Federal Register / Vol. 62, No. 47 / Tuesday, March 11, 1997 / Notices 11247

8See infra note 7 and accompanying text.

9Because the 150% Excess Spread Rule evaluates

a market maker’s spread over a full calendar month,

February 1997 was the first month in which market

maker spreads were evaluated pursuant to NASD

Rule 4613(d). Accordingly, March 1997 will be the

first month in which market makers will be subject

to the mandatory market maker withdrawals for 20

business days for noncompliance with the Rule.

10See Release 34–38180, supra note 3 and Order

Instituting Public Proceedings Pursuant to Section

19(h)(1) of the Securities Exchange Act of 1934,

Making Findings and Imposing Remedial Sanctions,

Securities Exchange Act Release No. 37538 (Aug. 8,

1996).

11 15 U.S.C. 78s(b)(2) (1988).

12 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

excess spread requirements, if any, as

market makers in the Nasdaq National

Market securities beyond July 1, 1997.

2. Statutory Basis

The NASD and Nasdaq believe that

the proposed rule change is consistent

with Section 15A(b)(6) of the Act.

Among other things, Section 15A(b)(6)

requires that the rules of a national

securities association be designed to

prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, to foster

cooperation and coordination with

persons engaged in regulating, clearing,

settling, 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.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD believes that the proposed

rule change will not result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No written comments were solicited

or received with respect to 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, 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 at

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–97–13 and should be

submitted by [insert date 21 days from

date of publication].

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

After careful review, the Commission

finds, for the reasons set forth below,

that the NASD’s proposal is consistent

with the requirements of Section 15A of

the Act and the rules and regulations

thereunder applicable to the NASD and,

in particular, Section 15A(b)(6).

The Commission believes that it is

reasonable for the NASD to remove

application of the 150% Excess Spread

Rule to market maker quotations in

Nasdaq SmallCap securities because it is

difficult for market makers to monitor

their compliance with that Rule. This

stems from Nasdaq’s inability to

calculate and display through the

system the average spread of all market

makers in Nasdaq SmallCap securities

or a comparison of the size of an

individual market maker’s quoted

spread in a Nasdaq SmallCap security

relative to the average spread of all

market makers in Nasdaq SmallCap

securities.

The NASD also points out that

application of NASD Rule 4613(d) may

impose artificial constraints on market

makers’ quote movements.8 According

to the NASD, market makers may be less

apt to adjust their quotes in response to

market activity for fear that they will

violate the rule and be subject to

mandatory withdrawal for 20 business

days. The Commission agrees that this

is a possibility and prefers to eliminate

the potential restraint on market maker

quote movements to foster market maker

competition, protect the price discovery

process and preserve the integrity of

quotations in Nasdaq SmallCap

securities in furtherance of the

objectives of Section 15A(b)(6). While

the Commission approves removal of

the applicability of the NASD’s excess

spread rule to market maker quotations

in Nasdaq SmallCap securities,

however, it expects the NASD to

develop other means of stimulating and

measuring sound market making

performance for all Nasdaq stocks.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication in the Federal Register.

By accelerating the effectiveness of the

proposed rule change, market makers in

Nasdaq SmallCap securities will not be

subject to mandatory market maker

registration withdrawals for 20 business

days for noncompliance with the 150%

Excess Spread Rule.9 The Commission

reiterates that the NASD should study

alternative methods that would enhance

market making performance while

completely fulfilling the NASD’s

obligation regarding the excess spread

rule before the August 8, 1997 deadline

contained in the Commission’s Order.10

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,11 that the

proposed rule change (SR–NASD–97–

13) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5983 Filed 3–10–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38364; File No. SR–PSE–

97–06]

March 4, 1997.

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Pacific Stock Exchange Incorporated

Relating to Changing the Corporate

Name From Pacific Stock Exchange

Incorporated to Pacific Exchange

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 February

27, 1997, the Pacific Stock Exchange

Incorporated (‘‘PSE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

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

the proposed rule change as described

in Items I, II and III below, which Items

have been prepared by the Exchange.

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

The Exchange is proposing to amend

its Article I, Section 1 of the
11248 Federal Register / Vol. 62, No. 47 / Tuesday, March 11, 1997 / Notices

3 15 U.S.C. § 78s(b)(3)(A).

4 17 CFR 240.19b–4(e)(3).

5 17 CFR 200.30–3(a)(12).

Constitution and the First Section of the

Articles of Incorporation to reflect a

change in the corporate name from

Pacific Stock Exchange Incorporated to

Pacific Exchange.

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

Exchange 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

Exchange 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

The purpose of the proposed rule

change is to effect a change in the

corporate name of the Exchange from

Pacific Stock Exchange Incorporated to

Pacific Exchange. This new corporate

name is intended to better reflect the

member population at the Exchange and

to foster better public recognition of the

diversity of the products traded at the

PSE.

Over the last several years, the

Exchange has experienced tremendous

growth, and as a result, the Exchange

has been working on the development of

a name which would more

appropriately reflect who the Exchange

is today, while at the same time

maintaining the image and good will

that the Exchange has already built over

the last one hundred or so years. The

proposed name, Pacific Exchange,

captures the essence of a complete

securities exchange, helps to focus on

the Exchange’s location as not only

regional, but with ties to the

international horizons.

Basis

Pursuant to Rule 19b–4(e)(3), this

proposed rule change is concerned

solely with the administration of the

Exchange. The proposed rule change is

consistent with Section 6(b) of the Act,

in general, and Section 6(b)(5), in

particular, in that it is designed to

promote just and equitable principles of

trade.

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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments on the proposed

rule change were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective on February 27, 1997, pursuant

to section 19(b)(3)(A) of the Act 3 and

subparagraph (e)(3) of Rule 19b–4 4

thereunder, because the proposed rule

change is concerned solely with the

administration of the self-regulatory

organization. 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. Copies of such filing will also be

available for inspection and copying at

the principal office of the PSE. All

submissions should refer to File No.

SR–PSE–97–06 and should be submitted

by April 1, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5980 Filed 3–10–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE–97–13]

Petitions for Exemption; Summary of

Petitions Received; Dispositions of

Petitions Issued

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of petitions for

exemption received and of dispositions

or prior petitions.

SUMMARY: Pursuant to FAA’s rulemaking

provisions governing the application,

processing, and disposition of petitions

for exemption (14 CFR Part 11), this

notice contains a summary of certain

petitions seeking relief from specified

requirements of the Federal Aviation

Regulations (14 CFR Chapter I),

dispositions of certain petitions

previously received, and corrections.

The purpose of this notice is to improve

the public’s awareness of, and

participation in, this aspect of FAA’s

regulatory activities. Neither publication

of this notice nor the inclusion or

omission of information in the summary

is intended to affect the legal status of

any petition or its final disposition.

DATES: Comments on petitions received

must identify the petition docket

number involved and must be received

on or before March 18, 1997.

ADDRESSES: Send comments on any

petition in triplicate to: Federal

Aviation Administration, Office of the

Chief Counsel, Attn: Rule Docket (AGC–

200), Petition Docket No. llll, 800

Independence Avenue, SW.,

Washington, D.C. 20591.

Comments may also be sent

electronically to the following internet

address: 9–9–9–NPRM–

CMTS@faa.dot.gov.

The petition, any comments received,

and a copy of any final disposition are

filed in the assigned regulatory docket

and are available for examination in the

Rules Docket (AGC–200), Room 915G,

FAA Headquarters Building (FOB 10A),

800 Independence Avenue, SW.,

Washington, D.C. 20591; telephone

(202) 267–3132.

FOR FURTHER INFORMATION CONTACT: Fred

Haynes (202) 267–3939 or Angela

Anderson (202) 267–9681, Office of

Rulemaking (ARM–1), Federal Aviation