18514 Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 / Rules and Regulations

1See Securities Exchange Act Release No.

37619A (September 6, 1996), 61 FR 48290

(September 12, 1996) (‘‘Adopting Release’’).

2 17 CFR 240.11Ac1–1(c)(5)(i).

3 17 CFR 240.11Ac1–1(c)(5)(ii).

4 17 CFR 240.11Ac1–1(a)(25).

5 17 CFR 11Ac1–1(c)(1). See Securities Exchange

Act Release No. 38110 (January 2, 1997), 62 FR

1279 (January 9, 1997) which changed the effective

date of the 1% Rule, with respect to the amended

PART 274a—CONTROL OF

EMPLOYMENT OF ALIENS

5. The authority citation for part 274a

continues to read as follows:

Authority: 8 U.S.C. 1101, 1103, 1324a; 8

CFR part 2.

6. Section 274a.12 is amended by:

a. Revising paragraph (b)(9);

b. Revising paragraph (b)(13); and by

c. Revising paragraph (b)(14), to read

as follows:

§ 174a.12 Clauses of aliens authorized to

accept employment.

* * * * *

(b) * * *

(9) A temporary worker or trainee (H–

1, H–2A, H–2B, or H–3), pursuant to

§ 214.2(h) of this chapter. An alien in

this status may be employed only by the

petitioner through whom the status was

obtained. In the case of a professional

H–2B athlete who is traded from one

organization to another organization,

employment authorization for the player

will automatically continue for a period

of 30 days after acquisition by the new

organization, within which time the

new organization is expected to file a

new Form I–129 to petition for H–2B

classification. If a new Form I–129 is not

filed within 30 days, employment

authorization will cease. If a new Form

I–129 is filed within 30 days, the

professional athlete’s employment

authorization will continue until the

petition is adjudicated. If the new

petition is denied, employment

authorization will cease;

* * * * *

(13) An alien having extraordinary

ability in the sciences, arts, education,

business, or athletics (O–1), and an

accompanying alien (O–2), pursuant to

§ 214.2(o) of this chapter. An alien in

this status may be employed only by the

petitioner through whom the status was

obtained. In the case of a professional

O–1 athlete who is traded from one

organization to another organization,

employment authorization for the player

will automatically continue for a period

of 30 days after the acquisition by the

new organization, within which time

the new organization is expected to file

a new Form I–129 petition for O

nonimmigrant classification. If a new

Form I–129 is not filed within 30 days,

employment authorization will cease. If

a new Form I–129 is filed within 30

days, the professional athlete’s

employment authorization will continue

until the petition is adjudicated. If the

new petition is denied, employment

authorization will cease.

(14) An athlete, artist, or entertainer

(P–1, P–2, or P–3), pursuant to

§ 214.2(p) of this chapter. An alien in

this status may be employed only by the

petitioner through whom the status was

obtained. In the case of a professional

P–1 athlete who is traded from one

organization to another organization,

employment authorization for the player

will automatically continue for a period

of 30 days after the acquisition by the

new organization, within which time

the new organization is expected to file

a new Form I–129 for P–1 nonimmigrant

classification. If a new Form I–129 is not

filed within 30 days, employment

authorization will cease. If a new Form

I–129 is filed within 30 days, the

professional athlete’s employment

authorization will continue until the

petition is adjudicated. If the new

petition is denied, employment

authorization will cease;

* * * * *

Dated: February 13, 1997.

Doris Meissner,

Commissioner, Immigration and

Naturalization Service.

[FR Doc. 97–9814 Filed 4–15–97; 8:45 am]

BILLING CODE 4410–10–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 240

[Release No. 34–38490; File No. S7–30–95]

RIN 3235–AG66

Order Execution Obligations

AGENCY: Securities and Exchange

Commission.

ACTION: Revised compliance dates;

exemptive order.

SUMMARY: The Securities and Exchange

Commission (‘‘Commission’’’) is

announcing the revised phase-in

schedule for compliance with Rules

11Ac1–1(c)(5) (‘‘ECN Amendment’’ of

the ‘‘Quote Rule’’) and 11Ac1–4 (‘‘Limit

Order Display Rule’’) under the

Securities Exchange Act of 1934

(‘‘Exchange Act’’) and is providing

exemptive relief to accomodate the new

schedule. In addition, the Commission

is providing exemptive relief from

compliance with the 1% requirement of

the Quote Rule with respect to non–

19c–3 securities.

DATES: Effective: April 9, 1997.

Compliance Dates: The phase-in

schedule with respect to 550 additional

Nasdaq securities will be as follows: 50

Nasdaq securities on April 21, 1997; 50

Nasdaq securities on April 28, 1997; 50

Nasdaq securities on May 5, 1997; 50

Nasdaq securities on May 12, 1997; 50

Nasdaq securities on May 19, 1997; 50

Nasdaq securities on May 27, 1997; 50

Nasdaq securities on June 2, 1997; 50

Nasdaq securities on June 9, 1997; 50

Nasdaq securities on June 23, 1997; 50

Nasdaq securities on June 30, 1997; and

50 Nasdaq securities on July 7, 1997.

Concurrently, the Commission is

exempting responsible brokers and

dealers, electronic communications

networks, exchanges and associations

from compliance with the Order

Execution Rules, with respect to the

Nasdaq securities that are not phased-in

under such schedule, until July 28,

1997. In addition, the Commission is

exempting substantial market makers

and specialists from compliance with

the 1% requirement of the Quote Rule

with respect to non-Rule 19c–3

securities until July 28, 1997.

FOR FURTHER INFORMATION CONTACT:

David Oestreicher, Special Counsel, or

Gail Marshall-Smith, 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:

Background

On August 28, 1996, the Securities

and Exchange Commission adopted

Rule 11Ac1–4, the Limit Order Display

Rule, and amendments to Rule 11Ac1–

1, the Quote Rule under the Exchange

Act.1 The Limit Order Display Rule

requires over-the-counter (‘‘OTC’’)

market makers and exchange specialists

to publicly display certain customer

limit orders. The ECN Amendment of

the Quote Rule requires OTC market

makers and specialists to publicly

disseminate the best prices that they

enter into an electronic communications

network (‘‘ECN’’),2 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 ‘‘ECN Display Alternative’’) 3 In

addition, the Quote Rule term ‘‘subject

security’’ 4 was amended, thereby

requiring OTC market makers and

specialists to publish quotes in any

exchange-listed security if their volume

in that security exceeds 1% of the

aggregate volume during the most recent

calendar quarter.5
Federal Register / Vol. 62, No. 73 / Wednesday, April 16, 1997 / Rules and Regulations 18515

definition of ‘‘subject security’’, from January 10,

1997, to April 10, 1997.

6See Securities Exchange Act Release Nos.

37619A (September 6, 1996), 37972 (November 22,

1996), 38110 (January 2, 1997), 38139 (January 8,

1997), and 38246 (February 5, 1997) outlining

previous phase-in schedules for the Order

Execution Rules. The Commission notes that a

broker-dealer’s duty of best execution discussed in

the Adopting Release is applicable to all securities

and is not based on whether or not the security has

been phased-in under the Limit Order Display Rule

or the ECN Amendment.

7See Securities Exchange Act Release No. 38246

(February 5, 1997). Absent the granted exemptive

relief, the Limit Order Display Rule would currently

apply to 1000 Nasdaq securities with an additional

1500 Nasdaq securities being required on March 28,

1997. Moreover, the ECN Amendment would

currently apply to 1000 Nasdaq securities with the

remaining Nasdaq securities being required on

March 28, 1997.

8See letter from J. Patrick Campbell, Executive

Vice President, Trading & Market Services, The

Nasdaq Stock Market, Inc., to Richard R. Lindsey,

Director, Division of Market Regulation, dated April

8, 1997.

9Nasdaq will continue to identify the specific

securities to be phased-in prior to each phase-in

date.

10 17 CFR 240.11Ac1–1(d).

11See 17 CFR 240.19c–3. Exchange Act Rule 19c–

3 prohibits the application of off-board trading

restrictions to securities that (1) were not traded on

an exchange before April 26, 1979; or (2) were

traded on an exchange on April 26, 1979, but

ceased to be traded on an exchange for any period

of time thereafter. Accordingly, exchange-traded

securities not subject to off-board trading

restrictions are referred to as Rule 19c–3 securities,

and exchange-traded securities subject to off-board

trading restrictions are referred to as non-rule 19c–

3 securities.

12 17 CFR 240.11Ac1–4(d). 13 17 CFR 200.30(a)(28) and (61).

Discussion

The obligations under the Order

Execution Rules represent a significant

change in the order handling practices

of OTC market makers and specialists.

The Commission, therefore, has chosen

to require compliance with the rules

over a phased-in period. On January 20,

1997, the Order Execution Rules became

effective and compliance with the rules

became mandatory for all exchangetraded securities and 50 Nasdaq

securities.6 Subsequently, the

Commission provided exemptive relief

from compliance with the Order

Execution Rules for the Nasdaq

securities not phased-in as of February

14, 1997, until April 14, 1997.7 To date,

compliance is mandatory for all

exchange-traded securities and 150 of

the most actively traded Nasdaq

securities.

The Commission has been closely

monitoring the implementation of the

rules and has found that the

implementation appears to be occurring

successfully. The success to date is due,

in-part, to affording market participants

time to adapt to the new regulatory

requirements. Moreover, Nasdaq will

continue to have capacity limitations

that reduce its ability to handle

substantial additional quotation traffic

until mid-July. The NASD has,

therefore, requested that the rules be

phased-in on an extended schedule that

strikes a reasonable balance between the

desire to enhance the benefits of the

Rules for investors and the need to

ensure that implementation of the Rules

does not compromise the integrity or

capacity of automated systems operated

by Nasdaq, broker-dealers, ECNs, and

vendors.8 Accordingly, the Commission

believes it is appropriate to continue the

gradual phase-in of both the Limit Order

Display Rule and the ECN Amendment

for the next 550 most actively traded

Nasdaq securities. However, once the

most actively traded Nasdaq securities

are phased-in, the Commission expects

to phase-in the remaining securities on

a more accelerated basis.

The new schedule for the next 550

Nasdaq securities is as follows: 50

Nasdaq securities on April 21, 1997; 50

Nasdaq securities on April 28, 1997; 50

Nasdaq securities on May 5, 1997; 50

Nasdaq securities on May 12, 1997; 50

Nasdaq securities on May 19, 1997; 50

Nasdaq securities on May 27, 1997; 50

Nasdaq securities on June 2, 1997; 50

Nasdaq securities on June 9, 1997; 50

Nasdaq securities on June 23, 1997; 50

Nasdaq securities on June 30, 1997; and

50 Nasdaq securities on July 7, 1997.9

The Commission will not phase-in

securities the week of June 16, 1997 to

afford Nasdaq an opportunity to effect

system upgrades designed to enhance

Nasdaq’s quote update response time

and the capacity of Nasdaq’s last sale

broadcast. To accommodate this

schedule and pursuant to Rule 11Ac1–

1(d) 10 of the Exchange Act, the

Commission is exempting responsible

brokers and dealers, electronic

communications networks, exchanges,

and associations, until July 28, 1997

form the requirements of: (1) Rule

11Ac1–1(c)(5)(i), the ECN Amendment,

with respect to all Nasdaq securities not

phased-in as of July 7, 1997; and (2)

from the requirements of Rule 11Ac1–

1(c)(1), with respect to non-Rule 19c–3

securities.11 In addition, pursuant to

Rule 11Ac1–4(d) 12 of the Exchange Act,

the Commission is exemption

responsible brokers and dealers,

electronic communications networks,

exchanges, and associations, until July

28, 1997 from the requirements of Rule

11Ac1–4, the Limit Order Display Rule,

with respect to all Nasdaq securities not

phased-in as of July 7, 1997.

The Commission has granted this

exemptive relief to continue monitoring

the operation of the Order Execution

Rules, and will announce a phase-in

schedule for the Nasdaq securities not

phased-in as of July 7, 1997 at the

appropriate time. The Commission finds

that the exemptive relief provided

herein to responsible brokers and

dealers, electronic communications

networks, exchanges, and associations is

consistent with the public interest, the

protection of investors and the removal

of impediments to and perfection of the

mechanism of a national market system.

Moreover, granting exemptive relief

from the requirements of Rule 11Ac1–

1(a)(25) until July 28, 1997, will provide

the NASD and the Intermarket Trading

System Participants further time to

resolve their existing limitations on the

automated generation of quotations.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–9713 Filed 4–15–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR PART 142

RIN 1076 AD66

Operation of U.S.M.S. ‘‘North Star’’

Between Seattle, Washington, and

Stations of the Bureau of Indian Affairs

and Other Government Agencies,

Alaska

AGENCY: Bureau of Indian Affairs,

Interior.

ACTION: Final rule.

SUMMARY: The Bureau of Indian Affairs

(BIA) is amending 25 CFR part 142 as

mandated by Executive Order 12866 to

streamline the regulatory process and

enhance the planning and coordination

of existing regulations.

EFFECTIVE DATE: These regulations take

effect May 16, 1997.

SUPPLEMENTARY INFORMATION: The

authority to issue rules and regulations

is vested in the Secretary of the Interior

by 5 U.S.C. 301 and sections 463 and

465 of the Revised Statutes, 25 U.S.C. 2

and 9.

The U.S.M.S. North Star has been

decommissioned. However, the need for

a resupply operation in Alaska

continues. The Juneau Area Office

administers the Alaska Resupply

Operation through the Seattle Support

Center. All accounts receivable and

payable are handled by the Seattle