Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change To Require Members That Use Appendix E To Calculate Net Capital To File Supplemental and Alternative Reports, 40767-40768 [E5-3720]

Download as PDF Federal Register / Vol. 70, No. 134 / Thursday, July 14, 2005 / Notices 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 the File Number SR–NASD–2004–025 and should be submitted on or before August 4, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.19 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–3746 Filed 7–13–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51980; File No. SR–NYSE– 2005–19] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change To Require Members That Use Appendix E To Calculate Net Capital To File Supplemental and Alternative Reports July 6, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 under the Act,2 notice is given that on March 8, 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. These Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Rule 418 to require member organizations approved by the Commission to use the alternative method of computing net capital contained in Appendix E to Rule 15c3– 1 under the Act (‘‘Appendix E’’) 3 to file 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.15c3–1e. The Commission amended Rule 15c3–1 to establish this voluntary, alternative method of computing net capital, which is applicable to firms that qualify for consolidated supervised entity (‘‘CSE’’) treatment. Exchange Act Release No. 49830 (June 8, 2004), 69 FR 34428 (June 21, 2004). 1 15 VerDate jul<14>2003 18:32 Jul 13, 2005 Jkt 205001 40767 supplemental and alternative reports with the Exchange. The text of the proposed rule change is available on the Exchange’s Internet Web site (http://www.nyse.com), at the principal office of the NYSE, and at the Commission’s Public Reference Room. copy of the modified FOCUS report that CSE broker-dealers would have to file with the Exchange under proposed Rule 418.25 is available on the Exchange’s Internet Web site (http:// www.nyse.com). 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. The Exchange believes that the proposed amendment to NYSE Rule 418 is consistent with Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(5) of the Act 8 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments and perfect the mechanism of a free and open market and to protect investors and the public interest. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposal is to provide the Exchange with the authority to require member organizations approved by the Commission to use the alternative method of computing net capital contained in Appendix E (‘‘CSE broker-dealers’’) to file certain supplemental and alternative reports with the Exchange. Rule 17a–5 under the Act 4 contains broker-dealer reporting requirements. Broker-dealers file the monthly and quarterly reports required by Rule 17a– 5 on Form X–17A–5 (the ‘‘FOCUS Report’’).5 Pursuant to Rule 17a– 5(a)(5),6 CSE broker-dealers are required to file certain additional monthly and quarterly reports. The Exchange has created a modified FOCUS Report form for CSE broker-dealers. The form contains new line items to capture the additional required reports. The proposed rule amendment is designed to require CSE broker-dealers to provide the additional reports to the Exchange. Under NYSE Rule 418, the Exchange may at any time require any member or member organization to be audited in accordance with the requirements of Rule 17a–5. The proposed amendment adds NYSE Rule 418.25, which would require member organizations that are CSE broker-dealers to file such supplemental and alternative reports as may be prescribed by the Exchange. A PO 00000 CFR 240.17a–5. CFR 249.617. 6 17 CFR 240.17a–5(a)(5). 2. Statutory Basis B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposal will impose any inappropriate burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Pursuant to Section 19(b)(2) of the Act,9 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 Exchange 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 proposed rule change, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 4 17 7 15 5 17 8 15 Frm 00083 Fmt 4703 Sfmt 4703 U.S.C. 78f(b). U.S.C. 78f(b)(5). 9 15 U.S.C. 78f(b)(2). E:\FR\FM\14JYN1.SGM 14JYN1 40768 Federal Register / Vol. 70, No. 134 / Thursday, July 14, 2005 / Notices Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2005–19 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549–9303. All submissions should refer to File Number SR–NYSE–2005–19. 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, Washington, DC 20549. Copies of the filings will also be available for inspection and copying at the principal office of the NYSE and will be available on the Exchange’s Internet Web site (http:// www.nyse.com). 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– 2005–19 and should be submitted on or before August 4, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 J. Lynn Taylor, Assistant Secretary. [FR Doc. E5–3720 Filed 7–13–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51985; File No. SR–NYSE– 2005–21] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Temporary Reallocation of Securities Among Specialists July 7, 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 March 11, 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. On June 16, 2005, the Exchange filed Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend NYSE Rule 103.11 regarding the temporary reallocation of securities traded on the Exchange from one specialist organization to another specialist organization. The text of the proposed rule change is set forth below. Italics indicate additions; [brackets] indicate deletions. * * * * * Rule 103. Registration of Specialists No member shall act as a specialist on the Floor in any security unless such member is registered as a specialist in such security with the Exchange and unless the Exchange has approved of his so acting as a specialist and has not withdrawn such approval. As a condition of a member’s registration as a specialist in one or more securities the Board of Directors may at any time require such member to register with the Exchange and act as an odd-lot dealer in such securities under Rule 101. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, the NYSE added a paragraph to the purpose section concerning the designee of the Chief Regulatory Officer and corrected technical errors in the rule text. 2 17 10 17 CFR 200.30–3(a)(12). VerDate jul<14>2003 18:32 Jul 13, 2005 Jkt 205001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 Supplementary Material: .10 Registration of specialists.—Four classes of specialists have been established, namely (1) regular specialists, (2) relief specialists, (3) associate specialists, and (4) temporary specialists. No member is permitted to act as regular specialist, relief specialist or associated specialist unless he is registered with the Exchange. No registration is required for temporary specialists, but no member is permitted to act as such unless authorized by a Floor Official. Registration applies only to individual members, and not to member organizations. Consequently each Floor member of a specialist organization who expects to act as regular specialist, relief specialist or associate specialist at any time must register individually. All members of the Exchange registered as regular specialists, or oddlot dealers or odd-lot brokers will be required to pay a monthly registration fee of $37.50 and all members registered as relief or associate specialists will be required to pay a monthly registration fee of $1.67. Notice of all new applications for registration as regular or relief specialist will be posted on the bulletin board. Approval will not be given on any such application until one week from the date of receipt thereof, except that, if circumstances require immediate action, temporary approval may be given. Members wishing to make representations with respect to any application should file their comments with the Market Surveillance and Evaluation Department during the period when notice is posted. Notice of applications for registration as associate specialists will not be posted. Before registration as a specialist, a member is required to pass a Specialist’s Examination prescribed by the Exchange. Applications for this examination should be submitted to the Market Surveillance Department. .11 Temporary Reallocation of [Stocks] Securities.—The Chief [Executive] Regulatory Officer or his or her designee and two [most senior] nonspecialist BoE Floor Representatives or [in the absence from the Floor of either of them, the next senior] if only one or no non-specialist BoE Floor Representatives is present on the Floor, the most senior non-specialist Floor Governor or Governors based on length of consecutive service as a Floor Governor at the time of any action covered by this rule, acting by a majority shall have the power to reallocate temporarily any [stock] security on an E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

[Federal Register Volume 70, Number 134 (Thursday, July 14, 2005)]
[Notices]
[Pages 40767-40768]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3720]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51980; File No. SR-NYSE-2005-19]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing of Proposed Rule Change To Require Members That Use 
Appendix E To Calculate Net Capital To File Supplemental and 
Alternative Reports

July 6, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 under the Act,\2\ notice is given that on 
March 8, 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. These Items have been substantially prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Rule 418 to require member 
organizations approved by the Commission to use the alternative method 
of computing net capital contained in Appendix E to Rule 15c3-1 under 
the Act (``Appendix E'') \3\ to file supplemental and alternative 
reports with the Exchange.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.15c3-1e. The Commission amended Rule 15c3-1 to 
establish this voluntary, alternative method of computing net 
capital, which is applicable to firms that qualify for consolidated 
supervised entity (``CSE'') treatment. Exchange Act Release No. 
49830 (June 8, 2004), 69 FR 34428 (June 21, 2004).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Internet Web site (http://www.nyse.com), at the principal office of the 
NYSE, 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposal is to provide the Exchange with the 
authority to require member organizations approved by the Commission to 
use the alternative method of computing net capital contained in 
Appendix E (``CSE broker-dealers'') to file certain supplemental and 
alternative reports with the Exchange.
    Rule 17a-5 under the Act \4\ contains broker-dealer reporting 
requirements. Broker-dealers file the monthly and quarterly reports 
required by Rule 17a-5 on Form X-17A-5 (the ``FOCUS Report'').\5\ 
Pursuant to Rule 17a-5(a)(5),\6\ CSE broker-dealers are required to 
file certain additional monthly and quarterly reports. The Exchange has 
created a modified FOCUS Report form for CSE broker-dealers. The form 
contains new line items to capture the additional required reports. The 
proposed rule amendment is designed to require CSE broker-dealers to 
provide the additional reports to the Exchange.
---------------------------------------------------------------------------

    \4\ 17 CFR 240.17a-5.
    \5\ 17 CFR 249.617.
    \6\ 17 CFR 240.17a-5(a)(5).
---------------------------------------------------------------------------

    Under NYSE Rule 418, the Exchange may at any time require any 
member or member organization to be audited in accordance with the 
requirements of Rule 17a-5. The proposed amendment adds NYSE Rule 
418.25, which would require member organizations that are CSE broker-
dealers to file such supplemental and alternative reports as may be 
prescribed by the Exchange. A copy of the modified FOCUS report that 
CSE broker-dealers would have to file with the Exchange under proposed 
Rule 418.25 is available on the Exchange's Internet Web site (http://
www.nyse.com).
2. Statutory Basis
    The Exchange believes that the proposed amendment to NYSE Rule 418 
is consistent with Section 6(b) of the Act \7\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act \8\ in particular, in that 
it is designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, and to remove impediments and 
perfect the mechanism of a free and open market and to protect 
investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
inappropriate burden on competition.

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

    Written comments were neither solicited nor received.

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

    Pursuant to Section 19(b)(2) of the Act,\9\ 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 Exchange 
consents, the Commission will:
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(2).
---------------------------------------------------------------------------

    (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 proposed rule change, including whether the 
proposed rule change is consistent with the Act. Comments may be 
submitted by any of the following methods:

[[Page 40768]]

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send e-mail to rule-comments@sec.gov. Please include File 
Number SR-NYSE-2005-19 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE, 
Washington, DC 20549-9303.

    All submissions should refer to File Number SR-NYSE-2005-19. 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, 
Washington, DC 20549. Copies of the filings will also be available for 
inspection and copying at the principal office of the NYSE and will be 
available on the Exchange's Internet Web site (http://www.nyse.com). 
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-2005-19 
and should be submitted on or before August 4, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-3720 Filed 7-13-05; 8:45 am]
BILLING CODE 8010-01-P