Document ID: SEC-2006-1013-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: New York Stock Exchange LLC
Posted Date: 2006-08-07T04:00Z

[Federal Register: August 7, 2006 (Volume 71, Number 151)]
[Notices]               
[Page 44751-44752]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07au06-119]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54232; File No. SR-NYSE-2004-56]

 
Self-Regulatory Organizations; New York Stock Exchange Inc. (n/k/
a New York Stock Exchange LLC); Notice of Filing of Proposed Rule 
Change Relating to Amendments to Exchange Rule 611, ``Disqualification 
or Other Disability of Arbitrators''

 July 27, 2006.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''),\2\ and Rule 19b-4 thereunder, notice is hereby given 
that on October 12, 2004, the New York Stock Exchange Inc. (n/k/a New 
York Stock Exchange LLC) (``NYSE'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed 
amendments to its arbitration rules as described in Items I and II 
below, which items have been prepared by the Exchange. On May 26, 2006, 
the Exchange filed Amendment No. 1 to the proposed rule change 
(``Amendment No. 1'').\3\ 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\ 15 U.S.C. 78a.
    \3\ In Amendment No. 1, the Exchange amended the filing to note 
that the need to remove an arbitrator might arise not only for a 
failure to disclose an item that should have been disclosed, but 
also if a conflict arises after the commencement of the hearing. The 
Exchange also amended the filing and the rule text to remove the 
Director of Arbitration's discretion to limit the additional 
information requested of an arbitrator.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change, as amended, consists of amendments to 
Rule 611 concerning the disqualification of arbitrators.

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 the proposed rule change is available on the NYSE's Web site 
(http://www.NYSE.com), at the NYSE's principal office, and at the Commission's 

Public Reference Room. 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
    Once an arbitrator has taken the Oath of Arbitrators for a 
particular case, NYSE rules do not currently provide for the Director 
of Arbitration to remove an arbitrator from serving on that case. The 
need for such action could arise if, for example, an item that should 
have been disclosed by the arbitrator pursuant to Exchange rules had 
inadvertently not been disclosed or a conflict arises after 
commencement of the hearing. Historically, when this situation has 
arisen, the remedy has been for the arbitrator to recuse himself or 
herself. Nevertheless, the Exchange believes that it would be prudent 
to give the Director of Arbitration the authority to remove an 
arbitrator should a conflict come to the attention of the parties or 
the Exchange that for whatever reason was not appropriately disclosed 
pursuant to NYSE rules.
2. Statutory Basis
    The Exchange believes that the proposed rule change, as amended, is 
consistent with Section 6(b)(5) \4\ of the Act in that it promotes just 
and equitable principles of trade by ensuring that members and member 
organizations and the public have a fair and impartial

[[Page 44752]]

forum for the resolution of their disputes.
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    \4\ 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 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 written comments on 
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 the 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, as amended, is consistent with the Act. We solicit specific 
comment on whether the language of the proposed rule, as amended, 
clearly indicates that conflicts arising after the commencement of the 
hearing could give rise to removal of an arbitrator by the Director of 
Arbitration. 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-2004-56 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-2004-56. 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-2004-56 and should be submitted on or before August 
28, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-12702 Filed 8-4-06; 8:45 am]

BILLING CODE 8010-01-P