Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Notices 53679

5 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 38372

(March 7, 1997), 62 FR 13421 (March 21, 1997)

(notice of filing and immediate effectiveness of File

No. SR–NYSE–97–04).

4 15 U.S.C. 78f(b)(5).

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the NASD 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, 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. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File

Number SR–NASD–97–04, and should

be submitted by November 5, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27281 Filed 10–14–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39206; File No. SR–NYSE–

97–27]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the New York Stock

Exchange, Inc. Relating to Extension

of the Pilot for Allocation Policy and

Procedures

October 6, 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

September 19, 1997, the New York

Stock Exchange, Inc. (‘‘NYSE’’ 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 self-regulatory organization. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons and to

grant accelerated approval to the

proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change extends the

effectiveness of the pilot program

relating to the Exchange’s Allocation

Policy and Procedures until November

28, 1997. The text of the proposed rule

change is available at the Office of the

Secretary, the NYSE, 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 III 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

The purpose of the proposed rule

change is to extend the effectiveness of

a pilot program relating to the

Exchange’s Allocation Policy and

Procedures. The Exchange’s Allocation

Policy and Procedures are intended: (1)

To ensure that securities are allocated in

an equitable and fair manner and that

all specialist units have a fair

opportunity for allocations based on

established criteria and procedures; (2)

to provide an incentive for ongoing

enhancement of performance by

specialist units; (3) to provide the best

possible match between specialist unit

and security and (4) to contribute to the

strength of the specialist system.

The Exchange recently implemented,

on a pilot basis, a revised Allocation

Policy and Procedures to amend the

procedures by which the Exchange

selects a specialist for newly listed

companies.3 The Exchange’s pilot

program, which expires October 7, 1997,

provides listing companies with two

options, either: (1) To have their

specialist unit selected by the

Allocation Committee according to

existing allocation criteria, with

company input permitted in the form of

a ‘‘generic letter’’ which may describe

desired general characteristics of a

specialist unit, but may not mention

particular units or describe

characteristics that would be applicable

to a readily identifiable specialist unit;

or (2) to make the final selection of a

specialist unit from among three to five

units selected by the Allocation

Committee, with a generic letter from

the company describing desired

specialist unit characteristics permitted,

as in (1) above. In the case of both

options, if a generic letter is submitted,

the letter would be distributed to all

specialist units along with allocation

data sheets (‘‘green sheets’’).

The Exchanges proposes to extend the

Allocation Policy and Procedure pilot

program until November 28, 1997 to

continue to study its effects.

2. Statutory Basis

The NYSE believes the proposed rule

change is consistent with the

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

Act 4 that an Exchange have rules that

are designed to promote just and

equitable principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system and, in

general, to protect investors and the

public interest. The Exchange believes

that extending the effectiveness of the

Allocation Policy and Procedures until

November 28, 1997 is consistent with

these objectives in that they enable the

Exchange to further enhance the process

by which stocks are allocated between

specialist units to ensure fairness and

equal opportunity in the process.

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.
53680 Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Notices

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

7 15 U.S.C. 78s(b)(2).

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12)

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

2The closing date may be adjusted by the mutual

consent of the parties to the Agreement.

3The Commission has modified the text of the

summaries prepared by Philadep.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. 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

Room, 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 NYSE. All submissions

should refer to File No. SR–NYSE–97–

27 and should be submitted by

November 5, 1997.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds the proposed

rule change is consistent with the

requirements of the Act and the rules

and regulations thereunder applicable to

a national securities exchange.5

Specifically, the Commission believes

the Exchange’s proposal to extend the

effectiveness of the pilot program until

November 28, 1997 is consistent with

Section 6(b)(5) of the Act 6 because the

extension will permit the NYSE to

further study the impact of the revised

Allocation Policy and Procedures. The

Commission notes that the extension is

limited in duration. The Commission

believes that it is reasonable to extend

the pilot program for a short period of

time to allow the Exchange further time

to determine whether the revised

allocation procedures are fair to all

market participations, including listing

companies, specialist units and public

investors. The Commission expects the

NYSE to submit any supplemental

information it has on the pilot program,

along with any request to modify,

extend, or permanently approve the

pilot by October 17, 1997.

The Commission finds good cause for

approving the proposed rule change

prior to the 30th day after publication of

the proposed rule change in the Federal

Register. The Commission notes that

accelerated approval will enable the

Exchange to continue the Allocation

Policy and Procedures pilot program on

an uninterrupted basis. The

Commission further notes that it has

previously solicited comments on the

pilot program and no comments were

received. Further, the extension of the

existing pilot is of limited duration,

only until November 28, 1997. For the

foregoing reasons, the Commission

believes that good cause exists pursuant

to Section 19(b)(2) of the Act 7 to

approve the proposed rule change on an

accelerated basis.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (SR–NYSE–97–

27) is hereby approved on an

accelerated basis until November 28,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27283 Filed 10–14–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39221; File No. SR–

Philadep–97–04]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company; Notice of Filing of Proposed

Rule Change Relating to Ceasing

Activity as a Securities Depository

October 8, 1997.

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

Securities Exchange Act of 1934

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

September 25, 1997, Philadelphia

Depository Trust Company (‘‘Philadep’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II and III below, which items

have been prepared primarily by

Philadep. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Under the proposed rule change,

Philadep will cease to engage in

securities depository services. Philadep,

Stock Clearing Corporation of

Philadelphia (‘‘SCCP’’), and their parent

organization, Philadelphia Stock

Exchange, Inc. (‘‘PHLX’’) entered into an

agreement dated as of June 18, 1997

with The Depository Trust Company

(‘‘DTC’’) and the National Securities

Clearing Corporation (‘‘NSCC’’)

(‘‘Agreement’’). Under the Agreement,

DTC and NSCC will assist PHLX in

winding down the operation of its full

clearing agency services by offering

SCCP participants and Philadep

participants an opportunity to become

members of NSCC or DTC, as the case

may be. In consideration for DTC’s and

NSCC’s assistance, PHLX, SCCP, and

Philadep have agreed not to engage in

the securities clearing and depository

business for five years, except as

otherwise specified in the Agreement.

The parties to the Agreement

tentatively have scheduled the closing

date for the Agreement to be November

14, 1997.2 SCCP and Philadep have

informed their participants of the

Agreement and are taking measures to

ensure the orderly transition of

participants to alternative clearing and

depository arrangements.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Philadep 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.

Philadep has prepared summaries, set

forth in sections (A), (B) and (C) below,

of the most significant aspects of these

statements.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

PHLX has decided to limit its

clearance and settlement business and