20790 Federal Register / Vol. 60, No. 81 / Thursday, April 27, 1995 / Notices

However, companies on the Exchange’s main lists

may not move down to the SCOR listing program.

See PSE Letter, supra note 3.

27PSE Rule 3.2(t)(6) states: ‘‘Notwithstanding that

a company meets the prescribed listing

requirements, the Exchange retains the discretion to

refuse listing to a company where it believes it is

in the public interest to do so.’’

28Non-MNS OTC securities are not marginable

unless they are included in the Federal Reserve

Board’s OTC Margin List. The PSE will require

100% margin on SCOR securities whether or not

they are included on the Federal Reserve Board’s

OTC Margin List.

29 15 U.S.C. 78s(b)(2) (1988).

30 17 CFR 200.30–3(a)(12) (1994).

Commission believes that making

satisfaction of the numerical listing

criteria mandatory before the Exchange

considers whether an issuer is

appropriate for exchange trading should

help safeguard the integrity of the

exchange market and the securities

listed thereon.

In addition to the quantitative

standards, the Exchange considers other

qualitative factors such as an issuer’s

management plan, the background of

officers and directors, and the adequacy

of the company’s resources. The

Commission believes that these factors,

combined with other Exchange rules

regarding corporate governance and

disclosure policies, will help to ensure

that only companies with sufficient

business plans and resources will have

access to the PSE’s public market.

The Commission believes that the

PSE’s proposal for SCOR listings will

provide it with the necessary flexibility

to determine whether a SCOR issuer is

appropriate for exchange trading,27

irrespective of whether it meets the

minimum quantitative listing criteria.

Thus, the Commission believes that the

new listing and maintenance standards

strike the appropriate balance between

protecting investors and providing a

marketplace for small issuers satisfying

the disclosure requirements under the

federal securities laws.

D. Margin

As discussed above, the PSE is

amending Exchange Rule 2.16 to require

that SCOR-listed securities be subject to

a 100% maintenance margin

requirement. The Commission agrees

with the maintenance margin approach

proposed by the PSE. The SCOR

program is intended to be a new

marketplace that attracts issuers that

might otherwise trade OTC. It is logical

that the maintenance margin treatment

for OTC securities would apply to SCOR

issuers, rather than the treatment

accorded regular PSE companies.28

E. State Law Concerns

The Commission believes that the

safeguards the PSE has established

should make clear to PSE members and

SCOR issuers listed under the new

program that the offer and sale of SCOR

securities are subject to state registration

and rules. The PSE proposal would

prohibit SCOR issuers from using the

exemption from registration

requirements that the securities laws of

some states currently make available to

other PSE-listed companies. To

accomplish this, the PSE included in its

rules that SCOR issuers would not be

able to take advantage of existing

exemptions in state securities

registration requirements accorded to

regular PSE-listed securities. In

addition, the SCOR rules state that the

Exchange will delist any company that

fails to take appropriate steps to ensure

that no SCOR-listed securities are sold

on its behalf in reliance upon the

exemption from state securities

registration that is otherwise available to

companies listed on the Exchange.

F. Review Procedures

The Commission believes the

Exchange has proposed adequate

procedures to screen applications for

SCOR listing. The Exchange’s Listing

Department staff initially will review

applications to confirm that all

quantitative listing criteria have been

met and evaluate issuers according to

the qualitative standards discussed

above. The staff will reject applications

that fail to meet the quantitative

standards. The staff also has discretion

to reject applications that have

qualitative deficiencies. Applications

not rejected by the staff are submitted to

the Equity Listing Committee for

evaluation. The Equity Listing

Committee must approve all

applications before new SCOR listings

may be accepted by the Exchange.

G. Pilot

Finally, the Commission believes it is

appropriate to approve the SCOR

program on a three-year pilot basis. This

pilot will provide the Exchange, SCOR

issuers, and investors with sufficient

time to gain experience with the

program. In addition, during the pilot,

the PSE should monitor and evaluate

the SCOR program so that the

Commission can assess the benefits of

the SCOR listing. The PSE should file a

report with the Commission if they

determine to request an extension of the

pilot or seek permanent approval. The

report should contain information on

the number of SCOR listing applications

accepted and rejected, the SCOR

securities that have been delisted and

the reasons therefore, the number of

SCOR securities that have moved to the

PSE’s regular market or another market,

and quantitative data on the trading

history of SCOR securities (including

average price per share and trading

volume).

IV. Conclusion

For the reasons stated above, the

Commission believes the rule change is

consistent with the Act and, therefore,

has determined to approve it on a threeyear pilot basis. The rule change

establishes quantitative and qualitative

listing criteria for SCOR securities that

provide for the protection of investors

and the public interest. Furthermore,

the SCOR listing program should

provide benefits to investors and small

companies by providing for the

exchange-trading of SCOR securities,

which should result in added liquidity,

price discovery, and regulatory

oversight.

The Commission does not believe that

the 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.

It is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,29 that the

proposed rule change (SR–PSE–94–31)

is approved on a pilot basis through

April 19, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.30

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–10297 Filed 4–26–95; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice 2193]

Shipping Coordinating Committee;

Subcommittee for the Prevention of

Marine Pollution; Meeting

The Subcommittee for the Prevention

of Marine Pollution (SPMP), a

subcommittee of the Shipping

Coordinating Committee, will conduct

an open meeting on May 19, 1994, from

9:30 am to 12 noon in Room 6103 of

U.S. Coast Guard Headquarters, 2100

Second Street SW., Washington, DC.

The purpose of this meeting is to seek

input from the public to assist

development of the U.S. position

regarding the application of the

precautionary approach to the

International Maritime Organization’s

(IMO) work.

At the 35th Session of the Marine

Environmental Protection Committee

(MEPC) of IMO in March, 1994, a

Correspondence Group was established
Federal Register / Vol. 60, No. 81 / Thursday, April 27, 1995 / Notices 20791

with the following terms of reference:

‘‘To develop guidelines on the

application of the precautionary

approach as set out in Principle 15 of

the Rio Declaration, as well as

paragraphs 17.21 and 17.22 of the

United Nations Conference on

Environment and Development, Agenda

21, in the context of specific IMO

activities, and to report to the MEPC at

its thirty-seventh session’’.

Work was carried out intersessionally

to identify a working method to

internalize the application of the

precautionary approach. This work was

carried into the 36th Session of the

MEPC in November, 1994 where a

drafting group developed draft

‘‘Guidelines on the Application of the

Precautionary Approach in the Context

of Specific IMO Activities’’. In this

draft, the precautionary approach is

further elaborated for the purpose of

IMO. Additionally, the drafting group

developed a draft ‘‘Framework for

Implementation of the Precautionary

Approach within the Programs and

Activities of IMO’’ which provides a

working method to be used by IMO

Committees, Sub-Committees, Working

Groups and other IMO bodies to

internalize the precautionary approach

into the process of policymaking and

management.

The draft Guidelines and Framework

are the subject of further consideration

by the intersessional correspondence

group, working toward tabling these

documents at the 37th Session of the

MEPC.

Input or comments from the public

meeting will be considered by members

of the U.S. correspondence group in

finalizing the U.S. position on these

documents. For further information or

copies of the drafts, contact the project

officer, Commander Mike Farley, U.S.

Coast Guard Headquarters (G–MEP–3),

2100 Second Street SW., Washington,

DC 20593–0001, Telephone: (202) 267–

2850.

Dated: April 18, 1995.

Charles A. Mast,

Chairman, Shipping Coordinating Committee.

[FR Doc. 95–10338 Filed 4–26–95; 8:45 am]

BILLING CODE 4710–07–M

[Public Notice 2194]

Shipping Coordinating Committee;

Conference of Parties to the

International Convention on Standards

of Training, Certification and

Watchkeeping (STCW); Meeting

The Shipping Coordinating

Committee (SHC) will conduct an open

meeting at 10 am on Tuesday, June 13,

1995, in Room 2415 of the United States

Coast Guard Headquarters Building,

2100 2nd Street SW., Washington, DC

20593–0001. The primary purpose of

the meeting is to prepare for the

Conference of Parties to the

International Convention on Standards

of Training, Certification and

Watchkeeping for Seafarers, 1978

(STCW Conference). Preparations for the

International Conference on Standards

of Training, Certification and

Watchkeeping for Fishing Vessel

Personnel (STCW–F Conference) will

also be discussed. These Conferences

are being convened by the International

Maritime Organization (IMO), in

London, from June 26 to July 7, 1995.

The STCW Conference is being held

to consider adoption of amendments to

the International Convention on

Standards of Training, Certification and

Watchkeeping for Seafarers, 1978

(STCW Convention). The United States

became a party to this convention in

1991; and 107 countries are now parties.

The proposed amendments to the

STCW Convention were prepared by the

IMO Sub-Committee on Standards of

Training and Watchkeeping and were

approved for circulation by the sixtyfourth session of the IMO Maritime

Safety Committee.

Items of particular interest include—

—The role of IMO in overseeing

compliance with convention

requirements;

—Basic safety and familiarization

training for all shipboard personnel;

—Standards of competence based on

demonstration of skills;

—Use of simulation in training and

assessment;

—Quality assurance in training,

assessment and certification;

—Alternative, function-based

certification systems;

—Principles to be observing in keeping

a watch;

—Prevention of fatigue; and

—Port State control.

The STCW–F Conference is being

held to consider adoption of a new

convention which would apply to

fishing vessel personnel. Fishing vessels

are excluded from the scope of

application of the STCW Convention.

Items of particular interest include—

—Certification requirements for

skippers, deck watch officers and

engineers on seagoing fishing vessels

of 24 meters or more in length; and

—Prospects of U.S. ratification of this

new instrument.

Members of the public may attend the

meeting up to the seating capacity of the

room. Interested persons may seek

information by writing: Mr. Christopher

Young, U.S. Coast Guard (G–MVP–4),

Room 1210, 2100 Second Street SW.,

Washington, DC 20593–0001 or by

calling: (202) 267–0229.

Dated: April 19, 1995.

Charles A. Mast,

Chairman, Shipping Coordinating Committee.

[FR Doc. 95–10339 Filed 4–26–95; 8:45 am]

BILLING CODE 4710–07–M

[Public Notice 2192]

Shipping Coordinating Committee;

International Maritime Organization

(IMO) Legal Committee; Meeting

The U.S. Shipping Coordinating

Committee (SHC) will conduct an open

meeting at 10 a.m., on Thursday, May

18, 1995, in Room 2415 of U.S. Coast

Guard Headquarters, 2100 Second Street

SW., Washington, DC. The purpose of

this meeting is to report on the 72nd

Session of the International Maritime

Organization (IMO) Legal Committee

held April 3–7, 1995, and to begin

preparations for the 73rd Session to be

held October 9–13, 1995.

To facilitate the attendance of those

participants who may be interested in

only certain aspects of the public

meeting, the first subject addressed will

be the draft International Convention on

Liability and Compensation for Damage

in Connection with the Carriage of

Hazardous and Noxious Substances by

Sea (HNS Convention). The second

major subject, which will be considered

at approximately 11:30 a.m., will be

possible revisions to the 1976

Convention on Limitation of Liability

for Maritime Claims (’76 LLMC).

The current draft of the HNS

Convention imposes strict liability upon

the shipowner with an additional

international fund (second-tier fund)

modeled after the International Oil

Pollution Compensation Fund. The draft

HNS Convention provides

compensation for environmental

damage as well as personal injury,

death, and property damage from a

broad range of substances. At the 72nd

Session, the Legal Committee finalized

decisions on several major issues

regarding the draft HNS Convention.

Other issues will remain open for the

diplomatic conference, which is

tentatively scheduled for Spring 1996.

The 72nd Session was the last session

of the Legal Committee to discuss the

HNS Convention before the diplomatic

conference. The views of the public are

requested.

The Legal Committee resumed

deliberations on the ’76 LLMC at the

72nd Session. Discussion centered on a

draft protocol which provides for raising