Document ID: SEC-2005-0088-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange, Inc.
Posted Date: 2005-10-07T04:00Z

[Federal Register: October 7, 2005 (Volume 70, Number 194)]
[Notices]               
[Page 58770-58771]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07oc05-146]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52550; File No. SR-NYSE-2005-64]

 
Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change to Add Rules Regarding Time 
Tracking Requirements of Specialists and Specialist Organizations to 
Its Minor Rule Violation Plan

October 3, 2005.
    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 September 22, 2005, 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.
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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 proposes to amend NYSE Rule 476A in order to include 
NYSE Rule 103.12, which relates to time tracking requirements of 
specialists and specialist organizations, in its Minor Rule Violation 
Plan. The text of the proposed rule change is available on the 
Exchange's Internet Web site (http://www.nyse.com), at the Exchange's 

principal office, and at the Commission's Public Reference Room.

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 12, 2005, the Exchange filed with the Commission a 
proposed rule change relating to NYSE Rule 103.12,\3\ which requires 
specialists and specialist organizations to record and report the 
actual time individuals spend working as a specialist or clerk while on 
the trading floor of the Exchange. NYSE Rule 103.12 requires 
specialists and specialist member organizations to make and keep, in 
the regular course of business, records of the times that each of the 
member organization's specialists and clerks work in such capacities on 
the floor. The specialists and specialist member organizations must be 
able to provide such records to the Exchange within the time frame and 
in a format determined by the Exchange. In addition, NYSE Rule 103.12 
requires specialists and clerks to log in to the Exchange's IDTrack 
system and register their presence with respect to specialty stocks in 
which they are working. The IDTrack system provides reports and 
information pertaining to specialist and clerk activity to the 
Exchange's Division of Market Surveillance and to specialist firms.
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    \3\ See Securities Exchange Act Release No. 52251 (August 12, 
2005), 70 FR 48790 (August 19, 2005) (SR-NYSE-2005-47).
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    NYSE Rule 103.12 allows the Exchange to more accurately track the 
identity of specialists and their clerks and the times when each 
specialist and clerk act in such capacities while on the floor. This 
proposed rule change seeks to add NYSE Rule 103.12 to NYSE Rule 476A's 
Supplementary Material, List of Exchange Rule Violations and Fines 
Applicable Thereto Pursuant to Rule 476A, as an enforcement tool.
    NYSE Rule 476A provides that the Exchange may impose a fine, not to 
exceed $5,000, on any member, member organization, allied member, 
approved person, or registered or non-registered employee of a member 
or member organization for a minor violation of certain specified 
Exchange rules. NYSE Rule 476A's procedures for the imposition of fines 
are designed to provide meaningful sanctions for certain rule 
violations when the initiation of a formal disciplinary procedure under 
NYSE Rule 476 would be more costly and time consuming than would be 
warranted given the minor nature of the violation or when the violation 
calls for a stronger response than an admonition letter. The Exchange 
believes that

[[Page 58771]]

specialists and their clerks may at times fail to adhere to the record 
keeping requirements of NYSE Rule 103.12 in a manner that may be 
appropriate to be addressed with formal discipline (as provided under 
NYSE Rule 476) or informal discipline (such as a fine as provided under 
NYSE Rule 476A).
2. Statutory 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) of the Act,\5\ in particular, in that it 
would promote just and equitable principles of trade, facilitate 
transactions in securities, remove impediments to and perfect the 
mechanisms of a free and open market and a national market system, and 
protect investors and the public interest.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
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

    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

    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 such 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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to rule-comments@sec.gov. Please include 

File Number SR-NYSE-2005-64 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-9303.
    All submissions should refer to File Number SR-NYSE-2005-64. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NYSE-2005-64 
and should be submitted on or before October 28, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
 [FR Doc. E5-5531 Filed 10-6-05; 8:45 am]

BILLING CODE 8010-01-P