Recently, the New York Stock Exchange LLC (“NYSE”) filed a proposed rule change with the Securities and Exchange Commission to amend the NYSE Listed Company Manual effective January 1, 2016.1 The proposed amendments will increase annual fees in 2016 for companies with securities listed on the NYSE.

The NYSE stated that it believes it is reasonable to increase its fees because the new annual fees would better reflect the NYSE’s costs related to the listing and the resulting value that the listings provide to listed companies. The NYSE stated that it has incurred increased expenses as it continues to improve and increase the services it provides to listed companies, such as renovating and upgrading the NYSE building to provide meeting spaces for listed companies and making a significant upgrade to the online community accessible to all listed companies.

Equity Securities

The annual fee for a company’s primary class of equity securities listed on the NYSE (i.e., its common stock or, if no class of common stock is listed on the NYSE, the company’s listed preferred stock) is currently the greater of $45,000 or $0.001 per share. The proposed amendments will increase the annual fee to the greater of $54,500 or $0.001025 per share. For example, a company with 100 million shares of its primary class of equity securities will pay an annual fee of $102,500 per year in 2016. By comparison, if a company with 100 million shares is listed on the Nasdaq Global Market, it will pay a standard annual fee of $69,000 in 2016.2

The annual fee for each additional class of common stock is currently the greater of $20,000 or $0.001 per share, and each additional class of preferred stock and each class of warrants is currently the greater of $5,000 or $0.001 per share. The proposed amendments will leave the minimum annual fee for these three categories unchanged but will increase the per share amount to $0.001025 per share. Nasdaq does not differentiate between a company’s primary class of equity securities and additional classes of listed equity securities. Instead, the standard annual fee is calculated based on the aggregate of all classes of equity securities listed on Nasdaq.

 The NYSE has stated they have decided to leave the minimum annual fee for an additional class of equity securities unchanged at this time, as there are only a few companies with more than one class of common stock or preferred stock listed on the NYSE.

Other Types of Securities

The annual fee for closed-end funds is currently the greater of $25,000 or $0.001 per share and the annual fee for both structured products and short-term securities is currently the greater of $15,000 or $0.001 per share. The proposed amendments will not amend the minimum annual fee but the per share amount will increase to $0.001025 per share for closed-end funds, structured products and short-term securities.3