67680 Federal Register / Vol. 62, No. 248 / Monday, December 29, 1997 / Notices

6The Commission notes that any substantive

amendment to a proposed rule change filed under

Section (e)(6) of Rule 19b–4 causes the 30 day

delayed implementation period to be restarted from

the date of the filing of the amendment. In addition,

the Commission has waived the requirement that

the Exchange notify the Commission of its intent to

file this proposed rule change five business days

prior to the filing. See Securities Exchange Act

Release No. 35123 (December 20, 1994), 59 FR

66692 (December 28, 1994).

7 17 CFR 240.19b–4(e)(6).

8 17 CFR 200.30–3(a)(12).

this filing. The proposed rule change

was originally submitted to the

Commission on November 11, 1997.

However, the submission of substantive

Amendments No. 1 and No. 2 on

November 21, and December 17, 1997,

respectively, delay the statutorily

required implementation date to January

16, 1998.6 For the foregoing reasons the

rule filing will become operative as a

‘‘non-controversial’’ rule change

pursuant to Rule 19b–4(e)(6) under the

Act.7

At any time within 60 days of the

filing of such proposed rule change, the

Commission may summarily abrogate

such rule change if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act.

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–97–45

and should be submitted by January 20,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–33714 Filed 12–24–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39466; File No. SR–PHLX

97–49]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change and

Amendment No. 1 Thereto by the

Philadelphia Stock Exchange, Inc.,

Relating to Exchange Approval of

Member Advertising

December 18, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on November 13,

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 (‘‘SRO’’). On

December 15, 1997, the Exchange filed

Amendment No. 1 to the rule proposal.

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

Pursuant to Rule 19b–4 of the Act, the

PHLX proposes to amend Phlx Rule 605

to require member or foreign currency

option participant organizations for

which the Phlx is the designated

examining authority (‘‘DEA’’): (1) To

receive Exchange consent prior to using

the Internet to provide market

quotations or to advertise to the general

public; (2) to receive prior Exchange

consent before making use of radio or

television broadcasts for any business

purpose or broadcasting Exchange

quotations on radio or television

programs or via public telephone

reports; and (3) to submit the text of all

commercials or program materials about

securities or investing sponsored by the

firm on radio, television, public

telephone or on the Internet, promptly

following the program in which it was

used. Further, the commentary to the

rule which states that the provisions of

the rule do not apply to advertisements,

market letters and sales literature

relating to options as defined in Rule

1049 would be deleted so that the rule

would apply to all products traded on

the Exchange, including options. The

Exchange filed Amendment No. 1 to

make clear that print advertisements are

also subject to prior Exchange review

and approval under the new proposed

language of PHLX Rule 605. The

Amendment changed the proposed new

language of the rule to reflect this

change. The text of the proposed rule

change, as amended, is below. Brackets

represent deletions; italics represent

additions.

Rule 605

Advertisements, Market Letters,

Research Reports and Sales Literature

(a) No member, foreign currency

option participant, member organization

or foreign currency option participant

organization shall issue any

advertisement, market letter, research

report, telemarketing script or sales

literature unless such member, foreign

currency option participant or a general

partner or holder of voting stock in such

organization shall have endorsed his

approval prior to publication or

distribution thereof on an exact copy

thereof bearing the name of the person

who wrote such material. Such copy so

endorsed shall be made part of the

permanent records of such member or

foreign currency option participant

organization and shall be retained for

three years, two years in an easily

accessible location.

(b) Member or foreign currency option

participant organizations for which the

Exchange is the designated examining

authority (‘‘DEA’’) desiring to broadcast

Exchange quotations on radio or

television programs, or in public

telephone market reports, or make use

of radio or television broadcast or print

advertising for any business purpose, or

to make use of the Internet for the

purpose of providing market quotations

or advertising to the general public must

first obtain the consent of the Exchange

by submitting an outline of the program

material to the Exchange.

(c) The text of all commercials,

advertisements and program material

(except lists of market quotations) about

securities or investing sponsored by

Exchange designated member or foreign

currency option participant

organizations on radio, television, or

public telephone reports, or on the

Internet, or program material supplied

to these media must be sent to the

Exchange promptly following the

program in which it is used.

[Commentary: The provisions of this

rule do not apply to advertisements,

market letters and sales literature

relating to options as defined in Rule

1049.]

Supplementary Material: No change.
Federal Register / Vol. 62, No. 248 / Monday, December 29, 1997 / Notices 67681

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

SRO 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 SRO 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 Exchange proposes to amend

PHLX Rule 605, Advertisements, Market

Letters, Research Reports and Sales

Literature, in order to assure that the

Exchange has the opportunity to review

and approve advertisements, including

market quotation reports, which are

disseminated over the Internet, radio,

television and via public telephone

prior to their dissemination. Exchange

Rule 605 currently requires prior

approval only by the member/

participant or its general partner or

voting stock holder. The Exchange has

recently become aware of certain

Internet advertisements by at least one

of its members which it believes may

not comply with the communication

guidelines contained in the

Supplementary Material to PHLX Rule

605. The Exchange therefore, believes

that prior Exchange approval is

warranted. The rule will be amended to

apply to members and foreign currency

options participants for which the

Exchange is the DEA so that firms for

which another SRO is the DEA will not

have to be burdened by duplication of

approvals.

The revised language will apply to

advertisements, broadcasts of Exchange

market quotations or broadcasts for any

other business purpose, which could

even include advertisements for brokers

or traders. It will also specify that it

applies to advertisements and

broadcasts that are disseminated over

radio, television, public telephone and

the Internet.

Another new requirement under the

proposed rule will be that these firms

must also supply to the Exchange the

text of all commercials and program

material (except lists of market

quotations) about securities or investing

promptly following the program in

which it is used. This will assure that

the approved text is actually the one

that was publicly disseminated. Finally,

the Commentary to Rule 605 which

made the rule specifically not

applicable to options will be deleted.

The Exchange believes that the

requirements imposed under this rule

are equally important for option

advertising as for advertising of any

other type of securities.

2. Basis

The proposed rule change is

consistent with Section 6 of the Act in

general, and in particular, with Section

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

just and equitable principles of trade,

prevent fraudulent and manipulative

acts and practices and to protect

investors and the public interest by

assuring that the Exchange reviews its

designated firms’ advertisements

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

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 submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commissions, 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 the 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–97–49 and should be

submitted by January 20, 1998.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H.McFarland,

Deputy Secretary.

[FR Doc. 97–33715 Filed 12–24–97; 8:45 am]

BILLING CODE 8010–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

Technical Corrections to the

Harmonized Tariff Schedule of the

United States

AGENCY: Office of the United States

Trade Representative.

ACTION: Technical corrections to the

Harmonized Tariff Schedule of the

United States.

SUMMARY: The United States Trade

Representative (USTR) is making

technical corrections to the Harmonized

Tariff Schedule of the United States

(HTS) as set forth in the annex to this

notice, pursuant to authority granted by

Congress to the President in section 604

of the Trade Act of 1974 and delegated

by the President to the USTR in

Presidential Proclamation No. 6969 of

January 27, 1997 (62 FR 4415). These

modifications will correct errors in prior

proclamations, so that the intended

tariff treatment is accorded.

ADDRESSES: Office of the United States

Trade Representative, 600 17th Street,

NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT:

Barbara Chattin, Director for Tariff

Affairs (202) 395–5097, or Catherine

Field, Senior Counsel for Multilateral

Affairs, (202) 395–3432.

Explanation of Proposed Changes

This notice makes several technical

corrections to the Harmonized Tariff

Schedule of the United States (HTS) to

remedy omissions, misspellings, or

other problems included in previously

issued proclamations, or to make

conforming changes in HTS provisions

previously proclaimed to reflect

previous modifications to the HTS. The