16638 Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices

14The Commission expects that the NASD will

act with diligence in attempting to ensure that this

change as amended is enforced, and that the NASD

will remove those securities from the OTCBB upon

gaining knowledge that a foreign issuer included on

the OTCBB is not registered and reporting under

Section 12 of the Act, and the rules thereunder.

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

2 15 U.S.C. 78q–1.

3Letter from John J. Sceppa, President and Chief

Executive Officer, PTC (February 13, 1997).

4 15 U.S.C. 78q–1(b)(2) and 78s(a).

5Securities Exchange Act Release No. 26671

(March 28, 1989), 54 FR 13266.

6Securities Exchange Act Release Nos. 27858

(March 28, 1990), 55 FR 12614; 29024 (March 28,

1991), 56 FR 13848; 30537 (April 9, 1992), 57 FR

12351; 32040 (March 23, 1993), 58 FR 16902; 33734

(March 8, 1994), 59 FR 11815; 35482 (March 13,

1995), 60 FR 14806; and 37024 (March 26, 1996),

61 FR 14357.

7Supra note 5.

8Supra note 3.

9Securities Exchange Act Release No. 37813

(October 11, 1996), 61 FR 54483.

concerns that the OTCBB would provide

an active secondary trading market in

unregistered securities. To address these

concerns, the quotation of foreign

securities on the OTCBB was limited to

‘‘non-firm’’ quotations that could be

updated a maximum of two times per

day. Thus, each quotation in a foreign

security on the OTCBB is ‘‘stale’’ and

serves more as an indication of a market

maker’s interest in dealing in the

security than as an actual bid and offer

in the security. In addition, while

market makers must report trades in

foreign securities to the NASD, the

NASD uses this information for

surveillance purposes only and does not

make this information public.

The Commission believes that is

appropriate to require that foreign

securities be registered pursuant to

Section 12 of the Act to be eligible for

inclusion in the OTCBB. As a general

matter, transparency benefits the

markets. However, in the context of the

inclusion of unregistered foreign

securities on the OTCBB, the benefits

may be outweighed by the potential

from including unregistered securities

on a visible U.S. market operated by a

self-regulatory organization. Although

the OTCBB provides some increase in

transparency for foreign securities, this

transparency is limited by the

restriction to non-firm quotations

updated twice daily. At the same time,

the OTCBB may be inconsistent with

the full disclosure goals of the securities

laws in allowing a regulated public

marketplace for unregistered securities.

The Commission believes that the

NASD could increase transparency with

less customer confusion by requiring

transaction reporting for foreign

securities traded over-the-counter in the

U.S. Transaction reporting information

has the potential to greatly enhance the

amount of market information available

to investors and better enable investors

to monitor the executions they receive

in foreign securities. In the meantime,

the Commission believes that it is

preferable for the NASD to require

foreign issuers that trade on the OTCBB

to be registered. Under the NASD’s

amendment, this requirement will apply

one year from the date of this Order.

The one-year sunset provision for

unregistered foreign issuers on the

OTCBB will give issuers an opportunity

to consider whether to register so that

they can continue to have their

securities included on the OTCBB in the

U.S. or to make other arrangements. It

also will provide the public with oneyear’s notice of the fact that these

issuers will no longer be quoted on the

OTCBB. The requirement that foreign

securities be registered will be effective

on April 1, 1998.14

The Commission finds good cause for

approving Amendment Nos. 3 and 4 to

the proposed rule change prior to the

30th day after the date of publishing

notice of the filing thereof. The

Commission finds that approval of this

proposed rule change is appropriate

because the Commission has considered

the comments received from interested

parties and believes that the continued

operation of the Service, as amended by

this Order, is in the public interest. In

particular, the Commission notes that

the OTCBB has been operating

continuously since June 1, 1990 on a

pilot basis, and the Commission finds

that a one-year phase-out of the system

for unregistered foreign securities would

prove less disruptive to trading than an

immediate removal of unregistered

foreign issuers from the OTCBB.

It is therefore ordered, pursuant to

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

proposed rule change SR–NASD–92–7

be, and hereby is, approved as amended.

The change to Paragraph 6540(b)(1)(c)

and the footnote will be effective on

April 1, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8792 Filed 4–4–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–38452; File No. 600–25]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing of Request and Order Approving

Application for Extension of

Temporary Registration as a Clearing

Agency

March 28, 1997.

On February 14, 1997, the

Participants Trust Company (‘‘PTC’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) a request

pursuant to Section 19(a) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 for extension of its registration

as a clearing agency under Section 17A

of the Act 2 for a period of one year.3

The Commission is publishing this

notice and order to solicit comments

from interested persons and to grant

PTC’s request for an extension of its

temporary registration as a clearing

agency through March 31, 1998.

On March 28, 1989, the Commission

granted PTC’s application for

registration as a clearing agency

pursuant to Sections 17A(b)(2) and 19(a)

of the Act 4 on a temporary basis for a

period of one year.5 Subsequently, the

Commission issued orders that extended

PTC’s temporary registration as a

clearing agency, the last of which

extended PTC’s registration through

March 31, 1997.6

As discussed in detail in the initial

order granting PTC’s temporary

registration,7 one of the primary reasons

for PTC’s registration was to allow it to

develop depository facilities for

mortgage-backed securities, particularly

securities guaranteed by the

Government National Mortgage

Association. PTC services include

certificate safekeeping, book-entry

deliveries, and other services related to

the immobilization of securities

certificates.

PTC continues to make significant

progress in the areas of financial

performance, regulatory commitments,

and operational capabilities. For

example, the original face value of

securities on deposit at PTC as of

December 31, 1996, totaled $1.2 trillion,

an increase of approximately $125

billion over the amount on deposit as of

December 31, 1995. Total pools on

deposit, which were held at PTC in a

total of 1.3 million participant positions,

rose from 302,000 as of December 31,

1995, to more than 350,000 as of

December 31, 1996.8

During its most recent temporary

approval period, PTC established a new

category of participant for Federal

Reserve Banks.9 The Federal Reserve

Bank of New York became a Federal

Reserve participant on December 31,

1996. On December 31, 1996, PTC’s
Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices 16639

10Securities Exchange Act Release No. 38280

(February 12, 1997), 62 FR 8072.

11The operational and procedural changes PTC

committed to make were: (1) Eliminating trade

reversals from PTC’s procedures to cover a

participant default; (2) phasing out the aggregate

excess net debit limitation for extensions under the

net debit monitoring level procedures; (3) making

principal and interest advances, now mandatory,

optional; (4) allowing participants to retrieve

securities in the abeyance account and not allowing

participants to reverse transfers because customers

may not be able to fulfill financial obligations to the

participants; (5) eliminating the deliverer’s security

interest and replacing it with a substitute; (6)

reexamining PTC’s account structure rules to make

them consistent with PTC’s lien procedures; (7)

expanding and diversifying PTC’s lines of credit; (8)

assuring operational integrity by developing and

constructing a back-up facility; and (9) reviewing

PTC rules and procedures for consistency with

current operations.

12On February 7, 1997, PTC filed an amended

Form CA–1 with the Commission requesting

permanent registration as a clearing agency under

Section 17A of the Act. PTC’s request is currently

under review by the Commission.

13 15 U.S.C. 78q–1(b)(3).

14 15 U.S.C. 78q–1(b)(3). 15 17 CFR 200.30–3(a)(50).

participants included twenty-seven

banks, twenty-three broker-dealers, two

government-sponsored enterprises, and

the Federal Reserve Bank of New York.

In addition, PTC declared a dividend of

$.98 per share to stockholders of record

on December 31, 1996.10

In connection with PTC’s original

temporary registration, PTC committed

to the Commission and to the Federal

Reserve Bank of New York to make a

number of operational and procedural

changes.11 Over the past year, PTC has

continued its efforts to implement these

operational and procedural changes.

Currently, only one of PTC’s original

nine commitments, the commitment to

make principal and interest advances

optional, remains outstanding. In

connection with this commitment, PTC

has made significant progress in

improving the collection process for

principal and interest payments and is

discussing with the Commission and the

Federal Reserve Bank of New York

means by which PTC can satisfy the

commitment.12

PTC has functioned effectively as a

registered clearing agency for the past

eight years. In light of PTC’s past

performance, the Commission believes

that PTC has the operational and

procedural capacity to comply with the

statutory obligations set forth under

Section 17A(b)(3) of the Act 13 as

prerequisites for registration as a

clearing agency. Comments received

during PTC’s temporary registration will

be considered in determining whether

PTC should receive permanent

registration as a clearing agency under

Section 17A(b) of the Act.14

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, NW.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the request for extension

of temporary registration as a clearing

agency that are filed with the

Commission, and all written

communications relating to the

requested extension between the

Commission and any person, other than

those that may be withheld from the

public in accordance with provisions of

5 U.S.C. § 552, will be available for

inspection and copying in the

Commission’s Public Reference Section,

450 Fifth Street, NW., Washington, DC

20549. Copies of such filing also will be

available for inspection and copying at

the principal office of PTC. All

submissions should refer to File No.

600–25.

On the basis of the foregoing, the

Commission finds that PTC’s request for

extension of temporary registration as a

clearing agency is consistent with the

Act and in particular with Section 17A

of the Act.

It is therefore ordered, that PTC’s

registration as a clearing agency be and

hereby is approved on a temporary basis

through March 31, 1998.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8794 Filed 4–4–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Reports, Forms and Recordkeeping

Requirements; Agency Information

Collection Activity Under OMB Review

AGENCY: Office of the Secretary, DOT.

ACTION: Notice.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. Chapter 3501, et seq.) this notice

announces that the Information

Collection Request (ICR) abstracted

below has been forwarded to the Office

of Management and Budget (OMB) for

review and comment. The ICR describes

the nature of the information collection

and it’s expected cost and burden. The

Federal Register Notice with a 60-day

comment period soliciting comments on

the following collection of information

was published on December 19, 1996

[FR 61, page 67091–67092].

DATES: Comments on this notice must be

received on or before May 7, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Kenneth C. Edgell, DOT Drug Program

Office, Office of the Secretary, S–1,

DEPC, Room 10317, Department of

Transportation, at the address above.

Telephone: (202) 366–3784.

SUPPLEMENTARY INFORMATION:

Office of the Secretary, Drug Program

Office

Title: U. S. Department of

Transportation (DOT) Breath Alcohol

Testing Form.

OMB Control Number: 2105–0529.

Affected Public: Transportation

industries.

Abstract: Under the Omnibus

Transportation Employee Testing Act of

1991, DOT is required to implement an

alcohol testing program in various

transportation industries.

Breath-alcohol technicians (BAT)

must fill out testing form. The form

includes the employee’s name, the type

of test taken, the date of the test, and the

name of the employer. Custody and

control is essential to the basis purpose

of the alcohol testing program. Data on

each test conducted, including test

results, are necessary to document tests

conducted and actions taken to ensure

safety in the workplace.

Need: This specific requirement is

elaborated in 49 CFR Part 40,

Procedures for Transportation

workplace Drug and Alcohol Testing

Programs.

Burden Estimate: The estimated

burden is 1 hour annually.

Send comments to the Office of

Information and Regulatory Affairs,

Office of Management and Budget, 725–

17th Street, NW., Washington, DC

20503, Attention DOT Desk Officer.

Comments are invited on: whether the

proposed collection of information is

necessary for the proper performance of

the functions of the Department,

including whether the information will

have practical utility; the accuracy of

the Department’s estimate of the burden

of the proposed information collection;

ways to enhance the quality, utility and

clarity of the information to be

collected; and ways to minimize the

burden of the collection of information

on respondents, including the use of

automated collection techniques or

other forms of information technology.