSE-listed securities, including exchange traded funds (ETFs), and will implement a transaction revenue sharing program with specialist firms and also reduce specialists’ fixed costs through the elimination of certain fees. NYSE Arca transaction pricing remains unchanged.
The NYSE currently charges a flat fee of $0.00025 per share on equity transactions, subject to a monthly fee cap of $750,000 per member organization. By eliminating the monthly fee cap as proposed in today’s filing, the effective fee rate will be the same for all member organizations regardless of the amount of volume they send to the NYSE. While the transaction fee is increasing from $0.00025 to $0.000275, the elimination of specialist commissions will generally lead to a lower effective trading cost when compared to the current structure.
“These changes continue our progress towards improving the value proposition for our customers by simplifying and reducing the all-in cost of trading of NYSE listed securities through the elimination of the specialist commission,” said Nelson Chai, Chief Financial Officer and Executive Vice President. “As a result of this filing, specialist firms, which will continue to play an important role at the NYSE, will experience lower fixed costs and participate in a revenue sharing program that will reward them for providing liquidity to our market.
“For NYSE Group, these changes are designed to be revenue neutral in the near term, will enhance our ability to attract share volume in our listed stocks, and will allow us to capture incremental revenue as volume grows. NYSE believes that the combined effect of these fee changes will make its pricing structure more competitive, efficient and transparent.”
For more information
The SEC filings related to these proposed changes can be found at: http://www.sec.gov
 Please refer to the NYSE Rule Filings page for additional details.
About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca, Inc. (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. In the third quarter of 2006, on an average trading day, 2.2 billion shares, valued at $80.1 billion, were traded on the exchanges of the NYSE Group.
The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities. On September 30, 2006 the operating companies listed on the NYSE represented a total global market capitalization of $23.0 trillion.
NYSE Arca operates NYSE Arca, Inc., the first open, all-electronic stock exchange in the United States , and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca, Inc. is also an exchange for trading equity options. NYSE Arca’s trading platforms provide customers with fast electronic execution and open, direct and anonymous market access.
NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.
For more information on NYSE Group, go to: www.nyse.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on NYSE Group’s current expectations and involve risks and uncertainties that could cause NYSE Group’s actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group’s results to differ materially from current expectations include, but are not limited to: NYSE Group’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group’s Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. NYSE Group undertakes no obligation to release any revisions to any forward-looking statements.
Contact: Gary Stein/Investor Relations