[Federal Register Volume 70, Number 177 (Wednesday, September 14, 2005)]
[Notices]
[Page 54429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5008]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52386; File No. SR-NYSE-2005-04]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Approving Proposed Rule Change and Amendment No. 1 Thereto 
Relating to Interpretation of NYSE Rule 311 (``Formation and Approval 
of Member Organizations'') Codifying Certain Qualification Requirements 
for Criteria for Dual- or Multi-Designation of Principal Executive 
Officers

September 7, 2005.
    On January 6, 2005, the New York Stock Exchange, Inc. (``NYSE'') 
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 NYSE Rule 311 to codify certain qualification requirements for 
principal executive officers, Chief Financial Officers (``CFOs'') and 
Chief Operations Officers (``COOs'') and to state when an individual 
may serve in two or more of these roles. On July 25, 2005, the NYSE 
amended the proposed rule change. The proposed rule change, as amended, 
was published for notice and comment in the Federal Register on August 
5, 2005.\3\ The Commission received no comment letters on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 52181 (August 1, 
2005), 70 FR 45459.
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    The proposed rule change would amend NYSE Rule 311 to codify: (i) 
Qualification requirements for COOs and CFOs; (ii) criteria for the 
dual-designation of introducing firm COOs and CFOs; (iii) criteria for 
other dual designation and multi-designation of principal executive 
officer functions; (iv) criteria for co-designation of such functions; 
and (v) limitations on the employment of principal executive officers.
    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\4\ 
In particular, the Commission finds that the proposed rule change is 
consistent with Section 6(c)(3)(B) of the Act,\5\ which states that an 
Exchange may prescribe standards of training, experience and competence 
for persons associated with Exchange members and may bar a natural 
person from becoming a member or person associated with a member if 
such standards are not met. The Commission believes that by codifying 
and clarifying the Exchange's policies, the proposed amendments should 
provide Exchange members or persons associated with Exchange members, 
guidance on the Exchange's requirements for designation of principal 
executive officers. The Commission notes that the requirement contained 
in Interpretation of NYSE Rule 311(b)(5) Section /03 for prompt 
notification to the Exchange, and in Interpretation of NYSE Rule 
311(b)(5) Sections /04, /05 and /06 for prior written approval of the 
Exchange will enable the Exchange to monitor the decisions of member 
organizations to ensure that they are appropriately tailored to meet 
the needs of each organization as well as the qualification 
requirements 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(c)(3)(B).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (SR-NYSE-2005-04), as amended, be 
and is hereby approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-5008 Filed 9-13-05; 8:45 am]
BILLING CODE 8010-01-P