[Federal Register Volume 69, Number 214 (Friday, November 5, 2004)]
[Notices]
[Pages 64598-64599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24812]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meetings

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and 
Exchange Commission will hold the following meetings during the week of 
November 8, 2004:
    An Open Meeting will be held on Tuesday, November 9, 2004 at 10 
a.m. in Room 1C30, the William O. Douglas Room; a Closed Meeting will 
be held on Tuesday, November 9, 2004 at 11:30 a.m., and a Closed 
Meeting will be held on Wednesday, November 10, 2004 at 10 a.m.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the Closed Meeting. 
Certain staff members who have an interest in the matters may also be 
present.
    The General Counsel of the Commission, or his designee, has 
certified that, in his opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(3), (5), (7), (9)(B), and (10) and 17 CFR 
200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the 
scheduled matters at the Closed Meeting.
    Commissioner Atkins, as duty officer, voted to consider the items 
listed for the closed meeting in closed session and determined that no 
earlier notice thereof was possible.
    The subject matter of the Open Meeting scheduled for Tuesday, 
November 9, 2004 will be:
    1. The Commission will consider whether to publish for public 
comment a release setting forth the following proposals that relate to 
national securities exchanges and registered securities associations 
that are self-regulatory organizations (``SROs''). In particular, the 
Commission will consider whether to propose the following:

[[Page 64599]]

    A. New Rules 6a-5 and 15Aa-3 under the Exchange Act, which would 
require SROs to implement certain minimum governance standards, 
including a majority independent board, fully independent Nominating, 
Governance, Audit, Compensation, and Regulatory Oversight Committees, 
and the separation of an SRO's regulatory functions from its market 
operations and other business interests (``Governance Standards 
Proposal'').
    B. Amendments to Rules 6a-2, 15Aa-1, and Rule 15Aa-2 (redesignated 
Rule 15Aj-1) and to Form 1 and to new Form 2 (redesignated Form X-15AA-
1) and repeal of Forms X-15Aj-1 and X-15Aj-2 under the Exchange Act, 
which would require the SROs to provide to the Commission, and publicly 
disclose, greater and more current information about their operation 
and structure, including their governance processes, regulatory 
programs, financial condition, and ownership (``Transparency 
Proposal'').
    C. New Rule 17a-26 under the Exchange Act, which would require SROs 
to file with the Commission quarterly and annual reports containing 
specified information on the operation of their regulatory programs, 
including their examination, investigation, and enforcement activities 
(``SRO Reporting Proposal'').
    D. New Rules 6a-5(o) and 15Aa-3(o), new Rule 17a-27, and amendments 
to Form 1 and new Form 2, which would require SROs to (i) restrict 
ownership and voting levels of individual members to no more than 20% 
and (ii) report significant accumulations of ownership by any person, 
and would require SRO members to report significant ownership interest 
information as well (``SRO Ownership Proposal'').
    E. New Regulation AL, which would impose reporting and notification 
requirements on an SRO that lists or trades its own securities or those 
of its trading facilities or affiliates (``SRO Self-Listing 
Proposal'').
    F. Amendment to Rule 17a-1 under the Exchange Act, which would 
codify the current practice of the SROs to keep at least one copy of 
their required books and records in the United States (``Books and 
Records Proposal'').
    The Commission also will consider whether to publish for public 
comment a Concept Release, which would request and examine public 
comment on a variety of issues relating to the efficacy of the current 
self-regulatory system, including the possibility of implementing 
specified enhancements to the current SRO system or pursuing one of 
several possible alternative regulatory models.
    For further information, please contact Geraldine Idrizi at (202) 
942-7317 (Governance Standards Proposal); Susie Cho at (202) 942-0748 
or Leah Mesfin at (202) 942-0196 (Transparency Proposal); Richard 
Holley at (202) 942-8086 (SRO Reporting Proposal); Sonia Trocchio at 
(202) 942-0753 (SRO Self-Listing Proposal, SRO Ownership Proposal, and 
Books and Records Proposal); and Christopher Stone at (202) 942-7938 
(Concept Release).
    2. The Commission will hear oral argument on appeals by Leslie A. 
Arouh and the Division of Enforcement of an initial decision of an 
administrative law judge. Arouh was formerly an associated person with 
First Union Capital Markets (``First Union''), a registered broker-
dealer. The law judge concluded that Arouh participated in an adjusted 
trading scheme which consisted of First Union's (1) buying $100 million 
of corporate bonds at prices above the prevailing market price from a 
group of accounts at ARM Capital Advisors LLC (``ARM''), a registered 
investment adviser, (2) selling the same bonds, at market price, to a 
different group of ARM accounts shortly thereafter, resulting in a 
$1.376 million loss to First Union, and (3) selling to ARM accounts 
bonds that were marked up sufficiently above the prevailing market 
price to reimburse First Union's losses on the first two legs.
    The law judge found Arouh willfully violated Section 17(a) of the 
Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 
1934, and Exchange Act Rule 10b-5. The law judge suspended Arouh from 
association with a broker or dealer for ninety days and ordered Arouh 
to pay a civil money penalty of $330,000.
    Arouh argues that the record does not support the law judge's 
findings of violation, that the sanctions imposed by the law judge are 
excessive, and that no sanctions are warranted. The Division has 
appealed the sanctions, arguing that, in addition to the civil money 
penalty, the Commission should bar Arouh permanently from association 
with any broker or dealer and impose a cease-and-desist order against 
him.
    Among the issues likely to be considered are:
    A. Whether respondent committed the alleged violations; and
    B. If so, whether sanctions should be imposed in the public 
interest.
    The subject matter of the Closed Meeting scheduled for Tuesday, 
November 9, 2004 will be: Post argument discussion.
    The subject matter of the Closed Meeting scheduled for Wednesday, 
November 10, 2004 will be:

    Formal orders of investigations;
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings of an 
enforcement nature; and
    An adjudicatory matter.

    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items. For further information and to 
ascertain what, if any, matters have been added, deleted or postponed, 
please contact the Office of the Secretary at (202) 942-7070.

    Dated: November 2, 2004.
Jonathan G. Katz,
Secretary.
[FR Doc. 04-24812 Filed 11-3-04; 11:18 am]
BILLING CODE 8010-01-P