[Federal Register Volume 67, Number 250 (Monday, December 30, 2002)]
[Notices]
[Pages 79680-79681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32918]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47076; File No. SR-NYSE-2002-65]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Regarding the Extension of the Pilot Programs for Mediation and 
Administrative Conferences

December 20, 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 December 19, 2002, 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 NYSE. 
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 extend its pilot programs for mediation 
and administrative conferences (NYSE Rules 638 and 639) that expire on 
December 31, 2002. The Exchange has separately requested that the rules 
for Mediation and Administrative Conferences, as amended, (``the 
amended pilots'') be adopted by way of its filing SR-NYSE-2002-59. An 
extension of the present pilots is needed pending the Commission's 
action on the amended rules.

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, 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
    On November 19, 1998, the Commission approved a two-year pilot 
program for mediation and administrative conferences in the Exchange's 
arbitration facility.\3\ On December 20, 2000, the Commission approved 
amendments to the two pilot rules and granted a 2-year extension.\4\ 
The pilot mediation program is intended to allow parties to settle 
cases earlier with lower costs. The administrative conference allows 
arbitrators to intervene early in the case to set deadlines and resolve 
preliminary procedural issues. On November 4, 2002, the Exchange filed 
a proposal with the Commission to adopt as amended the rules for 
mediation and administrative conferences.\5\ The Exchange proposes to 
extend through January 31, 2003, its pilot program for mediation and 
administrative conferences (Rules 638 and 639) currently scheduled to 
expire on December 31, 2002. The Exchange has separately proposed in 
SR-NYSE-2002-59 to amend and revise Rules 638 (Mediation) and 639 
(Administrative Conferences). An extension of the present pilot is 
needed pending the Commission's actions on its request.
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    \3\ See Securities Exchange Act Release No. 34-40695 (November 
19, 1998); 63 FR 65834 (November 30, 2000), (SR-NYSE-98-27).
    \4\ See Securities Exchange Act Release No. 34-43785 (December 
29, 2000); 66 FR 1710 (January 9, 2001), (SR-NYSE-00-39).
    \5\ See Securities Exchange Act Release No. 34-47025 (December 
18, 2002) (File No. SR-NYSE-2002-59).
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    While the Exchange believes it is appropriate to replace the pilot 
programs with the Rules proposed in SR-NYSE-2002-59, to maintain 
continuity pending the Commission's action an extension of the pilots 
to January 31, 2003 is warranted. By this filing, the Exchange is not 
seeking to modify the present pilot programs.
2. Statutory Basis
    The Exchange believes that proposed changes are consistent with 
Section 6(b)(5) of the Act in that they promote just and equitable 
principles of trade by insuring that members and member organizations 
and the public have a fair and impartial forum for the resolution of 
their disputes.

[[Page 79681]]

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    Because the foregoing proposed rule: (1) does not significantly 
affect the protection of investors or the public interest; (2) does not 
impose any significant burden on competition; and (3) does not become 
operative for 30 days or such shorter time as the Commission may 
designate, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \6\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    The Commission notes that under Rule 19b-4(f)(6)(iii), the proposal 
does not become operative for 30 days after date of its filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest. The Exchange requested 
a waiver of this 30-day period to extend the pilot programs before they 
are due to expire on December 31, 2002. The Commission believes that 
the waiver of the 30-day period is consistent with the protection of 
investors and the public interest.\8\
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    \8\ For purposes only of accelerating the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, as amended, 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 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 
NYSE. All submissions should refer to File No. SR-NYSE-2002-65 and 
should be submitted by January 21, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-32918 Filed 12-27-02; 8:45 am]
BILLING CODE 8010-01-P