Federal Register / Vol. 65, No. 223 / Friday, November 17, 2000 / Notices 69581

1See Letter from Thomas E. Connaghan, Senior

Vice President Equities, PCX, to Mr. Robert L.D.

Colby, Deputy Director, Division of Market

Regulation, SEC, and Mr. Robert Aber, Senior Vice

President and General Counsel, The Nasdaq Stock

Market, Inc. (‘‘Nasdaq’’) (Oct. 16, 2000).

2Section 12(f) of the Securities Exchange Act of

1934 (‘‘Act’’) describes the circumstances under

which an exchange may trade a security that is not

listed on the exchange, i.e. by extending unlisted

trading privileges (‘‘UTP’’) to the security. See 15

U.S.C. 781(f). Section 12(f) required exchanges to

apply to The Commission before extending UTP to

any security. To approve an exchange UTP

application for a registered security not listed on

any exchange (‘‘OTC/UTP’’), Section 12(f) required

the Commission to determine that various criteria

had been met concerning fair and orderly markets,

the protection of investors, and certain national

market initiatives. Section 12(f) was amended on

October 22, 1994; the amendment removed the

application requirement. OTC/UTP is now allowed

only pursuant to a Commission order or rule, which

is to be issued or promulgated under essentially the

same standards that previously applied to

Commission review of UTP applications.

3The signatories to the Plan, i.e., the National

Association of Securities Dealers, Inc. (‘‘NASD’’),

the Boston Stock Exchange, Inc. (‘‘BSE’’), the

Chicago Stock Exchange, Inc. (‘‘CHX’’) (previously,

the Midwest Stock Exchange, Inc.), the Philadelphia

Stock Exchange, Inc. (‘‘PHLX’’), the PCX, and the

Cincinnati Stock Exchange (‘‘CSE’’) are the

‘‘Participants.’’ The BSE, however, joined the Plan

as a ‘‘Limited Participant,’’ and reports quotation

information and transaction reports only in Nasdaq/

NM securities listed on the BSE. Originally, the

American Stock Exchange, Inc., was a Participant

to the Plan, but did not trade securities pursuant to

the Plan, and withdrew from participation in the

Plan in August 1994.

4Exchange trading in Nasdaq/NM securities

began in April 1987 when the CHX began trading

25 Nasdaq/NM securities. See Securities Exchange

Act Release No. 24406 (April 29, 1987), 52 FR

17495 (May 8, 1987). The Commission increased

the maximum number of eligible securities from 25

to 100 in 1991, from 100 to 500 in 1995, in response

to a request from the CHX, and from 500 to the

current 1000 limit in 1999, again in response to a

request from the CHX. See Securities Exchange Act

Release No. 28146 (June 26, 1990), 55 FR 27917

(July 6, 1990); Securities Exchange Act Release No.

36102 (Aug. 14, 1995), 60 FR 43626 (Aug. 22, 1995);

and Securities Exchange Act Release No. 41392

(May 12, 1999), 64 FR 27839 (May 21, 1999).

5See Section 12(f)(2) of the Act. 15 U.S.C.

781(f)(2).

6See Securities Exchange Act Release No. 28146

(June 26, 1990), 55 FR 27917 (July 6, 1990).

7See Letter from David R. Rusoff, Foley &

Lardner, to Betsy Prout, Division of Market

Regulation. (May 9, 1994).

8See Securities Exchange Act Release No. 34371

(July 13, 1994), 59 FR 37103 (July 20, 1994);

Securities Exchange Act Release No. 35221 (Jan. 11,

1995), 60 FR 3886 (Jan 19, 1995); Securities

Exchange Act Release No. 36102 (Aug. 14, 1995),

60 FR 43626 (Aug. 22, 1995); Securities Exchange

Act Release No. 36226 (Sept. 13, 1995), 60 FR 49029

(Sept. 21, 1995); Securities Exchange Act Release

No. 36368 (Oct. 13, 1995); 60 FR 54091 (Oct. 19,

1995); Securities Exchange Act Release No. 36481

(Nov. 13, 1995), 60 FR 58119 (Nov. 24, 1995);

Securities Exchange Act Release No. 36589 (Dec.

13, 1995), 60 FR 65696 (Dec. 20, 1995); Securities

Exchange Act Release No. 36650 (Dec. 28, 1995), 61

FR 358 (Jan. 4, 1996); Securities Exchange Act

Release No. 36934 (Mar. 6, 1996), 61 FR 10408

(Mar. 13, 1996); Securities Exchange Act Release

No. 36985 (Mar. 18, 1996), 61 FR 12122 (Mar. 25,

1996); Securities Exchange Act Release No. 37689

(Sept. 16, 1996), 61 FR 50058 (Sept. 24, 1996);

Securities Exchange Act Release No. 37772 (Oct. 1,

1996), 61 FR 52980 (Oct. 9, 1996); Securities

Exchange Act Release No. 38457 (Mar. 31, 1997), 62

FR 16880 (Apr. 8, 1997); Securities Exchange Act

Release No. 38794 (June 30, 1997), 62 FR 36586

(July 8, 1997); Securities Exchange Act Release No.

39505 (Dec. 31, 1997) 63 FR 1515 (Jan. 9, 1998);

Securities Exchange Act Release No. 40151 (July 1,

1998), 63 FR 36979 (July 8, 1998); Securities

Exchange Act Release No. 40896 (Dec. 31, 1998), 64

FR 1834 (Jan. 12, 1999); Securities Exchange Act

Release No. 41392 (May 12, 1999), 64 FR 27839

(May 21, 1999); and Securities Exchange Act

Release No. 42268 (Dec. 23, 1999), 65 FR 1202 (Jan.

6, 2000).

approved collection of information

discussed below.

• Rule 17 Ad–2(c), (d) and (h) Transfer

Agent Turnaround, Processing and

Forwarding Requirements

Rule 17Ad–2(c), (d), and (h), 17 CFR

240.17Ad–2(c), (d), and (h), under the

Securities Exchange Act of 1934,

enumerate the requirements with

transfer agents must comply to inform

the Commission or the appropriate

regulator of a transfer agent’s failure to

meet the minimum performance

standards set by the Commission rule by

filing a notice.

While it is estimated there are 900

transfer agents, approximately ten

notices pursuant to 17Ad–2(c), (d), and

(h) are filed annually. In view of (a) the

readily available nature of most of the

information required to be included in

the notice (since that information must

be compiled and retained pursuant to

other Commission rules); (b) the

summary fashion in which such

information must be presented in the

notice (most notices are one page or less

in length); and (c) the experience of the

staff regarding the notices, the

Commission staff estimates that, on the

average, most Notices require

approximately one-half hour to prepare.

The Commission staff estimates a cost of

approximately $30.00 for each half hour

spent preparing the notices per year,

transfer agents spend an average of five

hours per year complying with the rule

at a cost of $300.

Written comments are invited on: (a)

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information shall have practical utility;

(b) the accuracy of the agency’s

estimates of the burden of the proposed

collection of information; (c) ways to

enhance the quality, utility, and clarity

of the information on respondents; and

(d) ways to minimize the burden of the

collection of information on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

Considerations will be given to

comments and suggestions submitted in

writing within 60 days of this

publication.

Please direct your written comments

to Michael E. Bartell, Associate

Executive Director, Office of

Information Technology, Securities and

Exchange Commission, 450 5th Street,

NW., Washington, DC 20549.

Dated: November 7, 2000.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–29443 Filed 11–16–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43545; File No. S7–24–89]

Joint Industry Plan; Solicitation of

Comments on the Pacific Exchange,

Inc.’s Request To Expand the Number

of Securities Eligible for Trading

Pursuant to the Reporting Plan for

Nasdaq/National Market Securities

Traded on an Exchange on an Unlisted

or Listed Basis

November 9, 2000.

I. Introduction

On October 16, 2000, the Pacific

Exchange, Inc. (‘‘PCX’’) submitted 1 to

the Securities and Exchange

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

a request to expand the maximum

number of Nasdaq National Market

(‘‘Nasdaq/NM’’) securities eligible for

trading 2 pursuant to the Joint

Transaction Reporting Plan for the

Nasdaq/National Market Securities

Traded on an Exchange on an Unlisted

or Listed Basis (‘‘Plan’’).3 The current

maximum number of eligible Nasdaq/

NM securities that may be traded

pursuant to UTP is 1000 securities.4 The

Commission is soliciting comment on

whether to expand the number of

eligible Nasdaq/NM securities that may

be traded by a national securities

exchange pursuant to the Plan to

include all Nasdaq/NM securities.

II. Background

The Plan governs the collection,

consolidation and dissemination of

quotation and transaction information

for Nasdaq/NM securities listed on an

exchange or traded on an exchange

pursuant to a grant of UTP.5 The

Commission approved trading pursuant

to the Plan on a one-year pilot basis,

with the pilot period to commence

when trasnaction reporting pursuant to

69582 Federal Register / Vol. 65, No. 223 / Friday, November 17, 2000 / Notices

9The full text of the Plan, as well as ‘‘Concept

Paper’’ describing the requirements of the Plan, are

contained in the original filing which is available

for inspection and copying in the Commission’s

public reference room.

10 15 U.S.C. 781(f).

11See supra note 4.

12 17 CFR 200.30–3(a)(29).

1Copies of GJVMS’s Form CA–1 are available for

inspection and copying at the Commission’s Public

Reference Room in File No. 600–32.

2 15 U.S.C. 78q–1.

3 17 CFR 240.17Ab2–1.

4 DTCC was created in 1999 as a holding

company for The Depository Trust Company

(‘‘DTC’’) and the National Securities Clearing

Corporation (‘‘NSCC’’). DTC and NSCC are

registered with the Commission as clearing

agencies.

5TISI is a wholly owned subsidiary of Thomson

Financial, a Thomson Corporation subsidiary.

Thomson Corporation is a global electronic

information company.

6Thomson Financial ESG is a wholly owned

subsidiary of Thomson Financial, a Thomson

Corporation subsidiary.

7STP is the completion of presettlement and

settlement processes based on trade data that each

party to a transaction enters only once into an

automated system.

8T+1 refers to an industry initiative to reduce the

settlement cycle for securities transactions from

three days (T+3) to one day (T+1). It is anticipated

that the settlement cycle will be shortened from

T+3 to T+1 during 2004.

the Plan commenced. The Commission

originally approved the Plan on June 26,

1990.6 Accordingly, the pilot period

commenced on July 12, 1993 and was

scheduled to expire on July 12, 1994.7

The Plan has since been in operation on

an extended pilot basis.8

III. Description of the Plan

The Plan provides for the collection

from Plan Participants and the

consolidation and dissemination to

vendors, subscribers and others of

quotation and transaction information

in ‘‘eligible securities.’’ The Plan

contains various provisions concerning

its operation, including Implementation

of the Plan; Manner of Collecting,

Processing, Sequencing, Making

Available and Disseminating Last Sale

Information; Reporting Requirements

(including hours of operation);

Standards and Methods of Ensuring

Promptness, Accuracy and

Completeness of Transaction Reports;

Terms and Conditions of Access,

Description of Operation of Facility

Contemplated by the Plan; Method and

Frequency of Processor Evaluation;

Written Understandings of Agreements

Relating to Interpretation of, or

Participation in, the Plan; Calculation of

the Best Bid and Offer; Dispute

Resolution; and Method of

Determination and Imposition, and

Amount of Fees and Charges.9

IV. Description of the Proposal

The Commission is proposing

pursuant to Section 12(f) of the Act 10 to

expand the number of eligible Nasdaq/

NM securities that may be traded by a

national securities exchange pursuant to

the Plan to include all Nasdaq/NM

securities. The current maximum

number of eligible Nasdaq/NM

securities that may be traded pursuant

to the Plan is 1000 securities.11

V. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether it it is consistent

with the Act. Persons making written

submissions should file six copies

thereof with the Secretary, Securities

and Exchange Commission, 450 Fifth

Street, NW., Washington, DC 20549–

0609. Copies of the submission, all

subsequent amendments, all written

statements with respect to the proposed

change that are filed with the

Commission, and all written

communications relating to the proposal

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

at the Commission’s Public Reference

Room.

All submissions should refer to File

No. S7–24–89 and should be submitted

by December 8, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–29446 Filed 11–16–8:45am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43540; File No. 600–32]

Self-Regulatory Organizations; Global

Joint Venture Matching Services—US,

LLC; Notice of Filing of Application for

Exemption From Registration as a

Clearing Agency

November 9, 2000.

I. Introduction

On September 21, 2000, the Global

Joint Venture Matching Services—US,

LLC (‘‘GJVMS’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) an application on Form

CA–1 1 for exemption from registration

as a clearing agency pursuant to Section

17A of the Securities Exchange Act of

1934 (‘‘Exchange Act’’) 2 and Rule

17Ab2–1 thereunder.3 GJVMS is

requesting an exemption from clearing

agency registration in connection with

its proposal to offer an electronic trade

confirmation service and a matching

service. The Commission is publishing

this notice to solicit comments on the

exemption request.

II. Background

A. Structure of the GJVMS

The GJVMS is a limited liability

company which prior to the

commencement of its operations will

become a wholly-owned subsidiary of

the Global Joint Venture. The Global

Joint Venture is a proposed joint venture

between The Depository Trust &

Clearing Corporation (‘‘DTCC’’),4

Thomson Institutional Services Inc.

(‘‘TISI’’),5 and Interavia, A.G., a Swiss

corporate affiliate of TISI. Within the

Global Joint Venture, the institutional

trade processing services currently

offered by DTC will be combined with

the institutional trade processing

services currently offered by Thomson

Financial ESG.6 While the Global Joint

Venture will have several lines of

business, it will conduct its domestic

electronic trade confirmation (‘‘ETC’’)

service and matching service wholly

through the GJVMS.

Initially, the automated facilities and

systems environment necessary to

operate the ETC and matching services

will be provided to the GJVMS by DTC

pursuant to a services agreement

between DTCC and the Global Joint

Venture. Also pursuant to the services

agreement, DTCC will provide to the

Global Joint Venture legal and

regulatory, audit, accounting, and

human resources services, and the

Global Joint Venture will make these

services available to the GJVMS. It is

anticipated that there will also be a

services agreement between the Global

Joint Venture and the GJVMS.

As explained in detail below, DTC

and Thomson Financial ESG’s

institutional trade processing services

are the two principal systems used by

broker-dealers and institutional

investors for post-trade, presettlement

processing of trades. The merger of

these two services would link the two

largest providers of institutional posttrade, presettlement processing services,

and as a result, would establish a core

building block for straight-through

processing (‘‘STP’’) 7 and T+1.8

DTCC will transfer to the Global Joint

Venture DTC’s TradeSuite which

consists of the following services:

TradeMessage, TradeMatch,

TradeSettle, and TradeHub.