50048 Federal Register / Vol. 62, No. 185 / Wednesday, September 24, 1997 / Notices

broker-dealer member. Like the Chicago Match

System, the NYSE’s SuperDOT system requires

NYSE members to monitor customers’ electronic

orders and to provide the NYSE with an

acknowledgement indicating their responsibility for

orders. See id.

77The NYSE asserted that new Rule 15.4

proposed by PCX improperly stated that ‘‘the

Exchange’s short sale rule (Rule 5.18) shall not be

applicable to any resulting transaction in the

Exchange.’’ See Letter from James E. Buck, NYSE,

supra, note 4, at 4. The Commission notes that the

PCX has removed this statement from proposed

new Rule 15.4. 78 15 U.S.C. §§ 78f and 78s(b)(2).

79 15 U.S.C. § 73s(b)(2).

80CFR 200.30–3(a)(12).

Seventh, PCX is adopting reasonable

requirements for the clearance and

settlement of transactions resulting from

the Application. In particular, the

Commission believes it is appropriate

for PCX to require that: (i) All orders

generated by the Application that are

executed on PCX or another market

center through ITS be reported and

entered into the comparison system on

a locked-in basis; (ii) orders generated

by the Application on behalf of a

member User and the resulting

transactions be cleared and settled using

that member User’s mnemonic (or its

clearing broker’s mnemonic, as

applicable); and (iii) orders generated by

the Application on behalf of a nonmember User and the resulting

transaction be cleared and settled using

the appropriate Designated Broker’s

mnemonic.

Finally, the Commission believes that

PCX has established that short sales

effected through the Application,

pursuant to the requested exemption

and in accordance with the restrictions

contained in proposed Rule 15.3(b),

would not be susceptible to the

practices that Rule 10a–1 is designed to

prevent. PCX has amended its proposal

to provide for substantial compliance

with Rule 10a–1.77 PCX represents that

the first match of a Cycle, if it involves

a short sale, would be in compliance

with Rule 10a–1. Subsequent matches

would use the price of the immediately

preceding match in the Cycle, rather

than the last trade in the consolidated

transaction reporting system as a

reference. The Division of Market

Regulation, by delegated authority,

intends to grant PCX an exemption from

Rule 10a–1 to permit matches within a

Cycle (those subsequent to the initial

match) to use the immediately prior

match as a reference for determining

compliance with Rule 10a–1. The

Commission, therefore, believes that

PCX has adequately addressed concerns

arising under the short sale rule.

The Commission finds that good

cause exists to grant approval to

Amendment Nos. 1, 2, and 3 to the

proposed rule change on an accelerated

basis. Collectively, these amendments

reflect PCX’s proposed handling of short

sales affected through the Application

and clarify PCX specialist obligations

relating to price protection for orders

generated by the Application. The short

sale amendment narrows the scope of

the proposed short sale exemption

attendant to OptiMark transactions.

Moreover, as stated above, the

Commission has determined that PCX’s

proposed short sale restrictions

substantially mirror the requirements of

Rule 10a–1 and are designed in a

manner that will not permit the types of

short sale practices Rule 10a–1 was

designed to prohibit. Accordingly, the

Division intends to issue PCX an

exemption from Rule 10a–1. In addition,

the Commission believes that the

amendments pertaining to specialist

price protection obligations resulting

from orders generated by the

Application merely clarify and provide

explanatory examples of how the PCX

rules relating to the Application will

ensure price protection of limit orders.

The Commission therefore finds good

cause to accelerate approval of

Amendment Nos. 1, 2, and 3.

V. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning Amendment Nos.

1, 2, and 3. 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. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the above-mentioned selfregulatory organization. All submissions

should refer to the file number in the

caption above and should be submitted

by October 15, 1997.

VI. Conclusion

For the reasons discussed above, the

Commission finds that the proposal is

consistent with the Act.78

It therefore is ordered, pursuant to

Section 19(b)(2) of the Act,79 that the

proposed rule change (SR–PCX–97–18)

is hereby approved, as amended.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.80

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25319 Filed 9–23–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Mid-Atlantic States Regional Fairness

Board; Public Hearing

The Mid-Atlantic States Regional

Fairness Board will hold a public

meeting on Thursday, September 25,

1997, at the CitiCorp Center, 135 E. 35th

Street, 14th Floor, Room J, New York,

NY, to inform the small business

community of the existence of a

regulatory enforcement oversight

process and of SBA’s desire to collect

information regarding businesses’

experience with regulatory enforcement

actions, and to discuss such matters as

may be presented by members, staff of

the U.S. Small Business Administration,

or others present.

For further information, please

contact Gary P. Peele at (312) 353–0880.

Dated: September 12, 1997.

Debra Silimeo,

Deputy Associate Administrator, Office of

Communications and Public Liaison.

[FR Doc. 97–25274 Filed 9–23–97; 8:45 am]

BILLING CODE 8025–01–P–M

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 290 (Sub No. 5) (97–

4)]

Quarterly Rail Cost Adjustment Factor

AGENCY: Surface Transportation Board,

DOT.

ACTION: Approval of rail cost adjustment

factor.

SUMMARY: The Board has approved a

fourth quarter 1997 rail cost adjustment

factor (RCAF) and cost index filed by

the Association of American Railroads.

The fourth quarter 1997 RCAF

(Unadjusted) is 1.104. The fourth

quarter 1997 RCAF (Adjusted) is 0.738.

The fourth quarter 1997 RCAF–5 is

0.718.

EFFECTIVE DATE: October 1, 1997.