[Federal Register Volume 65, Number 160 (Thursday, August 17, 2000)]
[Notices]
[Pages 50260-50262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20884]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43143; File No. SR-NYSE-00-29]


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

August 10, 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 July 27, 2000, the New York Stock Exchange, Inc. (``Exchange'') 
filed with the Securities and Exchange Commission (``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 an amendment to the Exchange's 
Floor Conduct and Safety Guidelines (the ``Guidelines'') with respect 
to policies and procedures on: employment of clerical personnel, 
entering or crossing the Trading Floor, surrender of Exchange-issued 
Visitor's passes, handling violations of the Guidelines, and 
harassment. The Guidelines are a ``stated policy, practice or 
interpretation'' concerned with the administration of Exchange Rules 35 
and 37.

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
    The purpose of the Exchange's Guidelines is to ensure that the 
behavior and practices of individuals on the Floor of the Exchange 
contribute to the efficient, undisrupted conduct of business on the 
Floor and to not jeopardize the safety or welfare of others. The 
proposed rule change enables the Exchange to keep its Guidelines 
consistent with current and new Exchange policy and procedures.

[[Page 50261]]

a. Employment of Clerical Personnel
    The proposed rule change provides that temporary floor employees 
are subject to the same registration and clearance requirements as all 
other Floor employees. The current standard applicable to temporary 
clerks employed less than six weeks, which requires obtaining an access 
control card for the period requested from the ID Card Office, has been 
deleted.
    In addition, the proposed rule change provides that members and 
member organizations that permit an employee to work on the floor using 
a visitor's badge may also be subject to disciplinary action by the 
Exchange. Visitor's badges are not acceptable identification cards for 
temporary Floor employees. The above changes will conform the 
Guidelines to Exchange Rule 35. Failure to comply with the above 
requirements will subject the member or member organization to a $1,000 
fine.
b. Entering or Crossing Trading Floor
    The proposed rule change conforms the Guidelines to Exchange Rule 
35.20. The latter states that ``Floor employees of members and member 
organizations are not allowed to be upon or to cross the trading area 
of the Floor for any purpose during the period between ten minutes 
preceding the opening of the market and five minutes following the 
close of the market.'' The current Guidelines permit Floor employees to 
be upon or to cross the trading area of the Floor during the period 
between fifteen (15) minutes prior to the opening and five (5) minutes 
after the close of business.
c. Surrender of Exchange-issued Visitor's Pass
    The proposed amendments establish a single, consistent category of 
officials qualified to grant Floor access to visitors to include 
Officers of the Exchange, Senior Floor Officials, Floor Governors, and 
Floor Directors. ``Senior Floor Officials'' have been included since 
they are all former Floor Directors or Floor Governors.\3\ The current 
Guidelines require approval from either a Floor Director or a Governor 
in order for a visitor to gain access to the Floor between 10 a.m. and 
3:30 p.m.
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    \3\ Under separate cover, the Exchange proposed an amendment of 
Rule 37 (``Visitors'') consistent with the above. See Securities 
Exchange Act Release No. 42990 (June 28, 2000), 65 FR 42052 (July 7, 
2000).
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    In addition, the current Guidelines indicate that Members 
``should'' accompany their guest throughout their entire visit to the 
Floor and ``should avoid all active crowds.'' The proposed amendments 
would require that a ``Member or properly designated Listed Company 
Relations person or Customer Relations person must accompany them 
[visitors] throughout their visit taking particular care to avoid 
escorting them through highly active areas (including active crowds and 
fringe area of activity).''
    The proposed amendment also adds a caveat to the Guidelines that 
failure to comply with them may subject a member to a fine or other 
disciplinary action.
    An additional proposed amendment to the Guidelines indicates that 
30 minutes prior to and after the opening and 30 minutes prior to 
closing, an Exchange Officer's or a Floor Director's (or Senior Floor 
Official or Floor Governor in Floor Directories' absence) approval must 
be obtained in order for visitors to be admitted to the Floor. The 
current Guidelines indicate that approval of a Floor Director or Senior 
Floor Governor in Floor Directors' absence is required to bring guests 
onto the Floor during this time period.
d. Procedures for Handling Violations
    The proposed amendments clarify that the reporting of routine 
violations of the Guidelines should now be made to Market Surveillance 
via the White Phone or to the new Trading Floor Liaison Unit. The White 
Phones enable Floor Officials to directly contact management of Market 
Surveillance who can then expeditiously respond to requests for rule 
interpretations. The current Guidelines indicate that the Market 
Surveillance Division should be contacted by telephone to report the 
violation.
e. Exchange Policy Concerning Harassment
    The proposed amendments reflect the broader Exchange policy 
concerning harassment adopted by the Exchange in December 1998. The 
current Guidelines discuss what behavior constitutes sexual harassment. 
The proposed amendment broadens the definition of harassment to include 
verbal or physical conduct that denigrates or shows hostility or 
aversion toward an individual based on the following characteristics: 
race, color, religion, sex, sexual orientation, national origin, age, 
disability, marital status, citizenship, predisposition to, or status 
as a carrier of, a genetic condition, or any other chacteristic 
protected by law. In addition, the harassment must (a) have the purpose 
or effect of creating an intimidating, hostile, or offensive work 
environment; (b) have the purpose or effect of unreasonably interfering 
with an individuals' work performance; or (c) otherwise adversely 
affect an individuals' employment.
    The proposed amendments to the current Guidelines also prohibit 
retaliation against any person who makes a report of harassment or 
discrimination, or who participates in an investigation of such a 
report. Furthermore, the amended Guidelines would apply to all Exchange 
employees, other persons on Exchange premises (Exchange members), 
employees of Exchange members and member organizations who work on the 
Trading Floor, persons whose services are temporarily utilized by the 
Exchange, a member or member organization, and persons not directly 
related to the Exchange who may visit the trading Floor (i.e., a 
vendor, consultant, customer or guest.)
2. Statutory Basis
    The Exchange believes that the basis under the Act for this 
proposed rule change is the requirement under Section 6(b)(5) \4\ that 
an Exchange have rules that are designed to facilitate transactions in 
securities and remove impediments to and perfect the mechanism of a 
free and open market. The revisions to the Guidelines support these 
goals by promoting the efficient, undisrupted conduct of business on 
the Trading Floor.
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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

    This proposed rule change will take effect immediately on filing 
with the Commission pursuant to Section 19(b)(3)(A)(i) of the Act.\5\ 
This proposed rule change is a ``stated policy, practice or 
interpretation'' concerned with the administration of Exchange Rules 35 
and 37. At any time within 60 days of the filing of such proposed rule 
change, the Commission may summarily

[[Page 50262]]

abrogate such 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the proposed rule change. Persons making written 
submissions should file six copies thereof with the Secretary, 
Securities and Exchange Commission, 450 Fifth Street, NW., Washington, 
DC 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 in 450 Fifth Street, 
NW., Washington, DC 20549-0609. 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-00-29 and 
should be submitted by September 7, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-20884 Filed 8-16-00; 8:45 am]
BILLING CODE 8010-01-M