Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices 37911

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

2 17 CFR 240.19B–4.

3 15 U.S.C. 78s(b)(3)(A)(i).

4The proposed rule change (SR–NASD–97–24)

was published for comment in the Federal Register

on May 2, 1997. See Securities Exchange Act

Release No. 38548 (April 25, 1997) 62 FR 24147.

5See Letter from Mary N. Revell, Associate

General Counsel, NASDR, to Katherine A. England,

Assistant Director, Division of Market Regulation,

Commission, dated December 1, 1997

(‘‘Amendment No. 1’’).

6See Securities Exchange Act Release No. 39510

(December 31, 1997) 63 FR 1131 (January 8, 1998)

(‘‘Release No. 39510’’).

7See Letters from Carl B. Wilkerson, American

Council of Life Insurance, to Jonathan G. Katz,

Continued

The NRC Commission Meeting Schedule

can be found on the Internet at: http://

www.nrc.gov/SECY/smj/schedule.htm

* * * * *

This notice is distributed by mail to several

hundred subscribers; if you no longer wish

to receive it, or would like to be added to it,

please contact the Office of the Secretary,

Attn: Operations Branch, Washington, D.C.

20555 (301–415–1661). In addition,

distribution of this meeting notice over the

Internet system is available. If you are

interested in receiving this Commission

meeting schedule electronically, please send

an electronic message to wmh@nrc.gov or

dkw@nrc.gov.

* * * * *

William M. Hill. Jr.,

Secy Tracking Officer, Office of the Secretary.

[FR Doc. 98–18856 Filed 7–10–98; 2:43 pm]

BILLING CODE 7590–01–M

OFFICE OF MANAGEMENT AND

BUDGET

Updated Statistical Definitions of

Metropolitan Areas

AGENCY: Executive Office of the

President, Office of Management and

Budget, Office of Information and

Regulatory Affairs.

ACTION: Notice.

SUMMARY: Pursuant to 44 U.S.C.

3504(e)(3) and 31 U.S.C. 1104(d) and

Executive Order No. 10253 (June 11,

1951), the Office of Management and

Budget (OMB) defines metropolitan

areas (MAs) for use in Federal statistical

activities in accordance with a set of

standards published in the Federal

Register on March 30, 1990 (55 FR

12154–12160).

On June 23, 1998, OMB updated the

MA definitions in OMB Bulletin No.

98–06. One new Metropolitan Statistical

Area (MSA) was defined based on the

standards and the 1996 Bureau of the

Census official population estimates.

The Missoula, Montana MSA (FIPS

Code 5140) was defined effective June

30, 1998. The Missoula, Montana MSA

comprises Missoula County, Montana.

The MSA’s central city is Missoula,

Montana.

OMB Bulletin No. 98–06 with the list

of all MAs as of June 30, 1998, is

available from the National Technical

Information Service (NTIS), Document

Sales, 5285 Port Royal Road,

Springfield, VA 2216, telephone 703–

487–4650 (Accession Number PB98-

146160). This list is also available

through NTIS in electronic form

(Accession Number PB98–502198).

OMB Bulletin No. 98–06 and the current

list of MAs are available electronically

from the OMB home page at http://

www.whitehouse.gov/WH/EOP/omb; go

to OMB Documents/Selected OMB

Bulletins.

For further information on MA standards

and the statistical uses of MA definitions

please call Suzann Evinger (202–395–7315).

For information concerning the use of MA

definitions in a particular Federal agency

program, please contact the sponsoring

agency directly.

Donald R. Arbuckle,

Acting Administrator, Office of Information

and Regulatory Affairs.

[FR Doc. 98–18641 Filed 7–13–98; 8:45 am]

BILLING CODE 3110–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40178; File No. SR–NASD–

98–45]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers, Inc., Relating to Supervision

of Correspondence

July 7, 1998.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 7,

1998, the NASD Regulation, Inc.

(‘‘NASDR’’) filed with the Securities and

Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by the NASDR. The NASDR

has designated this proposal as one

constituting a stated policy, practice, or

interpretation with respect to the

meaning of an existing rule under

Section 19(b)(3)(A)(i) of the Act,3 which

renders the rule effective upon the

Commission’s receipt of this filing. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The NASDR is proposing to further

delay the effective date of one of the

provisions of recently-approved

amendments to the National Association

of Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’) Rules 3010,

‘‘Supervision,’’ and 3110, ‘‘Books and

Records.’’

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

NASDR included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item IV below. The NASDR has

prepared summaries, set forth in

sections A, B and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

A proposed rule change to amend

NASD Rules 3010 and 3110 was filed

with the Commission on April 11,

1997.4 The purpose of the amendments

was to allow firms to develop flexible

procedures for the review of

correspondence with the public. In that

filing, the NASDR stated that it would

make the proposed rule change effective

within 45 days of Commission approval.

Amendment No. 1, containing a draft

Notice to Members to be issued

following approval of the proposed rule

change, was filed with the Commission

on December 1, 1997.5 The Notice to

Members described the new rules and

provided guidance to NASD members

on the implementation of the new rules.

The Commission approved the proposed

rule change and Amendment No. 1 to

the proposed rule change on December

31, 1997.6 Notice to Members 98–11

announced approval of the proposed

rule change and stated that the

amendments to Rules 3010 and 3110

would be effective on February 15,

1998.

Subsequent to approval of the

proposed rule change by the SEC,

several commenters filed letters with

the SEC raising issues regarding

Amendment No. 1 to the proposed rule

change and its accompanying Notice to

Members.7 The NASDR, believing that
37912 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 / Notices

Secretary, SEC, dated January 9, 1998; Beverly A.

Byre, BenefitsCorp Equities, Inc., to Jonathan G.

Katz, Secretary, SEC, dated January 26, 1998;

Michael S. Martin, The Equitable Life Assurance

Society of the United States, to Jonathan G. Katz,

SEC, dated January 29, 1998; Janet G. McCallen,

International Association for Financial Planning, to

Jonathan G. Katz, Secretary, SEC, dated February

13, 1998; W. Thomas Boulter, Jefferson Pilot

Financial, to Jonathan G. Katz, Secretary, SEC,

dated January 28, 1998; Leonard M. Bakal,

Metropolitan Life Insurance Company and MetLife

Securities, Inc., to Jonathan G. Katz, Secretary, SEC,

dated January 28, 1998; Michael L. Kerley, MML

Investors Services, Inc. to Secretary, SEC, dated

January 26, 1998; Mark D. Johnson, The National

Association of Life Underwriters, to Jonathan G.

Katz, Secretary, SEC, dated February 5, 1998;

Theodore Mathas, NYLIFE Securities, to Jonathan

G. Katz, Secretary, SEC, dated January 16, 1998 and

January 29, 1998; Beverly A. Byrne, One Orchard

Equities, Inc., to Jonathan G. Katz, Secretary, SEC,

dated January 26, 1998; Dodie Kent, Pruco

Securities Corporation, to Jonathan G. Katz,

Secretary, SEC, dated January 29, 1998; and James

T. Bruce, Wiley, Rein & Fielding, on behalf of the

Electronic Messaging Association, to Jonathan G.

Katz, SEC, dated January 30, 1998.

8The proposed rule change (SR–NASD–98–10)

became effective on filing. See Securities Exchange

Act Release No. 39665 (February 13, 1998) 63 FR

9032 (February 23, 1998).

9See Securities Exchange Act Release No. 39866

(April 14, 1998) 63 FR 19778 (April 21, 1998)

(Notice of filing and immediate effectiveness of File

No. SR–NASD–98–31). 10 15 U.S.C. 78o–3(b)(6).

11 15 U.S.C. 78s(b)(3)(A).

12 17 CFR 19b–4(e).

13 17 CFR 200.30–3(a)(12).

the letters raise important issues that

should be fully addressed before the

effectiveness of the rule change, filed a

proposed rule change to postpone the

effective date of the amendments to

Rules 3010 and 3110 approved in

Release No. 39510.8

The concerns raised by the

commenters include issues concerning

the effect of the rules on the review of

incoming correspondence and the scope

of the obligation of member firms to

control the use of electronic

communications systems that registered

persons use to communicate with their

customers. After considering these

issues, the NASDR filed a proposed rule

change to implement the amendments

to Rules 3010 and 3110 approved in

Release No. 39510 immediately,

including the requirements set forth in

Notice to Members 98–11, with the

exception of the provision in the Notice

stating that members must review ‘‘all

incoming correspondence received in

non-electronic format directed to

registered representatives and related to

a member’s investment banking or

securities business.’’ 9 The effective date

of this provision was delayed until July

7, 1998 to allow NASDR a further

opportunity to consider comments on

this issue.

The NASDR proposes a further delay

in the effective date of the provision in

the Notice addressing the review of

incoming, non-electronic

correspondence until September 30,

1998. At its meeting on June 25, 1998,

the NASDR Board of Directors approved

revisions to Rule 3010 and to the Notice

to Members that are intended to address

the regulatory concerns necessitating

the review of incoming, non-electronic

correspondence and at the same time to

respond to concerns raised by member

firms about the difficulty of conducting

such review. The NASDR Board also

approved submission of a rule filing to

the SEC. The NASDR anticipates that

the rule filing will be submitted to the

SEC prior to July 30, 1998. When that

proposed rule change is filed, the

NASDR will request an indefinite

extension of this provision until the SEC

has acted on the rule filing. In the

meantime, to ensure continuity of the

requirements applicable to member

firms, the NASDR proposes a delay in

the effective date of the provision. Prior

to the September 30, 1998 effective date,

however, members will be required to

review and report customer complaints

as required by Rule 3070(a)(2); keep and

preserve all written customer

complaints as required by Rule 3110(d);

and establish procedures for the review

of incoming and outgoing written and

electronic correspondence consistent

with new Rules 3010(d) (1) and (2).

2. Statutory Basis

The NASDR believes the proposed

rule change is consistent with Section

15A(b)(6) of the Act,10 which requires,

among other things, that the

Association’s rules must be designed to

prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, and, in

general, to protect investors and the

public interest. The NASD believes that

delaying the effective date of one of the

provisions of the new rules is consistent

with these requirements.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The NASDR does not believe that the

proposed rule change will impose a

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

The foregoing rule change constitutes

a stated policy, practice, or

interpretation with respect to the

meaning, administration or enforcement

of an existing rule of the Association

and, therefore, has become effective

pursuant to Section 19(b)(3)(A) of the

Act 11 and subparagraph (e) of Rule 19b–

4 thereunder.12

At any time within 60 days of the

filing of such rule change, the

Commission may summarily abrogate

such rule change if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act.

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 submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW,

Washington DC 20549. Copies of the

submissions, 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, 450 Fifth Street, NW,

Washington DC. Copies of such filing

also will be available for inspection and

copying at the NASD. All submissions

should refer to File No. SR–NASD–98–

45 and should be submitted by August

4, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–18640 Filed 7–13–98; 8:45 am]

BILLING CODE 8010–01–M