Federal Register / Vol. 62, No. 244 / Friday, December 19, 1997 / Notices 66709

7See Securities Exchange Act Release No. 38961

(Aug. 22, 1997), 62 FR 45895 (Aug. 29, 1997). 8 17 CFR 200.30–3(a)(12).

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

2SCCP, Philadep, DTC, and NSCC have

submitted rule filings relating to the Agreement

which are being addressed in a separate order.

Securities Exchange Act Release Nos. 39220

(October 8, 1997, 62 FR 53848 (October 16, 1997)

[File No. SR–NSCC–97–08]; 39221 (October 8,

1997), 62 FR 53680 (October 15, 1997), [File No.

SR–Philadep–97–04]; 39222 (October 8, 1997), 62

FR 53847 62 FR 53847 (October 16, 1997) [File No.

SR–DTC–97–16]; and 39223; (October 8, 1997), 62

FR 53681 (October 15, 1997) [File No. SR–SCCP–

97–04].

Internet surveillance system. Additional

resources will be committed to

additional listing qualifications staff to

insure compliance with the recently

approved increase in Nasdaq’s listing

requirements.7 These initiatives, in

concert with the additional services

provided to companies and investors,

will enhance the overall quality of

companies listed on Nasdaq, foster the

protection of investors and promote the

integrity of The Nasdaq Stock Market.

The Nasdaq Stock Market expects to

witness the continuing rapid growth

and integration of the world’s equity

capital markets in the next few years.

Nasdaq plans to be in the position to

meet the growing demand of global

investors for ownership of U.S.

securities. This will require refinements

to the market and further development

of the global positioning of U.S.

companies. The proposed fee increase

will be used to cover costs that Nasdaq

is incurring by providing these extra

services to Nasdaq issuers, their

shareholders and potential investors.

The proposed rule change also deletes

references to filings received by Nasdaq

because the receipt by Nasdaq is not the

determinative test for which periodic

report is most recent. Furthermore, it

makes other conforming changes to

clarify the text of the applicable rules.

The NASD believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(5) and (6)

of the Act. The proposed rule change is

consistent with Section 15A(b)(5) as it

provides for the equitable allocation of

reasonable dues, fees, and other charges

among members and issuers using the

Nasdaq system. The proposed rule

change is consistent with section

15A(b)(6) as it is designed to promote

just and equitable principles of trade

and does not permit unfair

discrimination between customers,

issuers, brokers or dealers. As noted

above, the fee increase reflects

additional costs that Nasdaq incurs for

services provided to issuers.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD does not believe that the

proposed rule change will result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor 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

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 self-regulatory

organization 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

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 No.

SR–NASD–97–83 and should be

submitted by January 9, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–33193 Filed 12–18–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Release No. 34–39445; File No. SR–PHLX–

97–59

Self-Regulatory Organizations;

Philadelphia Stock Exchange,

Incorporated, Notice of Filing and

Order Granting Accelerated Approval

of a Proposed Rule Change Relating to

the Decision to Limit its Clearance and

Settlement Business and to Withdraw

From the Securities Depository

Business

December 11, 1997.

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

Securities Exchange Act of 1934

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

November 14, 1997, the Philadelphia

Stock Exchange, Incorporated,

(‘‘PHLX’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

PHLX–97–59) as described in Items I

and II below, which items have been

primarily prepared by PHLX. The

Commission is publishing this notice

and order to solicit comments from

interested parties and to grant

accelerated approval of the proposal.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposal Rule Change

The proposed rule change will allow

PHLX to limit its clearing services and

to stop providing depository services

that it currently operates through its

wholly owned subsidiaries, Stock

Clearing Corporation of Philadelphia

(‘‘SCCP’’) and Philadelphia Depository

Trust Company (‘‘Philadep’’),

respectively, in order to focus its

resources on the operation of the

exchange. PHLX has entered into an

agreement with SCCP, Philadep, The

Depository Trust Company (‘‘DTC’’),

and the National Securities Clearing

Corporation (‘‘NSCC’’), dated June 18,

1997, that set forth the arrangements

relating to PHLX’s decision

(‘‘Agreement’’).2
66710 Federal Register / Vol. 62, No. 244 / Friday, December 19, 1997 / Notices

3The Commission has modified the text of the

summaries prepared by PHLX.

4Securities Exchange Act Release No. 38918

(August 11, 1997) (Administrative Proceeding File

No. 3–9360).

5Securities Exchange Act Release No. 39223

(October 8, 1997), 62 FR 53681. Pursuant to the

Agreement, SCCP shall no longer open or maintain

Continuous Net Settlement (‘‘CNS’’) account for its

participants. SCCP may only continue to offer

clearing and margin services to: (i) PHLX equity

specialists for their specialist and alternate

specialist transactions, and for their proprietary

transactions in securities for which they are not

appointed as specialists or alternate specialists and

(ii) those PHLX members listed on schedule who

are not PHLX equity specialists for their proprietary

transactions. SCCP may add other PHLX members

to such schedule subject to NSCC’s approval.

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

7The Commission received one comment letter,

which pertained to DTC and NSCC, expressing

concern that PHLX’s decision to withdraw from the

clearance and settlement business reduced

competition in the market. The comment letter was

from P. Howard Edelstein, President, Electronic

Settlement Group, Thomson Financial Services, Inc.

(November 4, 1997). DTC responded to the

Comment letter in a letter from Richard S. Nesson,

Executive Vice President and General Counsel

(November 14, 1997).

8 15 U.S.C. 78f(b)(5).

9Securities Exchange Act Release No. 38918

(August 11, 1997) (Administrative Proceeding File

No. 3–9360).

10 In approving this rule, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

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

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for the Proposed Rule

Change

In its filing with the Commission,

PHLX included statements concerning

the purpose of, and the basis for, the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statements

have been examined at the places

specified in Item IV below. PHLX has

prepared summaries, as 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 the

Statutory Basis for, the Proposed Rule

Change

PHLX seeks to limit its clearance and

settlement business and to close its

securities depository business offered

through its wholly owned subsidiaries,

SCCP and Philadep, respectively, in

order to focus its resources on the

operations of the Exchange itself and to

settle an administrative proceeding

initiated against SCCP and Philadep by

the Commission.4 The purpose of the

Agreement is to enable PHLX, SCCP,

and Philadep to achieve this objective

while affording participants of SCCP

and Philadep the opportunity to become

participants of NSCC or DTC,

respectively, or to utilize the services of

other clearing and depository service

providers.

Under the Agreement, for a period of

five years PHLX, Philadep, and SCCP

may not engage in the clearance and

settlement and securities depository

businesses. However under the

Agreement, SCCP will be permitted to

offer certain clearing services to PHLX

members. In this regard, SCCP has

proposed in a separate filing to amend

its rules to restrict participation in SCCP

to PHLX members.5 SCCP will provide

margin accounts to certain PHLX floor

members and will settle their

transactions through a SCCP sponsored

omnibus account at NSCC. The PHLX

will guarantee to NSCC all liabilities

and obligations arising in connection

with the SCCP omnibus account,

including any such liabilities which

may arise as a result of NSCC

sponsoring a SCCP account at DTC.

Such guarantee shall be signed in a form

satisfactory to NSCC.

PHLX, SCCP, and Philadep will

cooperate with NSCC and DTC in

assuring an orderly transition regarding

PHLX’s limiting its clearance and

settlement services and withdrawal

from the securities depository business.

In this regard, NSCC will offer sole

SCCP participants an opportunity to

become NSCC participants if they meet

NSCC’s qualifications and desire to

become NSCC members. Moreover,

PHLX and Philadep will assist DTC and

sole Philadep participants in having the

latter become DTC participants if they

meet DTC qualifications and desire to

become a DTC participant. The parties

will cooperate to effect the orderly

transfer of securities positions and

securities from SCCP to NSCC and from

the custody of Philadep to the custody

of DTC.

PHLX believes that the proposed rule

change is consistent with Section 6(b)(5)

of the Act 6 insofar as it will enable

PHLX to concentrate its efforts on its

core business, the exchange. Thus,

PHLX believes that this proposal

promotes just and equitable principles

of trade, remove impediments to, and

perfects the mechanism of a free and

open market and a national market

system, and, in general, protects the

investors and public interest. In

addition, PHLX believes that the

proposal will foster cooperation and

coordination with persons engaged in

clearing and settlement of securities

transactions.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

PHLX believes that the proposed rule

change will not impose an

impermissible burden on competition as

contemplated by the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Written comments were neither

solicited nor received with respect to

the proposed rule change.7

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 6(b)(5) of the Act 8 requires,

among other things, that the rules of an

exchange be designed to prevent further

fraudulent and manipulative acts and

practices, to promote just and equitable

principals of trade, to foster cooperation

and coordination with persons engaged

in regulating, clearing, setting,

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, and, in general to protect

investors and the public interest. The

Commission believes that PHLX’s

proposed rule change is consistent with

Section 6(b)(5) of the Act in that it will

enable PHLX to focus its resources and

efforts on implementing a more viable

and profitable long-term strategy for its

core business, the exchange, and to

settle the administrative proceeding

initiated against SCCP and Philadep by

the Commission.9 The Commission

anticipates that the proceeds of the

proposed transaction also will help

provide liquidity for the operations of

the exchange and that the transaction

will allow PHLX to avoid significant

future capital expenditures for the

businesses of SCCP and Philadep.

Consequently, the Commission believes

that the proposal should help promote

just and equitable principles of trade,

remove impediments and perfect the

mechanism of a free and open market

and a national market system, and in

general, protect investors and the public

interest.10 In addition, the Commission

believes the proposal provides for an

orderly closing of services by SCCP and

Philadep and an orderly transition for

participants to other clearing and

depository service providers. Thus, the

proposal fosters cooperation and

coordination with persons engaged in

the clearance and settlement of

securities transactions.

PHLX has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after
Federal Register / Vol. 62, No. 244 / Friday, December 19, 1997 / Notices 66711

11 17 CFR 200.30–3 (a)(12).

publication of the notice of filing. The

Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after

publication of the notice of the filing

because by so approving PHLX will be

able to close on the Agreement and

move forward on its plans to limit its

clearance and settlement services and

withdraw from the securities depository

business.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making such 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, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of PHLX. All submissions should

refer to the File No. SR–PHLX–97–59

and should be submitted by January 9,

1998.

It is therefore Ordered, pursuant to

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

proposed rule change (File No. SR–

PHLX–97–59) be and hereby is

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–33195 Filed 12–18–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[License No. 01/01–0337]

Pioneer Ventures Limited Partnership;

Notice of Request for Exemption

On November 25, 1997, Pioneer

Ventures Limited Partnership (the

‘‘Licensee’’), a Massachusetts limited

partnership and SBIC Licensee number

01/01–0337 filed a request to the SBA

pursuant to Section 107.730(d) of the

Regulations governing small business

investment companies (13 CFR

107.730(d)(1997)) for an exemption

allowing the Licensee to invest in

Vibrint Corporation (Vibrint), of

Bedford, Massachusetts. Vibrint

received prior financial assistance from

an Associate (as defined by Section

107.50 of the SBA Regulations) of the

Licensee, and has itself become an

Associate of the Licensee.

Vibrint is currently in need of

additional capital, however, the

Licensee can only offer this assistance to

Vibrint upon receipt of a prior written

exemption from SBA. The exemption

requested is the basis for this notice,

and is required pursuant to § 107.730(g)

of the Regulations.

Notice is hereby given that any person

may, not later than 15 days from the

date of publication of this Notice,

submit written comments on this

exemption request to the Associate

Administrator for Investment, Small

Business Administration, 409 3rd Street,

SW, Washington, DC 20416. A copy of

this Notice will be published in a

newspaper of general circulation in

Bedford, Massachusetts.

(Catalog of Federal Domestic Assistance

Programs No. 59.011, Small Business

Investment Companies)

Dated: December 12, 1997.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 97–33123 Filed 12–18–97; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #2996]

Commonwealth of the Northern

Mariana Islands

As a result of the President’s major

disaster declaration on December 8,

1997, I find that the Islands of Saipan,

Tinian, and Rota in the Commonwealth

of the Northern Mariana Islands

constitute a disaster area as a result of

damages caused by Super Typhoon

Keith which occurred November 2–3,

1997. Applications for loans for

physical damages as a result of this

disaster may be filed until the close of

business on February 6, 1998 and for

economic injury until the close of

business on September 8, 1998 at the

address listed below or other locally

announced locations: U.S. Small

Business Administration, Disaster Area

4 Office, P.O. Box 13795, Sacramento,

CA 95853–4795.

The interest rates are:

Percent

For Physical Damage:

Homeowners with credit available elsewhere ........................ 7.625

Homeowners without credit available elsewhere ........................ 3.812

Businesses with credit available

elsewhere ................................ 8.000

Businesses and non-profit organizations without credit available elsewhere ........................ 4.000

Others (including non-profit organizations) with credit available

elsewhere ................................ 7.125

For Economic Injury:

Businesses and small agricultural

cooperatives without credit

available elsewhere ................. 4.000

The number assigned to this disaster

for physical damage is 299606 and for

economic injury the number is 967600.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: December 9, 1997.

Herbert L. Mitchell,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 97–33163 Filed 12–18–97; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #2997]

Commonwealth of Virginia (and

Contiguous Counties in North

Carolina)

Pittsylvania County and the

contiguous Counties of Bedford,

Campbell, Franklin, Halifax, and Henry

in the Commonwealth of Virginia, and

Caswell and Rockingham Counties in

the State of North Carolina constitute a

disaster area as a result of damages

caused by a fire which occurred on

November 27, 1997 in the Cabin Lake

Condominium Complex in Danville,

Virginia. Applications for loans for

physical damage may be filed until the

close of business on February 9, 1998

and for economic injury until the close

of business on September 10, 1998 at

the address listed below or other locally

announced locations: U.S. Small

Business Administration, Disaster Area

1 Office, 360 Rainbow Blvd., South 3rd

Floor, Niagara Falls, NY 14303.

The interest rates are:

Percent

For Physical Damage:

Homeowners with credit available elsewhere ........................ 7.625

Homeowners without credit available elsewhere ........................ 3.812