Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Approving Proposed Rule Change to Require Members That Use Appendix E to Calculate Net Capital to File Supplemental and Alternative Reports, 49349-49350 [E5-4580]
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Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 12 and
Rule 19b–4(f)(6) thereunder 13 because
the proposal: (i) Does not significantly
affect the protection of investors or the
public interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative prior to
30 days after the date of filing or such
shorter time as the Commission may
designate if consistent with the
protection of investors and the public
interest; provided that Nasdaq has given
the Commission notice of its intent to
file the proposed rule change, along
with a brief description and text of the
proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission. Nasdaq satisfied the fiveday pre-filing requirement.
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(b)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest.
Nasdaq has asked the Commission to
waive the 30-day operative delay.15 The
Commission believes that such waiver is
consistent with the protection of
investors and the public interest
because the proposed rule change
would lower listing fees for closed-end
funds which may benefit those who
invest in such funds by reducing the
costs associated with the issuance of the
shares. For this reason, the Commission
designates the proposed rule change, as
amended, to be effective upon filing
with the Commission.16
At any time within 60 days of the
filing of such 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.17
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
16 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
17 The effective date of the original proposed rule
change is July 29, 2005 and the effective date of the
amendment is August 15, 2005. For purposes of
13 17
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15:03 Aug 22, 2005
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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. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NASD–2005–096 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–NASD–2005–096. 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 (https://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 the filing also will be
available for inspection and copying at
the principal office of the NASD. 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–NASD–2005–096 and
should be submitted on or before
September 13, 2005.
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change, as amended, under Section 19(b)(3)(C)
of the Act, the Commission considers the period to
commence on August 15, 2005, the date on which
the NASD submitted Amendment No. 1. See 15
U.S.C. 78s(b)(3)(C).
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49349
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4593 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52269; File No. SR–NYSE–
2005–19]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Approving Proposed Rule Change to
Require Members That Use Appendix E
to Calculate Net Capital to File
Supplemental and Alternative Reports
August 16, 2005.
On March 8, 2005, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed a proposed rule
change with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 under the
Act.2 The proposed rule change amends
NYSE Rule 418 to require member
organizations approved by the
Commission to use Appendix E to Rule
15c3–1 under the Act 3 to calculate net
capital (‘‘CSE broker-dealers’’) to file
supplemental and alternative reports
with the Exchange. The proposed rule
change was published for comment in
the Federal Register on July 14, 2005.4
The Commission received no comments
on the proposal. This order approves the
proposed rule change.
Rule 17a–5 under the Act 5 contains
broker-dealer reporting requirements.
Broker-dealers file the monthly and
quarterly reports required by Rule 17a–
5(a) on Form X–17A–5 (the ‘‘FOCUS
Report’’).6 Pursuant to Rule 17a–
5(a)(5),7 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
18 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. Securities
Exchange Act Release No. 49830 (June 8, 2004), 69
FR 34428 (June 21, 2004).
4 See Securities Exchange Act Release No. 51980
(July 6, 2005), 70 FR 40767 (July 14, 2005).
5 17 CFR 240.17a–5.
6 17 CFR 249.617.
7 17 CFR 240.17a–5(a)(5).
1 15
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49350
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
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
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 (https://
www.nyse.com). The Commission finds
that the NYSE’s proposal to amend Rule
418 is consistent with the requirements
of the Act and the rules and regulations
under the Act applicable to a national
securities exchange.8 In particular, the
Commission believes that the proposal
is consistent with Section 6(b)(5) of the
Act,9 which requires that the rules of the
Exchange be designed to prevent
fraudulent and manipulative acts, to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market, and, in general, to protect
investors and the public interest. It is
therefore ordered, pursuant to Section
19(b)(2) of the Act,10 that the proposed
rule change (SR–NYSE–2005–19) is
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4580 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52274; File No. SR–NYSE–
2005–21]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Granting Approval of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to the Temporary Reallocation
of Securities Among Specialists
August 16, 2005.
On March 11, 2005, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’), filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend NYSE Rule 103.11 to introduce
new procedures regarding the temporary
reallocation of securities traded on the
Exchange from one specialist
organization to another specialist
organization. On June 16, 2005, the
Exchange filed Amendment No. 1 to the
proposed rule change.3 The proposed
rule change, as amended, was published
for comment in the Federal Register on
July 14, 2005.4 The Commission
received no comments on the proposal.
This order approves the proposed rule
change, as amended.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of Section 6 of the Act 5
and the rules and regulations
thereunder applicable to a national
securities exchange.6 In particular, the
Commission finds that the proposed
rule change is consistent with section
6(b)(5) of the Act,7 which requires,
among other things, that the rules of an
exchange be designed to promote just
and equitable principles of trade, 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 Commission notes
that the Exchange has determined that
the temporary reallocation of a security
is most likely to be required for
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 In Amendment No. 1, the NYSE provided
information concerning the designee of the Chief
Regulatory Officer and corrected technical errors in
the rule text.
4 See Securities Exchange Act Release No. 51985
(July 7, 2005), 70 FR 40768.
5 15 U.S.C. 78f.
6 In approving this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
regulatory reasons and has therefore
proposed to transfer the responsibility
for such decisions from the Chief
Executive Officer to the Chief
Regulatory Officer (‘‘CRO’’) or his or her
designee.8 The Commission also notes
that the Exchange has proposed to
specify that only non-specialist Board of
Executive (‘‘BoE’’) Floor Representatives
may join the CRO (or his or her
designee) in making reallocation
decisions in order to avoid any potential
conflicts of interest that may exist with
specialist BoE Floor Representatives
participating in such decisions. The
Commission also notes that the
Exchange has provided an alternative
that, if there are not two non-specialist
BoE Floor Representatives available to
participate with the CRO (or his or her
designee) in the reallocation decision,
the most senior non-specialist Floor
Governor or Governors, based on his or
her current length of service as a Floor
Governor, would be authorized to act in
place of the non-specialist BoE Floor
Representative or Representatives. The
Commission believes that the proposed
changes to the Exchange’s procedure for
the temporary reallocation of securities
are designed to appropriately assign the
responsibility for making reallocation
decisions to the Exchange’s regulatory
group and disinterested members of the
BoE (or disinterested Floor Governors),
and thereby to minimize the potential
for conflicts of interest and strengthen
regulatory independence.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–NYSE–2005–
21) as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4592 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
1 15
2 17
8 In
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78f(b)(2).
11 17 CFR 200.30–3(a)(12).
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8 The Commission notes that the Exchange has
represented that it expects that the designee would
be an officer in the Exchange’s regulatory group,
with the Executive Vice President of the Market
Surveillance Division being the primary designee.
See Amendment No. 1.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Pages 49349-49350]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4580]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52269; File No. SR-NYSE-2005-19]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving Proposed Rule Change to Require Members That Use
Appendix E to Calculate Net Capital to File Supplemental and
Alternative Reports
August 16, 2005.
On March 8, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed a proposed rule change with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 under
the Act.\2\ The proposed rule change amends NYSE Rule 418 to require
member organizations approved by the Commission to use Appendix E to
Rule 15c3-1 under the Act \3\ to calculate net capital (``CSE broker-
dealers'') to file supplemental and alternative reports with the
Exchange. The proposed rule change was published for comment in the
Federal Register on July 14, 2005.\4\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 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. Securities Exchange Act
Release No. 49830 (June 8, 2004), 69 FR 34428 (June 21, 2004).
\4\ See Securities Exchange Act Release No. 51980 (July 6,
2005), 70 FR 40767 (July 14, 2005).
---------------------------------------------------------------------------
Rule 17a-5 under the Act \5\ contains broker-dealer reporting
requirements. Broker-dealers file the monthly and quarterly reports
required by Rule 17a-5(a) on Form X-17A-5 (the ``FOCUS Report'').\6\
Pursuant to Rule 17a-5(a)(5),\7\ 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
[[Page 49350]]
additional required reports. The proposed rule amendment is designed to
require CSE broker-dealers to provide the additional reports to the
Exchange.
---------------------------------------------------------------------------
\5\ 17 CFR 240.17a-5.
\6\ 17 CFR 249.617.
\7\ 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 (https://
www.nyse.com). The Commission finds that the NYSE's proposal to amend
Rule 418 is consistent with the requirements of the Act and the rules
and regulations under the Act applicable to a national securities
exchange.\8\ In particular, the Commission believes that the proposal
is consistent with Section 6(b)(5) of the Act,\9\ which requires that
the rules of the Exchange be designed to prevent fraudulent and
manipulative acts, to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanism of a free and open
market, and, in general, to protect investors and the public interest.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\10\
that the proposed rule change (SR-NYSE-2005-19) is approved.
---------------------------------------------------------------------------
\8\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78f(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4580 Filed 8-22-05; 8:45 am]
BILLING CODE 8010-01-P
