52804 Federal Register / Vol. 62, No. 196 / Thursday, October 9, 1997 / Notices

44 15 U.S.C. 78s(b)(2).

45 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. 30597

(April 16, 1992), 57 FR 14855.

4Securities Exchange Act Release No. 33008

(October 4, 1993), 58 FR 52518.

5 15 U.S.C. 78f.

6 15 U.S.C. 78f(b)(5).

provisions of the Act, and in particular

with Section 6(b)(5).

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,44 that the

proposed rule change (SR–NYSE–96–

27) be, and hereby is approved, as

amended.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.45

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–26723 Filed 10–8–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39178; File No. SR–PHLX–

97–39]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Regarding ITSFEA Supervisory

Procedures

October 1, 1997.

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

Securities Exchange Act of 1934

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

August 18, 1997, the Philadelphia Stock

Exchange, Inc. (‘‘PHLX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the selfregulatory 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

PHLX, pursuant to Rule 19b–4 2 of the

Act, proposes to amend Exchange Rule

761, Supervisory Procedures Relating to

the Insider Trading and Securities Fraud

Enforcement Act of 1988 (‘‘ITSFEA’’),

and Floor Procedure Advice F–13, in

order to broaden the scope of their

applicability. The text of the proposed

rule change may be examined at the

places specified in Item IV below.

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

1. Purpose

On April 16, 1992, the Exchange

received approval to implement

Exchange Rule 761 3 which imposed

supervisory procedures on its floor units

respecting ITSFEA. In 1993, the

Exchange revised the rule in order to

make minor changes for the sake of

clarity.4 The rule currently requires

PHLX floor units to have every

employee sign an attestation that he or

she has read the most current version of

the Exchange’s ‘‘Notice of Insider

Trading’’ and will ensure that the

employer firm directly receives a

duplicate account statement for all

accounts in which the employee

maintains a beneficial interest. Further,

the rule requires all floor units to make

and keep current an ‘‘ITSFEA Account

List’’ and review all accounts listed with

a view towards identifying possible

misuse of material non-public

information.

Currently, the rule only applies to

PHLX floor units. Now, however, the

PHLX has become the designated

examining authority (‘‘DEA’’) for

approximately eighteen firms over the

past few years which do not have a floor

presence. These firms are not now

subject to the rule, and because no other

self regulatory organization (‘‘SRO’’) is

their DEA, they are exempt from these

requirements entirely. In order to rectify

this situation, the Exchange is proposing

to change the phrase ‘‘PHLX floor unit’’

to ‘‘PHLX member organization’’ in the

rule. That way, the rule will apply to all

PHLX member organizations, with the

caveat that any member organization

which is required to have ITSFEA

supervisory procedures pursuant to

rules of another SRO which is its DEA,

will not also be subject to PHLX Rule

761. Thus, all PHLX member firms for

which the Exchange is the DEA will be

subject to this rule, regardless of

whether they conduct business on the

floor of the Exchange or not.

The second purpose of this rule

change is to add commentary .01, which

will provide that for the purpose of the

rule, an employee will include ‘‘every

person who is compensated directly or

indirectly by the member organization

for the solicitation or handling of

business in securities, including trading

securities for the account of the member

organization, whether such securities

are those dealt in on the Exchange or

those dealt over-the-counter.’’ Thus,

independent contractors as well as

actual ‘‘employees’’ will be subject to

the requirements of the rule. This

language is similar to the language in

Exchange Rule 604(d).

Finally, Floor Procedure Advice F–13,

which mirrors the language of Rule 761,

with the addition of a fine schedule

under the Exchange’s minor rule plan,

also will be revised in the same manner

as Rule 761.

2. Statutory Basis

The proposed rule change is

consistent with Section 6 of the Act in

general,5 and particular, with Section

6(b)(5),6 in that it is designed to promote

just and equitable principles of trade,

prevent fraudulent and manipulative

acts and practices, to foster cooperation

and coordination with persons engaged

in regulating, clearing, settling,

processing information with respect to,

and facilitating transactions in

securities, to remove impediments to

and perfect the mechanism of a free and

open market and a national market

system, as well as to protect investors

and the public interest by assuring that

the requirements of the ITSFEA rule are

equally applied to all broker dealers and

all persons who conduct a securities

business for such broker dealers

whether they are considered employees

or independent contractors.

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. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal
Federal Register / Vol. 62, No. 196 / Thursday, October 9, 1997 / Notices 52805

7 17 CFR 200.30–3(a)(12).

Register or within such longer period (i)

as the Commission may designate, up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding; or

(ii) as to which the PHLX consents, the

Commission will:

A. by order approve such proposed

rule change, or

B. institute proceedings to determine

whether the proposed rule change

should be disapproved.

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, NW,

Washington, DC 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, NW,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the PHLX. All submissions

should refer to File No. SR–PHLX–97–

39 and should be submitted by October

30, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–26722 Filed 10–8–97; 8:45 am]

BILLING CODE 8010–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

Request of the Government of

Suriname to be Designated a

Beneficiary of the Caribbean Basin

Economic Recovery Act; Request for

Public Comment

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice; request for public

comment.

SUMMARY: Suriname has requested

designation as a beneficiary country

under the Caribbean Basin Economic

Recovery Act. Interested parties are

invited to submit comments relevant to

the criteria to be examined in

determining Suriname’s eligibility for

such designation.

DATES: Comments are due at USTR by

October 30, 1997.

ADDRESSES: Comments should be

addressed to: Susan Cronin, Director for

Caribbean and Central American Affairs,

Office of U.S. Trade Representative, 600

17th Street, N.W., Room 523,

Washington, D.C. 20506.

FOR FURTHER INFORMATION CONTACT:

Susan Cronin, Director for Caribbean

and Central American Affairs, Office of

United States Trade Representative, 600

17th Street, N.W., Room 523,

Washington, D.C. 20506; (202) 395–

5190.

SUPPLEMENTARY INFORMATION: The

Caribbean Basin Economic Recovery Act

(the ‘‘CBERA’’) (Title II, Pub. L. 98–67,

as amended (19 U.S.C. 2701 et seq.))

authorizes the President to proclaim

duty-free treatment for eligible articles

from designated beneficiary countries in

the Caribbean Basin. Suriname has

requested designation as a beneficiary

country under the CBERA.

Section 212(b) of the CBERA provides

that the President shall not designate

any country a CBERA beneficiary

country—

(1) If such country is a Communist

country;

(2) If such country

(A) Has nationalized, expropriated or

otherwise seized ownership or control

of property owned by a United States

citizen or by a corporation, partnership,

or association which is 50 per centum

or more beneficially owned by United

States citizens,

(B) Has taken steps to repudiate or

nullify—

(i) Any existing contract or agreement

with, or

(ii) Any patent, trademark, or other

intellectual property of, a United States

citizen or a corporation, partnership, or

association which is 50 per centum or

more beneficially owned by United

States citizens, the effect of which is to

nationalize, expropriate, or otherwise

seize ownership or control of propriety

so owned, or

(C) Has imposed or enforced taxes or

other exactions, restrictive maintenance

or operational conditions, or other

measures with respect to property so

owned, the effect of which is to

nationalize, expropriate, or otherwise

seize ownership or control of such

property, unless the President

determines that—

(i) Prompt, adequate, and effective

compensation has been or is being made

to such citizen, corporation,

partnership, or association.

(ii) Good-faith negotiations to provide

prompt, adequate, and effective

compensation under the applicable

provisions of international law are in

progress, or such country is otherwise

taking steps to discharge its obligations

under international law with respect to

such citizen, corporation, partnership,

or association, or

(iii) A dispute involving such citizen,

corporation, partnership, or association,

over compensation for such a seizure

has been submitted to arbitration under

the provisions of the Convention for the

Settlement of Investment Disputes, or in

another mutually agreed upon forum,

and promptly furnishes a copy of such

determination to the Senate and House

of Representatives;

(3) If such country fails to act in good

faith in recognizing as binding or in

enforcing arbitral awards in favor of

United States citizens or a corporation,

partnership or association which is 50

per centum or more beneficially owned

by United States citizens, which have

been made by arbitrators appointed for

each case or by permanent arbitral

bodies to which the parties involved

have submitted their dispute;

(4) If such country affords preferential

treatment to the products of a developed

country, other than the United States,

which has, or is likely to have, a

significant adverse effect on United

States commerce, unless the President

has received assurances satisfactory to

him that such preferential treatment

will be eliminated or that action will be

taken to assure that there will be no

such significant adverse effect, and he

reports those assurances to the

Congress;

(5) If a government-owned entity in

such country engages in the broadcast of

copyrighted material, including films or

television material, belonging to United

States copyright owners without their

express consent;

(6) Unless such country is a signatory

to a treaty, convention, protocol, or

other agreement regarding the

extradition of United States citizens;

and

(7) If such country has not or is not

taking steps to afford internationally

recognized worker rights (as defined in

section 502(a)(4) of the Trade Act of

1974) to workers in the country

(including any designated zone in that

country).

Paragraphs (1), (2), (3), (5), and (7)

shall not prevent the designation of any