[Federal Register Volume 60, Number 143 (Wednesday, July 26, 1995)]
[Notices]
[Pages 38389-38390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18338]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36001; File No. SR-NYSE-95-25]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Changes by the New York Stock Exchange, Inc. Relating to Amendments to
Rules 600 (Arbitration), 619 (General Provision Governing Subpoenas,
Production of Documents, etc.), 629 (Schedule of Fees), and 637
(Failure to Honor Award)
July 20, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 26, 1995, the New
York Stock Exchange, Inc. (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
changes 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 amendment to Rule 600(d)(iii) clarifies that all class
actions, including claims involving members, allied members, member
organizations, and associated persons are ineligible for submission to
arbitration. The proposed amendment to Rule 619(c) provides that
parties may provide a list of documents they intend to present at the
hearings in lieu of exchanging copies of documents that have already
been produced. The proposed amendment to Rule 619(c) further requires
that the list identifying witnesses include the address and business
affiliation of the witnesses listed. In addition, Rule 619(c) would now
require prehearing exchanges to occur twenty days in advance of the
hearing, instead of ten days in advance as is presently required. The
proposed amendment to Rule 629(e) provides that the filing fee for an
industry party shall be $500 when the dispute does not specify a money
claim. The proposed amendment to Rule 637 provides that the failure of
a member, allied member, registered representative, or member
organization to honor an arbitration award, including those issued at
another self-regulatory organization or by the American Arbitration
Association, shall subject the member, allied member, registered
representative, or member organization to disciplinary proceedings
[[Page 38390]]
at the Exchange or to the imposition of a fine by way of a summary
proceeding.
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 proposed rule changes are based primarily on proposals
developed by the Securities Industry Conference on Arbitration. The
purpose of the proposed change to Rule 600(d)(iii) is to make it clear
that under this rule all class action claims involving members, allied
members, member organizations, and associated persons are ineligible
for submission to the Exchange's arbitration facility. The proposed
amendment to Rule 619(c) allows parties to provide a list of documents
that have been produced previously to the other side. This would
provide for more efficient prehearing exchanges by not requiring the
parties to again exchange those documents that have been produced
previously. This proposal also provides that the list identifying
witnesses include the address and business affiliation of the witnesses
listed. This would allow the parties to receive advance notice as to
the background of witnesses and the location of nonparty witnesses. In
addition, the proposed amendment to Rule 619(c) requires prehearing
exchanges to occur twenty days in advance of the hearing, instead of
ten days as is presently required. This part of the proposal would
serve to avoid surprise and provide the parties with time to organize
and present their cases in an efficient manner. The proposed amendment
to Rule 629(e) provides that the filing fee for an industry party shall
be $500 when the dispute does not specify a money claim. This would
unify the filing fee for all industry claims at $500. The proposed
amendment to Rule 637 provides that the failure of a member, allied
member, registered representative, or member organization to honor an
arbitration award, including those issued at another self-regulatory
organization or by the American Arbitration Association, shall subject
the member, allied member, registered representative, or member
organization to disciplinary proceedings at the Exchange or to the
imposition of a fine by way of a summary proceeding. This would
establish the enforceability of arbitration awards issued by other
self-regulatory organizations and by the American Arbitration
Association.
2. Statutory Basis
The proposed rule changes are consistent with Section 6(b) \2\ of
the Act in general and furthers the objectives of Section 6(b)(5) \3\
in particular in that they are designed to promote just and equitable
principles of trade by ensuring that members, member organizations, and
the public have an impartial forum for the resolution of their
disputes.
\2\ 15 U.S.C. 78f(b).
\3\ 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 changes will impose no
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
The Exchange has neither solicited nor received written comments on
the proposed rule changes.
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, N.W., 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 Reference Section, 450 Fifth Street, N.W., Washington,
D.C. 20549. Copies of such filing also will be available for inspection
and copying at the principal office of the New York Stock Exchange. All
submissions should refer to File No. SR-NYSE-95-25 and should be
submitted by August 16, 1995.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\4\
\4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-18338 Filed 7-25-95; 8:45 am]
BILLING CODE 8010-01-M
