[Federal Register Volume 61, Number 252 (Tuesday, December 31, 1996)]
[Notices]
[Pages 69129-69130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33273]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38078; File No. SR-NYSE-96-37]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposal by the New York Exchange, Inc. Regarding 
the Limitation of Liability for Use of Facilities

December 23, 1996.
    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 December 10, 1996, the New York Stock Exchange, Incorporated 
(``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 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.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to clarify that transactions in baskets that 
include American Stock Exchange, Inc. (``Amex'') listed securities 
effected through NYSE Crossing Session II are deemed to constitute use 
of Exchange facilities, as described in Article II, Section 6 of the 
NYSE Constitution. The text of the proposed rule change is available at 
the Office of the Secretary, 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. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Section (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

    NYSE Crossing Session II permits members and member organizations 
to cross multi-stock baskets between 4:00 p.m. and 5:15 p.m. New York 
time. Baskets must include at least 15 NYSE-listed stocks with an 
aggregate value of $1 million or more.
    The Amex has filed with the Commission a proposed rule change to 
extend its trading hours to permit the execution of ``aggregate-price 
orders'' for Amex-listed securities which are part of a basket being 
done in large part through the exchange's Crossing Session II.\3\ Once 
approved, the Amex rule change will allow dual NYSE/Amex members and 
member organizations contemporaneously to execute on the NYSE, the 
NYSE-listed portion of a basket and on the Amex, the Amex-listed 
portion of the basket.
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    \3\ See Securities Exchange Act Release No. 37965 (November 19, 
1996), 61 FR 60135 (November 26, 1996) (File No. SR-Amex-96-43).
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    To facilitate contemporaneous execution, the NYSE will accept the 
entire basket order and forward to the Amex the Amex-listed portion of 
the basket order, provided that the member or member organizations 
submitting the order is a member of both the NYSE and the Amex. The 
Amex will execute the Amex portion, report it to the ``Tape'' and back 
to the member or member organization, and facilitate any regulatory 
reports that may be required of the member or member organization with 
respect to the Amex portion.
    The Exchange proposes to clarify that Article II, Section 6 of the 
NYSE Constitution shall, in addition to all other applications, also 
apply to any transaction, notice or communication effected through or 
arising in connection with NYSE Crossing Session II. This includes, but 
is not limited to, transactions, notices or communications involving a 
basket consisting of both Exchange-listed securities and securities 
listed on the Amex. This shall not preclude the applicability of any 
other provision of the Constitution or Rules that would serve to limit 
the liability of the Exchange for use by its members and member 
organizations of Exchange facilities.
    The Exchange believes that the proposal is consistent with Section 
6(b) of the Act in general and furthers the objectives of Section 
6(b)(5) in particular in that it is designed to promote just and 
equitable principles of change, to remove impediments to, and perfect 
the mechanism of a free and open market and, in general, to protect 
investors and the public interest.

(B) Self-Regulatory Organization's Statement on Burden on Competition

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

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing rule change constitutes a stated 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule, it has become effective pursuant to 
section 19(b)(3)(A), and Rule 19b-4 thereunder. 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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and

[[Page 69130]]

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. Sec. 552, will be available for inspection and coping at 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of the NYSE. All 
submissions should refer to SR-NYSE-96-37 and should be submitted by 
January 21, 1997.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-33273 Filed 12-3-96; 8:45 am]
BILLING CODE 8010-01-M