51710 Federal Register / Vol. 62, No. 191 / Thursday, October 2, 1997 / Notices

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 27631

(January 17, 1990), 55 FR 2462 (January 24, 1990)

(approving SR–PSE–89–27 and Amendment No. 1

thereto) (‘‘Pilot Approval Order’’).

4See Exchange Act Release Nos. 31063 (August

21, 1992), 57 FR 39255 (August 28, 1992); 31635

(December 22, 1992), 57 FR 62414 (December 30,

1992); 33854 (April 1, 1994), 59 FR 16873 (April 8,

1994); 34710 (September 23, 1994), 59 FR 50306

(October 3, 1994); 36293 (September 28, 1995), 60

FR 52243 (October 5, 1995); and 37767 (September

30, 1996), 61 FR 52483 (October 7, 1996). See also

File No. SR–PSE–93–16 (requesting permanent

approval of the pilot program) and Amend. Nos. 1–

3 thereto (requesting pilot program extensions

while the request for permanent approval was

pending). On April 20, 1994, the Exchange

withdrew File No. SR–PSE–93–16 pursuant to

Commission’s request. See Letter from David P.

Semak, Vice President, Regulation, PSE, to Sharon

M. Lawson, Assistant Director, Division of Market

Regulation, Commission, dated April 20, 1994.

5Cf. Rules 8.80 and 8.81 of the Chicago Board

Options Exchange.

6See Exchange Act Release No. 37780 (October 3,

1996), 61 FR 53247 (October 10, 1996) (Order

approving File No. SR–PSE–96–03).

7 15 U.S.C. § 78f(b).

8 15 U.S.C. § 78f(b)(5).

9 15 U.S.C. § 78f(b)(5).

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39111; File No. SR–PCX–

97–33]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Pacific Exchange,

Inc., Relating to Permanent Approval

of its Lead Market Maker System

September 22, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 5,

1997, the Pacific Exchange, Inc. (‘‘PCX’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) 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

The Exchange is proposing to adopt

its Lead Market Maker (‘‘LMM’’) Pilot

Program on a permanent basis. The text

of the proposed rule change is available

at the Office of the Secretary, PCX and

at the Commission.

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 most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

On January 17, 1990, the Commission

approved, on a pilot basis, an Exchange

proposal to establish a Lead Market

Maker system. The Commission initially

approved the LMM pilot program to

continue for eighteen months to July 31,

1991.3 Thereafter, the Commission

granted a number of extensions to the

program.4 The program is currently set

to expire on September 30, 1997. In

order to make the LMM program

permanent, PCX proposes to amend

commentary .01 of Exchange rule 6.82,

deleting the expiration date for the Lead

Market Maker system.

The program was originally created in

order to enhance the ability of the

Exchange to compete in a multiple

trading environment. It was designed

primarily for new option issues and

option issues with comparatively low

volume. Under the existing pilot

program, Members appointed as LMMs

assume responsibilities and acquire

rights in their appointed options classes

beyond the obligations and rights of

Market Makers who trade in the same

options issue. In addition to the regular

obligations of a Market Maker, an LMM

must assume additional obligations

designed to strengthen the market

making in his or her designated options

issue. Pursuant to Rule 6.82, the LMM

is responsible for, among other things:

ensuring the accurate dissemination of

market quotations; determining the

algorithm for the PCX’s Auto-Quote

System is designated option classes;

assuring that each market quotation is

honored consistent with certain

minimum obligations; participating in

the automatic execution system; being

present at the designated trading post

throughout each trading day; and

actively promoting the Exchange as a

marketplace. LMMs also receive a

guaranteed 50% participation in

transactions occurring on their

disseminated bids and offers in their

appointed issues.

The LMM pilot program is governed

by PCX Rules 6.82 and 8.83.5 On

October 3, 1996, the Commission

approved an Exchange proposal to

modify Rule 6.82 by adding several new

substantive provisions and by

restructuring the rule and clarifying

some of its existing provisions.6 The

Exchange notes that is has not

experienced any problems or received

any formal complaints due to the rule

changes that were approved.

The Exchange notes that as of July 28,

1997, 309 or (55.3%) of the 559 standard

equity options traded on the Options

Floor, and all 3 of the indexes on which

options are traded at the PCX, have been

assigned to LLMs. As of June 30, 1997,

those 312 issues accounted for 31.15%

of the total options volume traded on

the floor.

The Exchange believes, based on the

pilot’s performance, that the LMM

system is viable and effective and that

permanent approval of the LMM

program is warranted based on the

importance of maintaining the quality,

efficiency and competitiveness of the

Exchange’s markets.

Basis

The Exchange believes that the

proposal is consistent with Section 6(b)

of the Act,7 in general, and Section

6(b)(5),8 in particular, in that it is

designed to facilitate transactions in

securities, to promote just and equitable

principles of trade, and to protect

investors and the public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will 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

Written comments on the proposed

rule change were neither solicited nor

received.

III. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission has closely reviewed

the Lead Market Maker System and has

concluded that it is appropriate to

approve the system on a permanent

basis. The Commission finds that the

proposed rule change is consistent with

the requirements of Section 6(b)(5) of

the Act 9 in that it is designed to
Federal Register / Vol. 62, No. 191 / Thursday, October 2, 1997 / Notices 51711

10 15 U.S.C. § 78k–1(a)(1)(C)(i).

11Reports were required to be submitted by the

Exchange prior to each extension of the pilot

program. In addition, the Exchange submitted a

report prior to its request for permanent approval

of the Lead Market Maker program. The

Commission hereby incorporates by reference the

findings and conclusions contained in the original

approval order and subsequent extension orders for

the Lead Market Maker program. Securities

Exchange Act Release Nos. 27631 (January 17,

1990), 55 FR 2462; 29475 (July 23, 1991), 56 FR

36183; 31063 (August 21, 1992), 57 FR 39255; 92–

36 (December 22, 1992), 57 FR 62414; 33854 (April

1, 1994), 59 FR 16873; 34710 (September 23, 1994),

59 FR 50306; 36293 (September 28, 1995), 60 FR

52242; 37767 (September 30, 1996), 61 FR 52483.

12Securities Exchange Act Release No. 37767

(September 30, 1996), 61 FR 52483.

13 15 U.S.C. § 78f(b)(5), 15 U.S.C. § 78s(b)(2).

14 15 U.S.C. § 78s(b)(2).

15 17 CFR 200.30–3(a)(12).

facilitate transactions in securities, to

promote just and equitable principles of

trade, and to protect investors and the

public interest. In addition, the

Commission finds that the proposed

rule change is consistent with Section

11A(a)(1)(C)(i) of the Act 10 in that the

LMM pilot program contributes to the

Exchange’s maintenance of a fair and

orderly market and assures economic

and efficient execution of securities

transactions. The Commission notes that

since 1990, when PCX began operating

the LMM pilot program, PCX has made

a number of refinements to the program

over this period and has submitted

numerous reports to the SEC covering

the operation of the program. During

this period, the use of the LMM program

has grown significantly, yet there have

been only several minor complaints and

rule infractions reported.11

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth after the date of

publication of notice of filing thereof in

the Federal Register in order to permit

the uninterrupted continuation of the

LMM program. As set forth in its most

recent report to the Commission, the

PCX has represented that it has not

received significant complaints

regarding the operation of the pilot

program nor have problems arisen in

connection with operation of the pilot

program. Moreover, the current pilot

program was subject to a full comment

period last year 12 and no comments

were received. Accordingly, the

Commission believes it is consistent

with Sections 6(b)(5) and 19(b)(2) of the

Act 13 to approve the proposed rule

change on an accelerated basis.

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 the PCX. All submissions

should refer to File No. SR–PCX–97–33

and should be submitted by October 23,

1997.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,14 that the

proposed rule change (SR–PCX–97–33)

is hereby approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–26147 Filed 10–1–97; 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: Office of the Secretary, DOT.

ACTION: Notice.

SUMMARY: In compliance with the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 3501 et seq.), this notice

announces that the Information

Collection Request (ICR) abstracted

below has been forwarded to the Office

of Management and Budget (OMB) for

review and comment. The ICR describes

the nature of the information collection

and its expected burden. The Federal

Register Notice with a 60-day comment

period soliciting comments on the

following collection of information was

published on July 18, 1997 [62 FR,

38605–38606].

DATES: Comments must be submitted on

or before November 3, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Richard Weaver, Information Collection

Clearance Officer, Maritime

Administration, MAR–318, Room 7301,

400 Seventh Street, SW., Washington,

DC 20590. Telephone 202–366–5755 or

fax 202–366–3889. Copies of this

collection can also be obtained from that

office.

SUPPLEMENTARY INFORMATION:

Maritime Administration (MARAD)

Title: Request for Transfer of

Ownership, Registry, and Flag, or

Charter, Lease, or Mortgage of U.S.

Citizen Owned Documented Vessels.

Type of Request: Extension of a

currently approved collection.

OMB Control Number: 2133–0006.

Affected Public: Respondents are

vessel owners who have applied for

foreign transfer of U.S.-flag vessels.

Abstract: MARAD is required to

approve the sale, transfer, charter, lease,

or mortgage of U.S. documented vessels

to non-citizens, or the transfer of such

vessels to foreign registry and flag, or

the transfer of foreign flag vessels by

their owners as required by various

contractual requirements. These

provisions are implemented by 46 CFR

part 221.

Need: This information collection

requires a vessel owner to submit an

application for a prospective foreign

transfer of a U.S.-flag vessel. This

information will assist in the

determination of whether the vessel

proposed for transfer will initially

require retention under the U.S.-flag

statutory regulation. In such instances,

the application is reviewed and cleared

for approval by specialists within

MARAD, Department of Commerce, and

Department of Defense.

Estimated Annual Burden Hours: 440

hours.

Annual Responses: 220.

Send comments to the Office of

Information and Regulatory Affairs,

Office of Management and Budget, 725–

17th Street, NW., Washington, DC

20503, Attention MARAD Desk Officer.

Comments are invited on: whether the

proposed collection of information is

necessary for the proper performance of

the functions of the Department,

including whether the information will

have practical utility; the accuracy of

the Department’s estimate of the burden

of the proposed information collection;

ways to enhance the quality, utility and

clarity of the information to be

collected; and ways to minimize the

burden of the collection of information

on respondents, including the use of

automated collection techniques or

other forms of information technology.