[Federal Register Volume 68, Number 24 (Wednesday, February 5, 2003)]
[Notices]
[Pages 5950-5951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2677]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47275; File No. SR-NYSE-2003-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. Relating to Amendment to Rule 111

January 29, 2003.
    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 8, 2003, 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 is proposing to amend rule 111(a) to correct internal 
rule references. The references to other rules in rule 111 were not 
updated at the time rule 111 was reorganized.

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 self-regulatory organization 
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 Exchange recently codified in the NYSE rule book several 
policies which had been previously filed with, and approved by, the 
Commission pursuant to rule 19b-4 and reorganized several other 
rules.\3\
    When rule 111 was reorganized, three internal rule references were 
not updated to refer to the correct corresponding rule. The Exchange 
proposes to correct these references in rule 111(a) as follows.
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    \3\ See Securities Exchange Act Release No. 46579 (October 1, 
2002), 67 FR 63004 (October 9, 2002) (SR-NYSE-2002-31).
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    [sbull] In rule 111(a), the reference that reports must include all 
transactions executed on orders initiated or originated for such 
accounts by a member while on the Floor and all transactions which are 
considered on-Floor trading is found under the provisions of rule 
112(c), not 112(b) as stated.
    [sbull] A competitive trader desiring to exempt neutral 
transactions for an account in which he or his member organization has 
an interest from consideration in the computation of his monthly 
stabilizing percentage is provided for under the provisions of rule 
110(g)(2), not 112(d)(2); he must report the trade date, number of 
shares, and price of stock upon acquisition.
    [sbull] In addition, rule 110(g)(1), not 112(d)(1), provides that a 
competitive trader must note with the symbol ``NL'' that the 
transaction was effected as part of the initial sale of a newly listed 
security.
2. Statutory Basis
    The Exchange's basis under the Act for this proposed rule change is 
the requirement under section 6(b)(5) of the Act \4\ that an Exchange 
have rules that are designed to promote just and equitable principles 
of trade, to remove impediments to and perfect the mechanisms of a free 
and open market and a national market system, and, in general, to 
protect investors and the public interest.
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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 written comments on 
the proposed rule change.

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)(iii) of the Act \5\ and subparagraph (f)(3) of rule 19b-4 
thereunder,\6\ because it is concerned solely with the administration 
of the Exchange. 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(3).
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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 at 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-2003-02 and 
should be submitted by February 26, 2003.
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    \7\17 CFR 200.30-(a)(12).


[[Page 5951]]


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    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-2677 Filed 2-4-03; 8:45 am]
BILLING CODE 8010-01-P