Federal Register / Vol. 62, No. 6 / Thursday, January 9, 1997 / Rules and Regulations 1279

Textron, Inc. (BHTI)-manufactured

restricted category Model HH–1K, TH–

1F, TH–1L, UH–1A, UH–1B, UH–1E,

UH–1F, UH–1H, UH–1L, and UH–1P

helicopters was published in the

Federal Register on September 5, 1996

(61 FR 46742). That action proposed to

require a one-time inspection of the tail

rotor slider (slider) to verify that it was

manufactured with the correct outside

diameter.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposal or the FAA’s determination of

the cost to the public. The FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed, with one

exception. The word ‘‘barrel’’ was

added to paragraph (a) of the AD to

indicate that the splined shaft of the

slider is also known as the barrel of the

slider. This change neither increases the

costs associated with the AD nor

increases the scope of the AD.

The FAA estimates that 80 helicopters

of U.S. registry will be affected by this

AD, that it will take approximately 0.5

work hour per helicopter to accomplish

the required inspection, and that the

average labor rate is $60 per work hour.

Replacement of the slider requires 8

hours, and required parts cost

approximately $72 per helicopter. Based

on these figures, the total cost impact of

the AD on U.S. operators is estimated to

be $46,560 if replacement of the slider

is required in all of the fleet.

The regulations adopted herein will

not have substantial direct effects on the

States, on the relationship between the

national government and the States, or

on the distribution of power and

responsibilities among the various

levels of government. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3)

will not have a significant economic

impact, positive or negative, on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (14 CFR

part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding a new airworthiness directive to

read as follows:

AD 97–01–06 California Department of

Forestry; Erickson Air Crane Co.;

Garlick Helicopters; Hawkins and

Powers Aviation, Inc.; International

Helicopters, Inc.; Smith Helicopters;

Southwest Florida Aviation; West Coast

Fabrications; Western International

Aviation, Inc.; Williams Helicopter

Technology, Inc.; and UNC Helicopters:

Amendment 39–9877. Docket No. 96–

SW–03–AD.

Applicability: Bell Helicopter Textron,

Inc.-manufactured Model HH–1K, TH–1F,

TH–1L, UH–1A, UH–1B, UH–1E, UH–1F,

UH–1H, UH–1L, and UH–1P helicopters,

certificated in the restricted category.

Note 1: This AD applies to each helicopter

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

helicopters that have been modified, altered,

or repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must use the authority

provided in paragraph (b) to request approval

from the FAA. This approval may address

either no action, if the current configuration

eliminates the unsafe condition, or different

actions necessary to address the unsafe

condition described in this AD. Such a

request should include an assessment of the

effect of the changed configuration on the

unsafe condition addressed by this AD. In no

case does the presence of any modification,

alteration, or repair remove any helicopter

from the applicability of this AD.

Compliance: Required within 5 hours timein-service after the effective date of this AD,

unless accomplished previously.

To prevent fatigue failure of the tail rotor

slider (slider), which could cause loss of the

tail rotor and subsequent loss of control of

the helicopter, accomplish the following:

(a) Using a calibrated caliper or

micrometer, measure the outside diameter of

the splined shaft (barrel) of the slider, part

number (P/N) 204–010–720–3 or P/N 204–

010–720–003, at two points that are 90

degrees apart on the outside circumference of

the barrel, one-half to one inch from either

end of the slider. If the outside diameter of

the slider is less than 1.300 inches, remove

the slider and replace it, prior to further

flight, with a slider that has an outside

diameter of 1.300 inches or greater.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Rotorcraft

Certification Office, Rotorcraft Directorate,

FAA. Operators shall submit their requests

through an FAA Principal Maintenance

Inspector, who may concur or comment and

then send it to the Manager, Rotorcraft

Certification Office.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Rotorcraft Certification

Office.

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Rotorcraft

Certification Office, Rotorcraft Directorate,

FAA. Operators shall submit their requests

through an FAA Principal Maintenance

Inspector, who may concur or comment and

then send it to the Manager, Rotorcraft

Certification Office.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Rotorcraft Certification

Office.

(d) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the helicopter

to a location where the requirements of this

AD can be accomplished.

(e) This amendment becomes effective on

February 13, 1997.

Issued in Fort Worth, Texas, on December

31, 1996.

Larry M. Kelly,

Acting Manager, Rotorcraft Directorate,

Aircraft Certification Service.

[FR Doc. 97–404 Filed 1–8–97; 8:45 am]

BILLING CODE 4910–13–U

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 240

[Release No. 34–38110; File No. S7–30–95]

RIN 3235–AG66

Order Execution Obligations

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule; revised effective

date; revised compliance dates.

SUMMARY: The Securities and Exchange

Commission is revising: (1) The

effective date of Rule 11Ac1–4 (‘‘Limit

Order Display Rule’’) and amendments
1280 Federal Register / Vol. 62, No. 6 / Thursday, January 9, 1997 / Rules and Regulations

1 17 CFR 240.11Ac1–4.

2See Securities Exchange Act Release No. 37972

(November 22, 1996), 61 FR 63709.

3See Letter from Alfred R. Berkeley, III, President

Nasdaq, to Richard R. Lindsey, Director, Division of

Market Regulation (‘‘Division’’), Commission, dated

December 18, 1996 (‘‘NASD letter’’).

to Rule 11Ac1–1 (‘‘ECN Amendment’’ to

the ‘‘Quote Rule’’) from January 10 to

January 13, 1997; (2) the effective date

of the amendment to subsection

(a)(25)(ii) of the Quote Rule (‘‘Subject

Security Definition’’) to April 10, 1997;

and (3) the compliance dates of the ECN

Amendment with respect to most overthe-counter (‘‘OTC’’) securities.

DATES: Effective January 9, 1997, the

effective date for the Limit Order

Display Rule, and the amendments to

the Quote Rule, adopted August 28,

1996, by the Securities and Exchange

Commission, and published on

September 12, 1996 (61 FR 48290)

(collectively, ‘‘Order Execution Rules’’),

is being changed to January 13, 1997,

except that the effective date for the

amendment to § 240.11Ac1–1(a)(25)(ii)

the Subject Security Definition in the

Quote Rule is April 10, 1997. The

compliance date with respect to the

ECN Amendment (except for the Subject

Security Definition) for exchange-traded

securities and 50 of the 1000 most

actively traded OTC securities is

January 13, 1997. The compliance date

of the ECN Amendment for an

additional 100 of these 1,000 securities

is January 31, 1997, and the compliance

date for the remaining 850 most actively

traded securities is February 21, 1997.

The final compliance date for the

remainder of the securities is March 28,

1997.

FOR FURTHER INFORMATION CONTACT:

Betsy Prout Lefler, Special Counsel, Gail

Marshall-Smith, Special Counsel, or

David Oestreicher, Special Counsel,

(202) 942–0158, Division of Market

Regulation, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Mail Stop 5–1, Washington, D.C. 20549.

SUPPLEMENTARY INFORMATION:

I. Background

On August 28, 1996, the Securities

and Exchange Commission

(‘‘Commission’’) adopted Rule 11Ac1–

4,1 the ‘‘Limit Order Display Rule,’’ and

amendments to Rule 11Ac1–1, the ‘‘ECN

Amendment,’’ to require OTC market

makers and exchange specialists to

display certain customer limit orders,

and to publicly disseminate the best

prices that the OTC market maker or

exchange specialist has placed in

certain electronic communications

networks (‘‘ECNs’’), or to comply

indirectly with the ECN Amendment by

using an ECN that furnishes the best

market maker and specialist prices

therein to the public quotation system.

The Commission also expanded the

definition of ‘‘subject security’’ under

the Quote Rule, which brought all

exchange-traded securities, rather than

just the subset of such securities known

as ‘‘Rule 19c–3 securities,’’ under the

scope of the mandatory quotation

requirements of the Quote Rule. In the

Adopting Release, the Commission

deemed the effective date of all these

initiatives January 10, 1997. Thereafter,

the Commission modified the

compliance dates with respect to the

Limit Order Display Rule so that the

display of customer limit orders in OTC

securities now will be phased-in over

several months.2

More recently, the Commission

received a letter from the National

Association of Securities Dealers

(‘‘NASD’’) requesting additional relief

from the Limit Order Display Rule and

the ECN Amendment.3 First, the NASD

letter requests that the implementation

date of both the Limit Order Display

Rule and the ECN Amendment be

delayed by one business day to ensure

an orderly and safe introduction of the

software necessary to operate in

accordance with the new rules. Second,

the NASD letter requests that the ECN

Amendment be phased-in according to

the same schedule as the Limit Order

Display Rule.

The Commission is hereby modifying

the effective dates and compliance dates

in response to the NASD letter. In

addition, in order to address concerns

about the impact on marketwide

quotation systems and third market

makers upon implementation of the

mandatory quotation requirement of the

Order Execution Rules, the Commission

is moving from January 10, to April 10,

1997, the effective date of the new

definition of ‘‘subject security’’ under

the Quote Rule (Rule 11Ac1–

1(a)(25)(ii)), as discussed below.

II. Discussion

A. Implementation Date of the ECN

Amendment

With regard to the implementation

date of the Limit Order Display Rule

and the ECN Amendment (collectively,

‘‘rules’’), the NASD letter expresses

concern that introducing software that

has been significantly revised during the

evening of January 9 poses a serious risk

of potential system malfunction or an

untimely start-up of the market. Instead,

the NASD believes that introduction of

the new software over the weekend

preceding Monday, January 13, 1997,

would provide the NASD with an

opportunity to take the appropriate time

to carefully load the software and build

the necessary databases to ensure a

smooth transition. According to the

NASD letter, the NASD’s technology

staff, several ECNs, and many industry

members including members of the

Quality of Markets Committee (made up

of institutions, retail investors and

broker-dealers) agree that it would be

imprudent to commence

implementation, and the attendant

software changes, on Friday, January

10th. Moreover, the NASD letter notes

that several broker-dealers that are

revising their own internal systems

would not introduce their software

changes on January 10 because of the

risks in migrating to the new code

within a limited period of time during

a trading week.

B. ECN Amendment Phase-in

The NASD letter also requests that the

phase-in schedule for securities under

the Limit Order Display Rule be

extended to the ECN Amendment. This

request is intended to ensure that

investors and other market participants

have an opportunity to obtain

experience with the ECN Amendment

scaled over a manageable set of

securities. The NASD believes this

phase-in will enable all interested

parties to more accurately determine the

impact that full implementation of the

ECN Amendment will have on issues

such as system capacity and trading

patterns.

C. Implementation of the Subject

Security Definition

The Order Execution Rules’

amendment to the definition of the term

‘‘subject security’’ under the Quote Rule

brought all exchange-traded securities,

rather than just the subset of such

securities known as ‘‘Rule 19c–3

securities,’’ under the scope of the

mandatory quotation requirements of

the Quote Rule. Under this amendment,

an OTC market maker must publish firm

two-sided quotations for any exchangetraded security in which its executed

volume, during the most recent calendar

quarter, comprised more than one

percent of the aggregate trading volume

of the security. Thus, firms that

previously did not quote in certain

exchange-traded securities may be

required to publish quotations in such

securities when the amendment

becomes effective. In the Adopting

Release, the Commission asked the

NASD and the Intermarket Trading

System (‘‘ITS’’) Participants to review

their existing limitations on the

automated generation of quotations.
Federal Register / Vol. 62, No. 6 / Thursday, January 9, 1997 / Rules and Regulations 1281

1 18 CFR Parts 33, 34, 35, 36, 292, and 300.

This review has not been completed.

The Commission believes that

additional time should be provided for

this review, prior to implementation of

the expanded definition of ‘‘subject

security,’’ because of the additional

quotation obligations that may result

from the rules. The Commission also

believes that extending the effective

date will give additional time to

evaluate the effect on existing systems

of the potential increase in quotation

traffic that may be caused by the

mandatory quotation requirement for

exchange-traded securities.

III. Conclusion

For the reasons described above, the

Commission is modifying the effective

date of the Limit Order Display Rule

and the amendments to the Quote Rule

(except as discussed below concerning

subsection (a)(25)(ii) of the Quote Rule)

until the start of business on Monday,

January 13, 1997, rather than on January

10, 1997.

In addition the Commission is

modifying the compliance dates of the

ECN Amendment in order to phase-in

the implementation of the ECN

Amendment. Accordingly, beginning on

January 13, 1997, compliance with the

ECN Amendment will be required with

respect to all exchange-traded securities

and 50 of the 1000 Nasdaq securities, as

identified by Nasdaq for the first phase

of compliance with the Limit Order

Display Rule. On January 31, 1997,

compliance with the ECN Amendment

will be required with respect to the

additional 100 of these 1,000 securities

selected by Nasdaq. The ECN

Amendment will apply to the remaining

850 of the 1,000 securities on February

21, 1997, as identified by Nasdaq. The

next phase-in date will be on March 28,

1997, and, unlike the Limit Order

Display Rule, will cover all remaining

Nasdaq securities. The Commission will

review the operation of the markets

during this phase-in period.

Finally, the Commission is modifying

the effective date of the amendment to

Rule 11Ac1–1(a)(25)(ii) from January 10,

1997, to April 10, 1997. In the interim,

the Commission expects the NASD and

the ITS Participants to continue to

review the NASD’s and ITS Plan’s

limitations on automated quotations.

Dated: January 2, 1997.

By the Commission.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–440 Filed 1–8–97; 8:45 am]

BILLING CODE 8010–01–M

FEDERAL ENERGY REGULATORY

COMMISSION

18 CFR Parts 33, 34, 35, 36, 292 and

300

[Docket No. RM96–16–000; Order No. 593]

Revision of Form of Notice

Requirements; Final Rule

Issued January 2, 1997.

AGENCY: Federal Energy Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Federal Energy

Regulatory Commission is revising the

form of notice requirements applicable

to filings under several parts of its

regulations. The final rule establishes

requirements for submitting diskette

copies of the notices of filing for the

Federal Register, in addition to the

paper copies currently required, in

order to speed the process of noticing

such filings. In addition, the final rule

makes a minor correction to the

regulations being revised, to delete a

reference to filing fees.

EFFECTIVE DATE: This final rule is

effective on February 10, 1997.

FOR FURTHER INFORMATION CONTACT:

L. Jorn Dakin, (Legal Information),

Office of the General Counsel, Federal

Energy Regulatory Commission, 888

First St. NE., Washington, D.C. 20426,

(202) 208–2172

Michael Miller, (Technical Information),

Office of Executive Director, Federal

Energy Regulatory Commission, 888

First St. NE., Washington, D.C. 20426,

(202) 208–1415.

SUPPLEMENTARY INFORMATION: In

addition to publishing the full text of

this document in the Federal Register,

the Commission also provides all

interested persons an opportunity to

inspect or copy the contents of this

document during normal business hours

in the Public Reference Room at 888

First Street N.E., Washington, DC 20426.

The Commission Issuance Posting

System (CIPS), an electronic bulletin

board service, provides access to the

texts of formal documents issued by the

Commission. CIPS is available at no

charge to the user and may be accessed

using a personal computer with a

modem by dialing 202–208–1397, if

dialing locally, or 1–800–856–3920 if

dialing long distance. CIPS is also

available on the Internet through the

FedWorld System (by modem or

Internet). To access CIPS, set your

communications software to 19200,

14400, 12000, 9600, 7200, 4800, 2400 or

1200 bps, full duplex, no parity, 8 data

bits and 1 stop bit. The full text of this

order will be available on CIPS in ACSII

and WordPerfect 5.1 format. The

complete text on diskette in

WordPerfect format may also be

purchased from the Commission’s copy

contractor, La Dorn Systems

Corporation, also located in the Public

Reference Room at 888 First Street N.E.,

Washington, DC 20426.

I. Introduction

The Federal Energy Regulatory

Commission is revising the form of

notice requirements for filings under

Parts 33, 34, 35, 36, 292 and 300 of the

Commission’s regulations.1 The revised

requirements provide that an electronic

version, in addition to the paper copy,

of the draft notice of filing (in either

ASCII text, WordPerfect 5.1 for DOS or

WordPerfect 5.2 for Windows format) be

submitted on a 31⁄2’’ diskette. This

diskette is to be a part of the filing. In

addition, all entities submitting filings

for which there is not a requirement of

a draft notice (but for which the entity

expects the Commission to issue a

notice) are encouraged to provide a draft

notice in the same fashion as set out in

these revised regulations. Finally, a

reference to filing fees under Part 33 of

the regulations, in the caption and text

of 18 CFR 33.2, will be deleted. The

Commission no longer charges filing

fees for applications under Part 33.

II. Public Reporting Burden

The final rule, if adopted, would

amend reporting requirements, but

would result in insignificant changes to

the reporting burden. In the long term,

the Commission’s switch to electronic

filing should result in further reductions

in reporting burden and savings to the

entities that make such filings. These

reporting requirements are associated

with the following data collections:

Data collection CFR Respondents Frequency Responses Hrs. per

filing Total

FERC–516 ............................................................... Part 35 .............. 328 2.97 975 901 878,500