[Federal Register Volume 64, Number 154 (Wednesday, August 11, 1999)]
[Notices]
[Pages 43804-43805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20635]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41701; File No. SR-NYSE-99-20]


Self-Regulatory Organizations; Order Approving 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)

August 3, 1999.

I. Introduction

    On May 14, 1999, the New York Stock Exchange, Inc. (``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change 
relating to examination specifications and content outline for the 
Front Line Specialist Clerk Qualification Examination (Series 21). The 
proposed rule change was published for comment in the Federal Register 
on June 18, 1999.\3\ The Commission did not receive any comments on the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1)
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 41515 (June 10, 1999), 
64 FR 32911.
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II. Description of the Proposal

    Exchange Rule 35 requires that employees of members and member 
organizations be registered with 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 of Rule 
35, which has been approved separately by the Commission (SR-NYSE-99-
19), these FLS Clerks also will 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, which the Exchange is asking the Commission 
to approve in this filing, were developed by the Exchange, in 
conjunction with a committee of Floor representatives (members, 
Specialists, and FLS Clerks)

[[Page 43805]]

to qualify FLS Clerks pursuant to the new interpretation of Rule 35. 
The Series 21 examination will help ensure that FLS Clerks have the 
basic knowledge, skills, and abilities necessary to perform their 
duties, which include assisting Floor Specialists.
    The Series 21 examination is a 90-minute test consisting of 65 
questions. The examination covers such topics as preparing for the 
market opening, operating the display book, preparing for the market 
close, and generating trade reports. The requirement to take and pass 
the Series 21 examination to qualify as an FLS Clerk will apply to both 
current and prospective FLS Clerks. All candidates must pass the Series 
21 examination before functioning as an unsupervised FLS Clerk, i.e., 
functioning without the specialized supervision required during the 
training period.

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules regulation thereunder 
applicable to a national securities exchange.\4\ In particular, the 
Commission finds that the proposed rule change is consistent with the 
requirements of Section 6(c)(3)(B) of the Act,\5\ which provides that 
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. The Commission finds that the subject matter 
included in the Series 21 Examination and the content outline by the 
Exchange is consistent with Section 6(c)(3)(B) because it provides the 
Exchange with an appropriate means for measuring an FLS Clerk's ability 
and qualifications. The Series 21 Examination and content outline 
covers such topics as preparing for the market opening, operating the 
display book, preparing for the market close, and generating trade 
reports. Requiring all current and future FLS to pass the Series 21 
Examination will help ensure that they are adequately trained and 
qualified to perform their duties competently.
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    \4\ In approving the proposed rule change, the Commission also 
has considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(c)(3)(B).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NYSE-99-20) is approved.

    \6\ 15 U.S.C. 78s(b)(2).
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    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. 99-20635 Filed 8-10-99; 8:45 am]
BILLING CODE 8010-01-M