[Federal Register Volume 63, Number 218 (Thursday, November 12, 1998)]
[Notices]
[Pages 63347-63348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30247]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40631; File No. SR-NYSE-98-33]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to Amendments to 
NYSE Rule 64

November 3, 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 October 16, 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

[[Page 63348]]

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 amendments to NYSE Rule 64. 
The text of the proposed rule change is available at the Office of the 
Secretary, the NYSE, 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 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 and is set forth in Sections A, B, and C below.

A. Self-Regulatory Organization's of the Purpose of, and Statutory 
Basis for, the Proposed Rule Change

1. Purpose
    Currently, NYSE Rule 64 requires Floor Official approval for all 
``non-regular way'' \3\ trades during all but the final calendar week 
of the year. The Rule provides that during the last calendar week of 
the year such approval is required only for sales more than 4/16 point 
away from the regular way bid or offer. The Exchange is proposing that 
the rule be amended so that the current provision applicable for the 
last week of trading in the year applies at all times. Therefore, Floor 
Official approval would be required only for those ``non-regular way'' 
trades that are more than 4/16 point away from the regular way bid or 
offer.
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    \3\ A ``non-regular way'' trade is a trade that is settled in a 
different time frame from ``regular-way'' trades, which settle on 
the third business day following the transaction. See NYSE Rule 
64(a)(3).
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    Exchange staff has analyzed price changes from the current bid or 
offer for ``non-regular way'' trades during June 1998. Their analysis 
showed that 97% of such trades were 4/16 point or less away from the 
regular way bid or offer. This result indicates that a large proportion 
of ``non-regular way'' trades occur at a small variation from the 
current regular way market.
    The Exchange believes that the proposed rule change would relieve 
members of the burden of obtaining Floor Official approval for routine 
``non-regular way'' trades at small price variations, while preserving 
Floor Official supervision for those instances where it is most needed. 
The Rule would retain the requirement for Floor Officials to ``take 
into consideration whether the price of the transaction is reasonable 
in relation to the `regular way' market'' when deciding whether to 
grant approval for a ``non-regular way'' trade.
    The Exchange believes that this proposal would allow Floor 
Officials to focus their attention on supervising those situations 
where oversight is most important.
2. Statutory Basis
    The basis under the Act for the proposed rule change is the 
requirement under Section 6(b)(5)\4\ that an Exchange have rules that 
are designed to promote just and equitable principles of trade, to 
remove impediments to, and perfect the mechanism of a free and open 
market and, in general, to protect investors and the public interest.
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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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer 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, 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 
NYSE. All submissions should refer to File No. SR-NYSE-98-33 and should 
be submitted by December 3, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 98-30247 Filed 11-10-98; 8:45 am]
BILLING CODE 8010-01-M