67028 Federal Register / Vol. 65, No. 217 / Wednesday, November 8, 2000 / Notices

8See October 16, 2000 Letter at page 1. NASD

Regulation also consents to an extension of the time

period for Commission action to 30 days after the

expiration of the 45-day comment period. The

Commission notes that a further extension of the

time period for Commission action may be needed

to allow for Commission analysis of comment

letters, and to allow NASD Regulation to provide

a response to comment letters.

9 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Currently, the Securities Industry Automation

Corporation (‘‘SIAC’’) is the only NYSE affiliated

company that administers its own corporate

employee disclosure program. In this regard, SIAC

has a rule similar to NYSE Rule 407.10 requiring

SIAC employees to apply to SIAC for permission to

open a securities or commodities account. SIAC

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 NASD Regulation

consents, the Commission will:

A. By order approve such proposed

rule change, or

B. Institute proceedings to determine

whether the proposed rule change

should be disapproved.

NASD Regulation has requested that

the Commission provide the public with

at least 45 days in which to comment on

the proposed rule change.8 The

Commission agrees to allow a 45-day

comment period on the proposed rule

change.

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.

Additionally, as previously noted, the

Commission’s staff disagrees with the

NASD’s decision to per se exclude

manager performance information from

the rule. Interested persons are

specifically invited to comment on this

issue.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

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 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 number

SR–NASD–98–11 and should be

submitted by December 26, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28653 Filed 11–7–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43488; File No. SR–NYSE–

00–41]

Self-Regulatory Organization’s; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by New York

Stock Exchange, Inc., Relating to

Approval Procedures for Exchange

Employee Securities Accounts

October 27, 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 October

6, 2000, 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 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 proposes to amend

NYSE Rule 407.10 to make the

Exchange’s Ethics Officer the party to

whom employees of the Exchange or

any of its affiliates must apply for

permission to open a securities or

commodities account. The Exchange

also proposes to clarify that the Rule’s

provisions are not applicable to any

affiliated company (as that term is

defined by the Rule) which administers

a corporate employee securities account

disclosure program.

The text of the proposed rule change

is available at the NYSE and at the

Commission.

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 407.10 directs Exchange

employees, and employees of Exchange

affiliates, who wish to open a securities

or commodities account to apply to the

Secretary of the Exchange for

permission. The purpose of the

proposed rule change is to require those

employees to submit those applications

for approval to the Exchange’s Ethics

Officer rather than the Exchange’s

Secretary.

The Exchange’s ethics functions are

performed by the office of the

Exchange’s senior Human Resources

officer, who is also the Exchange’s

Ethics Officer. The Human Resources

Division, as part of its traditional

function and as part of its ethics

function, maintains a database on

Exchange employees. The Exchange

Secretary also maintains a database on

Exchange employees for the purpose of

authorizing securities and commodities

accounts.

The Exchange believes that shifting

the account-approval function to the

Ethics Officer will eliminate duplicative

record-keeping and will place the

function with the officer most

appropriate for making accountapproval decisions.

The Exchange also proposes to amend

NYSE Rule 407.10 to clarify that the

Rule’s provisions are not applicable to

any affiliated company (as that term is

defined by the Rule) which administers

a corporate employee securities account

disclosure program. This will avoid

duplicative approval processes.3

Federal Register / Vol. 65, No. 217 / Wednesday, November 8, 2000 / Notices 67029

employees are not required to also seek permission

from the NYSE. Telephone call between Steve

Abrams, NYSE, and Jennifer Colihan, Attorney,

Division of Market Regulation, Commission,

October 25, 2000.

4 15 U.S.C. 78f(b).

5 15 U.S.C. 78f(b)(5).

6 15 U.S.C. 78s(b)(3)(A)(iii).

7 17 CFR 240.19b-4(f)(3).

8 17 CFR 200.30-3(a)(12).

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

2 17 CFR 240.19b–4.

3See File No. SR–NYSE–00–39.

4See Securities Exchange Act Release No. 40695

(November 19, 1998), 63 FR 65834 (November 30,

1998).

5See supra note 3.

2. Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act,4 in general, and

furthers the objectives of Section

6(b)(5) 5 in particular, in that it is

designed to prevent fraudulent and

manipulative acts and practices, and, in

general, to protect investors and the

public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The proposed rule change does not

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

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change is

concerned solely with the

administration of the Exchange.

Therefore, the proposed rule change has

become effective pursuant to Section

19(b)(3)(A) of the Act 6 and Rule 19b–

4(f)(3) thereunder.7 At any time within

60 days of the filing of such proposed

rule change, the Commission may

summarily abrogate such 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.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 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 in

the Commission’s Public Reference

Section. Copies of such filing will also

be available for inspection and copying

at the principal office of the NYSE. All

submissions should refer to the File No.

SR–NYSE–00–41 and should be

submitted by November 29, 2000.

For the Commission, by the Division of

Market Regulation pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–28649 Filed 11–7–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43496; File No. SR–NYSE–

00–44]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the New

York Stock Exchange, Inc. Regarding

the Extension of the Pilot Programs for

Mediation and Administrative

Conferences

October 31, 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 October

27, 2000, 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 NYSE. 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 is proposing to extend

its pilot programs for mediation and

administrative conferences (NYSE Rules

638 and 639) that expire on November

20, 2000. The Exchange has separately

requested that the pilot programs, as

amended, (‘‘the amended pilots’’) be

extended for two years.3 An extension

of the present pilots is needed pending

the Commission’s approval or

disapproval of the amended pilots.

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 NYSE 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

On November 19, 1998, the

Commission approved a two-year pilot

program for mediation and

administrative conferences in the

Exchange’s arbitration facility.4 The

pilot mediation program is intended to

allow parties to settle cases earlier with

lower costs. The administrative

conference allows arbitrators to

intervene early in the case to set

deadlines and resolve preliminary

procedural issues. On September 27,

2000, the Exchange requested

Commission approval to amend and

extend the pilot programs for mediation

and administrative conferences.5 The

Exchange is requesting an extension of

the present pilot programs pending the

Commission’s decision to approve or

disapprove its request to amend and

extend the pilot programs. The

Exchange believes that the pilot

programs are operating successfully,

and on that basis, the Exchange believes

that a six-month extension of the pilots

is warranted. By this filing, the

Exchange is not seeking to modify the

present pilot programs.

2. Statutory Basis

The Exchange believes that proposed

changes are consistent with Section

6(b)(5) of the Act in that they promote

just and equitable principles of trade by

insuring that members and member

organizations and the public have a fair

and impartial forum for the resolution of

their disputes.