[Federal Register Volume 63, Number 236 (Wednesday, December 9, 1998)]
[Notices]
[Pages 67965-67966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32603]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40721; File No. SR-NYSE-98-35]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to Specifications
and Content Outline for the Trading Assistant Qualification Examination
(Series 25)
November 30, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 10, 1998, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the NYSE.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange has filed the Content Outline and Specifications for
the Trading Assistant Qualification Examination (``Series 25 Content
Outline'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The NYSE has prepared summaries, set forth in Sections
A, B, and C below, of the most significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Exhange Rule 35 dictates the terms under which an employee of a
member or member organization may be admitted to the Exchange Trading
Floor. Currently, the registration process for Floor employees i.e.,
Post Clerks and Booth Clerks, also known as Trading Assistants,
consists of submission of a completed Form U-4 (``Uniform Application
for Securities Industry Registration or Transfer'') and fingerprints.
The Exchange has proposed amendments to Rule 35 to require Trading
Assistants to, in addition to the current requirements, take and pass
appropriate qualification examinations and meet appropriate training
requirement.\3\
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\3\ On October 22, 1998, the Exchange filed with the Commission
SR-NYSE-98-36 which proposes to amend Rule 35 to provide for the
additional registration requirements for Trading Assistants.
Securities Exchange Act Release No. 40720 (November 30, 1998).
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The Series 25 and Series 25 Content Outline were developed by the
Exchange, in conjunction with a Committee of Exchange Members and
Trading Assistants, in order to qualify Floor Trading Assistants
pursuant to proposed amendments to Rule 35\4\ The Series 25 will ensure
that Trading Assistants have the basic knowledge, skills, and abilities
necessary to perform the functions and carry out the responsibilities
of a Trading Assistant. The Series 25 Content Outline, which may be
examined at the places specified in Item IV below, details the coverage
of the examination.
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\4\ Id.
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The requirement to take and pass the Series 25 examination in order
to qualify as a Trading Assistant will apply to all current and
prospective Trading Assistants. A proposed new interpretation to Rule
35 will established that new Trading Assistants will be required to
undergo three months of training (including on-the-job and classroom
instruction) prior to taking the examination.\5\ New Trading Assistants
will not be permitted to perform their functions without supervision
until passing the examination. Current Trading Assistants would have
one year from implementation of the qualification requirement to pass
the examination.
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\5\ Id.
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2. Statutory Basis
The Exchange believes the statutory basis for the Series 25
Examination lies in Section 6(c)(3)(B) of the Act.\6\ Under that
Section, the Exchange has the responsibility to prescribe standards of
training, experience and competence for persons associated with
Exchange members and member organizations. Pursuant to this statutory
obligation, the Exchange has developed examinations that are
administered to establish that persons associated with Exchange members
and member organizations have attained specified levels of competence
and knowledge.
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\6\ 15 U.S.C. 78f(c)(3)(B).
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In addition, pursuant to Section 6(c)(3)(B) of the Act,\7\ the
Exchange may bar a natural person from becoming a member or person
associated with a member, if such natural person does not meet such
standards of training, experience and competence as are prescribed by
the rules of the Exchange. Pursuant to this statutory obligation, the
Exchange believes it has developed an examination that will be
administered to confirm that Trading Assistants have attained specified
levels of competence and knowledge.
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\7\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change, or
[[Page 67966]]
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street NW., Washington, DC 20549. Copies
of the submission, all subsequent amendments, all written statements
with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room. Copies of the filing will also be
available for inspection and copying at the principal office of the
NYSE. All submissions should refer to File No. NYSE-98-35 and should be
submitted by December 30, 1998.
For the Commission, by the Division of Market Regulation,
pursuant to the delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-32603 Filed 12-8-98; 8:45 am]
BILLING CODE 8010-01-M
