[Federal Register Volume 66, Number 160 (Friday, August 17, 2001)]
[Notices]
[Pages 43279-43280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20705]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44673; File No. SR-NYSE-2001-16]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. to Amend Rule 46

August 9, 2001.
    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 28, 2001, 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. On August 8, 2001, the Exchange submitted Amendment No. 1 to 
the proposed rule change.\3\ 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.
    \3\ See letter from James E. Buck, Senior Vice President and 
Secretary, NYSE, to Nancy J. Sanow, Assistant Director, Division of 
Market Regulation, SEC, dated August 8, 2001 (``Amendment No. 1''). 
In Amendment No. 1, the Exchange corrected rule text for NYSE Rules 
79A and 123A to reflect current rule text.
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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 amendments of NYSE Rule 46 to 
create Executive Floor Official and Senior Floor Official positions. It 
also makes housekeeping changes to other rules and policies to enable 
Executive Floor Officials and Senior Floor Officials to perform Floor 
Governor functions.

[[Page 43280]]

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 Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose.
    Floor Officials and Floor Governors have the authority to supervise 
and regulate activities, which arise with respect to trading on the 
Floor of the Exchange. Recently, a number of changes in the marketplace 
on the Floor have created a need for additional individuals to be able 
to perform the duties delegated to Floor Governors under Exchange 
rules. For example, the historical trend of consolidation of NYSE 
specialist units has continued with the acquisition of one or more 
units by other units, which has significantly reduced the number of 
specialist units. This has the effect of reducing the effectiveness of 
the ten specialist Floor Governors, since they may not make rulings 
involving their firm's specialty stocks. In addition, there has been an 
increase in trading volume, which has resulted in higher demand for the 
services of Floor Officials and Floor Governors who are responsible for 
overseeing unusual market situations on the trading Floor. Finally, an 
expansion of the trading Floor has contributed to spreading the 
coverage of Floor Officials and Floor Governors.
    To address these problems, the Exchange proposes to amend NYSE Rule 
46 (Floor Officials--Appointment) to create Executive Floor Official 
and Senior Floor Official positions to perform many of the functions 
performed by Floor Governors.\4\ Executive Floor Officials will be 
former Floor Governors and will be empowered to perform any duty, make 
any decision or take any action assigned to or required of a Floor 
Governor. Floor Officials entering their fifth or sixth year of service 
as a Floor Official \5\ will be eligible for appointment as Senior 
Floor Officials. They will also be empowered with the authority of a 
Floor Governor.
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    \4\ Floor Governors are Floor Officials who are empowered to 
perform any duty, make any decision, or take any action assigned to, 
or required of, a Floor Director as are prescribed by the Rules of 
the Board of Directors, or as may be designated by the Board.
    \5\ Floor Officials are appointed by the Board of Directors 
annually and typically serve six consecutive one-year terms.
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    In addition, rules and policies that use the term ``Floor 
Governor'' will be amended to also include, where appropriate, the term 
``Executive Floor Official'' and ``Senior Floor Official.'' These 
include NYSE Rules 37, 60, 79A, 86, 123A.30, 282, the Exchange's 
Allocation Policy and Procedures, and the Floor Conduct and Safety 
Guidelines.
    The Exchange believes the proposed rule changes will permit the 
Exchange, through the addition of two new classes of Floor Officials 
with Floor Governor authority, to perform more effectively those duties 
prescribed in Exchange rules relating to supervision and regulation of 
Floor matters.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(1)\6\ of the Act because it will permit the Exchange, 
through its Floor Governors, Executive Floor Officials, and Senior 
Floor Officials to perform more effectively those duties prescribed in 
the rules relating to supervision and regulation of Floor matters.
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    \6\ 15 U.S.C. 78s(b)(1).
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B. Self-Regulatory Organizations 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 Exchange has designated this proposed rule change as concerned 
solely with the administration of the Exchange and, as such, it may 
take effect upon filing with the Commission pursuant to Section 
19(b)(3)(A) of the Act.\7\ The Exchange's designation is based on the 
fact that the rule change relates solely to the addition of two new 
classes of Floor Officials with Floor Governor authority, to perform 
more effectively those duties prescribed in Exchange Rules relating to 
supervision and regulation of Floor matters.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
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    At any time within 60 days of the filing of such 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 proposal, as 
amended, 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 Exchange. All submissions should refer to the 
File No. SR-NYSE-2001-16 and should be submitted by September 7, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30.3(a)(27).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-20705 Filed 8-16-01; 8:45 am]
BILLING CODE 8010-01-M