[Federal Register Volume 64, Number 117 (Friday, June 18, 1999)]
[Notices]
[Pages 32911-32912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15485]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41515; File No. SR-NYSE-99-20]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by the New York Stock Exchange, Inc. Relating to Examination
Specifications and Content Outline for the Front Line Specialist Clerk
Qualification Examination (Series 21)
June 10, 1999.
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 May 14, 1999, the New York Stock Exchange, Inc. (``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 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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1. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The Exchange has file the Content Outline and Examination
Specifications for the Front Line Specialist Clerk Qualification
Examination (``Series 21'').
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 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 Exchange 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
Exchange Rule 35 requires that employees of members and member
organizations must be registered with, qualified by, and approved by
the Exchange prior to admittance to the Trading Floor. Currently, the
registration process for Floor employees functioning as Front Line
Specialist Clerks (``FLS Clerks'') primarily consists of submission of
a completed Form U-4 (``Uniform Application for Securities Industry
Registration or Transfer'') and Fingerprints. Under a proposed
interpretation to Rule 35, which has been filed separately with the
Commission as a proposed rule change (SR-NYSE-99-19), these FLS Clerks
will also have to be qualified by taking and passing an appropriate
qualification examination and by meeting appropriate training
requirements.
The Front Line Specialist Clerk Qualification Examination (``Series
21'') and Content Outline were developed by the Exchange, in
conjunction with a Committee of Floor representatives (members,
Specialists, and FLS Clerks) in order to qualify FLS Clerks pursuant to
proposed amendments to Rule 35. The Series 21 examination will ensure
that FLS Clerks have the basis knowledge, skills, and abilities
necessary to perform their duties, which include assisting Floor
Specialists. The Series 21 examination is the second step in a program
to ensure that Floor employees are appropriately qualified. The first
step was implementation of the Series 25 Trading Assistant
Qualification Examination.\1\
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\1\ See Securities Exchange Act Release No. 40943 (January 13,
1999), 64 FR 3330 (January 21, 1999) (SR-NYSE-98-36); Securities
Exchange Act Release No. 40944 (January 13, 1999), 64 FR 3329
(January 21, 1999) (SR-NYSE-98-35).
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The Content Outline, which may be examined at the places specified
in Item IV below, details the coverage of the Series 21 examination.
The Series 21 examination is a 90-minute test consisting of 65
questions. A fee of $200 will be imposed per exam administration. This
fee will be the subject of a separate rule filing at a later date.
Implementation of the examination is scheduled to take place 90 days
after its approval by the Commission.
The requirement to take and pass the Series 21 examination in order
to qualify as an FLS Clerk will apply to both current and prospective
FLS Clerks. The separately-filed, proposed new interpretation to Rule
35 (SR-NYSE-99-19) will establish that individuals who are currently
functioning as FLS Clerks will be required to pass the Series 21
examination within one year of its implementation. The Series 25
qualification examination is a prerequisite, but no training program
will be required for these individuals since they are already acting in
the capacity of FLS Clerks. Prospective FLS Clerks will be required to
complete, at
[[Page 32912]]
a minimum, a six month training program upon passing the Series 25
examination in order to become eligible for the Series 21 examination.
The training program will consist of ``on-the-job'' experience with a
Specialist under a supervisory program to be determined by the
Specialist. All candidates must pass the Series 21 examination before
functioning as an ``unsupervised'' FLF Clerk, i.e., functioning without
the specialized supervision required during the training period.
2. Statutory Basis
The statutory basis for Series 21 Examination is Section 6(c)(3)(B)
of the Act.\3\ 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 specified
levels of competence and knowledge. In addition, under Section
6(c)(3)(B), the Exchange may bar a natural person from becoming a
member or person associated with a member, if such natural person does
not meet such standards of training, experience and competence as are
prescribed by the rules of the Exchange. Pursuant to this statutory
obligation, the Exchange has developed an examination that will be
administered to establish that Front Line Specialist Clerks have
attained specified levels of competence and knowledge.
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\3\ 15 U.S.C. 78f(c)(3)(B).
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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
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 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 proposal 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. 20549-0609. 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 File No. SR-NYSE-99-20 and
should be submitted by July 9, 1999.
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. 99-15485 Filed 6-17-99; 8:45 am]
BILLING CODE 8010-01-M