Self-regulatory organizations; proposed rule changes: New York Stock Exchange, Inc.,

[Federal Register: July 25, 2003 (Volume 68, Number 143)]

[Notices]

[Page 44131-44132]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr25jy03-109]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48195; File No. SR-NYSE-2003-13]

Self-Regulatory Organizations; New York Stock Exchange, Inc.; Order Granting Approval of Proposed Rule Change To Amend the Fine Schedule for Individuals and Member Organizations Who Commit Minor Rule Violations Under Rule 476A

July 17, 2003.

On April 28, 2003, 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 the fine schedule for individuals and member organizations who commit minor rule violations under NYSE Rule 476A.

\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

The proposed rule change was published for comment in the Federal Register on June 11, 2003.\3\ The Commission received no comments on the proposal.

\3\ See Securities Exchange Act Release No. 47985 (June 4, 2003), 68 FR 35046.

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 \4\ and, in particular, the requirements of section 6 of the Act \5\ and the rules and regulations thereunder. The Commission finds specifically that the proposed rule change is consistent with section 6(b)(6) \6\ of the Act because it should enable the Exchange to appropriately discipline members and others

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associated with its members for violation of Exchange rules.

\4\ 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).

\5\ 15 U.S.C. 78f.

\6\ 15 U.S.C. 78f(b)(6).

In approving this proposed rule change, the Commission in no way minimizes the importance of compliance with these rules, and all other rules subject to the imposition of fines under the Exchange's minor rule violation plan. The Commission believes that the violation of any self-regulatory organization's rules, as well as Commission rules, is a serious matter. However, in an effort to provide the Exchange with greater flexibility in addressing certain violations, the Exchange's minor rule violation plan provides a reasonable means to address rule violations that do not rise to the level of requiring formal disciplinary proceedings. The Commission expects that the NYSE will continue to conduct surveillance with due diligence, and make a determination based on its findings whether fines of more or less than the recommended amount are appropriate for violations of rules under the Exchange's minor rule violation plan, on a case by case basis, or if a violation requires formal disciplinary action.

It is therefore ordered, pursuant to section 19(b)(2) of the Act,\7\ that the proposed rule change (SR-NYSE-2003-13) be, and it hereby is, approved.

\7\ 15 U.S.C. 78s(b)(2).

For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\8\

\8\ 17 CFR 200.30-3(a)(12).

Jill M. Peterson, Assistant Secretary.

[FR Doc. 03-18932 Filed 7-24-03; 8:45 am]

BILLING CODE 8010-01-P