Federal Register / Vol. 62, No. 7 / Friday, January 10, 1997 / Rules and Regulations 1385

1Securities Exchange Act Release No. 37619A

(September 6, 1996), 61 FR 48290 (‘‘Adopting

Release’’).

2 17 CFR 240.11Ac1–4(d); 17 CFR 240.11Ac1–

1(d).

3 17 CFR 200.30–3.

4 5 U.S.C. 553(B)(3)(A).

pursuant to the recently adopted Limit

Order Display Rule (Rule 11Ac1–4(d)),

and to delegate authority to delay the

effective dates or compliance dates for

any aspect of the implementation or

operation of the Limit Order Display

Rule or the recent amendments to the

Quote Rule (Rule 11Ac1–1). This

delegation will help to expedite and

enhance the orderly implementation of

the recently adopted Limited Order

Display Rule and the amendments to the

Quote Rule.

EFFECTIVE DATE: January 2, 1997.

FOR FURTHER INFORMATION CONTACT:

Betsy Prout Lefler, Special Counsel,

Division of Market Regulation, 202/942–

0170.

SUPPLEMENTARY INFORMATION: On August

28, 1996, the Securities and Exchange

Commission adopted amendments to

the Quote Rule and a new Limit Order

Display Rule.1 The Limit Order Display

Rule generally requires exchange

specialists and OTC market makers to

display customer limit orders that are at

prices superior to the market maker’s or

specialist’s own quote, subject to certain

exceptions. The amendments to the

Quote Rule, among other things, (1)

require OTC market makers and

exchange specialists to include in their

public quotes any better prices that they

have placed in certain electronic

communications networks (‘‘ECN

Amendments’’); (2) deems an OTC

market maker or specialist in

compliance with the ECN Amendment

if it inputs such prices into an ECN that

furnishes the best market maker and

specialist prices therein to an exchange

or association for inclusion in the public

quotation system, and provides access

to those prices equivalent to the access

that would have been afforded market

participants if the market maker or

specialist had updated its own quote;

and (3) expands the definition of ‘‘OTC

market maker’’ to mean any dealer who

holds itself out as being willing to buy

from and sell to its customers, or

otherwise, a security covered under the

Quote Rule for its own account on a

regular and continuous basis otherwise

than on an exchange in amounts of less

than block size.

Both the Limit Order Display Rule

and the Quote Rule contain provisions

that allow the Commission to grant

exemptive relief from various provisions

of the rules to market participants and

self-regulatory organizations.2 While the

Director of the Division of Market

Regulation already has delegated

authority to grant exemptive relief

under the Quote Rule, the present

amendment to Rule 30–3 3 authorities

the Director of the Division of Market

Regulation to grant the exemptive the

relief described in the Limit Order

Display Rule. This delegation will

provide flexibility to ensure orderly

implementation of the recently adopted

Limit Order Display Rule in instances

where immediate action is necessary to

ensure the protection of investors and

the maintenance of fair and orderly

markets. The present amendment to

Rule 30–3 also authorizes the Director of

the Division of Market Regulation to

modify as needed the compliance dates

and effective dates for operation of the

Quote Rule, as amended, or of the Limit

Order Display Rule.

The Commission finds, in accordance

with Section 553(b)(3)(A) of the

Administrative Procedure Act,4 that this

amendment relates solely to agency

organization, procedures, or practice,

and does not relate to a substantive rule.

Accordingly, notice and opportunity for

public comment are unnecessary, and

publication of the amendment 30 days

before its effective date is also

unnecessary.

List of Subjects in 17 CFR Part 200

Administrative practice and

procedure, Authority delegations

(Government agencies).

Text of Amendment

For the reasons set out in the

preamble, Title 17, Chapter II of the

Code of Federal Regulations is amended

as follows:

PART 200—ORGANIZATION;

CONDUCT AND ETHICS; AND

INFORMATION AND REQUESTS

1. The authority citation for Part 200

continues to read in part as follows:

Authority: 15 U.S.C. 77s, 78d–1, 78d–2,

78w, 7811(d), 79t, 77sss, 80a–37, 80b–11,

unless otherwise noted.

* * * * *

2. Section 200.30–3 is amended by

adding paragraphs (a)(61) and (a)(62) as

follows:

§ 200.30–3 Delegation of authority to

Director of Division of Market Regulations.

* * * * *

(a) * * *

(61) To grant exemptions from Rule

11Ac1–4 (‘‘Rule’’) (§ 240.11Ac1–4),

pursuant to paragraph (d) of the rule.

(62) From January 2, 1997 through

February 17, 1997, to modify for a

period not to exceed 60 days, the

effective date or the compliance date of

Rule 11Ac1–1 (§ 240.11Ac1–1) or Rule

11Ac1–4 (§ 240.11Ac1–4), or

amendments to Rule 11Ac1–1 or Rule

11Ac1–4, with respect to any party

affected by such rules.

* * * * *

By the Commission.

Dated: January 2, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–620 Filed 1–9–97; 8:45 am]

BILLING CODE 8010–01–M

17 CFR Part 240

[Release No. 34–38139; 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 delaying the effective

date and compliance dates for Rule

11Ac1–4 (‘‘Limit Order Display Rule’’)

and amendments to Rule 11Ac1–1

(‘‘ECN Amendment’’) (cumulatively

‘‘Order Execution Rules’’).

DATES: Effective Date: The effective date

shall be January 20, 1997 for

§ 240.11Ac1–4 and amendments to

§ 240.11Ac1–1, published on September

12, 1996 (61 FR 48290), and revised by

rule published on January 9, 1997,

except that the effective date for

§ 240.11Ac1–1(a)(25)(ii) remains April

10, 1997.

Compliance Dates: Each of the first

three scheduled phase-in dates for

compliance with the Order Execution

Rules are being delayed one week, so

that the first compliance date with

respect to exchange-traded securities

and 50 Nasdaq stocks shall be January

20, 1997, the phase-in date for an

additional 100 Nasdaq securities shall

be February 7, 1997, and the phase-in

date for an additional 850 Nasdaq

securities shall be February 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
1386 Federal Register / Vol. 62, No. 7 / Friday, January 10, 1997 / Rules and Regulations

1 17 CFR 240.11Ac1–4.

3The Commission also amended subsection

(a)(25)(ii) of the Quote Rule, thereby expanding the

coverage of the Quote Rule to all exchange-traded

securities. Thereafter, the Commission determined

that it was appropriate to make this aspect of the

amendments effective April 10, 1997. See Securities

Exchange Act Release No. 38110, infra note 3. The

present order does not change that date and,

therefore, the effective date of subsection (a)(25)(ii)

of the Quote Rule remains April 10, 1997.

3See Securities Exchange Act Release Nos. 37972

(November 22, 1996), and 38110 (January 2, 1997).

(‘‘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.2

In the Adopting Release, the

Commission deemed the effective date

of these initiatives January 10, 1997.

Thereafter, the Commission modified

the effective date of the rules to January

13, 1997, and established compliance

dates with respect to the Limit Order

Display Rule and the ECN Amendment

so that compliance with the rules would

be phased-in over several months.3

In order to allow market participants

more time to adapt to the Order

Execution Rules and the National

Association of Securities Dealers’

recently proposed amendments to its

Small Order Execution System,

SelectNet, and other rules to

accommodate the Order Execution

Rules, the Commission is hereby

modifying the effective dates and

compliance dates as follows: (1) the

effective date for the Limit Order

Display Rule and the amendments to the

Quote Rule adopted August 28, 1996,

shall be January 20, 1997. The effective

date for the Quote Rule definition of

‘‘subject security,’’ § 240.11Ac1–

1(a)(25)(ii), remains April 10, 1997; (2)

each of the first three scheduled phasein dates for compliance with the Order

Execution Rules are being delayed one

week, so that the first compliance date

with respect to exchange-traded

securities and 50 Nasdaq stocks shall be

January 20, 1997, the phase-in date for

an additional 100 Nasdaq securities

shall be February 7, 1997, and the

phase-in date for an additional 850

Nasdaq securities shall be February 28,

1997. The remaining compliance dates

for the Limit Order Display Rule and the

ECN Amendment remain unchanged.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30(a)(62).

Dated: January 8, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–823 Filed 1–9–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 55

[Notice No. 845; Re: Regulatory Flexibility

Act (Public Law 96–354)]

RIN 1512–AB48

Explosive Materials in the Fireworks

Industry

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: General notice of regulatory

review.

SUMMARY: Complying with the

Regulatory Flexibility Act (Public Law

96–354), the Bureau of Alcohol,

Tobacco and Firearms (ATF) is required

to review the regulations in 27 CFR part

55, issued in T.D. ATF–293, effective

March 7, 1990. This document requests

comments from members of the

explosives industry and other interested

persons as to the effectiveness of the

regulations issued in T.D. ATF–293.

DATES: Comments and/or responses

should be received by April 10, 1997.

ADDRESSES: Send written comments to:

Chief, Firearms and Explosives

Operations Branch, Bureau of Alcohol,

Tobacco and Firearms, P.O. Box 50204,

Washington, DC 20091–0204, ATTN:

Notice No. 845. Copies of written

comments received in response to this

general notice will be available for

public inspection during normal

business hours at: ATF Reference

Library, Office of Public Affairs and

Disclosure, Room 6300, 650

Massachusetts Avenue, NW.,

Washington, DC 20226.

FOR FURTHER INFORMATION CONTACT:

Mark D. Waller, ATF Specialist,

Firearms and Explosives Operations

Branch, Bureau of Alcohol, Tobacco and

Firearms, (202) 927–8310.

SUPPLEMENTARY INFORMATION:

Background

Due to the number and severity of

explosions that have occurred on the

premises of special fireworks plants, the

Bureau of Alcohol, Tobacco and

Firearms (ATF) issued T.D. ATF–293,

55 FR 3717, which amended certain

regulations contained in 27 CFR part 55.

The regulations were effective on March

7, 1990.

These amendments implemented

storage and recordkeeping requirements

for industry members engaged in the

manufacturing, importing, dealing, or

using of fireworks and implemented the

provisions of Pub. L. No. 99–308, 100

Stat. 449 (1986) relating to black

powder. Some of the major provisions of

the amendments were: (1) Extending the

high explosive definition to flash

powder and bulk salutes for storage

purposes, since these materials can be

made to detonate by means of a blasting

cap when unconfined; (2) limiting the

amount of flash powder used in special

fireworks that can be kept outside an

approved magazine and in any one

processing building during a day’s

assembling operations to no more than

10 pounds; (3) limiting the amount of

other explosive materials that can be

kept outside an approved magazine and

in any processing building or area

during a day’s assembling operations to

no more than 500 pounds; (4) requiring

that processing buildings or areas

holding no more than 10 pounds of

flash powder or 500 pounds of other

explosive materials used in special

fireworks be located in accordance with

the table of distances in 27 CFR 55.218;

(5) established new minimum

separation of distance tables applicable

to fireworks plants, fireworks process

buildings, and fireworks plant

magazines; (6) amended the

recordkeeping requirements to include

information regarding quantity and

description of special fireworks; and (7)

eliminated the recordkeeping

requirements for licensees and

permittees selling or disposing of

exempt quantities of black powder for

sporting, recreational, or cultural

purposes in antique firearms or antique

devices.

The periodic review of regulations

under 5 U.S.C. 610(b) requires agencies

to consider the following factors: (1) the

continued need for the rule; (2) the

nature of complaints or comments

received concerning the rule from the

public; (3) the complexity of the rule; (4)

the extent to which the rule overlaps,

duplicates or conflicts with other

Federal rules, and, to the extent feasible,

with State and local governmental rules;

and (5) the length of time since the rule

has been evaluated or the degree to

which technology, economic conditions,

or other factors have changed in the area

affected by the rule.