41610 Federal Register / Vol. 63, No. 149 /Tuesday, August 4, 1998 / Notices

3The New York Stock Exchange and the

American Stock Exchange have rules regarding

withdrawal of capital. The other exchanges do not.

Telephone conversations between Patricia L. Levy,

General Counsel, CHX, and Katherine A. England,

Assistant Director, Division of Market Regulation,

Commission (July 17, 1998).

4 15 U.S.C. 78f(b).

5 15 U.S.C. 78f(b)(5). 6 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1) (1994).

2 17 CFR 240.19b–4 (1997).

are deemed to promote just and

equitable principles of trade, to remove

impediments and to perfect the

mechanisms of a free and open market

and a national market system and, in

general, to protect investors and the

public interest. As a result, the CHX

believes imposing the Withdrawal of

Capital Rule on member firms for which

the Exchange is not the DEA, if the

member’s DEA does not have a

comparable rule, only fosters

unnecessary and duplicative

regulation.3 The text of the proposed

rule change is as follows:

Deletions are [bracketed].

ARTICLE II

Member Firms

Subordination of Claims

Rule 6. (a) No change in text.

(b) Withdrawal of Capital—The

partnership articles of each member

firm for which this Exchange is the

Designated Examining Authority [or of a

member firm subject to examination by

another self-regulatory organization not

having a comparable rule] shall contain

provisions that without prior written

approval of the Exchange the capital

contribution of any partner may not be

withdrawn on less than six months’

written notice of withdrawal given no

sooner than six months after such

contribution was first made. Each

member firm shall promptly notify the

Exchange of the receipt of any notice of

withdrawal of any part of a partner’s

capital contribution or if any

withdrawal is not made because

prohibited under the provisions of

Securities and Exchange Commission

Rule 15c3–1 (see 15c3–1(e)).

2. Statutory Basis

The proposed rule change is

consistent with Section 6 of the Act,4 in

general, and furthers the objectives of

Section 6(b)(5) of the Act,5 in particular,

in that it is designed to perfect the

mechanisms of a free and open market

and a national market system, and to

protect investors and the public interest.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

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 Exchange 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 submissions

should file six copies thereof with the

Secretary, SEC, 450 Fifth Street, NW.,

Washington, DC 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the CHX. All

submissions should refer to File No.

SR–CHX–98–18 and should be

submitted by August 25, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20691 Filed 8–3–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40270; File No. SR–CHX–

98–19]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

The Chicago Stock Exchange, Inc.

Relating to the Qualification by Market

Makers for Exempt Credit

July 28, 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 2,

1998, the Chicago Stock Exchange, Inc.

(‘‘CHX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I, II

and III below, which Items have been

prepared by the CHX. 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 Exchange proposes to amend an

interpretation to Article XXXIV, Rule 16

of the CHX Rules relating to registered

market makers’ eligibility to receive

exempt credit.

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

CHX 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 CHX 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

The purpose of the proposed rule

change is to modify an interpretation

regarding the use of exempt credit by

market makers. Interpretation .01 to

Article XXXIV, Rule 16 sets forth certain

requirements that must be met for

market makers to be eligible to receive

exempt credit for financing their market

maker transactions. One requirement for
Federal Register / Vol. 63, No. 149 /Tuesday, August 4, 1998 / Notices 41611

3Securities Exchange Act Release No. 40016 (May

20, 1998), 63 FR 29276 (May 28, 1998) and

Securities Exchange Act Release No. 40152, (July 1,

1998), 63 FR 37159 (July 9, 1998) (clarifying the

prior approval order).

4 In the event that a member registers as a market

maker at any time during a calendar quarter, the

fifty percent requirement would apply from the date

of registration to the end of that quarter. 5 15 U.S.C. 78f(b)(5).

receiving exempt credit for a particular

issue is that 50% of the quarterly share

volume in that issue recorded in a

market maker account must result from

transactions consummated on the

Exchange or sent from the Exchange

floor for execution in another market via

ITS.3

The Exchange seeks to include in the

Interpretation the consequences for

failing to meet the fifty percent

requirement. The proposed rule change

would suspend a market maker’s

eligibility to receive exempt credit in

the calendar quarter immediately

following the calendar quarter in which

a violation occurred for all issues in

which the fifty percent requirement was

not met (a ‘‘non-qualifying issue’’).4

At the beginning of every calendar

quarter, the Exchange will notify market

makers who fail to meet the 50% test for

a particular issue or issues during the

previous quarter. Market makers who

are so notified by the Exchange must

notify their lender in writing, with a

copy to the Exchange, within three

trading days of receiving such

notification from the Exchange, that

they are not entitled to exempt credit for

non-qualifying issues for the remainder

of the current quarter. If the lender is

unable to distinguish between issues or

is unable to verify that exempt credit is

not being granted in non-qualifying

issues, such market makers must

transfer, within three trading days of the

date the lender receives notification, all

non-qualifying issues in their V-account

to an account not entitled to exempt

credit and confirm with the Exchange

that such action has been taken. Market

makers who are not using exempt credit

must notify the Exchange of such in

writing within three trading days of

receiving notification and ask their

lender to verify the same with the

Exchange.

Once an issue becomes a nonqualifying issue for a market maker, the

issue will remain a non-qualifying issue

for one calendar quarter. At the end of

that quarter, the market maker would be

permitted to seek exempt credit for the

issue beginning the following quarter

(assuming the market maker complies

with all of the other requirements in

interpretation .01). If the market maker

again fails to meet the 50% requirement

for that issue, the issue will again

become a non-qualifying issue.

A market maker the exhibits chronic

non-compliance with the 50% threshold

may be subject to disciplinary action by

the Exchange. The text of the proposed

rule change is as follows:

Additions are italicized; deletions

[bracketed].

ARTICLE XXXIV

Registered Market Makers—Equity Floor

Regulatory Status

RULE 16. No text change.

* * * Interpretations and Policies:

.01 Utilization of Exempt Credit.

Exchange Members registered as equity

market makers are members registered

as specialists for purposes of the

Securities Exchange Act of 1934 and as

such are entitled to obtain exempt credit

for financing their market maker

transactions. Members and/or

prospective members who are

anticipating becoming registered as

equity market makers as well as those

clearing firms who are or will be

carrying the accounts of market makers

should be aware of the following

interpretation relative to the use of such

credit:

1. Only those transactions initiated on

the Exchange Floor qualify as market

maker transactions. This restriction

prohibits the use of exempt credit where

market maker orders are routed to the

Floor from locations off the Floor.

2. Fifty per cent (50%) of the quarterly

share volume in each [an] issue in a

market maker account must result from

transactions which are either

consummated on the Exchange or sent

from the Exchange Floor for execution

in another market via ITS in order for

the market maker to be entitled to

exempt credit for such issue. Members

who do not meet this 50% volume

threshold for a particular issue in a

calendar quarter will not be entitled to

exempt credit for such issue for the

following calendar quarter.

3. Only those positions which have

been established as a direct result of

bonafide equity market maker activity

qualify for exempt credit treatment. This

restriction precludes exempt credit

financing based on an equity market

maker registration for positions

resulting from options exercises and

assignments.

4. Members who are notified by the

Exchange that they are not entitled to

exempt credit for a particular issue

(because they failed to meet the 50%

threshold for that issue in the previous

calendar quarter as outlined in

paragraph 2 above) must notify their

lender in writing, within three trading

days of receiving such notification, that

they are not entitled to exempt credit for

those specific issues (‘‘non-qualifying

issues’’) both on existing positions and

new transactions, for the remainder of

the current calendar quarter. A copy of

the notification letter sent to the lender

must also be sent concurrently to the

Exchange. If the lender is unable to

distinguish between issues or verify that

exempt credit is not being granted in

non-qualifying issues, then, within three

trading days of the date the lender

receives notification, such Members

must transfer, to a customer account or

to an account not entitled to exempt

credit, all non-qualifying issues in their

V-account and confirm with the

Exchange that such action has been

taken. If such Members are not utilizing

exempt credit, they must send the

Exchange a letter to that effect, within

three trading days of receiving

notification that they are not entitled to

exempt credit for a particular issue, and

request their lender to verify the same

with the Exchange.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b)(5) of the

Act 5 in that it is 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.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date 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 funding or (ii) as to

which the Exchange consents, the

Commission will:

(A) By order approve such proposed

rule change, or
41612 Federal Register / Vol. 63, No. 149 /Tuesday, August 4, 1998 / Notices

6 17 CFR 200.30–3(a)(12).

(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 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 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the CHX. All

submissions should refer to File No.

SR–CHX–98–19 and should be

submitted by August 25, 1998.

For the Commission, the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20692 Filed 8–3–98; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Information Collection Activities

This notice lists information

collection packages that will require

submission to the Office of Management

and Budget (OMB), as well as

information collection packages

submitted to OMB for clearance, in

compliance with Pub. L. 104–13

effective October 1, 1995, The

Paperwork Reduction Act of 1995.

Information Collection Activities:

Proposed Collection Requests and

Comment Requests

I. The information collection(s) listed

below require(s) extension(s) of the

current OMB approval(s) or are

proposed new collection(s):

1. Manchaca Ruling Compliance

Survey—0960-NEW. In accordance with

the terms of the United States District

Court ruling on MANCHACA et al. v.

Chater, the Social Security

Administration (SSA) must inform

social security and supplemental

security income (SSI) applicants/

recipients about benefits under the food

stamp program and make available food

stamp applications to these individuals.

SSA is also required to complete food

stamp applications for SSI applicants/

recipients when all members of the

individual’s household are receiving SSI

benefits. The terms of the settlement

agreement include a provision that SSA

is to conduct a study in the State of

Texas, locus of the class action

litigation, to determine the Agency’s

effectiveness in promoting the goals of

joint processing and the extent of the

Agency’s compliance with food stamp

procedures. As part of the study, SSA

will survey a random sample of social

security and SSI applicants/recipients to

determine public understanding of

SSA’s role in the food stamp process.

The study will determine the level of

the respondent’s awareness of food

stamp processing in SSA field offices in

Texas, and the degree to which field

offices have complied with the food

stamp application procedures. The

information will be included in a report

which will be provided to the

Commissioner of SSA, the court and the

plaintiffs.

Number of Respondents: 450.

Frequency of Response: 1.

Average Burden Per Response: 15

minutes.

Estimated Annual Burden: 112.5

hours.

2. Verification of Identity of Internet

Requestors of Information from SSA

Records—0960–NEW. SSA has

established a process for verifying the

identity of individual’s who use the

Internet to request information from

SSA records. The electronic screens

request specific information which will

allow the public to establish their

identity with SSA. These screens must

be completed in order for the requestor

to use certain Internet applications,

such as a Request for a Personal

Earnings and Benefit Estimate

Statement, a Request for a Replacement

Benefit Statement (SSA–1099/SSA–

1042S), etc. SSA will use the

information to verify the requester’s

identity by comparing it to the

information already in SSA’s records.

The respondents are members of the

public who request information from

SSA through the Internet.

Number of Respondents: 540,000.

Frequency of Response: 1.

Average Burden Per Response: 3.5

minutes.

Estimated Annual Burden: 31,500

hours.

3. Electronic Request for Benefit

Verification Information—SSA provides

verification of benefits, when requested,

to individuals receiving social security

or SSI benefits. In order to provide to

the public an easy and convenient

means of requesting benefit information,

SSA has developed an electronic

request form which will allow persons

to request the information through the

Internet. The information collected on

the electronic screens will be used by

SSA to process the request for a benefit

verification statement. To ensure

appropriate confidentiality, the

statement will be mailed to the

recipient/beneficiary address shown in

SSA’s records. The respondents are

social security or SSI recipient/

beneficiaries who request benefit

verification information using the

Internet.

Number of Respondents: 133,920.

Frequency of Response: 1.

Average Burden Per Response: 1⁄2

minute.

Estimated Annual Burden: 1,116

hours.

4. Information Collections Conducted

by State Disability Determination

Services (DDS) on Behalf of SSA—

0960–0555. The State DDS’s collect

certain information to administer SSA’s

disability program. The information

collected is as follows: (1) Medical

evidence requirements (MER)—DDSs

use MER information to determine a

person’s physical and/or mental status

prior to making a disability

determination; (2) CE providers— DDSs

use the CE provider information to

verify a medical provider’s credentials

and license before hiring them to

conduct consultative exams; (3)

consultative exams (CE) —DDSs use CE

information to make disability

determinations when the claimant’s

own medical sources cannot or will not

provide the information; DDSs use the

information obtained from claimants

under the CE process to obtain release

of medical information to personal

physicians and to confirm scheduled CE

appointments; (4) activities of daily

living—this information, together with

medical evidence, are part of the

evidentiary documentation used by the

DDS’s in evaluating a person’s

disability, and (5) pain information—

this information is used by the DDSs to

assess the effects of symptoms on

functionality for determining disability.

The respondents are medical providers

and disability claimants.