[Federal Register Volume 65, Number 217 (Wednesday, November 8, 2000)]
[Notices]
[Pages 67029-67030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28652]


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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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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.
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    \3\ See File No. SR-NYSE-00-39.
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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.
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    \4\ See Securities Exchange Act Release No. 40695 (November 19, 
1998), 63 FR 65834 (November 30, 1998).
    \5\ See supra note 3.
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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.

[[Page 67030]]

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.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Because the foregoing proposed rule: (1) Does not significantly 
affect the protection of investors or the public interest; (2) does not 
impose any significant burden on competition; and (3) does not become 
operative for 30 days or such shorter time as the Commission may 
designate, the proposed rule change has become effective pursuant to 
Section 10(b)(3)(A) of the Act \6\ and subparagraph (f)(6) of Rule 19b-
4 thereunder. \7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.196b-4(F)(6)
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    The Commission notes that under Rule 19b-4(f)(6)(iii), the proposal 
does not become operative for 30 days after date of its filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest. The Exchange requested 
a waiver of this 30-day period to extend the pilot programs before they 
are due to expire on November 20, 2000. The Commission believes that 
the waiver of the 30-day period is consistent with the protection of 
investors and the public interest. \8\
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    \8\ For purposes of accelerating the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation 15 U.S.C.78c(f).
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    Any time within 60 days of the filing of the proposed rule change, 
as amended, 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, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies there of 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 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 
NYSE. All submissions should refer to File No. SR-NYSE-00-44 and should 
be submitted by November 29, 2000.

    For the Commission, by the Division of Market Regulation, 
Pursuant to delegated authority. \9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-28652 Filed 11-7-00; 8:45 am]
BILLING CODE 8010-01-M