[Federal Register Volume 71, Number 151 (Monday, August 7, 2006)]
[Notices]
[Pages 44751-44752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12702]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54232; File No. SR-NYSE-2004-56]
Self-Regulatory Organizations; New York Stock Exchange Inc. (n/k/
a New York Stock Exchange LLC); Notice of Filing of Proposed Rule
Change Relating to Amendments to Exchange Rule 611, ``Disqualification
or Other Disability of Arbitrators''
July 27, 2006.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder, notice is hereby given
that on October 12, 2004, the New York Stock Exchange Inc. (n/k/a New
York Stock Exchange LLC) (``NYSE'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed
amendments to its arbitration rules as described in Items I and II
below, which items have been prepared by the Exchange. On May 26, 2006,
the Exchange filed Amendment No. 1 to the proposed rule change
(``Amendment No. 1'').\3\ 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\ 15 U.S.C. 78a.
\3\ In Amendment No. 1, the Exchange amended the filing to note
that the need to remove an arbitrator might arise not only for a
failure to disclose an item that should have been disclosed, but
also if a conflict arises after the commencement of the hearing. The
Exchange also amended the filing and the rule text to remove the
Director of Arbitration's discretion to limit the additional
information requested of an arbitrator.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change, as amended, consists of amendments to
Rule 611 concerning the disqualification of arbitrators.
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 the proposed rule change is available on the NYSE's Web site
(www.NYSE.com), at the NYSE's principal office, and at the Commission's
Public Reference Room. 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
Once an arbitrator has taken the Oath of Arbitrators for a
particular case, NYSE rules do not currently provide for the Director
of Arbitration to remove an arbitrator from serving on that case. The
need for such action could arise if, for example, an item that should
have been disclosed by the arbitrator pursuant to Exchange rules had
inadvertently not been disclosed or a conflict arises after
commencement of the hearing. Historically, when this situation has
arisen, the remedy has been for the arbitrator to recuse himself or
herself. Nevertheless, the Exchange believes that it would be prudent
to give the Director of Arbitration the authority to remove an
arbitrator should a conflict come to the attention of the parties or
the Exchange that for whatever reason was not appropriately disclosed
pursuant to NYSE rules.
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with Section 6(b)(5) \4\ of the Act in that it promotes just
and equitable principles of trade by ensuring that members and member
organizations and the public have a fair and impartial
[[Page 44752]]
forum for the resolution of their disputes.
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\4\ 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
a. By order approve the proposed rule change, or
b. Institute proceedings to determine whether the proposed rule
change should be disapproved.
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. We solicit specific
comment on whether the language of the proposed rule, as amended,
clearly indicates that conflicts arising after the commencement of the
hearing could give rise to removal of an arbitrator by the Director of
Arbitration. 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 Number SR-NYSE-2004-56 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2004-56. 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-2004-56 and should be submitted on or before August
28, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-12702 Filed 8-4-06; 8:45 am]
BILLING CODE 8010-01-P