[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Notices]
[Pages 35047-35049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14714]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47992; File No. SR-NYSE-2003-19]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. To Extend the Implementation Date To Establish a Six-Month Pilot 
Program Permitting a Floor Broker To Use an Exchange Authorized and 
Provided Portable Telephone on the Exchange Floor

June 5, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on May 27, 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 proposes to extend the implementation date for the 
six-month pilot program that would permit a Floor broker to use an 
Exchange authorized and provided portable telephone on the Exchange 
Floor to begin no later than June 23, 2003, instead of on or about May 
1, 2003, as originally adopted with the approval of SR-NYSE-2002-11.\3\
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    \3\ See Securities Exchange Act Release No. 47671 (April 11, 
2003), 68 FR 19048 (April 17, 2003) (``Original Order'').

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[[Page 35048]]

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, the Proposed Rule Change

1. Purpose
    In the Original Order, the Commission approved the Exchange's 
amendment to NYSE Rule 36 to permit a Floor broker to use an Exchange 
authorized and provided portable telephone on the Floor to be 
implemented as a six-month pilot beginning on or about May 1, 2003. The 
Exchange also committed in the Original Order to complete a study of 
communications on the Exchange Floor within three months of 
implementation of the portable telephone pilot program, which would 
have been on or about August 1, 2003.\4\ In addition, the Exchange 
committed to notify the Commission's Office of Compliance, Inspections 
& Examinations (``OCIE''), the Division of Market Regulation 
(``Division''), and the Exchange's membership within one week prior to 
the actual implementation date.
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    \4\ See infra note 12.
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    The Exchanges states that the implementation date in the Original 
Order (on or about May 1, 2003) was delayed pending the finalization of 
several contract issues with the provider of portable phone service. 
The Exchange now proposes to implement the six-month pilot program no 
later than June 23, 2003, with a commitment to complete the above-
mentioned study no later than September 23, 2003. In addition, the 
Exchange reiterates its commitment to notify the Commission's OCIE, the 
Division, and the Exchange's membership one week prior to the actual 
implementation date.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \6\ in particular, in that it 
is designed to promote just and equitable principles of trade, to 
remove impediments to and perfect the mechanism 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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    \5\ 15 U.S.C. 78f(b).
    \6\ 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

    Because the proposed rule change, as amended, (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 from the date of filing, 
or such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, and the Exchange 
provided the Commission with written notice of its intent to file the 
proposed rule change at least five days prior to the filing date, the 
proposed rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act,\7\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\8\ 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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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6).
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    The Exchange requests that the Commission waive the 30-day delayed 
operative date of Rule 19b-4(f)(6)(iii).\9\ The Exchange believes that 
waiver of this period will allow the Exchange to immediately implement 
the use of Exchange authorized and provided portable telephones on the 
Floor.
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    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that it is consistent with the protection 
of investors and the public interest to waive the 30-day operative 
delay and make this proposed rule change immediately effective.\10\ The 
Commission believes that the waiver of the 30-day operative delay will 
allow the NYSE to immediately notify the public of the general 
timeframe to implement its proposal to allow Exchange provided and 
authorized portable telephones on the Floor, consistent with the 
protection of investors and the public interest.\11\
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    \10\ For purposes of only 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).
    \11\ As previously stated in the Original Order, the Commission 
notes that should the NYSE be unable to implement the filing by June 
23, 2003, it would have to submit a rule proposal under Section 
19(b) of the Act to change the date.
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    The Commission also reiterates its expectation from the Original 
Order that the NYSE complete, within three months of implementation of 
the portable telephones, a study of communications on the Exchange 
Floor, pursuant to a recommendation of an Independent Consultant 
retained by the Exchange,\12\ and to provide notice to NYSE members, 
the Division, and OCIE one week prior to the pilot program's 
implementation. In addition to the study, the Commission, as noted in 
the Original Order, requests that the Exchange report any problems, 
surveillance or enforcement matters associated with the Floor brokers' 
use of an Exchange authorized and provided portable telephone on the 
Floor. If the NYSE decides to request permanent approval or an 
extension of the pilot, we would expect, in addition to the report due 
in three months, that the NYSE submit information documenting the usage 
of the phones, any problems that have occurred, and any advantages or 
disadvantages that have resulted.\13\
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    \12\ See In the Matter of New York Stock Exchange, 70 S.E.C. 
Docket 106, Release No. 41574, 1999 WL 430863 (June 29, 1999).
    \13\ This information along with any proposal to extend, or 
permanently approve, the pilot should be submitted at least two to 
three months prior to the expiration of the six-month pilot.
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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, 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

[[Page 35049]]

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-2003-19 and 
should be submitted by July 2, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-14714 Filed 6-10-03; 8:45 am]
BILLING CODE 8010-01-P