[Federal Register: February 3, 2003 (Volume 68, Number 22)]
[Notices]
[Page 5324]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03fe03-86]
[[Page 5324]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-47257; File No. SR-NYSE-2002-59]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Order Approving Proposed Rule Change Relating to Mediation and
Administrative Conferences
January 27, 2003.
On November 4, 2002, the New York Stock Exchange, Inc.
(``Exchange'' or ``NYSE'') filed with the Securities and Exchange
Commission (``Commission'' or ``SEC''), 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. On December 18, 2002, the NYSE
submitted Amendment No. 1 to the proposal.\3\ On December 27, 2002, the
Exchange's rule proposal was published for comment in the Federal
Register, as amended.\4\ No comments letters were received on the
proposal. This order approves the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See letter to Florence Harmon, Senior Special Counsel, SEC,
from Darla Stuckey, Corporate Secretary, NYSE, dated December 17,
2002 (``Amendment No. 1'').
\4\ See Securities Exchange Act Release No. 47025 (December 18,
2002), 67 FR 79214.
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The NYSE proposes to allow its current pilot rules to expire and
adopt amended rules for mediation and administrative conferences.\5\ In
particular, the Exchange's proposal would: (i) Allow parties to agree
to mediation at their own expense; (ii) provide for the scheduling of
an administrative conference at the request of the parties or
discretion of the arbitrator(s) or Director of Arbitration; (iii)
permit the Director to appoint a staff member or arbitrator to preside
at the administrative conference which is to be held via telephone
conference call and limited to procedural matters. The proposal also
would amend NYSE Rules 628 (Agreement to Arbitrate) and 630 (Uniform
Arbitration Code) to reflect these changes.
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\5\ On November 19, 1998, the Commission approved a two-year
pilot program for mediation and administrative conferences in the
Exchange's arbitration facility. See Securities Exchange Act Release
No. 34-40695 (November 19, 1998); 63 FR 65834 (November 30, 2000),
(SR-NYSE-98-27). On December 29, 2000, the Commission approved
amendments to the pilot rules and granted a two-year extension. See
Securities Exchange Act Release No. 34-47076 (December 29, 2000); 66
FR 1710 (January 9, 2001), (SR-NYSE-00-39). The Commission extended
this pilot for an additional thirty days until January 31, 2003. See
Securities Exchange Act Release No. 34-43785 (December 20, 2002); 67
FR 79680 (December 30, 2002), (SR-NYSE-2002-65).
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After careful review, 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 \6\
and, in particular, the requirements of Section 6 and the rules and
regulations thereunder.\7\ Specifically, the Commission believes the
proposal is consistent with the Section 6(b)(5) requirements that the
rules of an exchange be designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, and,
in general, to protect investors and the public interest. In
particular, the Commission believes that the proposed rule change
should help NYSE members, member organizations, and the public have a
fair and impartial forum for the resolution of their disputes. Further,
the Commission believes that the proposed rule is a reasonable effort
by the Exchange to improve the efficiency of its dispute resolution
arbitration process.
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\6\ In approving this rule, the Commission has considered the
proposed rule's impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f.
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-NYSE-2002-59) is
hereby approved.
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\8\ 15 U.S.C. 78s(b)(2).
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. 03-2406 Filed 1-31-03; 8:45 am]
BILLING CODE 8010-01-P