[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