Federal Register / Vol. 65, No. 230 / Wednesday, November 29, 2000 / Notices 71183

6 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Letter from James E. Buck, Senior Vice

President and Secretary, NYSE, to Nancy J. Sanow,

Assistant Director, Division of Market Regulation,

Commission, dated November 16, 2000

(‘‘Amendment No. 1’’). In Amendment No. 1, the

NYSE amended its rule language to add ‘‘and

guests’’ to the first sentence under the heading

‘‘Female Personnel and Guests.’’

Services. Standardized processing

should permit defined contribution plan

administrators to provide Investment

Fund products to defined contribution

plan clients without the proprietary

systems or manual processing

infrastructure and related costs

necessitated by the current processing

methods.

In addition to the fact that

transactions in Mutual Fund Services

are not guaranteed, the rule change

establishes standards of financial

responsibility and operational

capabilities for entities processing

Investment Funds through NSCC’s

Mutual Fund Services. This should help

NSCC assure the safeguarding of funds

and securities which are in NSCC’s

control or for which it is responsible.

Accordingly, the Commission finds that

the rule change is consistent with

NSCC’s obligations under the Act.

NSCC has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of the filing. The

Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after

publication because accelerated

approval will permit NSCC to expand

the types of products processed by and

the types of entities processing through

NSCC’s Mutual Fund Services, thereby

extending the benefits of the Mutual

Fund Services as soon as practicable.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposed

rule change is consistent with the

requirements of the Act and in

particular Section 17A of the Act and

the rules and regulations thereunder.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

NSCC–00–05) be and hereby is

approved. For the Commission by the

Division of Market Regulation, pursuant

to delegated authority. 6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30373 Filed 11–28–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43596; File No. SR–NYSE–

00–43]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and of

Amendment No. 1 to Proposed Rule

Change by the New York Stock

Exchange, Inc. Relating to Revisions to

the Floor Conduct and Safety

Guidelines

November 20, 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

16, 2000, the New York Stock Exchange,

Inc. (‘‘Exchange’’ or ‘‘NYSE’’) 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. On

November 17, 2000, the NYSE filed

Amendment No. 1 to the proposed rule

change.3 The Commission is publishing

this notice to solicit comments on the

proposed rule change and Amendment

No. 1 to the proposed rule change from

interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change consists of

an amendment to the Exchange’s Floor

Conduct and Safety Guidelines (the

‘‘Guidelines’’) with respect to policies

and procedures pertaining to The Code

of Personal Appearance. The Guidelines

are a ‘‘stated policy, practice or

interpretation’’ concerned with the

administration of Exchange Rules 35

and 37. Below is the text of the

proposed rule change. Proposed new

language, as amended, is italicized and

proposed deletions are in brackets.

* * * * *

Floor Conduct and Safety Guidelines

Chapter Thirteen: Floor Conduct and

Safety Guidelines

1. Guidelines and Fines—The conduct

of individuals on the Trading Floor of

the New York Stock Exchange and on

other premises under Exchange control

can significantly affect the public

investor’s image of the quality, fairness

and professionalism of the Exchange

[M]marketplace. In addition, the

behavior of individuals can impact the

safety and welfare of others and affect

the efficient, undisrupted conduct of

business on the Floor, and on other

premises under Exchange control. For

these reasons, all persons, while on the

Floor of the Exchange and on other

premises under Exchange control shall

not:

• Engage in any act or practice which

may be detrimental to the interest or

welfare of the Exchange; or

• Engage in any act or practice which

may serve to disrupt or hinder the

ordinary and efficient conduct of

business; or

• Engage in any act or practice which

may serve to jeopardize the safety or

welfare of any other individual.

It is the responsibility of all members

and Floor clerical employees of

members or member organizations to be

familiar with the following guidelines

governing Floor conduct and safety

throughout Exchange premises, and to

be aware that the applicable penalties

will be imposed where violations of

these guidelines are found to have

occurred. In addition, where substantial

or continued violations of these

guidelines occur, that individual will be

subject to possible disciplinary action in

accordance with the procedures set

forth in the Exchange Constitution and

Rules.

* * * * *

Code of Personal Appearance—

Members and employees of members

and member organizations must

conform to the revised Trading Floor

Code of Personal Appearance. All

garments must be reasonably pressed

and not wrinkled.

Male Personnel

All male personnel are expected to

wear suitable attire as follows: A dress

shirt, buttoned at the collar, with a dress

tie knotted at the customary place, i.e.,

snug to the collar; full length dress

trousers or slacks; JEANS or OTHER

SPORT SLACKS ARE NOT

PERMITTED; a jacket with long sleeves

(An acceptable jacket shall include a

suit, sport coat, blazer or SOLID COLOR

office jacket. Any back or side panels or

mesh back must be of same color as

jacket or black.)

Male Guests

Suit, Sport Coat or Work Jacket must

be worn, but a tie is not required. A

dress, collared golf/polo shirt or

turtleneck is acceptable. T-Shirts, tank

71184 Federal Register / Vol. 65, No. 230 / Wednesday, November 29, 2000 / Notices

4 15 U.S.C. 78f(b)(5).

5 15 U.S.C. 78s(b)(3)(A)(i).

6 17 CFR 240.19b–4(f)(1).

tops or other casual shirts are not

acceptable.

Female Personnel and Guests

All female personnel and guests are

expected to wear suitable attire as

follows: Skirts and dresses should be

worn at appropriate business lengths.

No tube skirts, micro-minis, see-through

or other extremely revealing styles.

Blouses, shirts, sweaters and tops

should be of appropriate style and shall

exclude informal wear such as tank

tops, tube tops, midriffs, backless

halters, see-through blouses, sweatshirts

and T-shirts. Leotards, plunging

necklines and off-the-shoulder styles are

also unacceptable. Pants and slacks

should be full length dress slacks. The

following styles are Expressly Not

Permitted: JEANS, LEGGINGS, [OR

OTHER] SPORT SLACKS, CAPRI

PANTS, 3⁄4 LENGTH OR ‘‘CLAM

DIGGER/PEDAL PUSHER’’ STYLES,

SHORTS OR CULOTTES [ARE NOT

PERMITTED]. When slacks are worn, a

jacket with long sleeves must be worn.

(An acceptable jacket shall include a

suit, sport coat, blazer or solid color

office jacket. Any back or side panels or

mesh back must be of same color as

jacket or black.)

Male and Female Requirements

Footwear should be confined to those

that are comfortably heeled and

considered safe, in view of the heavy

traffic on the Trading Floor. Shoes

should also be appropriate styles for a

businesslike environment. [OPEN TOE

OR OPEN BACK SANDALS,] FLIP

FLOPS, CASUAL BEACH OR BOAT

SHOES, [HIGH TOP SNEAKERS] and

other extreme styles are NOT

PERMITTED. Shoes must be worn at all

times on the Floor, including in the

booth or behind the post.

[Appropriate hosiery, i.e., socks for

men and socks or stockings of

appropriate length for women, IS TO BE

WORN AT ALL TIMES.] Men must wear

socks. Women should use their

judgment depending on the style of

clothing worn.

Summer Attire: The standards of

dress outlined above will apply

throughout the year. If conditions

warrant, the Market Performance

Committee may waive certain of the

requirements for a specified period of

time.

Grooming: Beards, Mustaches, and

Sideburns should be neatly trimmed.

Hair should be neatly maintained.

First offense Second offense

Member.$250 .................. $500.

First offense Second offense

Clerk .. 3-day I.D. card

suspension.

5-day I.D. card

suspension.

Runners: May not wear hats (unless

required for religious reasons). No

headphones, jeans or other sport slacks

are permitted. An acceptable work

jacket is required. A tie is not required.

First offense Second offense

Clerk .. 3-day I.D. card

suspension.

5-day I.D. card

suspension.

* * * * *

Approval To Bring Visitors Onto the

Floor

* * * * *

Dress Requirements

The member must ensure that all

visitors to the Trading Floor comply

with the same NYSE Code of Personal

Appearance and Dress Code, as

modified, applicable to all members and

member firm personnel working on the

Trading Floor.

* * * * *

I. 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

The purpose of the Guidelines is to

ensure that the behavior and practices of

individuals on the Floor of the

Exchange contribute to the efficient,

undisrupted conduct of business on the

Floor and do not jeopardize the safety

or welfare of others. Included in the

Guidelines is a Code of Personal

Appearance.

The Exchange is proposing to revise

the Code of Personal Appearance

contained in the Guidelines. The

revisions to the Floor Conduct and

Safety Guidelines do not affect the

existing structure of fines, penalties and

disciplinary actions contained in the

Guidelines; nor do they affect the rights

of members and Floor clerical

employees of members and member

organizations to appeal, pursuant to

existing Exchange rules and procedures,

any penalties that are imposed.

The revised Code of personal

Appearance provides guidance to

members, employees of members,

member organizations and guests.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b)(5) 4 of the Act, which

requires that an exchange have rules

that are designed to prevent fraudulent

and manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest. The revisions to the

Guidelines support these goals by

promoting the efficient, undisrupted

conduct of business on the Trading

Floor.

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 on

the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change and

Amendment No. 1 to the rule change

have become effective pursuant to

Section 19(b)(3)(A)(i) of the Act 5 and

Rule 19b–4(f)(1) thereunder because the

proposed rule change constitutes a

stated policy, practice, or interpretation

with respect to the meaning,

administration, or enforcement of an

existing rule.6

The NYSE seeks to have the proposed

rule change and Amendment No. 1 to

Federal Register / Vol. 65, No. 230 / Wednesday, November 29, 2000 / Notices 71185

7 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See letter from Cindy L. Sink, Senior Attorney,

PCX to Nancy J. Sanow, Division of Market

Regulation, Commission, dated October 16, 2000

(‘‘Amendment No. 1’’). In Amendment No. 1, the

Exchange confirmed that the proposed change to

the Constitution was approved by the PCX

membership on January 27, 2000. Also, the

Exchange revised the Purpose section of the filing

to clarify that the proposed rule change is designed

to assure a fair representation of its members in the

selection of Governors. The Exchange also

explained that the propose for eliminating the

requirement of a minimum number of floor

members on the Nominating Committee was to

provide flexibility in the nominating process.

Further, in Amendment No. 1, the Exchange made

clear that, pursuant to the proposed rule change,

only public Governors will be permitted on the

Nominating Committee. In this regard, the

Exchange represented that it will submit a revision

to Art. III, Section 4(a) of the Constitution for

membership vote by March 30, 2001 clarifying this

point. The Exchange also made technical

corrections to the proposal. Finally, in Amendment

No. 1, the Exchange requested accelerated approval

of the filing.

the proposed rule change become

operative upon the date of filing with

the Commission, October 16, 2000, in

order to immediately implement these

new revisions to its Guidelines. The

proposed rule change and Amendment

No. 1 to the proposed rule change are

a ‘‘stated policy, practice or

interpretation’’ concerned with the

administration of NYSE Rules 35 and

37.

At any time within 60 days of the

filing of the proposed rule change and

Amendment No. 1 to the 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,

including whether the proposed rule

change and Amendment No. 1 to the

proposed rule change are 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 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–00–43 and should be

submitted by December 20, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30376 Filed 11–28–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43576; File No. SR–PCX–

00–09]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Pacific Exchange,

Inc. Relating to the Composition of the

PCX Nominating Committee

November 16, 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 March 20,

2000, the Pacific Exchange, Inc. (‘‘PCX’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I and

II below, which Items have been

prepared by the Exchange. On October

17, 2000, the Exchange filed

Amendment No. 1 to the proposal.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons, and to

grant accelerated approval to the

proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to amend its

Constitution to change the composition

of the Nominating Committee to include

public Governors and Equity Trading

Permit (‘‘ETP’’) Holders, Equity ASAP

Holders, or Allied Persons of an ETP

firm or an Equity ASAP Holder. The text

of the proposed rule change follows.

Additions are in italics; deletions are in

[brackets].

ARTICLE III

* * * * *

1206 Election of Nominating

Committee

SEC. 4(a) At each annual meeting

there shall be elected by the

membership, by ballot, for a term of one

year, a Nominating Committee of nine

persons, one of whom shall be

nominated as Chair[man] and one of

whom shall be nominated as Vice

Chair[man] who are eligible for election

in accordance with Sec. 4(b) of this

Article III, none of whom shall be [a

Governor or] an officer of the Exchange.

The Nominating Committee shall

assume duties as provided in Sec. 4(d)

of this Article III.

1211 Eligibility of Members of

Nominating Committee

SEC. 4(b). The nine members of the

Nominating Committee eligible to be

elected at each annual meeting shall be

as follows:

At least one [Not less than two]

Committee member[s] shall be [floor

members and] a representative of the

public. At least seven Committee

members shall be members or office

members or office allied members [of

the Exchange.], Equity Trading Permit

Holders, Equity ASAP Holders or Allied

Persons of an ETP firm or an Equity

ASAP Holder.

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

comments it received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item III 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

Currently, Article III, Section 4(a) of

the PCX Constitution states that at each

annual meeting a Nominating

Committee of nine persons shall be

elected. No person elected to the

Nominating Committee may be a

Governor or an officer of the Exchange.

The Exchange proposes to amend

Section 4(a) to make Governors eligible

for election to the Nominating