[Federal Register Volume 69, Number 149 (Wednesday, August 4, 2004)]
[Notices]
[Pages 47193-47195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17774]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50114; File No. SR-NYSE-2004-34]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by the New York Stock Exchange, 
Inc. To Amend NYSE Rule 103B With Respect to the Allocation Panel

July 29, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 29, 2004 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 
Exchange. The Exchange has filed the proposal as a ``non-
controversial'' rule change pursuant to section 19(b)(3)(A)(iii) of the 
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to

[[Page 47194]]

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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to amend Exchange Rule 103B (Specialist Stock 
Allocation) to update the composition of the Allocation Panel. The 
Allocation Panel is the group of individuals from which an Allocation 
Committee is drawn. The Allocation Committee is the group involved in 
the assignment to specialist organizations of the companies listing on 
the Exchange. The Exchange proposes to change the number of persons on 
the Allocation Panel. The text of the proposed rule change appears 
below. Proposed new language is in italics; proposed deletions are in 
[brackets].
* * * * *
Rule 103B
Specialist Stock Allocation
    Securities listing on the Exchange will be allocated to specialist 
units according to such policies as are established and made known to 
the membership from time to time. These policies are stated below.
Allocation Policy and Procedures
I.-II.--No change.
III. ALLOCATION PANEL
Composition
    The composition of the Allocation Panel reflects the committee 
structure and includes 28 Floor brokers, [13] 15 allied members 
(including the [5] 7 allied members serving on the Market Performance 
Committee), [9] 11 representatives of institutional investor 
organizations (including the [5] 7 representatives of institutional 
investor organizations serving on the Market Performance Committee), 
the 10 Floor broker Governors who are part of the panel by virtue of 
their appointment as Governors, and a minimum of 5 Senior Floor 
Official or Executive Floor Official brokers that have been appointed 
to the panel.
* * * * *

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 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
    Stocks listing on the Exchange are allocated to specialist 
organizations by the Allocation Committee pursuant to procedures 
contained in Exchange Rule 103B. The Allocation Panel is the resource 
from which the Allocation Committee is assembled. The Allocation Panel 
is appointed by the Exchange's Board of Directors from among 
individuals nominated by the Exchange's membership.
    Exchange Rule 103B(III) sets forth the composition of the 
Allocation Panel. The rule currently provides for 13 allied members 
(including the five allied members serving on the Market Performance 
Committee (``MPC'')) and nine representatives of institutional investor 
organizations (including the five representatives of institutional 
investor organizations serving on the MPC). However, the MPC Charter 
currently authorizes seven allied members and seven representatives of 
institutional investor organizations to serve on the MPC. In light of 
this, the Allocation Committee charter also provides for the seven 
allied members and seven representatives of institutional investor 
organizations serving on the MPC to be part of the Allocation Panel.
    Accordingly, the Exchange proposes a technical amendment to NYSE 
Rule 103B(III) to conform the number of allied members and 
representatives of institutional investor organizations authorized in 
its rule with the number authorized by the Allocation Committee 
charter. The Exchange represents that the proposed amendment is not 
substantive in nature and does not change the way in which allocations 
are made.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirement under Section 6(b)(5) of the Act \5\ 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. The Exchange believes that the proposed rule change is 
consistent with these objectives in that it enables the Exchange to 
further enhance the process by which stocks are allocated to ensure 
fairness and equal opportunity in the process.
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    \5\ 5 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 foregoing rule change: (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 after the date of filing (or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest), the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6) thereunder.\7\
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    \6\ 6 15 U.S.C. 78s(b)(3)(A).
    \7\ 7 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such proposed 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.\8\
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    \8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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. Comments may be submitted by any of 
the following methods:

Electronic comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an E-mail to [email protected]. Please include 
File

[[Page 47195]]

No. SR-NYSE-2004-34 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NYSE-2004-34. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 also will be available for inspection and copying at the 
principal office of the NYSE. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-NYSE-2004-34 and should be submitted by August 25, 2004.

    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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-17774 Filed 8-3-04; 8:45 am]
BILLING CODE 8010-01-PSEB NW,