1018 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Notices

6 15 U.S.C. § 78f and 78k–1 (1988).

7 In approving the rule, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. § 78c(f).

8The PHLX will submit a request for permanent

approval of the program no later than May 1, 1997.

This request will be accompanied by a report

covering the period between June 30, 1996, and

January 1, 1997, that will include: (1) a description

of the benefits provided by AUTOM; (2) the degree

of AUTOM usage, including the number and size

of the orders routed through AUTOM and the

number and size of the orders executed

automatically through the AUTO–X system; (3) the

system capacity of AUTOM and AUTO–X; and (4)

any problems the Exchange has encountered with

the routing and execution features. 9 15 U.S.C. § 78s(b)(2) (1982).

10 17 CFR 200.30–3(a)(12) (1995).

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

2Securities Exchange Act Release Nos. 36875

(February 22, 1996), 61 FR 7846 [SR–SCCP–95–06]

and 36876 (February 22, 1996), 61 FR 7841 [SR–

Philadep–95–08] (orders granting partial permanent

and partial temporary approval through August 31,

1996, of proposed rule changes).

through the use of new data processing

and communications techniques, the

efficiency with which transactions in

PHLX equity and index options are

executed. Further, the Exchange

believes that AUTOM fosters

competition among options exchanges,

which have similar systems in place.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The PHLX does not believe that the

proposed rule change will impose any

inappropriate burden on competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No written comments were either

solicited or received.

III. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Exchange has requested that the

proposed rule change be given

accelerated effectiveness pursuant to

Section 19(b)(2) of the Act.

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, the

requirements of Sections 6 and 11A.6

Specifically, the Commission continues

to believe that the development and

implementation of the AUTOM system

provides for more efficient handling and

reporting of orders in PHLX options

through the use of new data processing

and communications techniques,

thereby improving order processing and

turnaround time.7 The Commission

does not object to an extension of the

pilot program until June 30, 1997, in

response to the PHLX’s assertion that

continuation of the pilot will provide

the Exchange with an opportunity to

continue to study its effectiveness prior

to permanent approval of the program.8

The Commission notes further that

the Exchange has represented that from

January 1996 through November 1996,

no significant problems have been

reported with AUTOM’s routing or

execution functions, which have

functioned properly and efficiently.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing thereof

in the Federal Register in order to

permit the PHLX to continue the

AUTROM pilot program on an

uninterrupted basis. Specifically, the

Commission believes that the PHLX’s

proposal to extend the AUTOM pilot

program does not raise any new issues

since it merely extends the pilot

program as it is currently operating.

Further, the Commission believes that

the pilot is beneficial in maintaining the

quality and efficiency of the PHLX’s

market. In addition, the Commission

notes that there have been no adverse

comments concerning the pilot program

since its implementation. Accordingly,

the Commission believes that granting

accelerated approval of the proposed

rule change is appropriate and

consistent with Sections 6 and 11A 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 at

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 the file number in the caption

above and should be submitted by

[insert date 21 days after the date of this

publication].

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,9 that the

proposed rule change (SR–PHLX–96–

51) is approved through June 30, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–235 Filed 1–6–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38100; File Nos. SR–

SCCP–96–10 and SR–Philadep–96–19]

Self-Regulatory Organizations; Stock

Clearing Corporation of Philadelphia;

Philadelphia Depository Trust

Company; Notice of Filing and Order

Granting Accelerated Approval on a

Temporary Basis of Proposed Rule

Changes Relating to Participants Fund

Formulas

December 30, 1996.

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

Securities Exchange Act of 1934

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

November 15, 1996, the Stock Clearing

Corporation of Philadelphia (‘‘SCCP’’)

and the Philadelphia Depository Trust

Company (‘‘Philadep’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

changes (File Nos. SR–SCCP–96–10 and

SR–Philadep–96–19) as described in

Items I and II below, which items have

been prepared primarily by SCCP and

Philadep. The Commission is

publishing this notice and order to

solicit comments from interested

persons and to grant accelerated

approval on a temporary basis of the

proposed rule changes through June 30,

1997.

I. Self-Regulatory Organizations’

Statement of the Terms of Substance of

the Proposed Rule Changes

The proposed rule changes seek

permanent approval of SCCP’s and

Philadep’s participants fund formulas.

On February 22, 1996, the Commission

granted partial temporary approval to

proposed rule changes establishing

SCCP’s and Philadep’s participants fund

formulas in connection with the

industry conversion to same-day funds

settlement (‘‘SDFS’’).2 On August 29,

1996, the Commission extended the
Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Notices 1019

3Securities Exchange Act Release Nos. 37623

(August 29, 1996), 61 FR 47229 [SR–SCCP–96–07]

(order granting temporary approval through

December 31, 1996 of a proposed rule change) and

37625 (August 30, 1996), 61 FR 47227 [SR–

Philadep–9–14] (order granting partial permanent

approval and partial temporary approval of a

proposed rule change through December 31, 1996).

4The Commission has modified the text of the

summaries submitted by SCCP and Philadep.

5Securities Exchange Release No. 37554 (August

9, 1996), 61 FR 42929 [File No. SR–SCCP–96–03]

(order granting temporary approval of a proposed

rule change to establish a separate participant

category for inactive accounts through December

31, 1996).

6Securities Exchange Release No. 37554 (August

9, 1996), 61 FR 42929 [File No. SR–Philadep–96–

07] (order granting temporary approval of a

proposed rule change to establish a separate

participant category for inactive accounts through

December 31, 1996). 7 15 U.S.C. 78q–1(b)(3)(F).

temporary approval of the proposed rule

changes through December 31, 1996.3

II. Self-Regulatory Organizations’

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

In its filing with the Commission,

SCCP and Philadep included statements

concerning the purpose of and basis for

the proposed rule changes and

discussed any comments that they

received on the proposed rule changes.

The text of these statements may be

examined at the places specified in Item

IV below. SCCP and Philadep have

prepared summaries, set forth in

sections (A), (B), and (C) below, of the

most significant aspects of such

statements.4

(A) Self-Regulatory Organizations’

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

On February 22, 1996, SCCP and

Philadep converted their processing

environment from a next-day funds

settlement system to a SDFS system. In

an effort to reduce risk in a SDFS

environment, SCCP and Philadep put in

place a new system and new controls

with enhanced processing capabilities.

As a part of their conversion to SDFS,

SCCP and Philadep established new

participants fund formulas.

Both Philadep’s and SCCP’s Rule 4,

which govern the participants fund and

the procedures regarding the

participants fund formulas, currently

provide for an all cash participants

funds. The all cash requirement applies

to both the required deposits and any

additional or voluntary deposits made

by participants.

Pursuant to Rule 4 of SCCP’s rules

and the procedures thereunder, SCCP

calculates participants’ required cash

deposits pursuant to the following

formulas:

(a) Inactive Account: $5,000 5

(b) Full Service (‘‘CNS’’) Account—The

contribution of a CNS Participant is based

upon the larger of: (1) the participant’s

monthly average of trading activity during

the preceding three months, $1,000 for every

twenty-five trading units of one hundred

shares; or (2) the participant’s aggregate

dollar amount of all long trades at their

execution price for the prior three months

divided by the number of days in the prior

three months multiplied by two percent. The

required contributions are rounded upward

to $5,000 increments, and the average is a

rolling average.

(c) Regional Interface Operations (‘‘RIO’’)

Account—The contribution of a RIO

Participant is based on the participant’s

monthly average of trading activity during

the preceding three months, $1,000 for every

twenty-five trading units of one hundred

shares (with a $10,000 minimum and a

$75,000 maximum contribution). The

required contributions are rounded upward

to $5,000 increments. A RIO Account is

defined as a participant account whereby the

participant elects to settle with a clearing

corporation other than SCCP.

(d) Layoff Account—The contribution of a

Layoff Participant is set at a uniform rate of

$25,000. A Layoff Participant Account is

defined as a participant account whereby the

participant elects to settle with a clearing

corporation other than SCCP for trades not

executed on the Philadelphia Stock

Exchange.

(e) Specialist Margin Account—The

contribution of a Specialist Margin

Participant is set at a uniform rate of $35,000.

(f) Non-Specialist Margin Account—The

contribution of a Non-Specialist Margin

Participant is set at a uniform rate of $35,000.

Pursuant to Rule 4 of Philadep’s rules

and the procedures thereunder,

Philadep calculates participants’

required cash deposit pursuant to the

following formulas:

(a) Inactive Accounts: $5,000.00 6

(b) Specialized Services: (maximum

$50,000 required with $100 or greater in

average monthly billings for either

Deposit or Transfer activity)

—Deposit Activity: $25,000.00 plus

—Transfer Activity: $25,000.00

(c) Participants not doing Specialized

Service activity with service fees of

$100 or greater in average monthly

billings. The greater of either:

(1) $25,000 or

(2) 1% of the average of the three

highest net debits over the past three

months (rounded to the next $5,000

increment).

Both SCCP and Philadep recalculate

each participant’s deposit requirement

at the end of each month based on a

participant’s activity for the previous

three months prior to the most recent

month. SCCP and Philadep notify their

participants of the amount of any

required deposit increase within ten

business days of the end of the month.

Participants whose deposit

requirements have decreased are

notified at least quarterly although they

may inquire and withdraw excess

deposits monthly. Participants may

leave excess cash deposits in the

participants fund. SCCP participants

with deposits in excess of $50,000

receive interest rebates from SCCP.

The temporary approval periods for

SCCP’s and Philadep’s participants fund

formulas expire on December 31, 1996.

Therefore, SCCP and Philadep have

requested that the Commission

permanently approve their participants

fund formulas.

SCCP and Philadep believe the

proposed rule changes are consistent

with the requirements of Section 17A of

the Act and the rules and regulations

thereunder because the rule proposals

will promote the prompt and accurate

clearance and settlement of securities

transactions and will assure the

safeguarding of securities and funds in

the custody or control of SCCP and

Philadep or for which SCCP and

Philadep are responsible.

(B) Self-Regulatory Organizations’

Statement on Burden on Competition

SCCP and Philadep do not believe

that the proposed rule change will

impact or impose a burden on

competition.

(C) Self-Regulatory Organizations’

Statement on Comments on the

Proposed Rule Changes Received From

Members, Participants, or Others

No written comments have been

solicited or received. SCCP and

Philadep will notify the Commission of

any written comments received by SCCP

and Philadep.

III. Date of Effectiveness of the

Proposed Rule Changes and Timing for

Commission Action

Section 17A(b)(3)(F) of the Act 7

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

the clearing agency or for which it is

responsible. While the Commission

believes at this time that some of SCCP’s

and Philadep’s participants fund

formulas are consistent with this

obligation, the Commission continues to

have concerns about the adequacy of

some of SCCP’s and Philadep’s

participants fund formulas in providing

a sufficient source of cash liquidity and

in meeting the standards set forth by the
1020 Federal Register / Vol. 62, No. 4 / Tuesday, January 7, 1997 / Notices

8Securities Exchange Act Release No. 16900

(June 17, 1980), 45 FR 41920 (order publishing

standards to be used by the Division in reviewing

the grant of full registration of clearing agencies).

9For a complete description of SCCP’s and

Philadep’s financing program, refer to Securities

Exchange Act Release No. 20221 (September 23,

1983), 48 FR 45167 (order approving full

registration of SCCP, Philadep, et al.).

10The staff of the Board of Governors of the

Federal Reserve System has concurred with the

Commission’s granting of accelerated approval of

Philadep’s proposed rule change. Telephone

conversation between John Rudolph, Board of

Governors of the Federal Reserve System, and Chris

Concannon, Staff Attorney, Division, Commission

(December 30, 1996). 11 17 CFR 200.30–3(a)(12).

Division of Market Regulation

(‘‘Division’’).8

The Commission believes that

clearing agencies operating SDFS

systems must have sufficient liquidity

from a combination of cash and lines of

credit to ensure that settlement occurs at

the end of the business day even if a

participant fails to settle with the

clearing agency or if the clearing agency

experiences a systems problem. The

Commission further believes that a

clearing agency must have immediate

access to an amount of cash which will

enable the clearing agency to fund

settlement for most participant failures

or systems problems without having to

immediately draw on its lines of credit

(i.e., a clearing agency’s lines of credit

should be its secondary source of

liquidity and not its primary source).

Given the demand for liquidity under an

SDFS environment and in light of

SCCP’s use of its participants fund to

finance specialists purchases, the

Commission has concerns about the

sufficiency of the levels of cash liquidity

provided by SCCP’s and Philadep’s

formulas.9 For these reasons, the

Commission is approving the proposed

rule changes through June 30, 1997, in

order that the Commission, SCCP, and

Philadep can continue to analyze the

adequacy of SCCP’s and Philadep’s

participants formulas.

SCCP and Philadep have requested

that the Commission approve the

proposed rule changes on an accelerated

basis. The Commission finds good cause

for approving the proposed rule changes

prior to the thirtieth day after the date

of publication of notice of filing because

the proposed rule changes will allow

SCCP and Philadep to continue to apply

their participants fund formulas when

the current temporary approvals expire

on December 31, 1996.10

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, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of SCCP and Philadep.

All submissions should refer to file

numbers SR–SCCP–96–10 and SR–

Philadep–96–19 and should be

submitted by January 28, 1997.

It is therefore ordered pursuant to

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

proposed rule changes (File Nos. SR–

SCCP–96–10 and SR–Philadep–96–19)

be, and hereby are approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–233 Filed 1–6–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Reports, Forms and Recordkeeping

Requirements Agency Information

Collection Activity Under OMB Review

AGENCY: Department of Transportation

(DOT).

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 35, as amended) this

notice announces the Department of

Transportation’s (DOT) intention to

request extensions for eight currently

approved information collections

coming up for renewal, and

reinstatement, without change, of a

previously approved collection for

which approval has expired. The

Federal Register Notice with a 60-day

comment period soliciting comments on

the following collections of information

was published on October 22, 1996 [FR

61, page 54832]. 1. Transfer Procedures/

Waste Management Plans; 2. Vital

System Automation; and 3. Vessels

Reporting Requirements. The Federal

Register Notice with a 60-day comment

period soliciting comments on the

following collections of information was

published on October 29, 1996 [FR 61,

page 55834–55835]. These ICRs include:

1. Boating Accident Report; 2.

Certificate of Discharge to Merchant

Mariners; 3. Report of Oil or Hazardous

Substance Discharge; 4. Plan Approval

and Records for Marine Engineering

Systems; 5. Benzene; and 6. Vessel

Identification System (VIS).

DATES: Comments on this notice must be

received on or before February 6, 1997.

FOR FURTHER INFORMATION CONTACT:

Barbara Davis, U.S. Coast Guard, Office

of Information Management, telephone

(202) 267–2326.

SUPPLEMENTARY INFORMATION:

U.S. Coast Guard

1. Title: Boating accident Report.

OMB Control Number: 2115–0010.

Form Number(s): CG–3865, CG–

3865A.

Type of Request: Extension of a

currently approved collection.

Affected Entities: Operators of

recreational boats.

Abstract: The collection of

information requires operators of

recreational boats that are involved in

an accident to notify the nearest

reporting authority of the accident and

submit a casualty or accident report to

that authority.

Need: Title 46 U.S.C. 6102(a) requires

the establishment of a uniform marine

casualty reporting system, with

regulations prescribing casualties to be

reported and the manner of reporting.

The statute requires a State to compile

and submit to the Coast Guard; reports,

information and statistic on casualties

that are reported to the State.

Estimated Burden: The estimated

burden is 4,232 hours annually.

2. Title: Certificate of Discharge to

Merchant Mariners.

OMB Control Number: 2115–0042.

Form Number(s): CG–718A.

Type of Request: Extension of a

currently approved collection.

Affected Entities: Masters or Mates of

Shipping Companies and Merchant

Mariners.

Abstract: This collection of

information requires a master or mate of

a shipping company to submit

information on merchant mariners to

the U.S. Coast Guard that: (1) establishes

their sea service time; (2) sets forth their

qualifications for their original or

upgrading their existing credentials; and