30794 Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 / Notices

7 15 U.S.C. 78o–3. 8 17 CFR 200.30–3(a)(12).

that the market has traded at that price

and that the conditional order has now

become executable in accord with the

firm’s understanding with its customer.

Such orders generally are not intended

to offset to any significant degree other

executions by the market maker.

Under the definition above, these

executions would appear to merit

riskless principal treatment to the extent

of the size of the marker order.

However, given the purpose for which

such marker orders are used, Nasdaq

believe that these should not require the

breakup of the order into two separate

components to distinguish between a

risk and riskless portion, provided the

marker order is no larger than 10% of

the size of an execution or group of

executions that it would trigger. It was

felt that the nominal size of the marker

order did not to any material extent

change the overall risk profile of the

order.

For example, after receiving an order

for 5000 shares, a firm places a marker

order of 500 shares on an exchange. The

marker order, which is executed, then

triggers the 5000 share order. The firm

would report the 5000 shares in its

entirety. In another example, the marker

order triggers 10 different orders of 500

shares each for a total of 5000 shares.

Similarly, each of these 500 share

executions also are reported.

Another example involves how an

order of 2500 shares would be reported

if 2400 shares were sent to the floor and

had been executed. The 2400 shares

would be reported by the exchange, and

thus the 100 shares would be separately

reported as a risk trade by the market

maker.

Accordingly, Nasdaq is proposing a

rule change and corresponding

interpretations as described above to

ensure that all riskless principal trades,

including those effected by market

makers, are reported only once.

Specifically, the text of the proposed

rule change is in the form of

amendments to NASD Rule

6420(d)(3)(B).

2. Statutory Basis

Nasdaq believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(6) of the

Act 7 in that the proposed rule change

will result in more accurate, reliable,

and informative information regarding

last sale transaction reports. Section

15A(b)(6) requires that the rules of a

registered national securities association

be designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principals 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; and are not designed to

permit unfair discrimination between

customers, issuers, brokers, or dealers.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq does not believe that the

proposed rule change will result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

A. by order approve such proposed

rule change, or

B. institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed rule

change is consistent with the Act.

Persons making written submission

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 NASD. All

submissions should refer to file number

SR–NASD–98–08 and should be

submitted by June 26, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–14921 Filed 6–4–98; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

The Chief Information Officer of the

Social Security Administration Grants

to the Social Security Administration a

Waiver From the Use of Certain

Federal Information Processing

Standards

AGENCY: Social Security Administration

(SSA).

ACTION: Notice.

SUMMARY: The Chief Information Officer

of the Social Security Administration

grants to SSA a waiver from the use of

the following Federal Information

Processing Standards (FIPS):

1. The Secure Hashing Standard (FIPS

180–1);

2. The Digital Signature Standard

(FIPS 186); and

3. The Data Encryption Standard

(FIPS 46–2).

This waiver is granted pursuant to

authority granted to the Secretary of

Commerce by 40 U.S.C. section 1441,

and delegated to the Commissioner of

Social Security in the above referenced

FIPS Publications. This authority was

redelegated by the Commissioner of

Social Security to the Agency’s Chief

Information Officer. This waiver is

granted to allow SSA to use commercial

off-the-shelf cryptographic products

such as those produced by RSA Data

Security, Inc., in lieu of products

conforming with the above-cited FIPS.

DATES: This waiver was effective

January 26, 1998, and will remain in

effect until the commercial off-the-shelf

cryptographic products selected by SSA

come under a FIPS or until it is

rescinded by the Agency’s Chief

Information Officer.

FOR FURTHER INFORMATION CONTACT: Joan

Hash, Systems Security Officer, Social

Security Administration, Room 3206

Annex Building, 6401 Security
Federal Register / Vol. 63, No. 108 / Friday, June 5, 1998 / Notices 30795

Boulevard, Baltimore, Maryland 21235.

Phone (410) 965–2765.

SUPPLEMENTARY INFORMATION: The FIPS

cited above establish Federal standards

for generating digital signatures,

encrypting sensitive information

transmitted over open networks such as

the Internet, and storing this

information electronically. Each of the

cited FIPS also allows the heads of

Federal Agencies to waive the use of the

FIPS if certain conditions are met.

A waiver shall be granted by an

Agency head only when:

a. Compliance with a standard would

adversely affect the accomplishment of

the mission of an operator of a Federal

computer system, or

b. Cause a major adverse financial

impact on the operator that is not offset

by Government-wide savings.

The Agency’s Chief Information

Officer has determined that compliance

with the referenced FIPS would

adversely affect the accomplishment of

the mission of the SSA and accordingly

has granted a waiver from the use of the

referenced FIPS.

SSA has a customer base of over

260,000,000 people, including

individuals, businesses, small

employers, organizations, and other

Federal, State, and local government

agencies. To accomplish the mission of

serving these customers cost effectively,

SSA is pursuing the use of electronic

service delivery technologies, including

the Internet.

SSA has found that an increasingly

large number of its customers prefer to

work with the Agency directly through

Internet services. To effectively serve

them, SSA must use commercially

accepted and available off-the-shelf

products. The above referenced FIPS

provide for the use of products which

have not gained wide acceptance

commercially, and these standards are

not incorporated in commercial off-theshelf products. Notably, the Internet

Browsers published by MICROSOFT

and NETSCAPE, together representing

93% of the publicly used browsers, do

not use the algorithms published in the

referenced FIPS.

Therefore, SSA is granted a waiver

from the use of the cryptographic

requirements contained in the

referenced FIPS in order to allow the

Agency to use commercially available

and accepted off-the-shelf products.

In accordance with FIPS

requirements, notice of this waiver will

be sent to the National Institute of

Standards and Technology, the

Committee on Government Reform and

Oversight of the House of

Representatives, and the Committee on

Governmental Affairs of the Senate.

Dated: January 26, 1998.

John R. Dyer,

Chief Information Officer, Social Security

Administration.

[FR Doc. 98–14902 Filed 6–4–98; 8:45 am]

BILLING CODE 4190–29–P

DEPARTMENT OF STATE

[Public Notice No. 2801]

Office of Defense Trade Controls;

Notifications to the Congress of

Proposed Export Licenses

AGENCY: Department of State.

ACTION: Notice.

SUMMARY: Notice is hereby given that

the Department of State has forwarded

the attached Notifications of Proposed

Export Licenses to the Congress on the

dates shown on the attachments

pursuant to section 36(c) and in

compliance with section 36(e) of the

Arms Export Control Act (22 U.S.C.

2776).

EFFECTIVE DATE: As shown on each of

the six letters.

FOR FURTHER INFORMATION CONTACT: Mr.

William J. Lowell, Director, Office of

Defense Trade Controls, Bureau of

Political-Military Affairs, Department of

State, (703) 875–6644.

SUPPLEMENTARY INFORMATION: Section

38(d) of the Arms Export Control Act

mandates that notifications to the

Congress pursuant to section 36(c) must

be published in the Federal Register

when they are transmitted to Congress

or as soon thereafter as practicable.

Dated: May 4, 1998.

William J. Lowell,

Director, Office of Defense Trade Controls.

BILLING CODE 4710–25–M