[ by Melanie Gretchen ]

The NYSE has filed to extend its temporary suspension of Rule 36 Bar, which prohibits the use of personal cell phones by Designated Market Makers (DMMs) and Floor brokers on the trading floor.  Subject to approval by the SEC, New York Stock Exchange LLC and NYSE MKT LLC (collectively called the "Exchange") employees will be able to use their cell phones until 11/9/12, after Hurricane Sandy produced ongoing issues with wired and wireless phone coverage on the floor.

Going forward, the Exchange will notify Floor members if telephone service is restored before November 9, 2012, in which case the temporary suspension will end and Floor members will be prohibited from using personal cell phones on the Trading Floor from that point onward.  In the event that the Exchange's provided and authorized cell phones and internet are working, floor brokers and DMMs should refrain from using personal cell phones.

Exceptions to the Rule:

• Whether from a landline or a cell phone, DMM Floor-based personnel can call those persons they are authorized to call at the locations such off-Floor personnel are working, even if they are not located at their regular office locations.
   
• If personal cell phones are used on the Trading Floor, the member and member organization must maintain records of which staff used a personal cell phone while on the Trading Floor, and which cell phone carrier was used.
   
• Members and member organizations must maintain in their books and records all cell phone records, i.e., records from the third-party carrier, that show both incoming and outgoing calls that were made during the period that a personal cell phone was used on the Trading Floor.
   
• To the extent the records are unavailable from the third-party carrier, members and member organizations must maintain contemporaneous records of all calls made or received on a personal cell phone while on the Trading Floor.

   

  • In particular, if a personal cell phone has been used during the trading day both on the Trading Floor and off the Trading Floor, the member must be able to distinguish which calls were made while on the Trading Floor.

As a general rule, as with all member and member organization records, such cell phone records must be provided to Exchange regulatory staff, including without limitation staff of FINRA on request.

For further details, go to [NYSE Member Education Bulletin 2012-10].