[Federal Register Volume 69, Number 53 (Thursday, March 18, 2004)]
[Notices]
[Page 12883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6102]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49402; File No. SR-NYSE-99-12]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Granting Approval of Proposed Rule Change and Amendments No. 1 
and 2 To Amend Exchange Rule 350 (``Compensation or Gratuities to 
Employees of Others'')

March 11, 2004.
    On March 26, 1999, 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 amend Exchange Rule 350 (``Compensation or 
Gratuities to Employees of Others''). On February 5, 2003, The Exchange 
filed Amendment No. 1 to the proposed rule change.\3\ On December 17, 
2003, the Exchange filed Amendment No. 2 to the proposed rule 
change.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter from Darla C. Stuckey, Corporate Secretary, NYSE, 
to Nancy Sanow, Assistant Director, Division of Market Regulation 
(``Division''), Commission, dated February 3, 2003 (``Amendment No. 
1'').
    \4\ See letter from Darla C. Stuckey, Corporate Secretary, NYSE, 
to Nancy Sanow, Assistant Director, Division, Commission, dated 
December 16, 2004 (``Amendment No. 2'').
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    The proposed rule change was published for comment in the Federal 
Register on January 23, 2004.\5\ The Commission received no comments on 
the proposal.
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    \5\ See Securities Exchange Act Release No. 49093 (January 16, 
2004), 69 FR 03418. The proposal eliminates the requirement in Rule 
350 that the NYSE approve certain compensation arrangements 
involving floor employees. It also codifies the requirement that a 
floor employee who receives more than $200 per year for his services 
be employed by and registered with the member or member organization 
that provides the compensation.
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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 \6\ and, in 
particular, the requirements of section 6 of the Act \7\ and the rules 
and regulations thereunder. In particular, the Commission believes that 
the proposed rule change is consistent with section 6(b)(5) \8\ of the 
Act because by eliminating the requirement for the NYSE to approve 
compensation arrangements that have already been approved by a member 
or member organization that must supervise its employees, and 
clarifying the requirement to register when a floor employee receives 
more than $200 a year from a member or member organization, the 
proposed rule should permit the NYSE to better allocate its resources, 
enabling the Exchange to promote just and equitable principles of 
trade, to foster cooperation and coordination with persons engaged in 
regulating, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, 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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    \6\ 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).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(6).
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    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-NYSE-99-12), including 
Amendment No. 1 and Amendment No. 2 be, and it hereby is, approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-6102 Filed 3-17-04; 8:45 am]
BILLING CODE 8010-01-P