[Federal Register Volume 68, Number 143 (Friday, July 25, 2003)]
[Notices]
[Page 44131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18930]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48194; File No. SR-NYSE-2003-14]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change To Add NYSE Rules 60, 
124(A), 130, 407A, 411(b), 440I, and 445(4) to the ``List of Exchange 
Rule Violations and Fines Applicable Thereto Pursuant to NYSE Rule 
476A''

July 17, 2003.
    On May 5, 2003, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to revise the ``List of Exchange Rule Violations 
and Fines Applicable Thereto Pursuant to NYSE Rule 476A'' for 
imposition of fines for minor violations of rules and/or policies 
(``List'') by adding to the List failure to comply with the provisions 
of NYSE Rules 60, 124(A), 130, 407A, 411(b), 440I, and 445(4).
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on June 11, 2003.\3\ The Commission received no comments on 
the proposal.
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    \3\ See Securities Exchange Act Release No. 47984 (June 4, 
2003), 68 FR 35045.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with section 6(b)(6) \6\ of the Act 
because it should enable the Exchange to appropriately discipline its 
members and others associated with its members for violation of the 
provisions of this title, the rules or regulations thereunder, or the 
rules of the Exchange.
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    \4\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(6).
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    In approving this proposed rule change, the Commission in no way 
minimizes the importance of compliance with these rules, and all other 
rules subject to the imposition of fines under the Exchange's minor 
rule violation plan. The Commission believes that the violation of any 
self-regulatory organization's rules, as well as Commission rules, is a 
serious matter. However, in an effort to provide the Exchange with 
greater flexibility in addressing certain violations, the Exchange's 
minor rule violation plan provides a reasonable means to address rule 
violations that do not rise to the level of requiring formal 
disciplinary proceedings. The Commission expects that the NYSE will 
continue to conduct surveillance with due diligence, and make a 
determination based on its findings whether fines of more or less than 
the recommended amount are appropriate for violations of rules under 
the Exchange's minor rule violation plan, on a case by case basis, or 
if a violation requires formal disciplinary action.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-NYSE-2003-14) be, and it 
hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-18930 Filed 7-24-03; 8:45 am]
BILLING CODE 8010-01-P