[Federal Register Volume 64, Number 89 (Monday, May 10, 1999)]
[Notices]
[Pages 25092-25093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11598]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41354; File No. SR-NYSE-99-16]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. Relating to Revisions to the Exchange's Floor Conduct and Safety
Guidelines
April 30, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1944
\1\ (``Act''), and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 21, 1999, 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 Exchange. The
Exchange has designed this proposal as one which is concerned solely
with the administration of the Exchange under Section 19(b)(3)(A)(iii)
of the Act,\3\ and Rule 19b-4(f)(3) thereunder,\4\ which renders the
proposal effective upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange proposes to amend its Floor Conduct and Safety
Guidelines (``Guidelines'') to require terminated or transferred Floor
employees or members to surrender their Exchange-issued identification
card (``Floor bage'') to the Exchange's Security Office within five
business days of termination. In addition, the proposed rule would
require that members and member organizations notify the Security
Office of a member's or Floor employee's termination within 24 hours of
the termination. The text of the proposed rule change is available at
the Exchange and at the Commission.
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 Exchange 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 Guidelines is to ensure that the behavior and
practices of individuals on the Floor of the Exchange contribute to the
efficient, undisrupted conduct of business on the Floor and do not
jeopardize the safety or welfare of others.
Exchange rules require all members and Floor employees of members
and member organizations to be registered with, and qualified and
approved by, the Exchange. When entering and while on the Floor,
members and Floor employees of members and member organizations must
display their Floor badge at all times.
Currently, Exchange policy requires that the Floor badges of
terminated employees must be surrendered to the Exchange's Security
Office or to the Exchange's Floor Operations Support Department within
five business days of termination of employment.
To ensure that only authorized members and Floor employees may gain
access to the Floor (thereby strengthening overall security), the
Guidelines will be revised to require that members and member
organizations:
Notify the Security Office of a member's or Floor
employee's termination within 24 hours of the termination, and
Submit the terminated member's or Floor employee's badge
to the Security Office within five business days of termination.
The Guidelines will incorporate the requirement for 24-hour notice
to and submission of Floor badges directly to the Security Office, with
no option to submit badges to the Floor Operations Support Department.
The required 24-hour notification to the Security Office will
enable Security staff to deactivate Floor badges electronically,
immediately upon notification and prior to the badges actually being
surrendered, thereby barring access to the Floor by terminated persons.
Members and member organizations who reassign members or Floor
employees to non-Floor functions will be subject to this policy
concerning surrender of the Floor badges. In addition to enhancing
Floor security, this policy will provide a centralized and more
efficient means for accountability of Floor badges.
Failure by members and member organizations to adhere to these
Guidelines may result in the imposition of fines (in the amount of
$1000) in accordance with the Guidelines.
These proposed revisions to the Guidelines do not affect the
existing structure of fines, penalties, and disciplinary actions
contained in the Guidelines; nor do they affect the rights of members,
member organizations and Floor employees of members and member
organizations to appeal, pursuant to existing Exchange rules and
procedures, any penalties that are imposed under the Guidelines.
2. Statutory Basis
The proposed rule change is consistent with the requirements of
Section 6(b)(5) of the Act \5\ which requires that the rules of the
Exchange be designed to facilitate transactions in securities and
remove impediments to and perfect the mechanism of a free and open
market. The proposed rule change
[[Page 25093]]
supports these goals by promoting the efficient, undisrupted conduct of
business on the Floor.
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\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed rule change will not 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
Comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
The proposed rule change is concerned solely with the
administration of the Exchange, and as such, takes effect upon filing
with the Commission pursuant to Section 19(b)(3)(A)(iii) of the Act \6\
and Rule 19b-4(f)(3) thereunder.\7\ At any time within 60 days of the
filing of the proposed rule change, the Commission may summarily
abrogate such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act.\8\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(3).
\8\ In reviewing this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal 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 20549-0609. 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 such filing will also be available for
inspection and copying at the principal office of the NYSE. All
submissions should refer to file number SR-NYSE-99-16, and should be
submitted by June 1, 1999.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-11598 Filed 5-7-99; 8:45 am]
BILLING CODE 8010-01-M
