1012 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Notices

6 17 CFR 200.30–3(a)(12).

1Securities Exchange Act Release No. 36465

(November 8, 1995), 60 FR 57473 (November 15,

1995).

approving the proposed rule change

prior to the 30th day after its

publication in the Federal Register to

avoid any interruption of the Service.

The current authorization for the

Service extends through December 31,

1996. Hence, it is imperative that the

Commission approve the instant filing

on or before that date. Otherwise, the

NASD will be required to suspend

operation of the Service pending

Commission action on the proposed

extension.

The NASD believes that accelerated

approval is appropriate to ensure

continuity in the Service’s operation

pending a determination on permanent

status for the Service, as requested in

File No. SR–NASD–92–7. Continued

operation of the Service will ensure the

availability of an electronic quotation

medium to support member firms’

market-making in approximately 5,700

OTC Equities and the widespread

dissemination of quotation information

on these securities. The Service’s

operation also expedites price discovery

and facilitates the execution of customer

orders at the best available price. From

a regulatory standpoint, the NASD’s

capture of quotation data from

participating market makers

supplements the transactional data now

reported by member firms pursuant to

NASD Rule 6600.

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, N.W.,

Washington, D.C. 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 in

the Commission’s Public Reference

Room. Copies of the filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File No.

SR–NASD–58 and should be submitted

by January 28, 1997.

V. Commission’s Findings and Order

Granting Accelerated Approval

The Commission finds that approval

of the proposed rule change is

consistent with the Act and the rules

and regulations thereunder, and in

particular with the requirements of

Section 15A(b)(11) of the Act, which

provides that the rule of the NASD

relating to quotations must be designed

to produce fair and informative

quotations, prevent fictitious or

misleading quotations and promote

orderly procedures for collecting,

distributing, and publishing quotations.

The Commission finds good cause for

approving the proposed rule change

prior to the 30th day after the date of

publishing notice. The Commission

finds that approval of this proposed rule

change to continue operation of the

pilot program is appropriate. The

Commission has solicited and continues

to solicit comments from the OTCBB

Service. An extension of the pilot

program will provide the Commission

with sufficient time to consider the

issues raised by the various interested

parties.

Accelerated approval of the NASD’s

proposal is appropriate to ensure

continuity in the Service’s operation as

an electronic quotation medium that

supports NASD members’ market

making in OTC Equities and that

facilitates price discovery and the

execution of customers’ orders at the

best available price. Additionally,

continued operation of the Service will

materially assist the NASD’s

surveillance of trading in OTC Equities

that are quoted in the Service, including

certain non-Tape B securities that are

listed on regional exchanges and quoted

in the Service.

It is therefore ordered, pursuant to

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

proposed rule change be, and hereby is,

approved for an interim period through

March 31, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–238 Filed 1–6–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38095; File No. SR–NYSE–

96–39]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the New

York Stock Exchange, Inc., Relating to

Extending the Current $400,000 Limit

on Transaction Charges through 1997

December 30, 1996.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on December 18, 1996,

the New York Stock Exchange, Inc.

(‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) 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.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

In January 1996, the NYSE

implemented a rate revision to its equity

transaction charges. The revision

included the elimination of all systems

credits, a reduction of charges for shares

5,000 and under, the elimination of

charges for non-market-maker system

orders from 100 to 2,099 shares, the

elimination of the growth limitation of

4% over 1988 levels, and the

implementation of a monthly $400,000

transaction charge cap per firm, a

limitation which would be indexed

annually to average daily volume, and

would be removed January 1, 1999.1

The proposed revision for the 1997

transaction charge extends the current

$400,000 cap rather than raising the cap

based on the increase in volume from

1995 to 1996.

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
Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Notices 1013

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

2Securities Exchange Act Release No. 37792

(October 7, 1996), 61 FR 53475.

3Under OCC’s current membership review

procedures, an applicant’s DEA is contacted for

information regarding the applicant and is

requested to provide advice or any objections with

respect to the applicant’s ability to self-clear option

transactions.

4Associated person is defined in Interpretation

.03 as any partner, officer, director, or branch

manager of such applicant (or any person

occupying a similar status or performing similar

functions), any person directly or indirectly

controlling, controlled by, or under common

control with such applicant, or any employee of

such applicant.

5Clauses a. through c. require that: an applicant

that is a registered broker-dealer must be registered

as a ‘‘Limited Principal—Financial Operations’’

with the National Association of Securities Dealers;

an applicant that is applying for clearing

membership as an exempt Canadian clearing

member must be registered as a principal/director/

officer and as a designated registered options

principal with the Investment Dealers Association

of Canada; and an applicant that is a non-U.S.

securities firm must have completed any applicable

OCC financial and operational examination for

employees who are responsible for supervising the

preparation of applicant’s financial reports.

6Currently, OCC has two clearing members that

use the same non-clearing member facilities

manager.

most significant aspects of such

statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

(1) Purpose

The purpose of the change is to

respond to the needs of our constituents

with respect to overall competitive

market conditions and customer

satisfaction.

(2) Statutory Basis

The basis under the Act for the

proposed rule change is the requirement

under Section 6(b)(4) that an Exchange

have rules that provide for the equitable

allocation of reasonable dues, fees, and

other charges among its members,

issuers and other persons using its

services.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposed fee change will not impose

any burden on 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

The Exchange has not solicited, and

does not intend to solicit, comments

regarding the proposed rule change. The

Exchange has not received any

unsolicited written comments from

members or other interested parties.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section 19(b)(3)(A)

of the Act and subparagraph (e) of Rule

19b–4 thereunder. At any time within

60 days of the filing of such proposed

rule change, the Commission may

summarily abrogate such rule change if

it appears to the Commission that such

action is necessary or appropriate in the

public interest, for the protection of

investors, or otherwise in furtherance of

the purposes of the Act.

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, N.W.,

Washington, D.C. 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 in

the Commission’s Public Reference

Section, 450 Fifth Street, N.W.,

Washington, D.C. Copies of such filing

will also be available for inspection and

copying at the principal office of the

above-mentioned self-regulatory

organization. All submissions should

refer to File No. SR–NYSE–96–39 and

should be submitted by January 28,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–234 Filed 1–6–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38103; File No. SR–OCC–

96–11]

Self-Regulatory Organizations; The

Options Clearing Corporation; Order

Approving Proposed Rule Change

Relating to Membership Standards

December 31, 1996.

On August 30, 1996, The Options

Clearing Corporation (‘‘OCC’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

OCC–96–11) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’).1 Notice of the proposal

was published in the Federal Register

on October 11, 1996.2 No comment

letters were received. For the reasons

discussed below, the Commission is

granting approval of the proposed rule

change.

I. Description

The proposed rule change amends

OCC’s by-laws and rules regarding

OCC’s initial membership standards and

the ongoing duties of clearing members

as follows.

A. Article V, Section 1 of the By-Laws

Clause d. has been added to

Interpretation .02 of the Interpretations

and Policies (‘‘Interpretations’’) under

Article V, Section 1 of OCC’s by-laws.

Clause d. provides that the

Membership/Margin Committee

(‘‘Committee’’) of the Board of Directors

(‘‘Board’’) will not recommend approval

of an application for clearing

membership unless the applicant’s

Designated Examining Authority

(‘‘DEA’’) has stated that it has no

objections to the application for clearing

membership.3 Pursuant to that clause,

the Committee, if requested in writing

by the applicant, is permitted to waive

the requirement in exceptional cases

and where good cause is shown.

Interpretation .03 is amended to

require that if an applicant elects to use

an associated person 4 to satisfy the

applicable requirements of clause a.

through c. thereof, the designated

associated person must be a full time

employee of the applicant.5

Interpretation .03 also is amended to

require that the key operations

employees required to have attended

applicable OCC operations readiness

review sessions and successfully

completed any applicable OCC

operational and financial examinations

for operations employees be full time

employees and attend all such review

sessions. Interpretation .04 is amended

to eliminate the ability of an applicant

for clearing membership to enter into a

facilities management arrangement with

a non-clearing member.6

Interpretation .05 is added to

authorize the Committee to recommend

to the Board that additional financial

requirements be imposed on an

applicant for clearing membership (e.g.,

an increase in net capital or a

requirement to make and maintain