NYSE Files for Stay of Transaction Fee Pilot03.19.2019
The NYSE objects – to the Securities and Exchange Commission’s proposed Transaction Fee Pilot.
And the bourse has put its objections in writing, filing late last week a stay comment letter with the regulator.
In the motion for a stay of the Transaction Fee Pilot, NYSE asserts that a stay is appropriate given “the likelihood that Petitioners will prevail on their challenge to the Rule and because they stand to suffer immediate, irreparable injury if the Rule is implemented. Moreover, imposing a stay would not harm issuers, investors, or any other third party, and would further the public interest by avoiding the unnecessary costs and regulatory uncertainty stemming from implementation of the Rule before review by the D.C. Circuit.”
The exchange operator points out three reasons for vacating the Rule, each of which presents a strong likelihood of success.
- The Commission has not identified a sufficient basis to justify imposing the Rule’s restrictions on Petitioners and other national securities exchanges.
- The Commission’s cost-benefit analysis is fatally flawed.
- Third, the Rule fundamentally undermines competition.
NYSE concludes that imposing a stay would not harm issuers, investors, or any other members of the public, and would instead further the public interest.
“The Commission cannot seriously contend that temporarily staying the Rule, which it conceded is exploratory in nature, risks imminently banning the public. Staying the Rule will far better serve the public interest by avoiding the 3 potentially unnecessary costs, regulatory uncertainty, and disruption that would arise if the Rule is implemented and subsequently vacated.”
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