39644 Federal Register / Vol. 65, No. 124 / Tuesday, June 27, 2000 / Notices

5 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

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 will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File No.

SR–NASD–00–31 and should be

submitted by July 18, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16209 Filed 6–26–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42971; File No. SR–NYSE–

00–24]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the New York Stock Exchange, Inc.

Relating to Revisions to the

Exchange’s FORM AP–1 Application

June 21, 2000.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’), 1 and Rule 19b–4 thereunder, 2

notice is hereby given that on May 25,

2000, the New York Stock Exchange,

Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II and III below, which Items

have been prepared by the Exchange.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposed to revise its

FORM AP–1 (Approved Person

Application Form). The text of the

proposed rule change is available upon

request from the Office of the Secretary,

the Commission or the NYSE.

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 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

NYSE Rule 304(h) requires that ‘‘[a]ny

person who controls a member or

member organization, or who engages in

a securities or kindred business and is

controlled by or under common control

with a member or member organization

but is not a member or allied member

or an employee of a member

organization shall apply for approval by

the Exchange as an approved person.

* * *’’ The approval process requires

that certain pertinent information about

the approved person Applicant be

provided to the Exchange for review.

FORM AP–1 is used by Applicants who

are entities and FORM U–4 is completed

by natural person Applicants.

The Exchange is proposing several

revisions to FORM AP–1, which will

require additional information and

otherwise enhance its effectiveness for

reviewing, approving, and monitoring

Approved Persons.

The proposed substantive revisions to

FORM AP–1:

• Require greater detail regarding

both the nature of an Applicant’s

business and the Applicant’s

relationship with the member

organization (items 7A and 9A–C of the

Form);

• Require the Applicant, promptly

upon request, to provide the Exchange

with updated financial and other

information (Instruction Sheet, No. 12);

• Require the Applicant, if a

registered broker/dealer, to submit a

copy of its most recent FOCUS Report

(Instruction Sheet, No. 10);

• Continue the effectiveness of the

Applicant’s FORM AP–1 agreements

with the Exchange notwithstanding that

the named member or member

organization has changed its name or

legal form (p. 4 of the Form, 5th

paragraph); and

• Require that a copy of a complete

organization chart of Applicant and its

affiliates be provided Instruction Sheet,

No. 9).

The proposed revisions (Form items

7A and 9A–C) will provide Exchange

staff with more detailed information

regarding the relationship between the

member organization and approved

person, enabling a more thorough

evaluation of the Applicant (e.g., the

Form asks for a general description of

the Applicant’s business and requires

Applicant to indicate specifically how it

controls, is controlled by or under

common control with the member or

member organization).

The proposed revisions clarify

circumstances under which an

Applicant must file financial statements

Instruction Sheet, No. 8). Item 12 of the

Form asks the Applicant to submit to

the Exchange its most recent balance

sheet and income or profit and loss

statement if the Applicant: (a) Controls

the member organization; (b) is a

subsidiary of the member organization

for purposes of NYSE Rule 321 or its

obligations or liabilities are guaranteed,

endorsed or assumed by the member

organization (under NYSE Rule 322); or

(c) is a ‘‘Material Associated Person’’ as

the term is used in Rule 17h–1T under

the Act. The Exchange believes that in

most cases there is no regulatory

purpose served by requiring submission

of financial statements of persons under

common control unless, as previously

indicated, the person is a ‘‘Material

Associated Person.’’ The Exchange,

however, reserves the right to request

current financial statements from

applicants under common control. The

Form also provides clarification that

when financial statements are required

to be submitted, they must be current,

and clarification of the Exchange’s right

to request updated financial and other

information. Approved person

Applicants that are registered brokerdealers must submit copies of their most

recent FOCUS report (Instruction Sheet,

No. 10).

The revised Form contains a new

provision which states that the

Applicant agrees that the statements,

warranties, representations and

undertakings [in the Form] will

continue to apply notwithstanding a

change to the member organization’s

name, form of organization, or legal

status (but retains same SEC B/D

number). This will eliminate the need

for more frequent refilings of FORM

AP–1 (see page 4 of the Form, 5th

paragraph).

To clarify the relationship between

the Applicant and the member

organization, a complete organization

chart of the Applicant and its affiliates

must be submitted with the Form

(Instruction Sheet, No. 9). An

organization chart may also identify

other entities which should be approved

persons.

Federal Register / Vol. 65, No. 124 / Tuesday, June 27, 2000 / Notices 39645

3 15 U.S.C. 78f(b)(5). 4 17 CFR 200.30–3(a)(12).

Certain additional changes are

proposed in response to suggestions

made by Securities and Exchange

Commission staff. They include the

addition of a question (item 7B of the

Form) to elicit the identify of any

‘‘foreign financial regulatory authority’’

to which the Applicant may be subject.

They also include highlighting (on the

Instruction Sheet) the responsibility of

the Applicant to disclose whether it, or

any person associated therewith, is

subject to a statutory disqualification,

and noting on the Instruction Sheet (No.

8) that any required financial statements

must be submitted in English.

Several formatting revisions have also

been made, such as italicizing defined

terms and providing space for

evidencing Exchange staff processing,

which make the Form clearer and easier

to use.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with the

requirements of Section 6(b)(5) 3 that an

exchange have rules that are designed to

prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, and, in

general, to protect investors and the

public interest, in that it will enhance

the process by which the Exchange

reviews, approves, and monitors

Approved Persons.

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 any written comments with

respect to 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 is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the Exchange. All

submissions should refer to File No.

SR–NYSE–00–24 and should be

submitted by July 18, 2000.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority. 4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16207 Filed 6–26–00; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration

Office of Hazardous Materials Safety;

Notice of Delays in Processing of

Exemption Applications

AGENCY: Research and Special Programs

Administration, DOT.

ACTION: List of applications delayed

more than 180 days.

SUMMARY: In accordance with the

requirements of 49 U.S.C. 5117(c), RSPA

is publishing the following list of

exemption applications that have been

in process for 180 days or more. The

reason(s) for delay and the expected

completion date for action on each

application is provided in association

with each identified application.

FOR FURTHER INFORMATION CONTACT: J.

Suzanne Hedgepeth, Director, Office of

Hazardous Materials, Exemptions and

Approvals, Research and Special

Programs Administration, U.S.

Department of Transportation, 400

Seventh Street, SW, Washington, DC

20590–0001, (202) 366–4535.

Key to ‘‘Reasons for Delay’’

1. Awaiting additional information

from applicant.

2. Extensive public comment under

review.

3. Application is technically complex

and is of significant impact or

precedent-setting and requires extensive

analysis.

4. Staff review delayed by other

priority issues or volume of exemption

applications.

Meaning of Application Number

Suffixes

N—New application.

M—Modification request.

PM—Party to application with

modification request.

Issued in Washington, DC, on June 21,

2000.

J. Suzanne Hedgepeth,

Director, Office of Hazardous Materials

Exemptions and Approvals.

NEW EXEMPTION APPLICATIONS

Application No. Applicant Reason for

delay

Estimated date

of completion

11862–N ................. The BOC Group, Murray Hill, NJ ............................................................................................ 4 07/31/2000

11927–N ................. Alaska Marine Lines, Inc., Seattle, WA .................................................................................. 4 07/31/2000

12125–N ................. Mayo Foundation, Rochester, MN .......................................................................................... 4 07/31/2000

12142–N ................. Aristech Chemical Corp., Pittsburgh, PA ................................................................................ 4 07/31/2000

12148–N ................. Eastman Kodak Company, Rochester, NY ............................................................................ 4 07/31/2000