[Federal Register Volume 65, Number 116 (Thursday, June 15, 2000)]
[Notices]
[Pages 37587-37591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15127]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42913; File No. SR-NYSE-00-18]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Relating to NYSe Direct+, 
the Exchange's Automatic Execution Facility for Certain Limit Orders of 
1099 Shares or Less

June 8, 2000.
    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 1, 2000, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 new Exchange Rules 1000 
through 1005 governing trading through NYSe Direct+ TM, a 
new Exchange facility to provide automatic execution of limit orders of 
a specified size. The proposed rule change also amends Exchange Rule 13 
to define an ``auto ex'' order and Exchange Rule 476A to include 
proposed Rules 1000 through 1005 in the list of rules subject to 
summary fine procedures. The Exchange is also submitting for Commission 
approval interpretations of Exchange Rules 104, 123A.40, and 91, and it 
will request separately that the Commission issue the appropriate 
relief from Commission Rule 10a-1.\3\ The text of the proposed rule 
change is set forth below. All language is being added.
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    \3\ 17 CFR 240.10a-1.
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Rule 1000: Automatic Execution of Limit Orders Against Orders Reflected 
in NYSE Published Quotation
    Only straight limit orders without tick restrictions are eligible 
for entry as auto ex orders. Auto ex orders to buy shall be priced at 
or above the price of the published NYSE offer. Auto ex orders to sell 
shall be priced at or below the price of the NYSE bid. An auto ex order 
shall receive an immediate, automatic execution against orders 
reflected in the Exchange's published quotation and shall be 
immediately reported as NYSE transactions, unless:
    (i) The NYSE's published quotation is in the non-firm quote mode;
    (ii) The NYSE's published quotation has been gapped for a brief 
period because of an influx of orders on one side of the market, and 
the NYSE's published quotation size is one hundred shares at the bid 
and/or offer;
    (iii) With respect to a single-sided auto ex order, a better price 
exists in another ITS participating market center;

[[Page 37588]]

    (iv) With respect to a single-sided auto ex order, the NYSE's 
published bid or offer is 100 shares;
    (v) A transaction outside the NYSE's published bid or offer 
pursuant to Rule 127 is in the process of being completed, in which 
case the specialist should publish a 100-share bid and/or offer;
    (vi) Trading in the subject security has been halted.
    Auto ex orders that cannot be immediately executed shall be 
displayed as limit orders in the auction market.
Rule 1001: Execution of Auto Ex Orders
    (a) Subject to Rule 1000, auto ex orders shall be executed 
automatically and immediately reported. The contra side of the 
execution shall be orders reflected in the Exchange's published 
quotation, as follows:
    (i) The first contra side bid or offer at a particular price shall 
be entitled to time priority, but after a trade clears the Floor, all 
bids and offers at such price shall be on parity with each other;
    (ii) All bids or offers on parity shall receive a split of 
executions in accordance with Rule 72;
    (iii) The specialist shall be responsible for assigning the number 
of shares to each contra side bidder and offeror, as appropriate, in 
accordance with Rule 72, with respect to each automatic execution of an 
auto ex order;
    (iv) The specialist shall be the contra party to any automatic 
execution of an auto ex order where interest reflected in the published 
quotation against which the auto ex order was executed is no longer 
available;
    (v) A universal contra shall be reported as the contra to each 
automatic execution of an auto ex order.
    (b) If the depth of the published bid or offer is not sufficient to 
fill an auto ex order in its entirety, the unfilled balance of the 
order shall be routed to the Floor and shall be displayed in the 
auction market.
    (c) If at any time automatic executions of auto ex orders result in 
the execution of all trading interest reflected in the Exchange's 
published quotation at the bid or offer price, the Exchange shall 
disseminate a bid or offer at that price of 100 shares until the 
specialist re-quotes the market. Auto ex orders shall not be 
automatically executed against any 100 share bid or offer, whether a 
default bid or offer or otherwise, but shall be routed to the Floor and 
shall be displayed in the auction market. The specialist shall be the 
contra party to any auction market transaction at such default bid or 
offer price.
    (d) No published bid or offer shall be entitled to claim precedence 
based on size with respect to executions against auto ex orders.
Rule 1002: Availability of Automatic Execution Feature
    Orders designed as ``auto ex'' in a particular stock shall be 
eligible to receive an automatic execution if entered after the 
Exchange has disseminated a published bid or order in that stock until 
3:59 p.m. or within one minute of any other closing time of the 
Exchange's floor market. Orders designated as ``auto ex'' in a 
particular stock that are entered prior to the dissemination of a bid 
or offer in that stock, or after 3:59 p.m. or within one minute of any 
other closing time, shall be displayed as limit orders in the auction 
market.
Rule 1003: Application of Tick Tests
    If a transaction is being completed in the auction market, and an 
automatic execution involving auto ex orders is reported at a different 
price before the auction market transaction is reported, any tick test 
applicable to such auction market transaction shall be based on the 
last reported trade prior to such execution of auto ex orders.
Rule 1004: Election of Stop Orders and Percentage Orders
    Automatic executions of auto ex orders shall elect stop orders and 
percentage orders electable at the price of such executions. Any stop 
orders so elected shall be executed pursuant to the Exchange's auction 
market procedures, and shall not be guaranteed an execution at the same 
price as subsequent automatic executions of auto ex orders.
Rule 1005: Orders May Not be Broken Into Smaller Amounts
    Orders of greater than 1099 shares many not be broken up into 
smaller amounts for the purpose of receiving an automatic execution. An 
auto ex order for any account in which the same person is directly or 
indirectly interested may only be entered at intervals of no less than 
30 seconds between entry of each such order.
* * * * *
Rule 13: Definitions of Orders
* * * * *
Auto Ex Order
    An auto ex order is a limit order of 1099 shares or less priced at 
or above the Exchange's published offer (in the case of an order to 
buy) or at or below the Exchange's published bid (in the case of an 
order to sell), which a member or member organization has entered for 
automatic execution in accordance with, and to the extent provided, by 
Exchange Rules 1000-1005.
* * * * *
List of Exchange Rule Violations and Fines Applicable Thereto Pursuant 
to Rule 476A
* * * * *
     Failure to adhere to procedures for automatic execution of 
orders under the NYSe Direct+\TM\ facility (Rules 1000-1005)
* * * * *

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 bases 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
    The purpose of the proposed rule change is to provide for the 
automatic execution of limit orders of 1099 shares or less (``auto ex'' 
orders) against trading interest reflected in the Exchange's published 
quotation. It would not be mandatory that all limit orders of 1099 
shares be entered as auto ex orders; rather, the member organization 
entering the order, or its customer if enable by the member 
organization, can choose to enter an auto ex order when such member 
organization (or customer) believes that the speed and certainty of an 
execution at the Exchange's published bid or offer price is in its 
customer's best interest. In such a case, the member organization would 
enter an auto ex order priced at or above the Exchange's published 
offer price (in the case of an auto ex order to buy), or an auto ex 
order priced at or below the Exchange's published bid price (in the 
case of an auto ex order to sell). The auto ex order would then receive 
an automatic execution without being exposed to the auction market, 
provided

[[Page 37589]]

the bid or offer is still available.\4\ In any instance where, as 
specified in Rule 1000, the automatic execution feature is not 
available, the auto ex order will be entered for execution in the 
Exchange's auction market. Auto ex transactions would be identified on 
the Consolidated Tape with a unique identifier. The Exchange's 
published bid or offer would be automatically decremented to the extent 
of the size of the auto ex order to reflect the automatic execution. 
The contra side of the auto ex order execution would be the trading 
interest reflected in the Exchange's bid or offer, with such interest 
participating in the execution in accordance with the Exchange's 
auction market principles of priority and parity as codified in 
Exchange Rule 72.
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    \4\ To be exposed or entered in the ``Exchange's auction 
market'' means that the order would be treated like orders received 
through the SuperDOT system. Phone call between Donald Siemer 
Director, Market Surveillance, NYSE, Brian McNamara, Vice President, 
Market Surveillance, NYSE, Rebekah Liu, Special Counsel, Division of 
Market Regulation (``Division''), Commission, and Sonia Patton, 
Attorney, Division, Commission (June 7, 2000).
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    Any member organization or a customer, if enabled by the member 
organization, that believed in any particular case that the customer's 
interests would be best served by affording the customer's order the 
opportunity for price improvement may enter a limit or market order by 
means of the SuperDOT system for representation in the auction market, 
rather than an auto ex order.
    The Exchange's proposal would be implemented in a new series of 
rules, Rules 1000 through 1005 and a proposed amendment to Rule 13. In 
addition, to facilitate the Exchange's ability to induce compliance 
with proposed Rules 1000 through 1005, the Exchange is proposing to 
amend Exchange Rule 476A to include these rules in the list of rules 
subject to summary fine procedures.
    The proposal would be implemented at the outset as a pilot program 
in a limited number of stocks prior to being made available in all 
stocks.\5\
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    \5\ The Exchange has discussed with Commission staff the 
possibility of limiting the duration of the pilot to a one year 
period. The Exchange has not determined which stocks will be 
eligible for automatic execution under the pilot. Phone call between 
Donald Siemer, Director, Market Surveillance, NYSE, Brian McNamara, 
Vice President, Market Surveillance, NYSE, Rebekah Liu, Special 
Counsel, Division, Commission, and Sonia Patton, Attorney, Division, 
Commission (June 7, 2000).
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Rule 13

    The Exchange proposes to amend Rule 13 to define the term ``auto ex 
order.'' An auto ex order is a limit order of 1099 shares or less 
priced at or above the Exchange's published offer (in the case of an 
order to buy) or at or below the Exchange's published bid (in the case 
of an order to sell) that will receive an automatic execution against 
the interest reflected in the published quotation, provided the size of 
the published quotation is greater than 100 shares. An auto ex order or 
any portion thereof that cannot be immediately executed shall be 
displayed as a limit order in the Exchange's auction market. The new 
rules provide as follows:

Rule 1000

    Rule 1000 states the basic operative principles providing for 
automatic execution of limit orders of 1099 shares or less against the 
Exchange's published quotation. The Rule lists six instances in which 
the automatic feature would not be available due to market situations, 
lack of depth in the published quotation, or inappropriate pricing of 
the auto ex order, as follows:
    (i) The NYSE's published quotation is non-firm (pursuant to 
Exchange Rule 60);
    (ii) The NYSE's published quotation has been gapped (pursuant to 
the Exchange's usual procedures for such situations) for a brief period 
because of an influx of orders on one side of the market, and the 
Exchange's published quotation size is 100 shares at the bid and/or 
offer;
    (iii) A better price exists in another Intermarket Trading System 
participating market center for a single-sided auto ex order;
    (iv) The NYSE's published bid or offer is 100 shares (see Exchange 
Rule 1001(c));\6\
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    \6\ The situations discussed in subparagraphs (ii) and (v) of 
proposed Rule 1000 provide examples of instances where the 
Exchange's published bid or offer would be 100 shares. Phone call 
between Donald Siemer, Director, Market Surveillance, NYSE, Brian 
McNamara, Vice President, Market Surveillance, NYSE, Rebekah Liu, 
Special Counsel, Division, Commission, and Sonia Patton, Attorney, 
Division, Commission (June 7, 2000).
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    (v) A transaction outside the Exchange's published quotation 
pursuant to Exchange Rule 127 is in the process of being completed, in 
which case the specialist should publish a 100-share bid and/or offer; 
or
    (vi) Trading in the subject security has been halted.
    Rule 1000 provides that an auto ex order that cannot be immediately 
executed for any of the above reasons shall be automatically entered 
for execution in the Exchange's auction market.

Rule 1001

    Rule 1001(a) provides that the contra side of an auto ex execution 
will be trading interest reflected in the Exchange's published 
quotation, consistent with the principles of priority and parity as 
codified in Exchange Rule 72.
    Rule 1001(a) also provides that it shall be the specialist's 
responsibility, after receiving a report that an auto ex order has been 
executed, to assign the appropriate number of shares to each bidder or 
offeror, consistent with the principles of Exchange Rule 72, with a 
universal contra being reported as the contra to each auto ex 
execution. Rule 1001(a) also provides that the specialist shall take 
the contra side of an auto ex execution where the interest in the 
published quotation against which the auto ex order was executed is no 
longer available.
    Rule 1001(b) provides that if the published bid or offer is not of 
sufficient depth to fill an auto ex order in its entirety, the unfilled 
balance of the order shall be displayed in the auction market.
    Rule 1001(c) provides that if executions of auto ex orders have 
traded with all trading interest reflected in the Exchange's published 
bid or offer, the Exchange will disseminate a bid or offer at that 
price of 100 shares until the specialist requotes that market. Auto ex 
orders will not receive an automatic execution against any 100 share 
bid or offer, whether a default bid or offer or otherwise, but rather 
will be displayed in the auction market. Rule 1001(c) provides that the 
specialist shall be the contra party to any auction market interest 
seeking to trade against the 100 share default bid or offer.
    Rule 1001(d) provides that the concept of precedence based on size, 
which is codified in Exchange Rule 72, shall not apply with respect to 
the contra side of an auto ex execution, with such contra side interest 
being assigned, as noted above, in accordance with the principles of 
priority and parity in Rule 72.

Rule 1002

    Rule 1002 provides that auto ex orders may be entered on any day in 
a particular stock from the time the Exchange has published a bid or 
offer in that stock until 3:59 p.m., at which time the specialist is 
preparing the closing transaction in the security. If orders designated 
as auto ex are entered before a quote is published or after 3:59 p.m., 
the orders will be treated as limit orders in the auction market.

[[Page 37590]]

Rule 1003

    Rule 1003 provides that if a transaction is being completed in the 
auction market, and an execution involving auto ex orders is reported 
at a different price before the auction market transaction is reported, 
any tick test applicable to the auction market transaction shall be 
based on the last reported trade prior to the execution of the auto ex 
order.
    For example, assume the Exchange's published quotation is 20 bid 
for 5000 shares, with 5000 shares offered at 20 and \2/16\. The last 
reported sale is 20 and \1/16\, which is a plus tick. A broker in the 
crowd bids 20 and \1/16\ for 5000 shares, and another broker, 
representing a short sale order, agrees to trade at the 20 and \1/16\ 
bid price. Before the trade at 20 and \1/16\ is reported, an auto ex 
order to buy is automatically executed at the 20 and \2/16\ published 
offer price, making the trade at 20 and \1/16\ a minus tick, which 
would preclude execution of the order to sell short. Rule 1003 provides 
that in this instance, the short sale tick test would be based on the 
last reported sale of 20 and \1/16\, a plus tick, at the time the crowd 
brokers agreed to trade.\7\
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    \7\ Commission staff notes that proposed Rule 1003 does not 
comply with Commission Rule 10a-1 under the Act or Exchange Rule 
440B. Accordingly, the Exchange is submitting to the Commission 
under separate cover a request for appropriate relief from 
Commission Rule 10a-1. Phone call between Donald Siemer, Director, 
Market Surveillance, NYSE, Brian McNamara, Vice President, Market 
Surveillance, NYSE, Rebekah Liu, Special Counsel, Division, 
Commission, Sonia Patton, Attorney, Division, Commission, and Mike 
Trocchio, Attorney, Division, Commission (June 7, 2000).
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Rule 1004

    Rule 1004 provides that executions of auto ex orders shall elect 
stop orders \8\ and percentage orders electable at the price of such 
executions. The rule also provides that stop orders so elected shall be 
executed pursuant to Exchange's auction market procedures, and shall 
not be guaranteed executions at the prices of subsequent auto ex 
executions.
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    \8\ Although the text of proposed Rule 1004 refers only to stop 
orders, the Exchange has indicated that they also intend to apply 
the provisions of the rule to stop limit orders. Phone call between 
Donald Siemer, Director, Market Surveillance, NYSE, Brian McNamara, 
Vice President, Market Surveillance, NYSE, Rebekah Liu, Special 
Counsel, Division, Commission, and Sonia Patton, Attorney; Division, 
Commission (June 7, 2000).
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Rule 1005

    Rule 1005 provides that orders of greater than 1099 shares may not 
be broken down into smaller orders in order to receive an automatic 
execution. The rule also provides that auto ex orders for the same 
customer may be entered at time intervals of no less than 30 seconds 
between entry of each such order.\9\
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    \9\ This 30 second time frame applies on a per stock basis 
(i.e., a single customer may enter multiple orders for different 
stocks, in intervals of less than 30 seconds). Phone call between 
Donald Siemer, Director, Market Surveillance, NYSE, Brian McNamara, 
Vice President, Market Surveillance, NYSE, Rebekah Liu, Special 
Counsel, Division, Commission, and Sonia Patton, Attorney, Division, 
Commission (June 7, 2000).
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Rule 476A

    The Exchange is also proposing to add Rules 1000 through 1005, 
which implement the Exchange's NYSe Direct+TM facility, to 
the List of Rules subject to imposition of fines under Rule 476A for 
minor violations of Exchange rules. Rule 476A provides that the 
Exchange may impose a fine, not to exceed $5,000, or any member, member 
organization, allied member, approved person, or registered or non-
registered employee of a member or member organization for a minor 
violation of certain specified Exchange rules.
    The purpose for the proposed rule change to Rule 476A is to 
facilitate the Exchange's ability to induce compliance with all aspects 
of Rules 1000 through 1005. The Exchange believes failure to comply 
with the requirements of these rules and procedures should be addressed 
with an appropriate sanction and seeks Commission approval to add 
violations of these requirements to the Rule 476A List so as to have a 
broad range of regulatory responses available. The Exchange believes 
that this would more effectively encourage compliance by enabling a 
prompt, meaningful and heightened regulatory response (e.g., the 
issuance of a fine rather than a cautionary letter) to a minor 
violation of these rules.
    The Exchange wishes to emphasize the importance it places upon 
compliance with Rules 1000 through 1005. While the Exchange, upon 
investigation, may determine that a violation of any of these rules is 
a minor violation of the type which is properly addressed by the 
procedures adopted under Rule 476A, in those instances where 
investigation reveals a more serious violation, the Exchange will 
provide an appropriate regulatory response. This includes the full 
disciplinary procedures available under Rule 476.

Interpretive Issues

    The Exchange is also submitting herein for Commission approval the 
following interpretations of several NYSE rules, and will submit under 
separate cover a request for the appropriate relief from Commission 
Rule 10a-1.\10\ These matters concern situations pursuant to proposed 
Rule 1001(a)(iv) where the specialist may be required to take the 
contra side of an auto ex execution against the published quotation, 
even though the specialist's interest was not part of such quotation. 
For example, the published quotation may reflect the interest of a 
broker in the crowd whose interest is then executed in an auction 
market transaction. Before the published quotation can be updated to 
reflect the execution in the auction market, an auto ex order is 
executed against such quotation. In such instance, the specialist would 
be required to take the contra side of the auto ex execution. In other 
instances, the crowd broker might cancel his or her interest as 
reflected in the published quotation, but an auto ex order might be 
executed against such quotation before the published quotation can be 
updated. Again, in such instance, the specialist would be required to 
take the contra side of the auto ex execution.
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    \10\ 17 CFR 240.10a-1.
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    Exchange Rule 123A.40. The specialist shall not be required to fill 
any stop orders elected by an auto ex execution at the price of the 
electing sale in any instance where the specialist was required by Rule 
1001(a)(iv) to take the contra side of an auto ex execution.
    Exchange Rule 91. As the specialist does not accept an auto ex 
order for execution or act as agent for such order, the transaction 
confirmation requirements of Rule 91 will not apply in any instance 
where the specialist is the contra party to an auto ex execution.
    Exchange Rule 104. Exchange Rule 104 contains the specialist's 
affirmative and negative obligations, and restricts the specialists' 
ability to purchase stock on direct plus ticks, or sell stock on direct 
minus ticks. The Exchange is proposing that any instance in which the 
specialist is effecting such a direct tick transaction only because he 
or she has been required to assume the contra side of an auto ex 
execution as described above shall be deemed to be a ``neutral'' 
transaction for purposes of Rule 104, and shall be deemed not to be in 
violation of the rule. The Exchange believes that this interpretation 
is appropriate because the specialist is not setting the price, but is 
simply being required to trade at a price set by other market 
participants.\11\
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    \11\ The Exchange has represented that these interpretations of 
Rules 123A.40, 91, and 104 will be included in the ``Supplementary 
Material'' section of the appropriate rules upon application by the 
Exchange for permanent approval of the pilot program. Phone call 
between Donald Siemer, Director, Market Surveillance, NYSE, Brian 
McNamara, Vice President, Market Surveillance, NYSE, Rebekah Liu, 
Special Counsel, Division, Commission, and Sonia Patton, Attorney, 
Division, Commission (June 7, 2000).

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[[Page 37591]]

    Commission Rule 10a-1. Commission staff notes that Commission Rule 
10a-1 and Exchange Rule 440B do not permit the execution of short sales 
on a minus or zero minus tick. The Exchange believes that the 
specialist should be exempted from Commission Rule 10a-1 when he or she 
is taking the contra side of an auto ex execution on a minus or zero 
minus tick because of Exchange Rule 1001(a)(iv), and has an existing 
short position, or would be creating a short position by virtue of such 
execution. In such instance, the specialist should be granted an 
exemption from Commission Rule 10a-1 because the specialist is required 
to trade at a price set by other market participants. Accordingly, the 
Exchange will be submitting under separate cover a request for the 
appropriate relief from Rule 10a-1 under these circumstances.
2. Statutory Basis
    The Exchange believes the basis for this proposed rule change is 
the requirement under section 6(b)(5) of the Act \12\ 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 a national market system and, in general, to 
protect investors and the public interest. The proposed rule change 
also is designed to support the principles of Section 11A(a)(1) of the 
Act \13\ in that it seeks to assure economically efficient execution of 
securities transactions, make it practicable for brokers to execute 
investors' orders in the best market, and provide an opportunity for 
investors' orders to be executed without the participation of a dealer.
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    \12\ 15 U.S.C. 78f(b)(5).
    \13\ 15 U.S.C. 78k-1(a)(1).
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    With respect to the addition to the summary fine list under NYSE 
Rule 476A, the proposed rule change will also advance the objectives of 
section 6(b)(6) of the Act \14\ by providing a procedure whereby member 
organizations can be ``appropriately disciplined'' in those instances 
when a rule violation is minor in nature, but a sanction more serious 
than a warning or cautionary letter is appropriate. In addition, the 
proposed rule change provides a fair procedure for imposing such 
sanctions, in accordance with the requirements of sections 6(b)(7) \15\ 
and 6(d)(1) \16\ of the Act.
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    \14\ 15 U.S.C. 78f(b)(6).
    \15\ 15 U.S.C. 78f(b)(7).
    \16\ 15 U.S.C. 78f(d)(1).
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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 not solicited or 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 Exchange 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 NW, Washington, DC 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 
NYSE. All submissions should refer to the File No. SR-NYSE-00-18 and 
should be submitted by July 6, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-15127 Filed 6-14-00; 8:45 am]
BILLING CODE 8010-01-M