[Federal Register Volume 67, Number 11 (Wednesday, January 16, 2002)]
[Notices]
[Pages 2263-2264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1100]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45258; File No. SR-NYSE-2002-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Regarding Fees for Mandatory Participation in the Floor Member 
Continuing Education Program

January 9, 2002.
    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 January 4, 2002, the New York Stock Exchange, Inc. 
(``NYSE'' or ``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 Exchange proposes to establish fees as of January 14, 2002 to 
be charged to members that are active on the floor of the Exchange who 
are required under NYSE Rule 103A (Specialist Stock Reallocation and 
Member Education and Performance) to participate in the Exchange's 
Floor Member Continuing Education Program on a semi-annual basis. The 
text of the proposed rule change is available at 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 NYSE included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. 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 103A requires members active on the floor of the Exchange 
to participate in the Exchange's Floor Member Continuing Education 
Program on a semi-annual basis and at such other times as may be 
necessary in connection with any particular matter or matters. Any 
floor member who fails to complete an educational program as scheduled 
must attend a make-up program no later than 120 days from the date of 
the originally scheduled program. Failure to do so will result in the 
member being precluded from entering on the floor until such time as 
the member satisfies the requirement to participate in the program.
    A new interactive computer-based education program has been 
developed that will be implemented during January 2002. Participants 
will be required to be trained on market activities such as Opening, 
Intra-Day and the Closing. Specific categories include, but are not 
limited to: foreign stocks and parity, the opening of a volatile stock, 
NYSE Rule 127 (Block Positioning) and NYSE Rule 726 (Delivery of 
Options Disclosure Document and Prospectus) trades, CAP orders, error 
accounts, crossing sessions, MOC/LOC orders and informational 
imbalances. An industry committee has also been formed to guide the 
development of the content. Participation will continue to be required 
on a semi-annual basis, and a $100 registration fee will be charged for 
each session.
    If a registrant fails to keep the scheduled appointment or does not 
complete the session, the registrant will be charged an additional $100 
to re-register for another session.
    The proposed fees are intended to help offset the costs of 
developing the program and infrastructure, administration, and ongoing 
development and maintenance.
2. Statutory Basis
    The Exchange believes that the proposed rule is consistent with the 
provisions of section 6(b)(4) of the Act,\3\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members, issuers and other persons using its services.
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    \3\ 15 U.S.C. 78f(b)(4).
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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

    Comments were neither solicited nor received.

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)(ii) of the Act \4\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\5\ because it involves a due, fee, or other charge. At any 
time within 60 days of the filing of 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.
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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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VI. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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

[[Page 2264]]

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 
number SR-NYSE-2002-02 and should be submitted by February 6, 2002.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
Margaret H. McFarland,
Deputy Secretary.
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    \6\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 02-1100 Filed 1-15-02; 8:45 am]
BILLING CODE 8010-01-M