NYSE Members/Holders Of Trading Licenses - Trading License Procedures

With the close of our merger with Archipelago March 7, NYSE Trading Licenses will be required in order to trade on the NYSE beginning March 8. This memorandum describes procedures for billing and other information related to the launch of NYSE Trading Licenses.

Trading License holders will be required to pay a deposit of one month's Trading License payment, which will be applied to the last month's Trading License payment or to the Termination Fee for early termination, if applicable. Otherwise, Trading License fees will be billed monthly. Members will receive a bill in early April for 1) the March 8-March 31 period; 2) the month of April, and; 3) a one-month deposit which will be applied to payment for the month of December. Bills are payable on receipt.

Please note that only Member Organizations in good standing will be permitted to receive Trading Licenses. ALL INVOICES SUBMITTED TO MEMBER ORGANIZATIONS DATED DECEMBER 31, 2005 AND PRIOR, MUST BE FULLY PAID BEFORE A MEMBER ORGANIZATION WILL BE PERMITTED TO RECEIVE ITS LICENSE(S). Lessee Members are reminded that lease payments to Lessors should be made through and including March 7. Any lease payments already made for the period beyond March 7 should be refunded to Lessees.

In addition to these Trading License Billing procedures, Members and Member Organizations are advised that NYSE Market will also implement the following fees:

APPROVAL OF NEW MEMBER OR PRE-QUALIFIED SUBSTITUTE $1,000.00

This fee will not apply to current NYSE Members who continue approved for Trading Floor access after the merger. From and after the merger, however, if any approved Member changes employment and continues as a Member with another Trading License holder, the new employer will be billed this fee. If a pre-qualified substitute changes employment and continues as a pre-qualified substitute with another Trading License holder, the new employer will be billed this fee.
Member Organizations must give five business days' notice to Membership Services before a pre-qualified substitute may appear on the floor.

BADGE MAINTENANCE FEE $250.00

This fee will be charged annually for each active Member of a Member Organization, and for each pre-qualified substitute.

LICENSE TRANSFER FEE $1,000.00

This fee is charged when an existing Trading License is to be transferred to a permitted transferee, namely, another Member Organization that is an affiliate or a successor to the business of the first Trading License holder within the meaning of Rule 300(a).

All Member Organizations that require additional Trading Licenses beyond those they obtained in the December auction may purchase them throughout the year at an annual rate of $54,219, which is 10% above the annual auction price, subject to proration for the amount of time remaining in the year, and subject to the ceiling of 1,366 Trading Licenses outstanding at any time. The forms for applying for additional licenses are available at www.nyse.com.

Should you have any questions about these policies and fees, please contact Steve Fuller in Membership Services at (212) 656-2071. For all inquiries related to billing, please contact Andrew Brandman at (212) 656-2262.