[Federal Register Volume 61, Number 33 (Friday, February 16, 1996)]
[Notices]
[Pages 6279-6280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3577]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36831; File No. SR-NYSE-95-43]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc., Relating to Amendments to
Exchange Rules 27, 476(a)(11), and 477
February 12, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 5, 1996, the New
York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change consists of amendments to New York Stock
Exchange (the ``Exchange'') Rules 27, 476(a)(11) and 477, which require
persons under Exchange jurisdiction to comply with information requests
from commodities markets and associations and foreign self-regulatory
organizations and associations.
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 self-regulatory organization
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 self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to require persons under
Exchange jurisdiction to comply with information requests from
commodities markets and associations and foreign self-regulatory
organizations and associations.
Currently, Rule 27 authorizes the Exchange to enter into
information sharing agreements with domestic and foreign self-
regulatory organizations and associations, but does not provide for
such agreements with commodities regulatory organizations such as
contract markets and registered futures associations.
Rule 476(a)(11) permits the Exchange to initiate a disciplinary
proceeding against a member, member organization, allied member,
approved person, registered or non-registered employee of a member
organization or a person otherwise subject to the jurisdiction of the
Exchange, for failure to furnish information to, or appear or testify
before the Exchange or another domestic self-regulatory organization.
The rule does not authorize the Exchange to initiate such a proceeding
when someone under Exchange jurisdiction fails to cooperate with a
commodities market or association or a foreign self-regulatory
organization or association.
Rule 477 permits the Exchange to require a member, member
organization, allied member, approved person or registered or non-
registered employee of a member organization that is terminating his
status as such to comply with a request to appear, testify, submit
books, records, papers, or objects and to respond to written requests
and attend hearings in the same manner and to the same extent as if
such person had maintained his status, if, prior to such termination,
or during the period of one year immediately following the receipt by
the Exchange of written notice of the termination, the Exchange makes
such a request in writing. The rule does not require the above parties
to comply with such requests from commodities markets or associations
or from foreign self-regulatory organizations or associations.
The Exchange is proposing to amend Rule 27 to add domestic contract
markets and futures associations to the list of entities with which the
Exchange is authorized to enter into information sharing agreements.
The extent to which those under the Exchange's jurisdiction would be
required to cooperate would be predicated on the subject matter or
scope of the relevant information sharing agreement. Rule 476(a)(11)
would be amended to require that those under its jurisdiction cooperate
with information requests from domestic commodities markets and
associations and foreign self-regulatory organizations and associations
as well as from
[[Page 6280]]
domestic securities markets.\2\ Rule 477 would be amended to require
compliance with information requests submitted by the organizations
specified in Rule 476(a)(11).\3\
\2\ NYSE Rule 476(a)(11) is part of NYSE's minor rule violation
plan set forth in NYSE Rule 476A. See Securities Exchange Act
Release No. 25862 (Jun. 28, 1988), 53 FR 25400 (Jul. 6, 1988) (order
approving File No. SR-NYSE-4-284).
\3\ The NYSE has stated that, in connection with Rules 27,
476(a)(11), and 477, it is its policy to afford NYSE members the
same rights and procedural protections that such person or entities
would have if the Exchange had initiated the request for information
or testimony. In furtherance of this, the Exchange will always act
as an intermediary between another SRO, a contract market or a
registered futures association and the exchange member, member
organization, or other designated person under Rule 476(a)(11) from
whom information or testimony is being sought for any inquiry made
pursuant to an agreement under Rule 27. Telephone conversation on
February 2, 1996 between Donald Siemer, Director, Market
Surveillance, NYSE and George A. Villasana, Attorney, Division of
Market Regulation, SEC.
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The Exchange believes that it is appropriate to expand the scope of
its disciplinary proceedings to include a failure to cooperate with
contract markets, futures associations and foreign self-regulatory
organizations and associations because of its continued commitment to
the enhancement of its regulatory efforts and the regulatory efforts of
other market centers with which the Exchange has agreed to share
information.
2. Statutory Basis
The basis under the Act for the proposed rule change is the
requirement under Section 6(b)(5) that an Exchange have rules that are
designed to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.\4\ The
proposed amendments are consistent with these objectives in that they
enhance the regulatory efforts of the Exchange and of other domestic
and foreign securities markets.
\4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The NYSE does not believe that the proposed rule change will impose
any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Within 35 days of the publication of this notice in the Federal
Register or within such other 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
(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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street NW., Washington, D.C. 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 at the
Commission's Public Reference Section, 450 Fifth Street NW.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
submissions should refer to File No. SR-NYSE-95-43 and should be
submitted by March 8, 1996.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-3577 Filed 2-15-96; 8:45 am]
BILLING CODE 8010-01-M
