[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Notices]
[Pages 46090-46091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23239]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40344; File No. SR-NYSE-98-24]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Revisions to the Floor Conduct and Safety Guidelines

August 19, 1998.
    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 August 5, 1998, the New York Stock Exchange, Inc. (``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 proposed rule change consists of an amendment to the Exchange's 
Floor Conduct and Safety Guidelines (``Guidelines'') which revises the 
Code of Personal Appearance contained therein. The Guidelines are a 
``stated policy, practice or interpretation'' concerned with the 
administration of Exchange Rule 35. The text of the proposed rule 
change is set out below. Additions are italicized. Deletions are 
bracketed.

FLOOR CONDUCT AND SAFETY GUIDELINES

* * * * *
    Code of Personal Appearance--Members and employees of members and 
member organizations must conform to the revised Trading Floor Code of 
Personal Appearance. All garments must be reasonably pressed and not 
wrinkled.

MALE PERSONNEL

    All male personnel are expected to wear suitable attire as follows: 
A Dress Shirt, buttoned at the collar, with a dress tie knotted at the 
customary place, i.e., snug to the collar; Full Length Dress Trousers 
or slacks, JEANS OR OTHER SPORT SLACKS [OF ANY TYPE] ARE NOT PERMITTED; 
a jacket with long sleeves. (An acceptable jacket shall include a suit, 
[or] sport coat, blazer or SOLID COLOR office jacket[)]. Any back or 
side panels or mesh back must be of same color as jacket or black).

FEMALE PERSONNEL

    All female personnel are expected to wear suitable attire as 
follows:
    Skirts and Dresses should be worn at appropriate business lengths. 
No tube skirts, micro-mini[`]s, see-through or other extremely 
revealing styles.
    Blouses, Shirts, Sweaters and Tops should be of appropriate style 
and shall exclude informal wear such as tank tops, tube tops, midriffs, 
backless halters, see-[thru]through sweatshirts and [t]T-shirts. 
Leotards, plunging necklines and off-the-shoulder styles are also 
unacceptable.
    Pants & Slacks should be Full Length Dress Slacks. [Casual pants 
are UNACCEPTABLE, including] JEANS, LEGGINGS OR OTHER SPORT SLACKS ARE 
NOT PERMITTED. [OF ANY TYPE, COLOR OR FABRIC. Also excluded are leather 
pants, chinos, leggings, knit sweat pants, mid-calf pants and shorts. 
WHEN SLACKS ARE WORN, AN ACCEPTABLE OFFICE JACKET MUST ALSO BE WORN.] 
When slacks are worn, a jacket with long sleeves must be worn. (An 
acceptable jacket shall include a suit, sport coat, blazer or solid 
color office jacket. Any back or side panels or mesh back must be of 
same color as jacket or black.)

MALE AND FEMALE REQUIREMENTS

    Footwear should be confined to those that are comfortably heeled 
and considered safe, in view of the heavy traffic on the Trading Floor. 
Shoes should also be of appropriate styles. OPEN TOE OR OPEN BACK 
SANDALS, FLIP FLOPS, [DR. SCHOLL'S, BEDROOM SLIPPERS,] CASUAL BEACH OR 
BOAT SHOES, HIGH TOP SNEAKERS and other extreme styles are NOT 
PERMITTED. Shoes must be worn at all times on the Floor, including in 
the booth or behind the post.
    [Proper] Appropriate hosiery, i.e., socks for men and socks or 
stockings [for women] of appropriate length for women, [ARE] IS TO BE 
WORN AT ALL TIMES.
    Summer Attire: The standards of dress outlined above will apply 
throughout the year. If conditions warrant, the Market Performance 
Committee may waive certain of the requirements for a specified period 
of time.
    Grooming: Beards, Mustaches, and Sideburns should be neatly 
trimmed. Hair should be neatly maintained.
* * * * *
    Runners: [must be properly attired. Tie and acceptable jackets are 
required. Failure to adhere to these provisions will result in the 
following penalties.] May not wear hats (unless required for religious 
reasons). No headphones, jeans or other sport slacks are permitted. An 
acceptable work jacket is required. A tie is not required.
* * * * *

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 NYSE 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 NYSE 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 purpose of the Guidelines is to ensure that the behavior and 
practices of individuals on the Floor of the Exchange contribute to the 
efficient, undisrupted conduct of business on the Floor and do not 
jeopardize the safety and welfare of others. Included in the

[[Page 46091]]

Guidelines is a Code of Personal Appearance (the ``Code'') which was 
last revised in 1990, along with other parts of the Guidelines.\3\
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    \3\ Securities Exchange Act Rel. No. 28365 (August 23, 1990), 55 
FR 35490 (August 30, 1990).
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    The Exchange is proposing to revise the Code. The revisions to the 
Code do not affect the existing structure of fines, penalties and 
disciplinary actions contained in the Guidelines. Furthermore, these 
revisions do not affect the rights of members, Floor clerical employees 
of members, and member organizations to appeal, pursuant to existing 
Exchange rules and procedures, any penalties that are imposed.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of Section 6(b)(5)\4\ of the Act which requires that 
the rules of the exchange be designed to facilitate transactions in 
securities and remove impediments to and perfect the mechanism of a 
free and open market. The revisions to the Code comply with the Act by 
promoting the efficient, undisrupted conduct of business on the Trading 
Floor.
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    \4\ 15 U.S.C. 78f(b)(5).
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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 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

    Written comments were neither solicited nor received with respect 
to the proposed rule change.

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

    The proposed rule change will become effective upon filing pursuant 
to Section 19(b)(3)(A)(i) of the Act,\5\ and Rule 19b-4(e)(1) \6\ 
thereunder, in that it is designated by the Exchange as constituting a 
``stated policy, practice, or interpretation'' concerned with the 
administration of Exchange Rule 35. At any time within 60 days of the 
filing of such 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
    \6\ 17 CFR 240.19b-4(e)(1).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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 in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to the File No. SR-NYSE-98-24 
and should be submitted by September 18, 1998.

    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. 98-23239 Filed 8-27-98; 8:45 am]
BILLING CODE 8010-01-M