Federal Register / Vol. 62, No. 148 / Friday, August 1, 1997 / Notices 41457

6These uncodified guidelines currently provide

for the following maximum valid spread ranges:

Common stock for prices less than or equal to

$50, the valid spread is 1 point

for prices between $50 1/64 and $100, the valid

spread is 13⁄4 points

for prices greater than $100, the valid spread is

21⁄2 points

Preferred stock:

for prices less than or equal to $50, the valid

spread is 2 points

for prices between 501⁄64 and 100, the valid

spread is 21⁄4 points

for prices greater than $100, the valid spread is

21⁄2 points

Spread between quote and last sale must not

exceed:

prices less than or equal to $10, the valid spread

is 3⁄8 point

prices between 101⁄8 and $25, the valid spread is 1⁄2 point

prices between 251⁄8 and $40, the valid spread is 5⁄8 point

prices greater than $40, the valid spread is 21⁄2

points

7 15 U.S.C. 78f(b).

8 15 U.S.C. 78f(b)(5).

9 In approving this rule, the Commission notes

that it has considered the proposal’s impact on

efficiency, competition, and capital formation,

consistent with section 3 of the Act. 15 U.S.C.

§ 78c(f).

10NYSE Rule 124 generally provides that odd-lot

market orders will be executed at the price of the

‘‘adjusted ITS bid (offer)’’ at the time the order is

received by the Exchange. NYSE Rule 124.60 states

that a quotation in a stock from another ITS market

center will be considered if: (1) The stock is

included in ITS in that market center, (2) the size

of the quotation is greater than 100 shares, (3) the

bid or offer is not more than one-quarter dollar

away from the bid (offer) disseminated by the

Exchange, (4) the quotation conforms to the

Exchange’s requirements concerning minimum

fractional changes, (5) the quotation does not result

in a ‘‘locket market,’’ (6) the market center is not

experiencing operational or system problems with

respect to the dissemination of quotation

information, and (7) the bid or offer is ‘‘firm’’

pursuant to the Commission’s and the market’s

rules.

11Securities Exchange Act Release No. 27971

(May 2, 1990), 55 FR 19409 (May 9, 1990)

(approving File No. SR–NYSE–90–60).

12 15 U.S.C. 78s(b).

13 15 U.S.C. 78s(b)(2).

14 17 CFR 200.30–3(a)(12).

first) or such other price deemed

appropriate under prevailing market

conditions by the member organization

designated by the Exchange to act as a

market maker for odd-lot orders.6 The

Exchange believes this would provide

more appropriate pricing of odd-lot

orders as it would reflect actual roundlot market prices at the time the odd-lot

orders are executed.

III. Discussion

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 and, in particular, with the

requirements of section 6(b).7

Specifically, the Commission believes

the proposal is consistent with the

section 6(b)(5) 8 requirements that the

rules of an exchange be designed to

remove impediments to and perfect the

mechanism of a free and open market,

to facilitate transactions in securities

and, in general, to protect investors and

the public interest.9

The Commission believes it is

adequate for the NYSE to price standard

odd-lot market orders at the price of the

next Exchange round-lot sale when the

BPQ is unavailable. Although the

current pricing algorithm provides

investors with more advantageous

prices in a steadily declining market

than the proposed algorithm, utilizing

the next Exchange round-lot sale price

when the BPQ is unavailable is a

reasonable choice by the Exchange that

is not inconsistent with the Act. The

proposal continues to provide

procedures that facilitate the execution

of odd-lot orders when use of the ITS

quote may not be appropriate.

The Commission also believes it is

appropriate for the Exchange to price

odd-lot orders by utilizing the price of

the next Exchange round-lot sale or the

next Exchange quote that is within the

odd-lot system guidelines (whichever

occurs first) in instances where the

quote in a security does not meet the

Exchange’s odd-lot system guidelines.

The Commission has previously found

that it is appropriate for the Exchange to

impose certain, limited prerequisites on

quotes from other market centers before

incorporating such quotes into the

Exchange’s odd-lot pricing system.10

The Commission stated that such

limitations help protect the automatic

execution features of the Exchange’s

odd-lot pricing system against the

inclusion of aberrant quotations.11

Similarly, the maximum valid spread

parameters, as drafted, should help to

exclude stale quotations from the oddlot system. If the Exchange chooses to

narrow these parameters, it must file the

proposed change with the Commission

pursuant to Section 19(b) of the Act.12

IV. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–NYSE–96–

33) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20373 Filed 7–31–97; 8:45 am]

BILLING CODE 8010–1–M

SOCIAL SECURITY ADMINISTRATION

Testing Modifications to the Disability

Determination Procedures; Federal

Processing Center Testing

AGENCY: Social Security Administration.

ACTION: Notice of an additional test site

and the duration of testing involving

modifications to the disability

determination procedures.

SUMMARY: The Social Security

Administration (SSA) is announcing the

location of additional testing that it will

conduct under the current rules at 20

CFR 404.906, 404.943, 416.1406, and

416.1443. Those rules authorize the

testing of several modifications to the

disability determination procedures that

we normally follow in adjudicating

claims for disability insurance benefits

under title II of the Social Security Act

(the Act) and claims for supplemental

security income based on disability

under title XVI of the Act. This notice

announces the test site and duration of

testing involving a combination of

features of the proposed redesigned

disability process. The notice also

describes additional features that will

allow us to test the effectiveness of

processing cases under a combination of

the models in a Federal processing

center.

FOR FURTHER INFORMATION CONTACT:

Harry Pippin, Disability Models Team

Leader, Office of Disability, Disability

Process Redesign Staff, Social Security

Administration, 6401 Security

Boulevard, Baltimore, Maryland 21235,

410–965–9203.

SUPPLEMENTARY INFORMATION: Current

regulations at 20 CFR §§ 404.906,

404.943, 416.1406, and 416.1443

authorize us to test different

modifications to the disability

determination procedures. We describe

the use of four features of the testing

modifications to the disability

determination procedures as the full

process model. Those modifications are:

the use of a single decisionmaker who

may make the disability determination

without requiring the signature of a

medical consultant; the conducting of a

predecisional interview in which a

claimant, for whom SSA does not have

sufficient information to make a fully

favorable determination or for whom the

evidence would require an initial

determination denying the claim, can

present additional information to the

decisionmaker before an initial

determination is made; the elimination
41458 Federal Register / Vol. 62, No. 148 / Friday, August 1, 1997 / Notices

of the reconsideration step in the

administrative review process; and the

use of an adjudication officer who will

conduct prehearing procedures and, if

appropriate, will issue a decision

wholly favorable to the claimant.

On April 4, 1997, we published in the

Federal Register (62 FR 16209) a notice

that testing of this model would take

place at the SSA’s Western Program

Service Center in Richmond, California.

That testing was to begin on or about

April 28, 1997, and case selection was

to continue for approximately one year

with cases processed for an additional

six months. We stated that additional

federal sites might be added later.

We are now announcing that testing

also will take place at the following site:

Social Security Administration, Office

of Disability and International

Operations, 1500 Woodlawn Drive,

Baltimore, MD 21241. The test in

Baltimore will involve claims by

individuals who wish to file by

telephone. These cases will be referred

to the Baltimore processing center by

teleservice centers that service residents

of Kentucky. We will begin selecting

cases for processing in this test on or

about August 11, 1997, will continue to

select cases for approximately one year,

and may continue to have cases

processed for an additional six months.

In addition, we may choose to extend

the test to obtain additional data. We

will publish another notice in the

Federal Register if we extend the

duration of the test. We may add other

Federal sites later. If we add other

Federal sites, we will publish another

notice in the Federal Register

identifying the added sites.

This test will combine the four

process modifications mentioned above,

plus two features designed to maximize

the resources of a Federal processing

center: having a two-person team

complete the application interview by

telephone; and effectuating, in the

processing center, the payment of

benefits to claimants who are found

disabled. The adjudication officers

under this model will process cases as

they are doing in those States in which

that feature is being tested separately.

(Refer to 20 CFR §§ 404.943 and

416.1443.) The single decisionmaker

will process cases as single

decisionmakers are doing in those States

in which that feature is being tested

separately (see 20 CFR §§ 404.906(b)(2)

and 416.1406(b)(2)), except that the

single decisionmaker in this model also

will assist in the claims interview and

will offer a predecisional interview to a

claimant for whom a fully favorable

determination cannot be made based on

the initial information obtained. If a

claimant is dissatisfied with the initial

determination, he or she may appeal

directly to an administrative law judge.

The adjudication officer will be the

claimant’s primary point of contact

before a hearing is held with an

administrative law judge. Claims

authorizers will participate in the

telephone claims interview and will

effectuate payment to claimants who are

found disabled.

Dated: July 28, 1997.

Glenna Donnelly,

Assistant Deputy Commissioner for Programs

and Policy.

[FR Doc. 97–20392 Filed 7–31–97; 8:45 am]

BILLING CODE 4190–29–P

SOCIAL SECURITY ADMINISTRATION

Statement of Organization, Functions

and Delegations of Authority

This statement amends Part S of the

Statement of the Organization,

Functions and Delegations of Authority

which covers the Social Security

Administration (SSA). Notice is given

that Chapter S8 for the Office of the

Inspector General (OIG) is being

amended to reflect organizational and

internal functional realignments within

the Office of the Inspector General (S8).

The functional realignments affect the

Office of Investigations (OI) (S8B), the

Office of Audit (OA) (S8C) and the

Office of Management Services (OMS)

(S8G). Due to the realignments, the

subordinate divisional structures will be

altered for the following two main

offices: the Office of Investigations and

the Office of Audit. Notice is further

given that a new office, the Office of

Operations (S8J), will be established.

The changes are as follows:

Section S8.10 The Office of the

Inspector General—(Organization)

Establish:

H. The Office of Operations (OP)

(S8J).

Section S8.20 The Office of the

Inspector General—(Functions)

B. The Deputy Inspector General (S8).

Delete last sentence.

Amend to read as follows:

E. The Office of Audit (OA) (S8C)

conducts comprehensive financial and

performance audits of SSA’s programs

and makes recommendations to ensure

that program objectives are achieved

effectively and efficiently. Financial

audits, required by the Chief Financial

Officers’ Act of 1990, assess whether

SSA’s financial statements fairly present

the Agency’s financial position, results

of operations and cash flow.

Performance audits review the

economy, efficiency and effectiveness of

SSA’s programs. The OA also conducts

short-term management and program

evaluations focused on issues of

concern to SSA, the Congress and the

general public. Evaluations often focus

on identifying and recommending ways

to prevent and minimize program fraud

and inefficiency, rather than detecting

problems after they occur.

F. The Office of Management Services

(OMS) (S8G) provides staff assistance to

the Inspector General (IG) and Deputy

Inspector General. OMS formulates and

assists the IG with the execution of the

OIG budget and confers with the Office

of the Commissioner, the Office of

Management and Budget and the

Congress on budget matters. The office

is responsible for the OIG Hotline;

which plans, conducts, directs and

assists criminal investigations of alleged

violations of the Social Security laws;

and manages and maintains the OIG

Allegation Management System (AMS)

data base for all allegations reported to

the OIG nationwide. OMS conducts

management analyses and establishes

and coordinates general management

policies of the OIG. This office serves as

the OIG liaison on personnel

management and other administrative

and management policies and practices,

as well as on equal employment

opportunity and civil rights matters.

This office is also responsible for the

development, design and redesign of

major automated systems throughout

the Office of the Inspector General.

Establish:

H. The Office of Operations (OP)(S8J)

is responsible for and coordinates the

OIG’s strategic planning function and

the development and implementation of

performance measures required by the

Government Performance and Results

Act; public affairs; interagency

activities; OIG reporting requirements

and publications; and responses to

Congressional inquiries.

Section S8B.10 The Office of

Investigations—(Organization)

Retitle:

D. ‘‘The Special Operations Division

(SOD) (S8BA)’’ to ‘‘The Strategic

Enforcement Division (SED) (S8BA).’’

Delete:

E. The Headquarters Operations

Division (HOD) (S8BB).

Establish:

E. The Enforcement Operations

Division (EOD) (S8BC).

F. The Special Inquiries Division

(SID) (S8BE).

G. The New York Field Division

(NYFD) (S8BG).