March 22, 1989
TO: CLOSED-END FUND COMMITTEE NO. 7-89
RE: PSE PERMITS SECOND TIER FEE SCHEDULE FOR CLOSED-END FUND
FAMILIES
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The Pacific Stock Exchange filed a proposed rule change
with the Securities and Exchange Commission that would provide
eligibility for families of closed-end funds for the second tier
of the PSE's current listing fee schedule. The proposed rule
change is effective immediately; however, the SEC may abrogate or
alter the rule change under certain circumstances.
Currently, under the first tier of the listing fee
schedule, the original listing fee of common stock is $7,500.
Under the second tier, the original listing fee of secondary
issues including preferred stocks, warrants, bonds, and rights is
$2,500. The rule change includes the second and all subsequent
funds in a family of funds in the second tier fee schedule. The
PSE states that reducing listing fees for additional funds in the
same family once the first fund is fully listed is justified
because of the cost savings for secondary issues, and because
they offer recognizable economies of scale. The PSE predicts
that the reduced rate will attract groups of new listings.
Robert L. Bunnen, Jr.
Assistant General Counsel
Attachment