[Federal Register Volume 65, Number 131 (Friday, July 7, 2000)]
[Notices]
[Pages 42052-42053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17145]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42990; File No. SR-NYSE-00-28]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Rule 37

June 28, 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 June 16, 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 NYSE proposes to amend the text of Rule 37 (Visitors) to expand 
the category of officials authorized to allow visitors access to the 
Exchange Trading Floor.

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
    NYSE rule 37 prescribes who is authorized to permit visitor 
admission to the Trading Floor of the Exchange (``Floor''). The 
proposed amendment to NYSE Rule 37 is designed to expand the categories 
of officials authorized to allow visitors access to the Floor.
    According to the current NYSE Rule 37, authority to allow visitors 
access to the Floor is vested only in an ``Officer of the Exchange.'' 
The proposed amendments would extend this authority to three Floor 
Official designations: Floor Directors, Floor Governors, and Senior 
Floor Officials between the hours of 10 a.m. and 3:30 p.m. The NYSE 
believes that broadening authority in this way will result in a more 
flexible and efficient Floor visitation system. However, during the 
time period between 9 a.m. to 10 a.m. (30 minutes before and after the 
opening), and 30 minutes prior to closing the proposed amendments to 
the NYSE Rule 37 would require that the approval of an Exchange Officer 
or a Floor Director (or Senior Floor Official or Floor Governor in the 
absence of a Floor Director) for visitors to be admitted to the Floor. 
Special attention is accorded these intervals given that they are often 
the focus of heightened trading activity.
    In general, Floor Officials are members of the Exchange who are 
appointed as Floor Officials. Floor officials provide interpretive 
advice on auction market procedures and the Exchange's rules and 
regulations. They play a significant role in handling unusual market 
situations so that trading may be conducted in a fair and orderly 
manner. Each Director of the Exchange's Board of Directors who is 
active on the Floor is appointed as a Floor Official. These Directors 
are known as Floor Directors. Floor Governors are members who are 
designated by the Chairman of the Board. They are empowered to perform 
any duty, make any decision, or take any action assigned to or required 
of a Floor Director, as prescribed by the Rules of the Board. Senior 
Floor Officials are former Floor Directors or Floor Governors and are 
appointed by virtue of their experience.
    Exchange policy pursuant to NYSE Rule 37, as reflected in The Floor 
Conduct and Safety Guidelines, will be amended to conform to these 
changes in a separate filing.
2. Statutory Basis
    The Exchange represents that the proposed rule change is consistent 
with Section 6(b) of the Act \3\ in general, and furthers the 
objectives of Section 6(6)(5) \4\ in particular, in that it is designed 
to facilitate transactions in securities and remove impediments to and 
perfect the mechanism of a free and open market. The amendments to NYSE 
Rule 37 support these goals by promoting the efficient, undisrupted 
conduct on the floor.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The NYSE represents that it does not believe that the proposed rule 
change will impose any burden on competition that is not necessary or 
appropriate in furtherance 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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act\5\ and Rule 19b-4(f)(3)\6\ thereunder 
because the Exchange represents that it is concerned solely within the 
administration of the Exchange.
    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate the proposed 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.

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 
statemenets with respect to the prposed rule change

[[Page 42053]]

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-00-28 and should be submitted by July 28, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Margaret H. McFarland,
Deputy Secretary.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(3).
    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 00-17145 Filed 7-6-00; 8:45 am]
BILLING CODE 8010-01-M