[Federal Register Volume 65, Number 230 (Wednesday, November 29, 2000)]
[Notices]
[Pages 71183-71185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30376]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43596; File No. SR-NYSE-00-43]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change and of Amendment No. 1 to 
Proposed Rule Change by the New York Stock Exchange, Inc. Relating to 
Revisions to the Floor Conduct and Safety Guidelines

November 20, 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 October 16, 2000, the New York Stock Exchange, Inc. (``Exchange'' or 
``NYSE'') 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 NYSE. On November 
17, 2000, the NYSE filed Amendment No. 1 to the proposed rule 
change.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change and Amendment No. 1 to 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.
    \3\ See Letter from James E. Buck, Senior Vice President and 
Secretary, NYSE, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation, Commission, dated November 16, 2000 (``Amendment 
No. 1''). In Amendment No. 1, the NYSE amended its rule language to 
add ``and guests'' to the first sentence under the heading ``Female 
Personnel and Guests.''
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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 pertaining to The Code of Personal 
Appearance. The Guidelines are a ``stated policy, practice or 
interpretation'' concerned with the administration of Exchange Rules 35 
and 37. Below is the text of the proposed rule change. Proposed new 
language, as amended, is italicized and proposed deletions are in 
brackets.
* * * * *

Floor Conduct and Safety Guidelines Chapter Thirteen: Floor Conduct 
and Safety Guidelines

    1. Guidelines and Fines--The conduct of individuals on the Trading 
Floor of the New York Stock Exchange and on other premises under 
Exchange control can significantly affect the public investor's image 
of the quality, fairness and professionalism of the Exchange 
[M]marketplace. In addition, the behavior of individuals can impact the 
safety and welfare of others and affect the efficient, undisrupted 
conduct of business on the Floor, and on other premises under Exchange 
control. For these reasons, all persons, while on the Floor of the 
Exchange and on other premises under Exchange control shall not:
     Engage in any act or practice which may be detrimental to 
the interest or welfare of the Exchange; or
     Engage in any act or practice which may serve to disrupt 
or hinder the ordinary and efficient conduct of business; or
     Engage in any act or practice which may serve to 
jeopardize the safety or welfare of any other individual.
    It is the responsibility of all members and Floor clerical 
employees of members or member organizations to be familiar with the 
following guidelines governing Floor conduct and safety throughout 
Exchange premises, and to be aware that the applicable penalties will 
be imposed where violations of these guidelines are found to have 
occurred. In addition, where substantial or continued violations of 
these guidelines occur, that individual will be subject to possible 
disciplinary action in accordance with the procedures set forth in the 
Exchange Constitution and Rules.
* * * * *
    Code of Personal Appearance--Members and employees of members and 
member organizations must conform to the revised Trading Floor Code of 
Personal Appearance. All garments must be reasonably pressed and not 
wrinkled.

Male Personnel

    All male personnel are expected to wear suitable attire as follows: 
A dress shirt, buttoned at the collar, with a dress tie knotted at the 
customary place, i.e., snug to the collar; full length dress trousers 
or slacks; JEANS or OTHER SPORT SLACKS ARE NOT PERMITTED; a jacket with 
long sleeves (An acceptable jacket shall include a suit, sport coat, 
blazer or SOLID COLOR office jacket. Any back or side panels or mesh 
back must be of same color as jacket or black.)

Male Guests

    Suit, Sport Coat or Work Jacket must be worn, but a tie is not 
required. A dress, collared golf/polo shirt or turtleneck is 
acceptable. T-Shirts, tank

[[Page 71184]]

tops or other casual shirts are not acceptable.

Female Personnel and Guests

    All female personnel and guests are expected to wear suitable 
attire as follows: Skirts and dresses should be worn at appropriate 
business lengths. No tube skirts, micro-minis, see-through or other 
extremely revealing styles.
    Blouses, shirts, sweaters and tops should be of appropriate style 
and shall exclude informal wear such as tank tops, tube tops, midriffs, 
backless halters, see-through blouses, sweatshirts and T-shirts. 
Leotards, plunging necklines and off-the-shoulder styles are also 
unacceptable. Pants and slacks should be full length dress slacks. The 
following styles are Expressly Not Permitted: JEANS, LEGGINGS, [OR 
OTHER] SPORT SLACKS, CAPRI PANTS, \3/4\ LENGTH OR ``CLAM DIGGER/PEDAL 
PUSHER'' STYLES, SHORTS OR CULOTTES [ARE NOT PERMITTED]. When slacks 
are worn, a jacket with long sleeves must be worn. (An acceptable 
jacket shall include a suit, sport coat, blazer or solid color office 
jacket. Any back or side panels or mesh back must be of same color as 
jacket or black.)

Male and Female Requirements

    Footwear should be confined to those that are comfortably heeled 
and considered safe, in view of the heavy traffic on the Trading Floor. 
Shoes should also be appropriate styles for a businesslike environment. 
[OPEN TOE OR OPEN BACK SANDALS,] FLIP FLOPS, CASUAL BEACH OR BOAT 
SHOES, [HIGH TOP SNEAKERS] and other extreme styles are NOT PERMITTED. 
Shoes must be worn at all times on the Floor, including in the booth or 
behind the post.
    [Appropriate hosiery, i.e., socks for men and socks or stockings of 
appropriate length for women, IS TO BE WORN AT ALL TIMES.] Men must 
wear socks. Women should use their judgment depending on the style of 
clothing worn.
    Summer Attire: The standards of dress outlined above will apply 
throughout the year. If conditions warrant, the Market Performance 
Committee may waive certain of the requirements for a specified period 
of time.
    Grooming: Beards, Mustaches, and Sideburns should be neatly 
trimmed. Hair should be neatly maintained.

------------------------------------------------------------------------
                          First offense              Second offense
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Member............  $250.....................  $500.
Clerk.............  3-day I.D. card            5-day I.D. card
                     suspension.                suspension.
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    Runners: May not wear hats (unless required for religious reasons). 
No headphones, jeans or other sport slacks are permitted. An acceptable 
work jacket is required. A tie is not required.

------------------------------------------------------------------------
                          First offense              Second offense
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Clerk.............  3-day I.D. card            5-day I.D. card
                     suspension.                suspension.
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* * * * *

Approval To Bring Visitors Onto the Floor

* * * * *

Dress Requirements

    The member must ensure that all visitors to the Trading Floor 
comply with the same NYSE Code of Personal Appearance and Dress Code, 
as modified, applicable to all members and member firm personnel 
working on the Trading Floor.
* * * * *

I. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the NYSE 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 NYSE 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 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 do not 
jeopardize the safety or welfare of others. Included in the Guidelines 
is a Code of Personal Appearance.
    The Exchange is proposing to revise the Code of Personal Appearance 
contained in the Guidelines. The revisions to the Floor Conduct and 
Safety Guidelines do not affect the existing structure of fines, 
penalties and disciplinary actions contained in the Guidelines; nor do 
they affect the rights of members and Floor clerical employees of 
members and member organizations to appeal, pursuant to existing 
Exchange rules and procedures, any penalties that are imposed.
    The revised Code of personal Appearance provides guidance to 
members, employees of members, member organizations and guests.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) \4\ of the Act, which requires that an exchange 
have rules that are designed to prevent fraudulent and manipulative 
acts and practices, to promote just and equitable principles of trade, 
to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, 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 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 any written 
comments on the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change and Amendment No. 1 to the rule change 
have become effective pursuant to Section 19(b)(3)(A)(i) of the Act \5\ 
and Rule 19b-4(f)(1) thereunder because the proposed rule change 
constitutes a stated policy, practice, or interpretation with respect 
to the meaning, administration, or enforcement of an existing rule.\6\
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    \5\ 15 U.S.C. 78s(b)(3)(A)(i).
    \6\ 17 CFR 240.19b-4(f)(1).
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    The NYSE seeks to have the proposed rule change and Amendment No. 1 
to

[[Page 71185]]

the proposed rule change become operative upon the date of filing with 
the Commission, October 16, 2000, in order to immediately implement 
these new revisions to its Guidelines. The proposed rule change and 
Amendment No. 1 to the proposed rule change are a ``stated policy, 
practice or interpretation'' concerned with the administration of NYSE 
Rules 35 and 37.
    At any time within 60 days of the filing of the proposed rule 
change and Amendment No. 1 to the proposed rule change, the Commission 
may summarily 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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change and Amendment No. 1 to the proposed rule change are 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 File No. SR-NYSE-00-43 and should be 
submitted by December 20, 2000.
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    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-30376 Filed 11-28-00; 8:45 am]
BILLING CODE 8010-01-M