Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Approving Proposed Rule Change Relating to the Proposed Uniform Branch Office Registration Form (“Form BR”), 58771-58772 [E5-5535]

Download as PDF Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices 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. 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: 4 15 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Aug<31>2005 19:29 Oct 06, 2005 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–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 (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 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 Jonathan G. Katz, Secretary. [FR Doc. E5–5531 Filed 10–6–05; 8:45 am] BILLING CODE 8010–01–P 6 17 Jkt 208001 PO 00000 CFR 200.30–3(a)(12). Frm 00110 Fmt 4703 Sfmt 4703 58771 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52543; File No. SR–NYSE– 2005–13] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Approving Proposed Rule Change Relating to the Proposed Uniform Branch Office Registration Form (‘‘Form BR’’) September 30, 2005. I. Introduction On April 13, 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 proposal to adopt the Uniform Branch Office Registration Form 3 (‘‘Form BR’’).4 The proposed rule change was published for comment in the Federal Register on July 1, 2005.5 The Commission received no comments regarding the proposal.6 This order approves the proposed rule change. II. Description of Proposed Rule Change The NYSE proposes to adopt Form BR, developed by a working group composed of representatives from the Exchange, NASD, the North American Securities Administrators Association (‘‘NASAA’’) and various states. The proposed Form BR would enable Exchange members and member organizations (‘‘NYSE Membership’’) to submit branch office application information to the Exchange, NASD, other self-regulatory organizations 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 At the request of the NYSE, the Commission staff corrected the title of the Form BR, which was inadvertently shown in the initial filing as ‘‘Uniform Branch Office Form.’’ Telephone conversation between Stephen Kasprzak, Senior Special Counsel, NYSE and Elizabeth Badawy, Accountant, Division of Market Regulation (‘‘Division’’), Commission, on September 28, 2005. 4 The National Association of Securities Dealers, Inc. (‘‘NASD’’) also filed a proposed rule change proposing to establish the Form BR, which is substantially similar to the Exchange’s proposal. The Commission is simultaneously approving NASD’s proposed rule change. See Securities Exchange Act Release No. 52544 (September 30, 2005) (SR–NASD–2005–030) (‘‘NASD Release’’). 5 See Securities Exchange Act Release No. 51923 (June 24, 2005), 70 FR 38229 (‘‘Notice’’). 6 The Commission notes that it received six comment letters on the NASD’s proposed rule change and the NASD addressed the comments. See letter from Shirley H. Weiss, Associate General Counsel, NASD, to Katherine A. England, Assistant Director, Division, Commission, dated August 17, 2005 (‘‘NASD Response Letter’’). See NASD Release, supra note 4, for a summary of the comments and the NASD Response Letter. 2 17 E:\FR\FM\07OCN1.SGM 07OCN1 58772 Federal Register / Vol. 70, No. 194 / Friday, October 7, 2005 / Notices (‘‘SROs’’), and states, as applicable, by electronically filing a single Form BR through the Central Registration Depository (‘‘CRD’’ or ‘‘CRD system’’).7 The NYSE Membership would be able to use the proposed Form BR to submit information that is currently furnished through the NYSE Branch Office Application form, Schedule E of the Uniform Application for Broker-Dealer Registration (‘‘Form BD’’),8 and certain state branch office forms.9 The Form BR is one component of a broader project to provide uniform branch office definitions and registration procedures.10 Enhancements to the CRD system would provide what amounts to a relational ‘‘link’’ between the Form BR and the Uniform Application for Securities Industry Registration or Transfer (‘‘Form U4’’).11 Previously, branch application information was submitted through the 7 As discussed in the Notice, some significant features of the Form BR would include a section that solicits information exclusively from the NYSE Membership. See Notice, supra note 5. 8 The Division, in response to a request from NASD, has granted no-action relief indicating that it will not recommend enforcement action to the Commission under Rules 15b1–1, 15b3–1, 15Ba2– 2, and 15Ca2–1 under the Act for broker-dealers that file the Form BR, and do not complete Schedule E, or file amendments to Schedule E, of the Form BD, as of the date on which the transition to the Form BR begins and the CRD no longer accepts Schedule E filings, which is currently anticipated to be October 15, 2005. See letter from Catherine McGuire, Chief Counsel, Division, Commission, to Patrice M. Gliniecki, Senior Vice President and Deputy General Counsel, NASD, dated September 30, 2005. 9 The NYSE notes that states that currently require branch office registration or reporting have indicated that they would use the proposed Form BR for those purposes. Seven states that require branch office registration, Connecticut, Florida, Maine, Nevada, Texas, Vermont and West Virginia, have indicated that they plan to use the Form BR. Other jurisdictions that currently require ‘‘notice filings’’ for branch openings and closings, including Alabama, Alaska, Hawaii, Idaho, Indiana, Illinois, Kansas, Michigan, New Mexico, Ohio, Rhode Island, South Dakota, Tennessee and Wisconsin, have indicated that they also expect to use the Form BR. Telephone conversation between John Veator, Director, Regulatory User Liaison, NASD, Elizabeth Badawy, Accountant, Division, Commission and Kate Robbins, Attorney, Division, Commission, on September 20, 2005. 10 The Commission recently approved the NYSE’s and the NASD’s proposed definition of ‘‘branch office.’’ See Securities Exchange Act Release Nos. 52402 (September 9, 2005), 70 FR 54788 (September 16, 2005) (SR–NYSE–2002–34) and 52403 (September 9, 2005), 70 FR 54782 (September 16, 2005) (SR–NASD–2003–104). 11 For example, while firms would continue to report changes to an individual registered person’s branch office assignment by filing an amended Form U4, firms would also be able to report a new office of employment address for multiple registered persons assigned to a particular branch office that has moved to a new location by filing an amended Form BR (rather than filing multiple Form U4 amendments for the registered persons affected). VerDate Aug<31>2005 18:27 Oct 06, 2005 Jkt 208001 regulatory value to SROs and states, as well as the Commission. In this regard, the Commission believes that, by significantly streamlining the branch office registration process, such regulatory coordination and cooperation should result in an effective and efficient regulation that will serve the entire broker-dealer community. The Commission also supports the planned enhancements to the CRD system, which will coincide with the implementation of the Form BR, that will enable registered persons to submit via the Form U4 the name of the branch office(s) with which they are associated. III. Discussion and Commission’s From this information, firms and Findings regulators will be able to generate After careful consideration of the reports showing, for example, the proposed rule change, the Commission individuals who are currently finds that the proposed rule change is associated with a branch, or were consistent with the requirements of the associated with a branch during a Act and the rules and regulations specific time period. The Commission thereunder applicable to a national believes that this is an important 13 Specifically, the securities exchange. improvement to the CRD database and Commission believes that the proposed will allow regulators to gather rule change is consistent with Section 6(b) of the Act,14 in general, and furthers information and deploy examination resources more efficiently. The the objectives of Section 6(b)(5),15 in enhancements to the CRD system also particular, in that it is designed to will serve to reconcile inconsistencies prevent fraudulent and manipulative in the CRD database, thereby acts and practices, to promote just and equitable principles of trade, to foster improving data integrity, via crosscooperation and coordination with checks between the Form BR and the persons engaged in regulating, clearing, corresponding sections of the Form U4. settling, processing information with IV. Conclusion respect to, and facilitating transactions in securities, to remove impediments to For the foregoing reasons, the and perfect the mechanism of a free and Commission finds that the proposed open market and a national market rule change is consistent with the system, and in general, to protect requirements of the Act and the rules investors and the public interest. and regulations thereunder applicable to The Commission supports the NYSE, a national securities exchange, and, in NASD, and state securities regulators’ particular, with Section 6(b)(5) of the joint regulatory effort to develop a Act.16 uniform branch office registration form that will enable firms to register branch It is therefore ordered, pursuant to offices electronically with the NYSE, Section 19(b)(2) of the Act,17 that the NASD, other SROs, and states. The proposed rule change (SR–NYSE–2005– Commission believes that utilizing a 13) is hereby approved. single form, Form BR, will make the For the Commission, by the Division of branch office registration process more Market Regulation, pursuant to delegated efficient by eliminating duplicative authority.18 forms and questions and reconciling Jonathan G. Katz, inconsistencies among existing forms, while retaining or adding questions that Secretary. elicit information that will be of [FR Doc. E5–5535 Filed 10–6–05; 8:45 am] Exchange’s Electronic Filing Platform (‘‘EFP’’).12 Once the proposed new Form BR becomes effective, branch office applications and amendments would no longer be accepted or processed through the EFP. Form BR information submitted through CRD would be automatically transmitted to the NYSE branch office system, from which the Exchange would review branch applications per its current protocol. The NYSE branch office system would then transmit approval/rejection determinations directly to CRD, where the NYSE Membership could view them. 12 The EFP is an extranet built by the NYSE to support authenticated, encrypted, two-way communications between the NYSE and its membership. It is currently being used for applications such as branch office approvals and short interest reporting. 13 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 14 15 U.S.C. 78f(b). 15 15 U.S.C. 78f(b)(5). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 BILLING CODE 8010–01–P 16 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 18 17 CFR 200.30–3(a)(12). 17 15 E:\FR\FM\07OCN1.SGM 07OCN1

Agencies

[Federal Register Volume 70, Number 194 (Friday, October 7, 2005)]
[Notices]
[Pages 58771-58772]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5535]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52543; File No. SR-NYSE-2005-13]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Order Approving Proposed Rule Change Relating to the Proposed Uniform 
Branch Office Registration Form (``Form BR'')

September 30, 2005.

I. Introduction

    On April 13, 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 
proposal to adopt the Uniform Branch Office Registration Form \3\ 
(``Form BR'').\4\ The proposed rule change was published for comment in 
the Federal Register on July 1, 2005.\5\ The Commission received no 
comments regarding the proposal.\6\ This order approves the proposed 
rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ At the request of the NYSE, the Commission staff corrected 
the title of the Form BR, which was inadvertently shown in the 
initial filing as ``Uniform Branch Office Form.'' Telephone 
conversation between Stephen Kasprzak, Senior Special Counsel, NYSE 
and Elizabeth Badawy, Accountant, Division of Market Regulation 
(``Division''), Commission, on September 28, 2005.
    \4\ The National Association of Securities Dealers, Inc. 
(``NASD'') also filed a proposed rule change proposing to establish 
the Form BR, which is substantially similar to the Exchange's 
proposal. The Commission is simultaneously approving NASD's proposed 
rule change. See Securities Exchange Act Release No. 52544 
(September 30, 2005) (SR-NASD-2005-030) (``NASD Release'').
    \5\ See Securities Exchange Act Release No. 51923 (June 24, 
2005), 70 FR 38229 (``Notice'').
    \6\ The Commission notes that it received six comment letters on 
the NASD's proposed rule change and the NASD addressed the comments. 
See letter from Shirley H. Weiss, Associate General Counsel, NASD, 
to Katherine A. England, Assistant Director, Division, Commission, 
dated August 17, 2005 (``NASD Response Letter''). See NASD Release, 
supra note 4, for a summary of the comments and the NASD Response 
Letter.
---------------------------------------------------------------------------

II. Description of Proposed Rule Change

    The NYSE proposes to adopt Form BR, developed by a working group 
composed of representatives from the Exchange, NASD, the North American 
Securities Administrators Association (``NASAA'') and various states. 
The proposed Form BR would enable Exchange members and member 
organizations (``NYSE Membership'') to submit branch office application 
information to the Exchange, NASD, other self-regulatory organizations

[[Page 58772]]

(``SROs''), and states, as applicable, by electronically filing a 
single Form BR through the Central Registration Depository 
(``CRD[supreg]'' or ``CRD system'').\7\ The NYSE Membership would be 
able to use the proposed Form BR to submit information that is 
currently furnished through the NYSE Branch Office Application form, 
Schedule E of the Uniform Application for Broker-Dealer Registration 
(``Form BD''),\8\ and certain state branch office forms.\9\
---------------------------------------------------------------------------

    \7\ As discussed in the Notice, some significant features of the 
Form BR would include a section that solicits information 
exclusively from the NYSE Membership. See Notice, supra note 5.
    \8\ The Division, in response to a request from NASD, has 
granted no-action relief indicating that it will not recommend 
enforcement action to the Commission under Rules 15b1-1, 15b3-1, 
15Ba2-2, and 15Ca2-1 under the Act for broker-dealers that file the 
Form BR, and do not complete Schedule E, or file amendments to 
Schedule E, of the Form BD, as of the date on which the transition 
to the Form BR begins and the CRD[supreg] no longer accepts Schedule 
E filings, which is currently anticipated to be October 15, 2005. 
See letter from Catherine McGuire, Chief Counsel, Division, 
Commission, to Patrice M. Gliniecki, Senior Vice President and 
Deputy General Counsel, NASD, dated September 30, 2005.
    \9\ The NYSE notes that states that currently require branch 
office registration or reporting have indicated that they would use 
the proposed Form BR for those purposes. Seven states that require 
branch office registration, Connecticut, Florida, Maine, Nevada, 
Texas, Vermont and West Virginia, have indicated that they plan to 
use the Form BR. Other jurisdictions that currently require ``notice 
filings'' for branch openings and closings, including Alabama, 
Alaska, Hawaii, Idaho, Indiana, Illinois, Kansas, Michigan, New 
Mexico, Ohio, Rhode Island, South Dakota, Tennessee and Wisconsin, 
have indicated that they also expect to use the Form BR. Telephone 
conversation between John Veator, Director, Regulatory User Liaison, 
NASD, Elizabeth Badawy, Accountant, Division, Commission and Kate 
Robbins, Attorney, Division, Commission, on September 20, 2005.
---------------------------------------------------------------------------

    The Form BR is one component of a broader project to provide 
uniform branch office definitions and registration procedures.\10\ 
Enhancements to the CRD system would provide what amounts to a 
relational ``link'' between the Form BR and the Uniform Application for 
Securities Industry Registration or Transfer (``Form U4'').\11\
---------------------------------------------------------------------------

    \10\ The Commission recently approved the NYSE's and the NASD's 
proposed definition of ``branch office.'' See Securities Exchange 
Act Release Nos. 52402 (September 9, 2005), 70 FR 54788 (September 
16, 2005) (SR-NYSE-2002-34) and 52403 (September 9, 2005), 70 FR 
54782 (September 16, 2005) (SR-NASD-2003-104).
    \11\ For example, while firms would continue to report changes 
to an individual registered person's branch office assignment by 
filing an amended Form U4, firms would also be able to report a new 
office of employment address for multiple registered persons 
assigned to a particular branch office that has moved to a new 
location by filing an amended Form BR (rather than filing multiple 
Form U4 amendments for the registered persons affected).
---------------------------------------------------------------------------

    Previously, branch application information was submitted through 
the Exchange's Electronic Filing Platform (``EFP'').\12\ Once the 
proposed new Form BR becomes effective, branch office applications and 
amendments would no longer be accepted or processed through the EFP. 
Form BR information submitted through CRD[supreg] would be 
automatically transmitted to the NYSE branch office system, from which 
the Exchange would review branch applications per its current protocol. 
The NYSE branch office system would then transmit approval/rejection 
determinations directly to CRD[supreg], where the NYSE Membership could 
view them.
---------------------------------------------------------------------------

    \12\ The EFP is an extranet built by the NYSE to support 
authenticated, encrypted, two-way communications between the NYSE 
and its membership. It is currently being used for applications such 
as branch office approvals and short interest reporting.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful consideration of the proposed rule change, the 
Commission finds that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a national securities exchange.\13\ Specifically, the 
Commission believes that the proposed rule change is consistent with 
Section 6(b) of the Act,\14\ in general, and furthers the objectives of 
Section 6(b)(5),\15\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, 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.
---------------------------------------------------------------------------

    \13\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission supports the NYSE, NASD, and state securities 
regulators' joint regulatory effort to develop a uniform branch office 
registration form that will enable firms to register branch offices 
electronically with the NYSE, NASD, other SROs, and states. The 
Commission believes that utilizing a single form, Form BR, will make 
the branch office registration process more efficient by eliminating 
duplicative forms and questions and reconciling inconsistencies among 
existing forms, while retaining or adding questions that elicit 
information that will be of regulatory value to SROs and states, as 
well as the Commission. In this regard, the Commission believes that, 
by significantly streamlining the branch office registration process, 
such regulatory coordination and cooperation should result in an 
effective and efficient regulation that will serve the entire broker-
dealer community.
    The Commission also supports the planned enhancements to the CRD 
system, which will coincide with the implementation of the Form BR, 
that will enable registered persons to submit via the Form U4 the name 
of the branch office(s) with which they are associated. From this 
information, firms and regulators will be able to generate reports 
showing, for example, the individuals who are currently associated with 
a branch, or were associated with a branch during a specific time 
period. The Commission believes that this is an important improvement 
to the CRD[supreg] database and will allow regulators to gather 
information and deploy examination resources more efficiently. The 
enhancements to the CRD system also will serve to reconcile 
inconsistencies in the CRD[supreg] database, thereby improving data 
integrity, via cross-checks between the Form BR and the corresponding 
sections of the Form U4.

IV. Conclusion

    For the foregoing reasons, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange, and, in particular, with Section 6(b)(5) of the Act.\16\
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\17\ that the proposed rule change (SR-NYSE-2005-13) is hereby 
approved.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jonathan G. Katz,
Secretary.
 [FR Doc. E5-5535 Filed 10-6-05; 8:45 am]
BILLING CODE 8010-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.