[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17099]


[[Page Unknown]]

[Federal Register: July 14, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34336; File No. SR-NYSE-94-24]

 

Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to Examination 
Specifications for the General Securities Sales Supervisor (Series 8) 
Examination

July 8, 1994.
    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 June 28, 1994, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'' or ``SEC'') 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.
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    \1\15 U.S.C. 78s(b)(1) (1988).
    \2\17 CFR 240.19b-4 (1994).
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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 proposed Examination Specifications for 
the General Securities Sales Supervisor (``Series 8'') Examination.\3\
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    \3\As part of the proposed rule change, the NYSE is also seeking 
approval of the Series 8 examination itself.
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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

(a) Purpose
    The General Securities Sales Supervisor (``Series 8'') Examination 
is an industry-wide qualification examination for securities sales 
supervisors. The Series 8 examination is generally required under rules 
of the self-regulatory organizations (``SROs'') for persons who are 
engaged in the supervision of general securities branch offices (i.e., 
branch office managers) and of general securities registered 
representatives. The Series 8 examination tests a candidate's knowledge 
of securities industry rules and regulations and certain statutory 
provisions applicable to general securities sales supervision. The 
Series 8 examination specifications detail the areas covered by the 
examination and break down the number of examination questions culled 
from each area.
    Revision of the Series 8 examination and specifications was 
recently undertaken by an industry committee composed of 
representatives from SROs (the NYSE, the American Stock Exchange, the 
Chicago Board Options Exchange, the Municipal Securities Rulemaking 
Board, the National Association of Securities Dealers and the 
Philadelphia Stock Exchange) and representatives from broker-dealers, 
including branch office managers, compliance personnel and corporate 
executives, in order to update the examination in view of changes in 
relevant laws, rules and regulations, the development of new products, 
and to reflect various changes in industry practices. The committee 
reviewed the examination specifications, content areas and item bank 
and developed some new questions in new areas.
    The revised examination continues to cover the areas of knowledge 
required to supervise sales activities in securities, however, the 
focus of the content of the examination has been shifted to concentrate 
more closely on supervisory duties. Accordingly, certain questions have 
been deleted which deal with routine calculations and basic product 
knowledge and questions on new federal and SRO rules and regulations 
have been incorporated into the exam, as well as questions on new 
products, supervision and changes in industry practices. The revised 
examination and specifications include coverage of these new areas. The 
examination will remain a six-hour, two-part, 200 question examination.
    The other SRO participants will also file the revised examination 
and specifications for approval by the SEC. The Exchange intends to 
commence use of the revised examination specifications ninety days 
after approval by the Commission.
(b) Statutory Basis
    The statutory basis for the Series 8 Examination lies in Section 
6(c)(3)(B) of the Act. Under that Section, it is the Exchange's 
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 
specific levels of competence and knowledge.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden 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

    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, 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 at the 
Commission's Public Reference Room, 450 Fifth Street, NW., Washington, 
DC 20549. 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. SR-NYSE-94-24 and should be submitted by August 4, 
1994.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-17099 Filed 7-13-94; 8:45 am]
BILLING CODE 8010-01-M