1790 Federal Register / Vol. 62, No. 8 / Monday, January 13, 1997 / Notices

19See Amendment No. 1, supra note 3.

20 Id.

21 15 U.S.C. 78s(b)(2)

22 17 CFR 200.30–3(a)(12).

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

2Letter from J. Keith Kessel, Compliance Officer,

Philadep (December 31, 1996).

3The Commission has modified the text of the

summaries submitted by Philadep.

4For a description of Philadep’s risk management

controls for its same-day funds settlement (‘‘SDFS’’)

system, refer to Securities Exchange Act Release no.

36876 (February 22, 1996), 61 FR 7841 [SRPhiladep-95-08] (order granting partial temporary

approval and partial permanent approval of a

proposed rule change to convert the settlement

system to a same-day funds settlement systems).

work towards quickly establishing a

linkage between the CHX systems and

Nasdaq systems in order to permit

market makers in each market to route

orders to the other market center.19

Consequently, the Commission is

approving the CHX proposal for only

one year, during which time the

Commission expects the CHX and

Nasdaq to effectuate a linkage. The

Commission also expects the CHX to

monitor closely the executions provided

to CHX market and marketable limit

orders for Nasdaq/NM securities that are

not automatically executed at the NBBO

(or better) at the time the order is

received. The Commission further

requests that the Exchange submit to the

Commission a report, based on six

months of trading data, on or before 240

days following the issuance of this

order, that describes the executions

provided these orders.

The Commission is approving the

CHX proposal on a pilot basis for a oneyear period beginning in January 1997

and extending through December 1997.

The Commission’s approval is based, in

part, on CHX’s expressed commitment

to work in good faith with the Nasdaq,

during the one-year pilot period, to set

up an order routing system between the

Nasdaq and the CHX.20

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,21 that the

proposed rule change (SR–CHX–96–16)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.22

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–690 Filed 1–10–97; 8:45 am]

BILLING CODE 8010–01–M

[Release no. 34-38120; File No. SR–

Philadep–96–22]

Self-Regulatory Organizations;

Philadelphia Depository Trust

Company; Notice of Filing and Order

Granting Accelerated Approval of a

Proposed Rule Change to Establish

Family of Account Processing

Procedures

January 3, 1997.

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

Securities Exchange Act of 1934

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

December 17, 1996, the Philadelphia

Depository Trust Company (‘‘Philadep’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) that

proposed rule change (File No. SR–

Philadep–96–22) as described in Items I

and II below, which items have been

prepared primarily by Philadep. On

December 31, 1996, Philadep filed an

amendment to the proposed rule change

to make certain technical corrections.2

The Commission is publishing this

notice and order to solicit comments

from interested persons and to grant

accelerated approval of the proposed

rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to establish an automated

family of accounts risk review for

omnibus settlement accounts.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

It its filing with the Commission,

Philadep included statements

concerning the purpose of and basis for

the proposed rule change and discussed

any comments it received on the

propose rule change. The text of these

statements may be examined at the

places specified in Item IV below.

Philadep has prepared summaries, set

forth in sections (A), (B), and (C) below,

of the most significant aspects of such

statements.3

(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 establish an automated

family of accounts risk review for

settlement activity in omnibus accounts.

Philadep currently monitors individual

subaccount activity underlying omnibus

settling accounts and applies its risk

management controls (i.e., collateral

monitor and net debit caps) to such

subaccounts in a manual fashion.4

Philadep proposes to automate its risk

management procedures in this area by

incorporating an automated family of

accounts risk monitoring system. In

accordance with this proposal, Philadep

will apply this family of accounts

system to its only omnibus account

(Canadian Depository for Securities) and

to any future omnibus accounts.

The family of accounts risk

monitoring system will group together

the activity of subaccounts which

underlie a participant’s omnibus

settlement account. The delivery and

receive activity of individual

subaccounts will be reviewed in

connection with the omnibus account’s

aggregate net debit cap and collateral

monitor. For each receive or delivery

transaction, the system will update the

omnibus account’s settlement balance

and will automatically calculate the net

debit impact and the collateral monitor

impact that the receive and/or delivery

have on a group basis. In this regard, it

a subaccount’s receive or delivery,

adjusted for the appropriate haircut and

added or subtracted to or from the

omnibus account’s collateral monitor,

results in the omnibus account’s

collateral monitor being less than the

omnibus account’s accumulated net

debit amount, the receive or delivery

will pend. As the settlement balance

changes as a result of other activity, the

system will continuously determine

whether pending items may be

processed. Receives and deliveries that

are still pending by the settlement cutoff

time will be dropped from the system.

Philadep believes the proposed rule

change is consistent with Section 17A of

the Act and the rules and regulations

thereunder because the proposal will

promote the prompt and accurate

clearance and settlement of securities

transactions and will assure the

safeguarding securities and funds which

are in the custody or control of Philadep

or for which it is responsible.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep 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 relating to the

proposed rule change have been

solicited or received. Philadep will

notify the Commission of any written

comments received by Philadep.
Federal Register / Vol. 62, No. 8 / Monday, January 13, 1997 / Notices 1791

5 15 U.S.C. 78q-1(b) (3) (F).

6The staff of the Board of Governors of the

Federal Reserve System has concurred with the

Commission’s granting of accelerated approval.

Telephone conversation between John Rudolph,

Board of Governors of the Federal Reserve System,

and Chris Concannon, Staff Attorney, Division of

Market Regulation, Commission (January 3, 1997). 7 17 CFR 200.30–3(a) (12).

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b) (3) (F) of the Act 5

requires that the rules of a clearing

agency be designed to promote the

prompt and accurate clearance and

settlement of securities transactions and

to assure the safeguarding of securities

and funds which are in the custody or

control of the clearing agency or for

which it is responsible. The

Commission believes that Philadep’s

proposal relating to its family of

accounts risk monitoring procedures are

consistent with Philadep’s obligations

under Section 17A(b) (3) (F) because the

proposed rule change will establish an

automated risk review system to ensure

that risk management controls are

properly applied to transactions in

omnibus accounts. Additionally, the

Commission believes the proposal is

consistent with Philadep’s obligations

under Section 17A(b) (3) (F) to promote

the prompt and accurate clearance and

settlement of securities transactions

because the proposed rule change will

automate a risk review procedure which

is currently performed manually,

therefore, improving the efficiency of

Philadep’s SDFS system.

Philadep has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing. The

Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing because

the proposed rule change will allow

Philadep to immediately implement the

family of account risk monitoring

procedures. The Commission believes

that the automation of Philadep’s

manual risk review procedures for

omnibus accounts will reduce the risk

of human error and will increase the

efficiency of Philadep’s SDFS system

with respect to omnibus accounts.6

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, 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, 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 Philadep. All submissions

should refer to the file number SR–

Philadep–96–22 and should be

submitted by February 3, 1997.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

Philadep–96–22) be, and hereby is

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–689 Filed 1–10–97; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

[Social Security Acquiescence Ruling 97-

2(9)]

Gamble v. Chater; Amputation of a

Lower Extremity—When the Inability to

Afford the Cost of a Prosthesis Meets

the Requirements of Section 1.10C of

the Listing of Impairments—Titles II

and XVI of the Social Security Act

AGENCY: Social Security Administration.

ACTION: Notice of Social Security

Acquiescence Ruling.

SUMMARY: In accordance with 20 CFR

422.406(b)(2), the Commissioner of

Social Security gives notice of Social

Security Acquiescence Ruling 97-2(9).

EFFECTIVE DATE: January 13, 1997.

FOR FURTHER INFORMATION CONTACT:

Gary Sargent, Litigation Staff, Social

Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410)

965-1695.

SUPPLEMENTARY INFORMATION: Although

not required to do so pursuant to 5

U.S.C. 552(a)(1) and (a)(2), we are

publishing this Social Security

Acquiescence Ruling in accordance

with 20 CFR 422.406(b)(2).

A Social Security Acquiescence

Ruling explains how we will apply a

holding in a decision of a United States

Court of Appeals that we determine

conflicts with our interpretation of a

provision of the Social Security Act (the

Act) or regulations when the

Government has decided not to seek

further review of that decision or is

unsuccessful on further review.

We will apply the holding of the

Court of Appeals decision as explained

in this Social Security Acquiescence

Ruling to claims at all levels of

administrative adjudication within the

Ninth Circuit. This Social Security

Acquiescence Ruling will apply to all

determinations and decisions made on

or after January 13, 1997. If we made a

determination or decision on your

application for benefits between October

12, 1995, the date of the Court of

Appeals decision, and January 13, 1997,

the effective date of this Social Security

Acquiescence Ruling, you may request

application of the Ruling to your claim

if you first demonstrate, pursuant to 20

CFR 404.985(b) or 416.1485(b), that

application of the Ruling could change

our prior determination or decision.

If this Social Security Acquiescence

Ruling is later rescinded as obsolete, we

will publish a notice in the Federal

Register to that effect as provided for in

20 CFR 404.985(e) and 416.1485(e). If

we decide to relitigate the issue covered

by this Social Security Acquiescence

Ruling as provided for by 20 CFR

404.985(c) and 416.1485(c), we will

publish a notice in the Federal Register

stating that we will apply our

interpretation of the Act or regulations

involved and explaining why we have

decided to relitigate the issue.

(Catalog of Federal Domestic Assistance

Program Nos. 96.001 Social Security -

Disability Insurance; 96.002 Social Security -

Retirement Insurance; 96.004 Social Security

- Survivors Insurance; 96.005 Special

Benefits for Disabled Coal Miners; 96.006

Supplemental Security Income.)

Dated: October 15, 1996.

Shirley S. Chater,

Commissioner of Social Security.

Acquiescence Ruling 97-2(9)

Gamble v. Chater, 68 F.3d 319 (9th

Cir. 1995)—Amputation of a Lower

Extremity—When the Inability to Afford

the Cost of a Prosthesis Meets the

Requirements of Section 1.10C of the

Listing of Impairments—Titles II and

XVI of the Social Security Act.

Issue: Whether a claimant for

disability insurance benefits or for

Supplemental Security Income benefits

based on disability who has an

amputation of a lower extremity (at or