[Federal Register Volume 66, Number 186 (Tuesday, September 25, 2001)]
[Notices]
[Pages 49054-49055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23836]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44811; File No SR-NYSE-2001-31]


Self-Regulatory Organizations; Notice of Filing of Proposed Rule 
Change by the New York Stock Exchange, Inc. Amending Exchange Rule 387 
To Apply to Member or Member Organizations

September 18, 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 August 21, 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. 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 amendment to NYSE Rule 387 (``COD Orders'') would 
clarify the Rule's application to all ``member[s]'' and ``member 
organization[s].''
    The text of the proposed rule change is available at the Office of 
the Secretary, the NYSE, and at the Commission.

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, Proposed Rule Change

(1) Purpose
    Currently, NYSE Rule 387 enumerates the procedures for transactions

[[Page 49055]]

conducted on a COD (``Collection on Delivery'') or POD (``Payment on 
Delivery'') basis and specifies requirements for the confirmation, 
affirmation and book entry settlement of all depository eligible 
transactions.
    NYSE Rule 387, in its present form, refers to ``member'' and 
``member organization'' only once in the same paragraph (NYSE Rule 
387(a)(1)) and thereafter omits reference to ``member'' throughout the 
other paragraphs of the Rule. The proposed amendment to NYSE Rule 387 
would clarify the Rule's application to all ``member[s]'' and ``Member 
organization[s].'' Specifically, the amendments insert ``member'' in 
paragraphs: detailing overall applicability of the Rule (NYSE Rule 
387(a)); requiring confirmation (NYSE Rule 387(a)(3)); and affirmation 
(NYSE Rule 387(a)(4)) of COD/POD transactions.
(2) Statutory Basis
    The Exchange believes the basis for the proposed rule change is the 
requirement under Section 6(b)(5) of the Act \3\ that the rules of the 
Exchange be designed to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling and facilitating 
transactions in securities.
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    \3\ 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 the 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

    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 such 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 filings will also be 
available for inspection and copying at the principal office of the 
Exchange. All submissions should refer to File No. SR-NYSE-2001-31 and 
should be submitted by October 16, 2001.

    For the Commission, by the Division of the Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-23836 Filed 9-24-01; 8:45 am]
BILLING CODE 8010-01-M