[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Notices]
[Page 65869-65870]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no06-152]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54694; File No. SR-NYSE-2006-93]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Proposed Rule Change Relating to Amendments to NYSE
Rule 607 Concerning the Use of the Random Selection Method To Appoint
Arbitrators in Matters Not Involving Customers
November 2, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 24, 2006, the New York Stock Exchange LLC (``NYSE'' or
the ``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 NYSE. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE is proposing to amend Rule 607(c) to provide that in all
arbitration matters not involving customers, claimants may use the
``Random List Selection'' method for arbitrator appointment. Below is
the text of the proposed rule change. Proposed new language is in
italics; proposed deletions are in brackets.
* * * * *
Rule 607. Appointment of Arbitrators
(c) Party Requests for [Agreement on Arbitrator Selection] Random List
Selection
If the customer [or non-member] requests in writing within 45 days from
the time the statement of claim is filed, [or, if all parties agree and
so notify the Exchange within that time frame,] arbitrators will be
selected according to Random List Selection, as described below. In all
arbitration matters not involving customers, if the claimant requests
in writing within 45 days from the time the statement of claim is
filed, arbitrators will be selected according to Random List Selection,
as described below. The Exchange will accommodate any reasonable
alternative way to select arbitrators, provided the parties agree.
* * * * *
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 NYSE included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The NYSE 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
Under the Random List Selection methodology, the Director of
Arbitration sends parties a randomly generated list of five public
arbitrators for claims heard by a single arbitrator. If the claim is
heard by three arbitrators, the Director of Arbitration provides
parties a randomly generated list of 10 public arbitrators and another
list of five securities industry arbitrators. Each party is then
allocated strikes against these arbitrators.\3\ Currently, customers or
non-members may request in writing a Random List Selection within 45
days after they file a statement of claim. The parties also may agree
to this methodology provided that they notify the NYSE within this
timeframe.\4\ If parties do not request a Random List Selection, the
Director of Arbitration will select the arbitrator(s) and name a
chairman of each panel.\5\ NYSE Rule 607(c) also permits the NYSE to
accommodate reasonable alternatives to select arbitrators, provided
that all parties agree on the methodology.
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\3\ NYSE Rule 607(c)(2)(i).
\4\ NYSE Rule 607(c).
\5\ NYSE Rule 607(b).
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Under the proposed amendments to NYSE Rule 607(c), the Random List
Selection methodology could be used in all arbitration matters not
involving customers if the claimant requests that methodology in
writing within 45 days after filing its statement of claim. The
proposed amendments would not change the ability of a customer to
request the Random Selection Method. The purpose of these amendments is
to allow non-member or member claimants to use the Random List
Selection method and to ensure that their choice of methodology for
arbitrator appointment would prevail.
[[Page 65870]]
2. Statutory Basis
The NYSE believes that the proposed rule change is consistent with
Section 6(b)(5) \6\ of the Act requiring exchanges to have rules
designed to promote just and equitable principles of trade, and to
protect investors and the public interest.
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\6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The NYSE 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 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 e-mail to rule-comments@sec.gov. Please include File
Number SR-NYSE-2006-93 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-2006-93. 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-2006-93 and should be submitted on or before
November 30, 2006.
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\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
Nancy M. Morris,
Secretary.
[FR Doc. E6-18945 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P