26910 Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Notices

3 15 U.S.C. 78f(b)(5) (1988).

4The CSE preferencing program is limited by the

following: (1) A designated dealer may preference

up to a maximum of 350 stocks; (2) no payment for

order flow; (3) no index arbitage. See letter from

Fredrick Moss, Chairman of the Board of Trustees,

CSE, to Richard G. Ketchum, Director, Division of

Market Regulation, Commission, dated November

14, 1990.

5See Securities Exchange Act Release No. 34493

(Aug. 5, 1994), 59 FR 41531 (Aug. 12, 1995).

6See, File No. SR–CSE–95–03, Securities

Exchange Act Release No. 35448 (March 7, 1995),

60 FR 13493 (March 13, 1995). The comments

received on this proposal are available from the CSE

or the Commission. (See Section III, supra.)

7 15 U.S.C. 78s(b)(2) (1988).

8 17 CFR 200.30–3(a)(12) (1994).

1Securities Exchange Act Release No. 35543

(March 28, 1995), 60 FR 16901.

2A description of the new procedure was

included in the Notice of Filing of Amendment (see,

note 1, supra), and is incorporated by reference

herein.

2. Statutory Basis

The exchange believes that the

proposed rule change is consistent with

Sections 6(b) of the Act in general and

furthers the objectives of Section 6(b)(5)

in particular in that it will promote just

and equitable principles of trade and

remove impediments to and perfect the

mechanisms of a free and open market

and a national market system.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The CSE does not believe that the

proposed rule change will impose any

inappropriate burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The CSE solicited comments on the

filing from other Intermarket Trading

System participants. None were

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, N.W.,

Washington, D.C. 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

Section, 450 Fifth Street N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the CSE. All submissions

should refer to File No. SR–CSE–95–06

and should be submitted by [insert date

21 days from date of publication].

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the CSE’s

proposal to extend its preferencing pilot

program to October 2, 1995 is consistent

with the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

finds that the proposed rule change is

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

Act 3 in that it will promote just and

equitable principles of trade and remove

impediments to and perfect the

mechanism of a free and open market

and a national market system. The pilot

is extended under the same conditions

set out in the prior pilot approval

orders.4

The pilot modifies CSE’s priority

rules in order to permit one designated

dealer to step ahead of another, at the

same or better price, when trading with

its own customer order. Public orders in

the CSE book continue to have priority

over all preferencing interest.

The Commission notes that pursuant

to its most recent pilot extension

approval order, the CSE was required to

submit quarterly data reports and a

report analyzing such data.5 The CSE

has submitted data to the Commission.

In addition, the Commission has

received extensive commentary on the

CSE’s request for permanent approval of

its preferencing pilot, noticed for

comment on March 13, 1995.6 The

Commission is currently reviewing the

comments and data submitted thus far,

and believes that due to the complexity

of the issues, the extensive comment

letters, and the significant amount of

data, the preferencing pilot should be

extended to provide the Commission

with adequate time to more thoroughly

evaluate the data and the issues

involved in the filing for permanent

approval.

The Commission finds good cause for

approving the proposed rule change

prior the thirtieth day after the date of

publication of notice of filing thereof in

the Federal Register. The Commission

believes that accelerated approval of the

proposal is appropriate in order to avoid

an unnecessary interruption to the

existing pilot, while allowing the

Commission to continue to evaluate the

data and comments submitted in

response to the solicitation of comments

published in March.

It is therefore ordered, pursuant to

Section 19(b)(2) 7 that the proposed rule

change is hereby approved, and the

preferencing pilot is extended through

October 2, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12313 Filed 5–18–95; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35715; File No. S7–27–93]

Consolidated Tape Association; Order

Granting Approval of Seventeenth

Substantive Amendment to the

Restated Consolidated Tape

Association Plan and Twenty-First

Substantive Amendment to the

Consolidated Quotation Plan

May 12, 1995.

I. Introduction

On March 9, 1995, the Consolidated

Tape Association (‘‘CTA’’) and

consolidated Quotation (‘‘CQ’’) Plan

Participants filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) amendments

to the Restated CTA Plan and CQ Plan

pursuant to Rule 11Aa3–2 of the

Securities Exchange Act of 1934

(‘‘Act’’). Notice of the filing appeared in

the Federal Register on April 3, 1994.1

No comment letters were received in

response to the Notice. For the reasons

discussed below, the Commission has

determined to approve the filing.

II. Description

The amendments change the

procedure for allocating high speed line

access fee revenues between ‘‘Network

A’’ and ‘‘Network B’’ under each plan.

Under the new procedure,2 the

participants will apply ‘‘relative

message usage percentages’’ to the

allocation of high speed line revenues

between networks retroactively,

beginning with the period commencing

January 1, 1994.

The amendments also eliminate the

requirements that the participants set

the high speed line access fee at a level

designed to recover the costs of making

the high speed line available, and set

indirect high speed line access fees at a

level that equals one-half of the direct
Federal Register / Vol. 60, No. 97 / Friday, May 19, 1995 / Notices 26911

3 17 CFR 200.30–3(a)(27).

access fees. The actual fees currently in

effect, however, are not changed.

Prior to this amendment, the

participants, under each plan, imposed

on subscribers, vendors, computer input

users and others one combined high

speed line access fee for access to both

Network A and Network B market data.

These amendments will change the

current fee structure and replace it with

a more appropriate and equitable

measure that reflects each network’s

relative usage of the plans’ systems.

Additionally, these amendments will

eliminate the current requirements to:

(a) Set high speed line access fees at

levels that allow the participants to

recover the operating expenses that the

Processor incurs in making the high

speed line available, and (b) set indirect

high speed line access fees at a level

that equals one-half of the direct access

fees. Those requirements were

established over twenty years ago.

Today’s digital data feed and other

technologies make high speed lines

cheaper and easier to access

necessitating a change in the manner in

which the participants determine high

speed line access fees. The actual fees,

however, will not be amended at this

time.

III. Discussion

The Commission has determined that

the CTA/CQ Plan amendments are

consistent with the Act. Rule 11Aa3–

2(c)(2) under the Act provides, inter

alia, that the Commission approve an

amendment to an effective National

Market System plan if it finds that the

amendment is necessary or appropriate

in the public interest, for the protection

of investors and maintenance of fair and

orderly markets, to remove impediments

to and perfect the mechanisms of a

National Market System, or otherwise in

furtherance of the purposes of the Act.

In making such a determination, the

Commission must examine Section 11A

of the Act and Rule 11Aa3–2(b)(5),

promulgated thereunder. Rule 11Aa3–

2(b)(5)(ii) provides that every national

market system plan, or any amendment

thereto, shall provide a description of

the method by which any fees or

charges collected on behalf of all of the

participants in connection with access

to, or use of, any facility contemplated

by the plan or amendment will be

determined and imposed (including any

provision for distribution of any net

proceeds from such fees or charges to

the participants) and the amount of such

fees or charges.

The CTA and CQ Plan Participants

have properly described the

determination, imposition and

distribution of the fees and charges that

are the subject of the proposed

amendments. Furthermore, the

amendments will remove impediments

to and perfect the mechanisms of a

National Market System by instituting a

more equitable line access fee that

reflects actual usage, and by removing

certain requirements concerning the

calculation of line access fees that are

no longer appropriate in light of

technological advances. Accordingly,

the Commission finds that the adoption

of the delineated changes for allocating

high speed line access fees for both

Plans, and the elimination of the above

discussed requirements concerning the

recovery of costs for making high speed

line available, to be consistent with the

Act and the Rules thereunder.

IV. Conclusion

For the reasons discussed above, the

Commission finds that the proposed

amendments to the CTA and CQ Plans

are consistent with the Act, particularly

Rules 11Aa3–2(c)(2) and 11Aa3–

2(b)(5)(ii) thereunder.

It is therefore ordered, pursuant to

Section 11A of the Act, that the

amendments to the CTA and CQ Plans

be, and hereby are, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.3

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12311 Filed 5–18–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 35–26290]

Filings Under the Public Utility Holding

Company Act of 1935, as Amended

(‘‘Act’’)

May 12, 1995.

Notice is hereby given that the

following filing(s) has/have been made

with the Commission pursuant to

provisions of the Act and rules

promulgated thereunder. All interested

persons are referred to the application(s)

and/or declaration(s) for complete

statements of the proposed

transaction(s) summarized below. The

application(s) and/or declaration(s) and

any amendments thereto is/are available

for public inspection through the

Commission’s Office of Public

Reference.

Interested persons wishing to

comment or request a hearing on the

application(s) and/or declaration(s)

should submit their views in writing by

June 5, 1995 to the Secretary, Securities

and Exchange Commission,

Washington, DC 20549, and serve a

copy on the relevant applicant(s) and/or

declarant(s) at the address(es) specified

below. Proof of service (by affidavit or,

in case of an attorney at law, by

certificate) should be filed with the

request. Any request for hearing shall

identify specifically the issues of fact or

law that are disputed. A person who so

requests will be notified of any hearing,

if ordered, and will receive a copy of

any notice or order issued in the matter.

After said date, the application(s) and/

or declaration(s), as filed or as amended,

may be granted and/or permitted to

become effective.

CINergy Corp. et al. (70–8587)

CINergy Corp. (‘‘CINergy’’), 139 East

Fourth Street, Cincinnati, Ohio 45202, a

registered holding company, and certain

of its subsidiaries, including CG&E

Resource Marketing, Inc. (‘‘Resource

Marketing’’), 139 East Fourth Street,

Cincinnati, Ohio 45202, filed an

application-declaration under sections

2(a)(8), 6, 7, 9(a), 10, 12(b), 12(f) and 13

of the Public Utility Holding Company

Act of 1935, as amended (‘‘Act’’), and

rules 40, 43, 45, 53, 54, and 80–95

thereunder. The Commission issued a

notice of the filing on April 14, 1995

(HCAR No. 26273).

Resource Marketing holds a one-third

general partnership interest in U.S.

Energy Partners, a gas marketing

partnership with Public Service Electric

& Gas Company. CINergy states that it

does not ‘‘control’’ U.S. Energy Partners

or possess a ‘‘controlling influence’’

over its management or policies. In

addition to the matters discussed in the

notice referred to above, CINergy also

seeks in this filing an order of the

Commission declaring that U.S. Energy

Partners is not a ‘‘subsidiary company’’

of CINergy within the meaning of

section 2(a)(8) of the Act.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–12314 Filed 5–18–95; 8:45 am]

BILLING CODE 8010–01–M

[Investment Company Act Release No.

21065; 811–7300]

Third Avenue Series Funds, Inc.;

Notice of Application

May 12, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Deregistration under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANT: Third Avenue Series Funds,

Inc.