31816 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 / Notices

which provides opportunity for public

comment on new or revised data

collections, the Railroad Retirement

Board (RRB) will publish periodic

summaries of proposed data collections.

Comments are invited on: (a) Whether

the proposed information collection is

necessary for the proper performance of

the functions of the agency, including

whether the information has practical

utility; (b) the accuracy of the RRB’s

estimate of the burden of the collection

of the information; (c) ways to enhance

the quality, utility, and clarity of the

information to be collected; and (d)

ways to minimize the burden related to

the collection of information on

respondents, including the use of

automated collection techniques or

other forms of information technology.

Title and Purpose of information

collection: Application for Survivor

Insurance Annuities: OMB 3220–0030

Under Section 2(d) of the Railroad

Retirement Act (RRA), monthly survivor

annuities are payable to surviving

widow(er)s, parents, unmarried

children, and in certain cases, divorced

wives (husbands), mothers (fathers),

remarried widow(er)s, and

grandchildren of deceased railroad

employees. The collection obtains the

information required by the RRB to

determine entitlement to and amount of

the annuity applied for.

The RRB utilizes Form(s) AA–17

(Application for Widow(ers) Annuity),

AA–17b (Applications for

Determination of Widow(er) Disability),

AA–18 (Application for Mother’s/

Father’s and Child’s Annuity), AA–19

(Application for Child’s Annuity). AA–

19a (Application for Determination of

Child Disability), and AA–20

(Application for Parent’s Annuity) to

obtain the necessary information. One

response is requested of each

respondent. Completion is required to

obtain benefits.

The RRB proposes non-burden

impacting editorial and formatting

changes to all of the forms in this

collection.

ESTIMATE OF ANNUAL RESPONDENT BURDEN

[The estimated annual respondent burden is unchanged as follows:]

Form #(s) Annual

responses

Time

(min.)

Burden

(hrs.)

AA–17 (with assistance) ............................................................................................. 3,800 27 1,710

AA–17 (without assistance) ........................................................................................ 200 47 157

AA–17b (with assistance) ........................................................................................... 380 40 253

AA–17b (without assistance) ...................................................................................... 20 50 17

AA–18 (with assistance) ............................................................................................. 333 27 150

AA–18 (without assistance) ........................................................................................ 17 47 13

AA–19 (with assistance) ............................................................................................. 665 27 299

AA–19 (without assistance) ........................................................................................ 35 47 27

AA–19a (with assistance) ........................................................................................... 285 45 214

AA–19a (without assistance) ...................................................................................... 15 65 16

AA–20 (with assistance) ............................................................................................. 13 27 6

AA–20 (without assistance) ........................................................................................ 2 47 2

Total ................................................................................................................. 5,765 .............................. 2,864

Additional Information or Comments:

To request more information or to

obtain a copy of the information

collection justification, forms, and/or

supporting materials, please call the

RRB Clearance Officer at (312) 751–

3363. Comments regarding the

information collection should be

addressed to Ronald J. Hodapp, Railroad

Retirement Board, 844 N. Rush Street,

Chicago, Illinois 60611–2092. Written

comments should be received by August

10, 1998.

Chuck Mierzwa,

Clearance Officer.

[FR Doc. 98–15373 Filed 6–9–98; 8:45 am]

BILLING CODE 7905–01–M

SECURITIES AND EXCHANGE

COMMISSION

Proposed Collection; Comment

Request

Upon written request, copies available from:

Securities and Exchange Commission,

Office of Filings and Information Services,

Washington, DC 20549.

Extension:

Rule 17Ad–6, SEC File No. 270–151, OMB

Control No. 3235–0291

Rule 17Ad–7, SEC File No. 270–152, OMB

Control No. 3235–0136

Notice is hereby given that pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) is soliciting comments

on the collections of information

summarized below. The Commission

plans to submit these existing

collections of information to the Office

of Management and Budget for

extension and approval.

• Rule 17Ad–6 Recordkeeping

requirements for transfer agents.

Rule 17Ad–6 under the Securities

Exchange Act of 1934 (15 U.S.C. 78b et.

seq.) (the ‘‘Act’’) requires every

registered transfer agent to make and

keep current records about a variety of

information, such as: (1) specific

operational data regarding the time

taken to perform transfer agent activities

(to ensure compliance with the

minimum performance standards in

Rule 17Ad–2 (17 CFR 240.17Ad–2)); (2)

written inquires and requests by

shareholders and broker-dealers and

response time thereto; (3) resolutions,

contracts or other supporting documents

concerning the appointment or

termination of the transfer agent; (4)

stop orders or notices of adverse claims

to the securities; and (5) all canceled

registered securities certificates.

These recordkeeping requirements

ensure that all registered transfer agents

are maintaining the records necessary to

monitor and keep adequate control over

their own performance and to examine

registered transfer agents on an

historical basis for compliance with

applicable rules.

It is estimated that approximately

1,248 registered transfer agents will

spend a total of 599,040 hours per year

complying with Rule 17Ad–6. Based on

average cost per hour of $50, the total

cost of compliance with Rule 17Ad–6 is

$29,952,000.

• Rule 17Ad–7 Record retention

requirements for transfer agents
Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 / Notices 31817

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

2Rule 19d–1(c)(2) under the Act authorizes

national securities exchanges to adopt minor rule

violation plans for the summary discipline and

abbreviated reporting of minor rule violations by

exchange members and member organizations. See

Securities Exchange Act Release No. 21013 (June 1,

1984), 49 FR 23828 (approving amendments to

paragraph (c)(2) of Rule 19d–1 under the Act). The

CHX’s Plan was approved by the Commission in

1996. See Securities Exchange Act Release No.

37255 (May 30, 1996), 61 FR 28918 (approving File

No. SR–CHX–95–25).

3CHX Article XX, Rule 7 (‘‘CHX Limit Order

Rule’’).

4See 17 CFR 200.11Acl–4 (‘‘Limit Order Display

Rule’’).

5The Exchange notes that the minor rule plan

violation schedule is merely a recommended fine

schedule and that fines of more or less than the

recommended fines can be imposed (up to a $2500

maximum) in appropriate circumstances. Moreover,

the Exchange may proceed with formal disciplinary

action, rather than procedures under the Plan,

whenever it finds that a violation of the limit order

rule was more than inadvertent.

6 15 U.S.C. 78f(b)(5).

7 15 U.S.C. 78f(b)(1).

8 15 U.S.C. 78f(b)(6).

9 15 U.S.C. 78f(b)(7).

10 15 U.S.C. 78f(d)(1).

11 17 CFR 250.11Ac1–4.

12The Commission believes the increased fine of

$1000 for the first violation is appropriate

considering the very serious nature of these

violations.

13See Securities Exchange Act Release 37619A

(September 6, 1996), 61 FR 48290 (September 12,

1996) (‘‘Adopting Release’’).

Rule 17Ad–7 under the Act requires

each registered transfer agent to retain,

in an easily accessible place for a period

of six months to one year, all the records

required to be made and kept current

under the Commission’s rules regarding

registered transfer agents. Rule 17Ad–7

also requires such records to be retained

for a total of two to six years or for one

year after termination of the transfer

agency, depending on the particular

record or document.

These record retention requirements

ensure that all registered transfer agents

are maintaining the records necessary to

monitor and keep adequate control over

their own performance and to examine

registered transfer agents on an

historical basis for compliance with

applicable rules.

It is estimated that approximately

1,248 registered transfer agent will

spend a total of 142,272 hours per year

complying with Rule 17Ad–7. Based on

average cost per hour of $50, the total

cost of compliance with Rule 17Ad–7 is

$7,113,600.

Written comments are invited on: (a)

whether the proposed collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information shall have practical utility;

(b) the accuracy of the agency’s

estimates of the burden of the proposed

collection of information; (c) ways to

enhance the quality, utility, and clarity

of the information to be collected; and

(d) ways to minimize the burden of the

collection of information on

respondents, including through the use

of automated collection techniques or

other forms of information technology.

Consideration will be given to

comments and suggestions submitted in

writing within 60 days of this

publication.

Please direct your written comments

to Michael E. Bartell, Associated

Executive Director, Office of

Information Technology, Securities and

Exchange Commission, 450 5th Street,

NW., Washington, D.C. 20549.

Dated: June 2, 1998.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–15420 Filed 6–9–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40066; File No. SR–CHX–

97–25]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the Chicago Stock Exchange,

Incorporated, Amending the Minor

Rule Violation Plan

June 4, 1998.

I. Introduction

On October 1, 1997, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’),1 a proposed rule

change amending the Minor Rule

Violation Plan. The proposed rule

change was published for comment in

Securities Exchange Act Release No.

39723 (March 5, 1998), 63 FR 12123

(March 12, 1998). No comments were

received on the proposal. For the

reasons discussed below, the

Commission is approving the proposed

rule change.

II. Description of the Proposal

On May 30, 1996 the Commission

approved a proposed rule change that

established a CHX Minor Rule Violation

Plan (‘‘Plan’’).2 The Exchange is now

proposing to add the failure to display

a limit order in the quotation 3 to the

section of the Plan relating to Floor

Decorum and Minor Trading Rule

Violations. The Exchange believes that

it is appropriate to add the CHX Limit

Order Rule to the Plan because

violations of the rule are either objective

and technical in nature or easily

verifiable. Moreover, the Exchange

believes that because the CHX Limit

Order Rule is built upon a comparable

Commission Rule,4 violations of such

rule require sanctions that are more

severe than a warning or cautionary

letter. Accordingly, the Exchange is

proposing the recommended fine for

failure to display a limit order in the

quotation (Article XX, Rule 7,

interpretation and policy .05) to be

$1,000 for the first violation and all

subsequent violations.5

III. Discussion

The Commission believes that the

proposed rule change is consistent with

the Act and the rules and regulations

thereunder applicable to a national

securities exchange, and, in particular,

with Section 6(b)(5) which requires that

the rules of an exchange be designed to

promote just and equitable principles of

trade, to remove impediments and to

perfect the mechanism of a free and

open market and a national market

system, and, in general, to protect

investors and the public interest.6

The Exchange’s proposal is also

consistent with the requirements in

Sections 6(b)(1) 7 and 6(b)(6) 8 that the

rules of an exchange enforce compliance

and provide appropriate discipline for

violations of Commission and Exchange

rules. Moreover, because CHX Article

XII, Rule 9 provides procedural rights to

the person fined and permits a

disciplined person to request a full

hearing on the matter, the proposal

provides a fair procedure for the

disciplining of members and persons

associated with members, consistent

with Sections 6(b)(7) 9 and 6(d)(1) 10 of

the Act.

The Exchange’s proposal reinforces

the obligations of an exchange specialist

to immediately display certain customer

limit orders in accordance with the

Commission’s Limit Order Display

Rule 11 and the CHX Limit Order Rule.12

The Commission believes that

displaying customer limit orders

benefits investors by providing

enhanced execution opportunities and

improved transparency.13

The Commission expects that the

Exchange has the appropriate