[Federal Register: December 30, 2002 (Volume 67, Number 250)]
[Notices]
[Page 79680-79681]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de02-131]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47076; File No. SR-NYSE-2002-65]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the New York Stock Exchange,
Inc. Regarding the Extension of the Pilot Programs for Mediation and
Administrative Conferences
December 20, 2002.
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 December 19, 2002, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``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
The Exchange proposes to extend its pilot programs for mediation
and administrative conferences (NYSE Rules 638 and 639) that expire on
December 31, 2002. The Exchange has separately requested that the rules
for Mediation and Administrative Conferences, as amended, (``the
amended pilots'') be adopted by way of its filing SR-NYSE-2002-59. An
extension of the present pilots is needed pending the Commission's
action on the amended rules.
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 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 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
On November 19, 1998, the Commission approved a two-year pilot
program for mediation and administrative conferences in the Exchange's
arbitration facility.\3\ On December 20, 2000, the Commission approved
amendments to the two pilot rules and granted a 2-year extension.\4\
The pilot mediation program is intended to allow parties to settle
cases earlier with lower costs. The administrative conference allows
arbitrators to intervene early in the case to set deadlines and resolve
preliminary procedural issues. On November 4, 2002, the Exchange filed
a proposal with the Commission to adopt as amended the rules for
mediation and administrative conferences.\5\ The Exchange proposes to
extend through January 31, 2003, its pilot program for mediation and
administrative conferences (Rules 638 and 639) currently scheduled to
expire on December 31, 2002. The Exchange has separately proposed in
SR-NYSE-2002-59 to amend and revise Rules 638 (Mediation) and 639
(Administrative Conferences). An extension of the present pilot is
needed pending the Commission's actions on its request.
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\3\ See Securities Exchange Act Release No. 34-40695 (November
19, 1998); 63 FR 65834 (November 30, 2000), (SR-NYSE-98-27).
\4\ See Securities Exchange Act Release No. 34-43785 (December
29, 2000); 66 FR 1710 (January 9, 2001), (SR-NYSE-00-39).
\5\ See Securities Exchange Act Release No. 34-47025 (December
18, 2002) (File No. SR-NYSE-2002-59).
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While the Exchange believes it is appropriate to replace the pilot
programs with the Rules proposed in SR-NYSE-2002-59, to maintain
continuity pending the Commission's action an extension of the pilots
to January 31, 2003 is warranted. By this filing, the Exchange is not
seeking to modify the present pilot programs.
2. Statutory Basis
The Exchange believes that proposed changes are consistent with
Section 6(b)(5) of the Act in that they promote just and equitable
principles of trade by insuring that members and member organizations
and the public have a fair and impartial forum for the resolution of
their disputes.
[[Page 79681]]
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.
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
Because the foregoing proposed rule: (1) does not significantly
affect the protection of investors or the public interest; (2) does not
impose any significant burden on competition; and (3) does not become
operative for 30 days or such shorter time as the Commission may
designate, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \6\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
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The Commission notes that under Rule 19b-4(f)(6)(iii), the proposal
does not become operative for 30 days after date of its filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest. The Exchange requested
a waiver of this 30-day period to extend the pilot programs before they
are due to expire on December 31, 2002. The Commission believes that
the waiver of the 30-day period is consistent with the protection of
investors and the public interest.\8\
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\8\ 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).
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At any time within 60 days of the filing of the proposed rule
change, as amended, 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.
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. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609.
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 will also be
available for inspection and copying at the principal office of the
NYSE. All submissions should refer to File No. SR-NYSE-2002-65 and
should be submitted by January 21, 2003.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-32918 Filed 12-27-02; 8:45 am]
BILLING CODE 8010-01-P