Federal Register / Vol. 62, No. 180 / Wednesday, September 17, 1997 / Notices 48913

3 15 U.S.C. § 78o–3.

4 17 CFR 200.30–3(a)(12).

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

2Securities Exchange Act Release No. 38759

(June 23, 1997), 62 FR 34725.

3Securities Exchange Act Release No. 37515

(August 2, 1996), 61 FR 41677.

4The Program’s procedures also included the

following: (1) all prefunding return transactions are

subject to PTC’s standard credit checks (i.e.,

prefunding payments may be returned only if the

participant will be within its net free equity and net

debit monitoring level requirements after the

prefunding payments are returned); (20 during the

initial stage of the pilot program, only 80% of

qualifying prefunding payments are eligible for

return; (3) participants are allowed only one request

per day; and (4) the minimum amount eligible for

return is $10 million. The proposed rule change

does not amend these procedures.

5Supra note 3, at n. 4.

triggering its Manning obligations to the

buy limit order, the market maker must

buy from the sell order at 203⁄32nds.

Similarly, if the security were priced

under $10 and quoted at 51⁄32—51⁄16, the

minimum price improvement to avoid a

violation of the Manning Rule would be

1⁄64th better than a buy limit order it

holds.

This represents a change from

previous statements regarding price

improvement. In Notice To Members

95–43, regarding the Manning Rule, the

NASD and Nasdaq stated that market

makers may avoid violating Manning if

they execute for their own accounts at

1⁄64th better than the limit order price.

This statement no longer is applicable

and is superseded by this new policy

interpretation as of the date of the

publication of Notice To Members 97–

57.

The NASD and Nasdaq believe that

the new interpretation increases

investor protection by clarifying a

member’s obligations to customer limit

orders. Accordingly, the NASD and

Nasdaq believe that the proposed rule

change is consistent with the provisions

of Section 15A(b)(6) of the Act 3 in that

it protects investors and the public

interest, and is designed to promote just

and equitable principles of trade.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD and Nasdaq do not believe

that the proposed rule change will result

in any burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change will

become effective when the new

interpretation appears in NASD Notice

To Members 97–57, as it constitutes a

stated policy and interpretation with

respect to the meaning of an existing

rule under Section 19(b)(3)(A)(i) of the

Act and Rule 19b–4(e)(1) thereunder.

At any time within 60 days of the

filing of a rule change pursuant to

Section 19(b)(3)(A) of the Act, the

Commission may summarily abrogate

the 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

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 number

SR–NASD–97–66 and should be

submitted by October 8, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–24589 Filed 9–16–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39048; File No. SR–PTC–

97–03]

Self-Regulatory Organizations;

Participants Trust Company; Order

Approving a Proposed Rule Change

Relating to a Change in the Cut-off

Time for Intraday Return of Prefunding

Payments

September 10, 1997.

On May 1, 1997, the Participants

Trust Company (‘‘PTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) a proposed rule change

(File No. SR–PTC–97–03) 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 June 27, 1997.2 No

comment letters were received. For the

reasons discussed below, the

Commission is approving the proposed

rule change.

I. Description

The proposed rule change amends

PTC’s rules to extend from 11:00 a.m. to

1:00 p.m. the cut-off time for a

participant to request that PTC return to

them their prefunding payments made

to PTC earlier that day. Under the rule

change, only prefunding payments

which are no longer needed to support

transaction processing are eligible for

intraday return.

PTC originally amended its rules in

August 1996, to permit the intraday

return of prefunding payments.3 Before

the rule change, PTC’s rules required

that prefunding payments be applied to

end-of-day settlement or be made

available for withdrawal on the next

business day or thereafter.

On September 9, 1996, PTC

implemented intraday return of

prefunding payments as a pilot program

(‘‘Program’’). The procedures

established for the Program included,

among other things,4 that only

prefunding payments received by PTC

between 8:30 a.m. and 11:00 a.m. were

eligible for return. PTC expected to

make all returns between 11:00 a.m. and

12:00 p.m. These initial procedures

were incorporated in PTC’s Participant

Operating Guide.

When the Commission approved the

Program, the Commission’s order noted,

‘‘Upon implementation of the Program,

PTC plans to evaluate the initial

procedures on a quarterly basis and will

make changes based on such procedures

as necessary based upon PTC’s

experience with the Program. PTC will

be required to file with the Commission

a proposed rule change prior to any

change or modification of the initial

procedures.’’ 5

In developing the Program, PTC

expected that its participants would be

able to determine their excess

prefunding amounts by 11:00 a.m. in

order to request a return by that time.

After the Program’s implementation,

PTC monitored prefunding payments
48914 Federal Register / Vol. 62, No. 180 / Wednesday, September 17, 1997 / Notices

6 15 U.S.C. 78q–1(b)(3)(F).

7 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1) (1994).

and observed that participants with

excess cash which could be withdrawn

by 11:00 a.m. elected not to do so. PTC

was advised by its participants that 1:00

p.m. would be a more appropriate cutoff time to request return of prefunding

payments.

II. Discussion

Section 17A(b)(3)(F) of the Act 6

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody or control of

PTC or for which it is responsible. By

extending the time to request return of

prefunding payments to 1:00 p.m.,

PTC’s participants will be better able to

determine whether prefunding

payments on deposit with PTC will be

required to support transactions at PTC.

Furthermore, PTC is not changing the

Program’s requirement whereby PTC

will not return any prefunding

payments unless the requesting

participant is within its net free equity

and net debit monitoring level controls

at the time the request is made.

Therefore, the Commission believes that

even with the later cut-off time for

requesting return prefunding payments

PTC should be able to continue to

provide for the intraday return of

prefunding payments while still

assuring the safeguarding of securities

and funds in its custody or control.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

PTC–97–03) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–24588 Filed 9–16–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39044; File No. SR–Phlx–

97–41]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Relating to Registration Fees for

Registered Representatives

September 10, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’) 1, notice is hereby given that on

August 25, 1997, the Philadelphia Stock

Exchange, Inc. (‘‘Phlx’’ or ‘‘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 Phlx. 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

The Phlx seeks to amend its fee

schedule pertaining to registration for

Registered Representatives (‘‘RR’’).

Below is the text of the proposed rule

change. Additions are italicized;

deletions are in brackets.

* * * * *

Phlx fee structure

Membership Dues or Foreign Currency User Fees* ........................................................................................ $1000.00 semi-annually.

Application Fee .................................................................................................................................................. 200.00.

Initiation Fee—Members, Participants and Approved Lessors ......................................................................... 1500.00.

Transfer Fee ...................................................................................................................................................... 500.00.

Trading Post/Booth ............................................................................................................................................ 375.00 quarterly.

Floor Facility Fees ............................................................................................................................................. 187.50 quarterly.

Direct Wire to Floor ........................................................................................................................................... 60.00 quarterly.

Telephone System Line Extensions .................................................................................................................. 22.50 monthly/per extension.

Execution Services/Communication Charge ..................................................................................................... 200.00 monthly.

Stock Execution Machine Registration Fee (Equity Floor) ............................................................................... 300.00 per unit.

Equity, Option or FCO Transmission Charge ................................................................................................... 750.00 monthly.

FCO pricing tape ............................................................................................................................................... 600.00.

Option Report Service:

New York .................................................................................................................................................... 600.00.

Chicago ...................................................................................................................................................... 800.00.

Examinations Fee** ........................................................................................................................................... 1000.00 monthly.

Technology Fee ................................................................................................................................................. 100.00 monthly.

Registered Representative Registration:

Initial ........................................................................................................................................................... 12.00 [$10.00].

Maintenance ............................................................................................................................................... 12.00 annual [$10.00 annual].

Transfer ...................................................................................................................................................... 12.00 [$10.00].

*An exemption from foreign currency user fees is extended to PHLX members also holding title to a foreign currency options participation.