Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by the New York Stock Exchange, Inc. Relating to Examination Specifications for the General Securities Sales Supervisor (Series 8) Examination

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-34336; File No. SR-NYSE-94-24]

Self-Regulatory Organizations; Notice of Filing of Proposed Rule

Change by the New York Stock Exchange, Inc. Relating to Examination

Specifications for the General Securities Sales Supervisor (Series 8)

Examination

July 8, 1994.

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 June 28, 1994, the New York Stock Exchange, Inc. (``NYSE'' or

``Exchange'') filed with the Securities and Exchange Commission

(``Commission'' or ``SEC'') the proposed rule change as described in

Items I, II and III below, which Items have been prepared by the self-

regulatory organization. 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) (1988).

\2\17 CFR 240.19b-4 (1994).

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I. Self-Regulatory Organization's Statement of the Terms of

Substance of the Proposed Rule Change

The Exchange has filed the proposed Examination Specifications for

the General Securities Sales Supervisor (``Series 8'') Examination.\3\

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\3\As part of the proposed rule change, the NYSE is also seeking

approval of the Series 8 examination itself.

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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 self-regulatory organization

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 self-regulatory organization

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

(a) Purpose

The General Securities Sales Supervisor (``Series 8'') Examination

is an industry-wide qualification examination for securities sales

supervisors. The Series 8 examination is generally required under rules

of the self-regulatory organizations (``SROs'') for persons who are

engaged in the supervision of general securities branch offices (i.e.,

branch office managers) and of general securities registered

representatives. The Series 8 examination tests a candidate's knowledge

of securities industry rules and regulations and certain statutory

provisions applicable to general securities sales supervision. The

Series 8 examination specifications detail the areas covered by the

examination and break down the number of examination questions culled

from each area.

Revision of the Series 8 examination and specifications was

recently undertaken by an industry committee composed of

representatives from SROs (the NYSE, the American Stock Exchange, the

Chicago Board Options Exchange, the Municipal Securities Rulemaking

Board, the National Association of Securities Dealers and the

Philadelphia Stock Exchange) and representatives from broker-dealers,

including branch office managers, compliance personnel and corporate

executives, in order to update the examination in view of changes in

relevant laws, rules and regulations, the development of new products,

and to reflect various changes in industry practices. The committee

reviewed the examination specifications, content areas and item bank

and developed some new questions in new areas.

The revised examination continues to cover the areas of knowledge

required to supervise sales activities in securities, however, the

focus of the content of the examination has been shifted to concentrate

more closely on supervisory duties. Accordingly, certain questions have

been deleted which deal with routine calculations and basic product

knowledge and questions on new federal and SRO rules and regulations

have been incorporated into the exam, as well as questions on new

products, supervision and changes in industry practices. The revised

examination and specifications include coverage of these new areas. The

examination will remain a six-hour, two-part, 200 question examination.

The other SRO participants will also file the revised examination

and specifications for approval by the SEC. The Exchange intends to

commence use of the revised examination specifications ninety days

after approval by the Commission.

(b) Statutory Basis

The statutory basis for the Series 8 Examination lies in Section

6(c)(3)(B) of the Act. Under that Section, it is the Exchange's

responsibility to prescribe standards of training, experience and

competence for persons associated with Exchange members and member

organizations. Pursuant to this statutory obligation, the Exchange has

developed examinations that are administered to establish that persons

associated with Exchange members and member organizations have attained

specific levels of competence and knowledge.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will

impose any burden 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

Comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for

Commission Action

Within 35 days of the publication of this notice in the Federal

Register or within such other 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. Persons making written submissions

should file six copies thereof with the Secretary, Securities and

Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.

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 at the

Commission's Public Reference Room, 450 Fifth Street, NW., Washington,

DC 20549. Copies of the 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-94-24 and should be submitted by August 4,

1994.

For the Commission, by the Division of Market Regulation,

pursuant to delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 94-17099 Filed 7-13-94; 8:45 am]

BILLING CODE 8010-01-M