Document ID: SEC-2006-1125-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2006-08-31T04:00Z

[Federal Register: August 31, 2006 (Volume 71, Number 169)]
[Notices]               
[Page 51882-51883]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au06-106]                         

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SECURITIES AND EXCHANGE COMMISSION

Release No. 34-54359; File No. SR-NYSE-2006-53]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to the Use of the Revised Uniform Application for Securities 
Industry Registration or Transfer (Form U4) and Revised Uniform 
Termination Notice for Securities Industry Registration (Form U5)

August 24, 2006.
    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 August 4, 2006, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
filed the proposed rule change as a ``non-controversial'' rule change 
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) 
thereunder,\4\ which renders the proposal effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ Certain additions and technical corrections were made 
throughout the discussion of the proposed rule change pursuant to 
conversations with NYSE staff. Telephone conversations between Cory 
Figman, Senior Special Counsel, Rule and Interpretive Standards, 
NYSE, and Kate Robbins, Attorney, Division of Market Regulation, 
Commission, on August 10, 2006.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange submits to the Commission, for use by the Exchange, 
the recently revised Uniform Application for Securities Industry 
Registration or Transfer (Form U4) and revised Uniform Termination 
Notice for Securities Industry Registration (Form U5).

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
    The purpose of this filing is to adopt, for use by the Exchange, 
recently revised Forms U4 and U5 \6\ (collectively, the ``Forms''). 
These Forms are identical to those filed with the Commission by the 
National Association of Securities Dealers (``NASD'') in 2005.\7\
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    \6\ Form U4 is the ``Uniform Application for Securities Industry 
Registration or Transfer'' and Form U5 is the ``Uniform Termination 
Notice for Securities Industry Registration.'' Form U4 has 
historically been the vehicle for the reporting of events that may 
reveal that a person is subject to a statutory disqualification. See 
Section 3(a)(39) of the Act, 15 U.S.C. 78c(a)(39).
    \7\ See Securities Exchange Act Release No. 52544 (September 30, 
2005), 70 FR 58764 (October 7, 2005) (SR-NASD-2005-030) and NASD 
Notice to Members 05-66.
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    The revised Forms, which are to be used by the Exchange as part of 
its registration and oversight of persons associated with member 
organizations, have been enhanced to provide more meaningful and 
detailed disclosure with respect to registration-related functions 
processed through the Central Registration Depository (``CRD'') system. 
The CRD is an industry-wide automated system which allows for the 
efficient review and tracking of registered persons in the securities 
industry, such as changes in their work and disciplinary histories. 
Further, use of the revised Forms allows for integration of Form U4 and 
Form U5 information into branch office registration and reporting 
functions processed through the CRD system by linking registered 
persons to their designated branch office.
2. Statutory Basis
    The Exchange believes that, insofar as Forms U4 and U5 and the CRD 
system are used by the various self-regulatory organizations, including 
the Exchange, their use is consistent with Section 6(b)(5) of the Act 
\8\ in fostering cooperation and coordination with persons engaged in 
regulating transactions in securities. Additionally, the Exchange 
believes that the information reported on the Forms will assist the 
Exchange in its

[[Page 51883]]

responsibilities under Section 6(c) of the Act \9\ in evaluating 
whether an individual subject to a statutory disqualification or who 
cannot meet such standards of training, experience, and competence as 
are prescribed by the rules of the Exchange or those who have engaged 
in acts or practices inconsistent with just and equitable principles of 
trade should be denied membership.
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    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78f(c).
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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 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 written comments on 
the proposed rule change.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally may 
not become operative prior to 30 days after the date of filing.\12\ 
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange provided the Commission 
with written notice of its intent to file this proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change. In addition, the Exchange has requested that the 
Commission waive the 30-day operative delay to allow the Exchange to 
utilize the U4 and U5 Forms without any undue delay. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because it would allow 
the Exchange to immediately use the revised Forms U4 and U5, which are 
currently being used by NASD.\14\ For this reason, the Commission 
designates the proposal to be effective and operative upon filing with 
the Commission.\15\
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    \12\ Id.
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See SR-NASD-2005-030, supra note.
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such proposed 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. 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-2006-53 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2006-53. 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 Room. Copies of such 
filing also will be available for inspection and copying at the 
principal office of the NYSE. 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-2006-53 and should be submitted on or before 
September 21, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-7301 Filed 8-30-06; 8:45 am]

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