3688 Federal Register / Vol. 60, No. 11 / Wednesday, January 18, 1995 / Notices

4The Society for Worldwide Interbank Financial

Telecommunication (‘‘S.W.I.F.T.’’) operates a secure

data communication and processing system which

enables thousands of financial institutions in more

than 100 countries to communicate with each other

24 hours a day and facilitates the sending in excess

of 500 million messages annually.

5The International Organization for

Standardization (‘‘ISO’’) was founded in 1949 to

promote standards worldwide. ISO 7775, the

standard for international securities messages, was

developed in close cooperation with S.W.I.F.T. It

was first published in 1984. S.W.I.F.T. has assumed

responsibility for maintenance of the standard.

6S.W.I.F.T. automatically verifies the identity of

the sending party.

7Additionally, S.W.I.F.T., instead of ISCC, will

verify the number of records transmitted.

8 17 CFR 200.30–3(a)(12) (1994).

1 15 U.S.C. 78s(b)(1) (1988).

clearance, settlement, and custody

services in Australia.

ISCC, along with a steering committee

of the GCN participants, decided to

expand the number of GCN service

providers in order to expand and

improve processing capabilities.

Requests for proposals were sent to

banks selected by the steering

committee. After a review of the

proposals received, the steering

committee selected Standard and

Westpac to become GCN service

providers. ISCC intends to continue to

add additional service providers as

often as necessary in order that

participant requirements are adequately

addressed.

Each of the additional service

providers has entered into an agreement

with ISCC pursuant to which they agree

to provide access to clearing, settlement,

and custody services to GCN

participants that qualify to be customers

of such bank. Each service provider has

agreed to provide the services at

reduced prices. ISCC has not provided

any volume guarantees to either of these

banks, and each of the banks will be

responsible to collect fees directly from

the participants. The agreements may be

terminated by mutual agreement of the

parties on ninety days prior notice.

The proposed rule change also will

modify the procedures for using the

GCN service contained in Addendum E

to ISCC’s rules. Initially, participants

could submit data to ISCC via their

office computer’s central processing

unit (‘‘CPU’’) or any personal computer

(‘‘PC’’) connection using an ISCC

universal trade record (‘‘UTR’’) format.

In addition to submission via CPU or

PC, the proposal will allow ISCC to

accept data submitted via S.W.I.F.T. 4 In

addition to the UTR format, the

proposal will allow ISCC to accept data

in ISO 7775 format. 5 Data submitted via

PC or CPU will be routed through

ISCC’s Datatrak system to validate the

sender’s identity against ISCC’s

masterfile prior to the validation and

edit process. Data submitted via

S.W.I.F.T. will go directly to the

validation and edit process.6 Currently,

participants receive a confirmation that

ISCC has received the data. The

proposal will eliminate the sending of

the confirmation. If the data is not

received in ISO 7775 format, ISCC will

convert the data into this format for

transmission to the service provider.

Information that does not pass the

validation or edit process will be

rejected, and the participant will be

required to resubmit the data.

Data will be routed to the service

provider using the method required by

the service provider. In general, ISCC

will receive confirmation that the data

has been received by the service

provider. If the data is sent using

S.W.I.F.T., ISCC only will receive

confirmation that the data was

transmitted.7 If the service provider is

unable to process the data, the service

provider will contact the participant

directly. Each day, the service provider

will provide reports on behalf of the

participants’ accounts to ISCC which

ISCC will retransmit to the participants.

The proposed rule change will

facilitate and centralize the processing

of international transactions at a

beneficial cost to members which

ultimately will be reflected in services

to the investing public. Accordingly,

these changes are consistent with the

requirements of the Act, specifically

Section 17A of the Act, and the rules

and regulations thereunder.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

ISCC does not believe a burden will

be placed on competition as a result of

the proposed rule change.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Changes Received From

Members, Participants, or Others

ISCC has not solicited or received any

comments.

III. Date of Effectiveness of the

Proposed Rule Changes and Timing for

Commission Action

Within thirty-five 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

ninety 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 ISCC 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.

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

Section, 450 Fifth Street, NW.,

Washington, DC 20549, and at the

principal offices of ISCC. All

submissions should refer to File No.

SR–ISCC–94–06 and should be

submitted by February 8, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegate

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–1194 Filed 1–17–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35208; File No. SR–NASD–

94–66]

Self-Regulatory Organizations;

National Association of Securities

Dealers, Inc.; Notice of Filing and

Order Granting Accelerated Approval

of Proposed Rule Change Relating to

Amendments to the Examination

Specifications and Study Outline for

the General Securities Sales

Supervisor (Series 8) Examination

January 10, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’) 1 notice is hereby given that on

December 1, 1994 the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’) 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 NASD. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.
Federal Register / Vol. 60, No. 11 / Wednesday, January 18, 1995 / Notices 3689

2See Securities Exchange Act Release No. 34967

(Nov. 10, 1994), 59 FR 59803 (Nov. 18, 1994) (File

Nos. SR–NYSE–94–23 (revised Content Outline for

Series 8 Examination), SR–NYSE–94–24 (exam

specifications for Series 8 Examination)); and

Release No. 35020 (November 29, 1994), 59 FR

62769 (Dec. 6,1994) (File No. SR–Phlx–94–51 (exam

specifications for Series 8 Examination and

corresponding Content Outline). Both the NYSE

and Phlx approval orders are contingent upon the

filing of the revised Examination Specifications and

Content Outline by other appropriate SROs, and

approval of those filings by the Commission.

I. Self-regulatory Organization

Statement of the Terms of Substance of

the Proposed Rule Change

The NASD is proposing amendments

to the examination specifications and

study outline for the General Securities

Sales Supervisor (‘‘Series 8’’)

qualification examination, an industry

wide qualification examination for

securities sales supervisors. The

amendments revise materials pertaining

to recently enacted federal and SRO

rules and regulations, new products and

changes in industry practices. The

number of questions per examination

and the examination time are unaffected

by the amendments.

The above amendments do not result

in any textual changes to the NASD ByLaws, Schedules to the By-Laws, Rules,

practices or procedures.

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

NASD 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 III below. The NASD 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

The Series 8 examination is generally

required under rules of the selfregulatory organizations (‘‘SROs’’) for

persons who are engaged in the

supervision of general securities branch

offices (i.e., branch office managers) and

of general securities registered

representatives. The Series 8

examination tests a candidate’s

knowledge of securities industry rules

and regulations and certain statutory

provisions applicable to general

securities sales supervision. The Series

8 Content Outline details the subject

coverage and question allocation of the

examination. The Examination

Specifications detail the areas covered

by the examination and break down the

number of examination questions pulled

from each area.

The NASD periodically reviews the

content of the qualification

examinations it administers to

determine whether amendments are

necessary or appropriate in view of

changes pertaining to the subject matter

covered by the examinations. Revision

of the Series 8 Examination,

Examination Specifications, and

Content Outline was recently

undertaken by an industry committee

composed of representatives from SROs

(the New York Stock Exchange, the

American Stock Exchange, the Chicago

Board Options Exchange, the Municipal

Securities Rulemaking Board, the

National Association of Securities

Dealers and the Philadelphia Stock

Exchange) and representatives from

broker-dealers, including branch office

managers, compliance personnel and

corporate executives, to update the

examination in view of changes in

relevant laws, rules and regulations, the

development of new products, and to

reflect various changes in industry

practices. The committee reviewed the

examination specifications, content

areas and item bank and developed

some new questions in new areas.

The revised examination continues to

cover the areas of knowledge required to

supervise sales activities in securities,

however, the focus of the content of the

examination has been shifted to

concentrate more closely on supervisory

duties. Accordingly, certain questions

have been deleted from the examination

which deal with routine calculations

and basic product knowledge and

questions on new federal and SRO rules

and regulations have been incorporated

into the exam, as well as questions on

new products, supervision and changes

in industry practices. The revised

Examination Specifications and Content

Outline reflect the revised content of the

examination. The examination will

remain a six-hour, two-part, 200

question examination.

The Commission recently approved

two parallel filings of the New York

Stock Exchange, Inc. (‘‘NYSE’’) and one

filing of the Philadelphia Stock

Exchange, Inc. (‘‘Phlx’’).2 No comments

were received on either the NYSE and

Phlx proposals. The Commission

anticipates that the other appropriate

SRO participants also will file the

revised Specifications and Content

Outline for approval by the

Commission. The NASD, NYSE and

other SROs may use the revised

Examination, Specifications and

Content Outline after the Commission

has approved the proposed rule changes

of the other appropriate SRO

participants.

The NASD believes that the proposed

rule change is consistent with the

provisions of Section 15A(g)(3) of the

Act in that the proposed changes to the

examination are to ensure persons

seeking registration in the securities

industry have attained the requisite

levels of knowledge and competence.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD 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. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

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 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 the file

number in the caption above and should

be submitted by February 8, 1995.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to the NASD and, in

particular, with the requirements of
3690 Federal Register / Vol. 60, No. 11 / Wednesday, January 18, 1995 / Notices

3 15 U.S.C. 78o–3(g)(3) (1988).

4 15 U.S.C. 78s(b)(2) (1988).

5 17 CFR 200.30–3(a)(12).

1The Commission has approved the NYSE’s

auxiliary closing procedures for handling MOC

orders on expiration days on a pilot basis until

October 31, 1995. See Securities Exchange Act

Release No. 34916 (October 31, 1994), 59 FR 55507

(November 7, 1994) (File No. SR–NYSE–94–32).

The NYSE has requested that the revised

procedures for expiration days, as proposed herein,

be approved as part of the pilot program that is

currently in effect. See letter from Donald Siemer,

Director, Market Surveillance, NYSE, to Beth

Stekler, Attorney, Division of Market Regulation,

SEC, dated December 22, 1994 (‘‘December 22nd

letter’’).

2The Commission has approved the NYSE’s

closing procedures for non-expiration days on a

permanent basis. See Securities Exchange Act

Release No. 31291 (October 6, 1992), 57 FR 47149

(October 14, 1992) (File No. SR–NYSE–92–12). The

NYSE has requested that the revised procedures for

non-expiration days, as proposed herein, be

approved on a permanent basis. See December 22nd

letter, supra, note 1.

3See supra, note 1.

4The Expiration Friday pilot stocks consist of the

50 most highly capitalized Standard & Poors

(‘‘S&P’’) 500 stocks and any component stocks of

the Major Market Index (‘‘MMI’’) not included

therein. The QIX Expiration Day pilot stocks consist

of the 50 most highly capitalized S&P 500 stocks,

any component stocks of the MMI not included

therein and the 10 highest weighted S&P Midcap

400 stocks.

Section 15A(g)(3) of the Act.3 Section

15A(g)(3) provides that a registered

securities association may deny

membership to, or condition the

membership of, a registered broker or

dealer if such broker or dealer does not

meet the requisite levels of knowledge

and competence.

The Commission believes that

revising the Series 8 Examination,

Specifications and Content Outline

should help to ensure that only those

securities sales supervisors with a

comprehensive knowledge of current

NASD rules, as well as an

understanding of the Act, will be able to

supervise general securities branch

offices and registered representatives.

The Commission believes that the

revised areas covered by the

Examination, Specifications and

Content Outline are appropriate subject

matters and include a sufficiently broad

range of topics to ensure an appropriate

level of expertise by supervisors.

Additionally, the revised examination

tests relevant subject matters in view of

changes in applicable laws, rules,

regulations, products, and industry

practices. By ensuring this requisite

level of knowledge, the NASD can

remain confident that securities sales

supervisors have demonstrated an

acceptable level of securities knowledge

to carry out their responsibilities.

The approval is contingent upon the

filing of the Examination Specifications

and Content Outline by the other

appropriate SROs and the approval of

those filings by the Commission.

The Commission finds good cause for

approving the proposed rule change

prior to the 30th day after the date of

publication of notice of filing thereof in

the Federal Register. The Commission

believes that accelerated approval is

appropriate given that the Commission

recently approved two parallel and

substantively identical filings by the

NYSE, and the importance of

implementing the revised Content

Outline and Series 8 Examination as

soon as practicable.

It is therefore ordered, pursuant to

Section 19(b)(2) 4 that the proposed rule

change is approved contingent upon the

filing of the Examination Specifications

and Content Outline by the other

appropriate SROs and the approval of

those filings by the Commission.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–1109 Filed 1–17–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35210; File No. SR–NYSE–

94–44]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

New York Stock Exchange, Inc.

Relating to Amendments to Market-atthe-Close Order Handling

Requirements for Expiration and NonExpiration Days

January 10, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on December 5, 1994,

the New York Stock Exchange, Inc.

(‘‘NYSE’’ 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 self-regulatory

organization. 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 proposed rule change consists of

modifications to the order entry and

imbalance display procedures for

market-at-the-close (‘‘MOC’’) orders on

expiration and non-expiration days, as

described in two separate Information

Memos. The Information Memo for

expiration days would be issued before

each application of the pilot program

that allows the NYSE to use auxiliary

closing procedures for handling MOC

orders on expiration days (subject to

Commission approval);1 the Information

Memo for non-expiration days would be

issued once this filing is approved.2 The

term ‘‘expiration days’’ refers

collectively to the last trading day

before the one day a month that

standardized contracts in stock index

futures, stock index options and options

on stock index futures expire

(‘‘Expiration Friday’’), and the last

trading day of each calendar expiration

(‘‘QIX’’) options (‘‘QIX Expiration Day’’).

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

self-regulatory organization 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 self-regulatory organization 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

Under the current pilot program for

expiration days,3 NYSE procedures

require that MOC orders in any stock

related to a strategy involving expiring

index derivative products be entered for

execution by 3:40 p.m., and that no

cancellation or reduction of any MOC

order in any stock take place after 3:40

p.m. For the pilot stocks on expiration

days,4 imbalances of 50,000 shares or

more are published as soon as

practicable after 3:40 p.m. After the

imbalance publication, MOC orders in

the pilot stocks may be entered only to

offset a published imbalance. MOC

orders may not be entered if there is no

imbalance publication. The Exchange

proposes that all MOC orders in all

stocks (regardless of strategy) be

required to be entered by 3:40 p.m. on

expiration days, except orders to offset

imbalance publications.

Currently, on non-expiration days,

imbalances of 50,000 shares or more in