Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Notices 49553

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 38925

(August 12, 1997), 62 FR 44158 (August 19, 1997).

Concurrently, pursuant to Section 19(b)(3)(A)(ii) of

the Exchange Act, Nasdaq filed with the

Commission an identical rule change that applies

to NASD members. See Securities Exchange Act

Release No. 38926 (August 12, 1997), 62 FR 44157

(August 19, 1997). 4 15 U.S.C. 78o-3.

5 In approving this rule, the Commission notes

that it has considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

6 17 CFR 200.30–3(a)(12).

07 and should be submitted by October

14, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25028 Filed 9–19–97; 8:45 am]

BILLING CODE 8010–01–M

SECUTITIES AND EXCHANGE

COMMISSION

[Release No. 34–39083; File No. SR–NASD–

97–54]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the National Association of Securities

Dealers, Inc., Relating to Computer-toComputer Interface Circuit Fees for

Non-NASD Members

September 16, 1997.

On July 28, 1997, the Nasdaq Stock

Market, Inc. (‘‘Nasdaq’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) a proposed

rule change pursuant to Section 19(b)(1)

of the Securities Exchange Act of 1934

(‘‘Exchange Act’’) 1 and Rule 19b–4

thereunder 2 to amend Rule 7010 of the

National Association of Securities

Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), to charge Computer-toComputer Interface (‘‘CTCI’’) subscribers

that are not NASD members a circuit fee

of $200 per month for each circuit.

Notice of the proposed rule change,

together with the substance of the

proposal, was provided by issuance of a

Commission release and by publication

in the Federal Register.3 No comment

letters were received. The Commission

is approving the proposed rule change.

I. Description of Rule Change

Nasdaq proposed the rule change in

order to charge CTCI subscribers that are

not NASD members a circuit fee of $200

per month for each circuit. Firms

employ CTCI between their in-house

computer systems and Nasdaq for a

variety of functions, the most prevalent

being order entry into the Small Order

Execution System (‘‘SOES’’) and the

reporting of transactions into the

Automated Confirmation Transaction

Service (‘‘ACT’’). Nasdaq currently

supports a total of 449 circuits.

Although most users of CTCI are

NASD members, a small number are

not. Specifically, these are mutual funds

or their pricing agents that may use

CTCI for transmitting net asset values

(‘‘NAVs’’) each day to Nasdaq’s Mutual

Fund Quotation Service. To ensure that

the costs are uniformly allocated among

all CTCI subscribers, Nasdaq is

proposing to apply the circuit charge to

these subscribers as well.

The CTCI network is presently

managed by MCI Communications

Corp., which is responsible for customer

services including installation,

relocation and trouble shooting.

Subscribers pay a monthly fee to MCI

for each circuit in use. Nasdaq does not

currently charge CTCI subscribers

beyond the fees associated with the

transaction services supported by the

CTCI network.

Nasdaq believes that the new fee

structure is necessary due to

adjustments and enhancements that

Nasdaq has already made to support

capacity for trading days of 1 billion

shares currently, 1.5 billion shares by

the end of 1997, and 2 billion shares in

1998. As the number of CTCI circuits

grows, the potential to exceed capacity

limits in the CTCI supported services,

notably ACT and SOES, likewise

increases. As a consequence, additional

infrastructure enhancements will be

required to maintain the level of support

required to run these services at an

acceptable level of performance. In

addition to future systems

enhancements, Nasdaq continues to

incur costs for the support of CTCI

circuits and subscribers. These costs

include hardware and software

enhancements and upgrades for the

communications interfaces with Nasdaq

systems, support of the subscriber

database, customer telephone support

and Nasdaq staff planning and

provisioning for CTCI. A recent activitybased costing analysis indicated that

these costs total approximately $1.1

million annually, which Nasdaq seeks

to recover through this fee.

Nasdaq believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(5) of the

Exchange Act,4 which requires that the

rules of the NASD provide for the

equitable allocation of reasonable dues,

fees and other charges among members

and issuers and other persons using any

facility or system which the NASD

operates or controls.

II. Discussion

The Commission finds the proposed

rule change is consistent with the

requirements of the Exchange Act and

the rules and regulations thereunder

applicable to a national securities

association and, in particular, the

requirements of Section 15A(b)(5) of the

Exchange Act.5 Section 15A(b)(5)

requires that the rules of a national

securities association provide for the

equitable allocation of reasonable dues,

fees, and other charges among members

and issuers and other persons using any

facility or system which the association

operates or controls. The Commission

believes that the CTCI fee for nonmembers is reasonable and results in an

equitable allocation of the costs between

NASD members and non-members

associated with operating CTCI. The

proposed rule change will merely act to

offset Nasdaq’s costs of doing so.

Further, it is important that Nasdaq

continue to increase its capacity and

that it continue its infrastructure

enhancements. Improvements such as

these, which strengthen the national

market system, are in the public

interest. Accordingly, the Commission

finds that Nasdaq’s proposal is

appropriate and consistent with the

Exchange Act.

III. Conclusion

It Is Therefore Ordered, pursuant to

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

that the proposed rule change (SR–

NASD–97–54) be, and hereby is,

approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25082 Filed 9–19–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39080; International Series

Release No. 1100; File No. SR–ODD–97–1]

Self-Regulatory Organizations; OMLX,

The London Securities and Derivatives

Exchange Limited; Order Approving

Proposed Options Disclosure

Document, as Amended

September 15, 1997.

On June 30, 1997, OMLX, The London

Securities and Derivatives Exchange
49554 Federal Register / Vol. 62, No. 183 / Monday, September 22, 1997 / Notices

1 17 CFR 240.9b–1.

2These documents will be available by request to

OMLX, The London Securities and Derivatives

Exchange, Limited, 107 Cannon Street, London

EC4N 5AD, or by accessing OMLX’s Internet

address at: http:\\omgroup.com\.

3Rule 9b–1 provides that the use of an ODD shall

not be permitted unless the options class to which

the document relates is the subject of an effective

registration statement on Form S–20 under the

Securities Act of 1933. On September 12, 1997, the

Commission, pursuant to delegated authority,

declared effective, OMLX’s Form S–20 registration

statement. See File No. 333–34519.

4 17 CFR 240.9b–1.

5 17 CFR 200.30–3(a)(39).

Limited submitted to the Securities and

Exchange Commission (‘‘SEC’’ or

‘‘Commission’’), pursuant to Rule 9b–1

under the Securities Exchange Act of

1934 (‘‘Act’’),1 five preliminary copies

of its options disclosure document

(‘‘ODD’’), which describes the risks and

characteristics of OMLX exchangetraded put and call options available to

American investors.

On August 15, the OMLX exchange

submitted an amendment to the ODD

providing that the National Association

of Securities Dealers, Inc. (the ‘‘NASD’’),

will not serve as a U.S. custodian of

OMLX’s Rulebook, ODD, and

registration statement, which includes a

prospectus.2

Rule 9b–1 provides that an options

market must file five preliminary copies

of an ODD with the Commission at least

60 days prior to the date definitive

copies of the ODD are furnished to

customers, unless the Commission

determines otherwise, having due

regard to the adequacy of information

disclosed and the protection of

investors. In addition, Rule 9b–1

requires an options market to file five

copies of an amendment to the ODD

with the Commission at least 30 days

prior to the date definitive copies are

furnished to customers, unless the

Commission determines otherwise,

having due regard to the adequacy of

information disclosed and the

protection of investors. The Commission

has reviewed the OMLX exchange’s

ODD, as amended, and finds that it is

consistent with the protection of

investors and in the public interest to

allow the distribution of the disclosure

document as of the date of this order.3

It is therefore ordered, pursuant to

Rule 9b–1 under the Act,4 that the

proposed OMLX ODD, as amended, is

approved, on an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

by Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25026 Filed 9–19–97 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket No. RSAC–96–1, Notice No. 6]

Railroad Safety Advisory Committee;

Notice of Meeting

AGENCY: Federal Railroad

Administration (FRA), Department of

Transportation (DOT).

ACTION: Notice of Railroad Safety

Advisory Committee (‘‘RSAC’’) meeting.

SUMMARY: FRA announces the next

meeting of the RSAC, a Federal

Advisory Committee that develops

railroad safety regulations through a

consensus process. The meeting will

address a wide range of topics,

including possible adoption of specific

recommendations for regulatory action

and consideration of new tasks to be

proposed by FRA.

DATES: The meeting of the RSAC is

scheduled to commence at 9:30 a.m. and

conclude at 4:00 p.m. on Tuesday,

September 30, 1997.

ADDRESSES: The meeting of the RSAC

will be held at the BWI Airport Marriott,

1743 West Nursery Road, Baltimore,

Maryland. The meeting is open to the

public on a first-come, first-served basis

and is accessible to individuals with

disabilities. Sign language interpreters

will be available for individuals with

hearing impediments.

FOR FURTHER INFORMATION CONTACT:

Vicky McCully, FRA, 400 7th Street,

S.W. Washington, D.C. 20590, (202)

632–3330, Grady Cothen, Deputy

Associate Administrator for Safety

Standards and Program Development,

FRA, 400 7th Street, S.W., Washington,

D.C. 20590, (202) 632–3309, or Lisa

Levine, Office of Chief Counsel, FRA,

400 7th Street, S.W., Washington, D.C.

20590, (202) 632–3189.

SUPPLEMENTARY INFORMATION:.

Pursuant to section 10(a)(2) of the

Federal Advisory Committee Act (Pub.

L. 92-463), FRA is giving notice of a

meeting of the Railroad Safety Advisory

Committee (‘‘RSAC’’). The meeting is

scheduled to begin at 9:30 a.m. and

conclude at 4:00 p.m. on Tuesday,

September 30, 1997. The meeting will

be held at the BWI Airport Marriott,

1743 West Nursery Road, Baltimore,

Maryland. All times noted are Eastern

Standard Time.

RSAC was established to provide

advice and recommendations to the

FRA on railroad safety matters. The

Committee consists of 48 individual

representatives, drawn from among 27

organizations representing various rail

industry perspectives, and 2 associate

non-voting representatives from the

agencies with railroad safety regulatory

responsibility in Canada and Mexico.

Staff of the National Transportation

Safety Board also participates in an

advisory capacity.

During this meeting, the RSAC will

receive status reports, containing

progress information, regarding the

proposed revision of the Track Safety

Standards (including recently published

NPRM on revisions to the track safety

standards contained in 49 CFR part 213

and related issues) and the Notice of

Proposed Rulemaking on Railroad

Communications (including revisions to

49 CFR part 220).

The Committee will be briefed on,

and may be asked to consider for

approval, the Tourist and Historic

Railroad working group’s proposal for

the revision of the steam locomotive

inspection and testing standards

contained in 49 CFR part 230.

The RSAC will also be receiving

status reports, containing progress

information, concerning three recently

constituted elements of the Committee:

the Locomotive Crashworthiness

Working Group, the Locomotive Cab

Working Conditions Working Group,

and the Event Recorder Working Group

(established to develop locomotive

event recorder accident survivability

standards and other amendments).

Finally, the agency will present four

new tasks to the Committee for its

acceptance: (1) review of the definition

of events required to be reported as

‘‘train accident’’ under the Accident/

Incident Reporting regulations; (2)

development of performance standards

for communications- and processorbased signal and train control systems;

(3) evaluation of requirements for

Positive Train Control (PTC), including

costs and benefits of PTC systems; and

(4) revisions to the regulations

addressing freight cars safety standards,

specifically with respect to applicability

to freight cars used for maintenance of

way purposes.

Please refer to the notice published in

the Federal Register on March 11, 1996

(61 F.R. 9740) for more information

about the RSAC.

Donald M. Itzkoff,

Deputy Administrator.

[FR Doc. 97–25112 Filed 9–17–97; 3:15 pm]

BILLING CODE 4910–06–P