[Federal Register Volume 64, Number 13 (Thursday, January 21, 1999)]
[Notices]
[Pages 3329-3330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1323]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40944; File No. SR-NYSE-98-35]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving Proposed Rule Change Relating to the Specifications and
Content Outline for the Trading Assistant Qualification Examination
(Series 25)
January 13, 1999.
I. Introduction
On November 10, 1998, the New York Stock Exchange, Inc. (``NYSE''
or ``Exchange'') submitted to the Securities and Exchange Commission
(``SEC'' or ``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change consisting of the specifications
of the new trading assistant exam and the Content Outline for the
Trading Assistant Qualification Examination (``Series 25 Content
Outline''). The proposed rule change was published for comment in the
Federal Register on December 9, 1998.\3\ The Commission did not receive
any comments on the proposal. This order approves the proposed rule
change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 40721 (November 30,
1998), 63 FR 67965 (December 9, 1998.
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II. Description of the Proposal
In a companion release, the Exchange has proposed to amend Rule 35
which dictates the terms under which an employee of a member or member
organization may be admitted to the Exchange trading floor.\4\ The Rule
35 Proposal requires floor employees i.e., post clerks and booth
clerks, also known as trading assistants (``Trading Assistants'') to
take and pass an appropriate qualification examination (``Series 25
Examination'') and to meet appropriate training requirements.
Currently, Rule 35 only requires trading assistants to submit a
completed Form U-4 (``Uniform Application for Securities Industry
Registration or Transfer'') and fingerprints. The current requirements
will continue to be effective.
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\4\ Securities Exchange Act Release No. 40720 (November 30,
1998), 63 FR 67969 (December 9, 1998) (``Rule 35 Proposal'').
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Under the Rule 35 Proposal, all current and prospective Trading
Assistants will be required to pass the Series 25 Examination.
Moreover, new Trading Assistants will be required to attend a 3-month
training session (including on-the-job and classroom training) before
taking the exam. New Trading Assistants will not be permitted to
perform their functions without supervision until they pass the exam.
Current Trading Assistants will have one year from implementation of
the new requirements to pass the exam and will not be required to
attend the 3-month training unless they twice fail the Series 25
Examination.
The Exchange, in conjunction with the amendments to Rule 35, filed
this proposal to submit its Series 25 Content Outline. The Series 25
and the Series 25 Content Outline were developed by the Exchange along
with a committee of Exchange members and Trading Assistants. The
Exchange believes the Series 25 will ensure that Trading Assistants
will have the basic knowledge, skills, and abilities necessary to
perform the functions and carry out the responsibilities of their
position. The Series 25 Content Outline details the coverage of the
examination. According to the Series 25 Content Outline, it is intended
to familiarize examination candidates with the range of subjects
covered, as well as the depth of knowledge required.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\5\ In
particular, the Commission finds that the proposed rule change is
consistent with the requirements of Section 6(c)(3)(B) of the Act.\6\
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\5\ In reviewing this proposal, the Commission has considered
the proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(c)(3)(B).
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Section 6(c)(3)(B) of the Act provides, among other things, that a
national securities exchange may examine and verify the qualifications
of applicants who desire to become associated with a member and may
require any person associated with a member to be registered with the
exchange in accordance with established procedures. This section also
provides that an exchange may bar a person from becoming a member if
such person does not meet standards of training, experience, and
competence as are prescribed by the rules of the exchange.
[[Page 3330]]
Having reviewed the Series 25 Examination itself in its
entirety,\7\ the Commission finds that the Series 25 Examination
satisfies the requirements of Section 6(c)(3)(B).\8\ The Commission
believes that the nature and the scope of the examination is
appropriate for ensuring that Trading Assistants admitted to the
Exchange's trading floor are duly trained and qualified to competently
perform their duties and functions.
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\7\ The Series 25 Examination was subject to confidential
treatment by the Commission.
\8\ Securities Exchange Act Release No. 40943 (January 13,
1999).
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The Commission also finds that the Series 25 Content Outline
satisfies the requirements of Section 6(c)(3)(B) of the Act.\9\ The
Commission believes that the Series 25 Content Outline provides notice
to all members and persons associated with members of the requirements
to be satisfied by floor employees before they can be admitted to the
Exchange trading floor. Moreover, the series 25 Content Outline also
provides Trading Assistants with notice of the topics and materials
tested as well as sample test questions to help them prepare.
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\9\ 15 U.S.C. 78f(c)(3)(B).
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The proposed rule change should help ensure that floor employees,
working on the Exchange trading floor, are qualified and competent. It
is therefore consistent with Section 6(c)(3)(B) because it establishes
procedures of the Exchange that ensure that the standards regarding
training, experience, and competence are satisfied.
Moreover, the Commission finds that the proposal is consistent with
the requirements of Section 6(b)(5) of the Act,\10\ which provides,
among other things, that the rules of the Exchange be designed, in
general, to protect investors and the public interest. The new exam
should ensure that the Trading Assistants admitted to the Exchange
trading floor are qualified to effectively perform in their positions.
By ensuring the qualifications and abilities of trading assistants, the
Commission believes that the integrity of the Exchange is maintained,
which should protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\11\ that the proposed rule change (SR-NYSE-98-35) is approved.
\11\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-1323 Filed 1-20-99; 8:45 am]
BILLING CODE 8010-01-M
