[Federal Register Volume 64, Number 154 (Wednesday, August 11, 1999)]
[Notices]
[Pages 43804-43805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20635]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41701; File No. SR-NYSE-99-20]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to Examination
Specifications and Content Outline for the Front Line Specialist Clerk
Qualification Examination (Series 21)
August 3, 1999.
I. Introduction
On May 14, 1999, the New York Stock Exchange, Inc. (``Exchange'')
filed with the Securities and Exchange Commission (``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
relating to examination specifications and content outline for the
Front Line Specialist Clerk Qualification Examination (Series 21). The
proposed rule change was published for comment in the Federal Register
on June 18, 1999.\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. 41515 (June 10, 1999),
64 FR 32911.
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II. Description of the Proposal
Exchange Rule 35 requires that employees of members and member
organizations be registered with and approved by the Exchange prior to
admittance to the Trading Floor. Currently, the registration process
for Floor employees functioning as Front Line Specialist Clerks (``FLS
Clerks'') primarily consists of submission of a completed Form U-4
(``Uniform Application for Securities Industry Registration or
Transfer'') and fingerprints. Under a proposed interpretation of Rule
35, which has been approved separately by the Commission (SR-NYSE-99-
19), these FLS Clerks also will have to be qualified by taking and
passing an appropriate qualification examination and by meeting
appropriate training requirements.
The Front Line Specialist Clerk Qualification Examination (``Series
21'') and Content Outline, which the Exchange is asking the Commission
to approve in this filing, were developed by the Exchange, in
conjunction with a committee of Floor representatives (members,
Specialists, and FLS Clerks)
[[Page 43805]]
to qualify FLS Clerks pursuant to the new interpretation of Rule 35.
The Series 21 examination will help ensure that FLS Clerks have the
basic knowledge, skills, and abilities necessary to perform their
duties, which include assisting Floor Specialists.
The Series 21 examination is a 90-minute test consisting of 65
questions. The examination covers such topics as preparing for the
market opening, operating the display book, preparing for the market
close, and generating trade reports. The requirement to take and pass
the Series 21 examination to qualify as an FLS Clerk will apply to both
current and prospective FLS Clerks. All candidates must pass the Series
21 examination before functioning as an unsupervised FLS Clerk, i.e.,
functioning without the specialized supervision required during the
training period.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules regulation thereunder
applicable to a national securities exchange.\4\ In particular, the
Commission finds that the proposed rule change is consistent with the
requirements of Section 6(c)(3)(B) of the Act,\5\ which provides that
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. The Commission finds that the subject matter
included in the Series 21 Examination and the content outline by the
Exchange is consistent with Section 6(c)(3)(B) because it provides the
Exchange with an appropriate means for measuring an FLS Clerk's ability
and qualifications. The Series 21 Examination and content outline
covers such topics as preparing for the market opening, operating the
display book, preparing for the market close, and generating trade
reports. Requiring all current and future FLS to pass the Series 21
Examination will help ensure that they are adequately trained and
qualified to perform their duties competently.
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\4\ In approving the proposed rule change, the Commission also
has considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78f(c)(3)(B).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (SR-NYSE-99-20) is approved.
\6\ 15 U.S.C. 78s(b)(2).
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For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-20635 Filed 8-10-99; 8:45 am]
BILLING CODE 8010-01-M
