Federal Register / Vol. 60, No. 34 / Tuesday, February 21, 1995 / Notices 9709

2The Securities Industry Conference on

Arbitration approved the proposed rule change as

an amendment to the Uniform Code of Arbitration

at its meeting on October 21, 1994.

3 15 U.S.C. 78o–3.

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

2CFR 240.19b-4 (1993).

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 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

Section 32(c) currently requires all

parties to serve on each other copies of

documents in their possession they

intend to present at the hearing and to

identify witnesses they intend to

present at the hearing not less than 10

calendar days prior to the first

scheduled hearing date. Parties often

request additional discovery as a result

of information obtained through the

exchange of documents. These requests

create a significant burden on the

NASD’s Arbitration Department, which

currently must respond in a short period

of time to numerous requests for

additional discovery that arise from the

exchange of documents intended to be

used by the parties at the hearing. These

requests also create a significant burden

on the arbitrators and the parties.

Accordingly, the NASD is proposing to

amend Section 32(c) of the Code to

increase the amount of time before a

hearing where the parties are required to

exchange documents from 10 to 20

days.2 The proposed rule change is

intended to reduce the burden to the

Arbitration Department, arbitrators and

the parties in responding to last minute

discovery requests by increasing the

time for exchanging pre-hearing

memoranda.

The NASD believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(6) of the

Act 3 in that increasing the time for

exchange of documents prior to

arbitration hearing will facilitate the

arbitration process by providing a more

reasonable time frame in which to

address last minute discovery requests

and by reducing the burdens on the

forum staff, arbitrators and the parties in

dealing with such requests.

(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. 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 self-regulatory

organization 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, 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 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 [insert date 21 days

from the date of publication].

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4086 Filed 2–17–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35373; File No. SR–NYSE–

94–42]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.; Order

Granting Approval to Proposed Rule

Change Relating to the Mailing of

Interim Financial Statements to

Shareholders

Februrary 14, 1995.

On December 1, 1994, the New York

Stock Exchange, Inc. (‘‘NYSE’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’), pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 and Rule 19b-4

thereunder,2 a proposed rule change to

require corporations that distribute

interim reports to shareholders to

distribute such reports to both registered

and beneficial shareholders.

The proposed rule change was

published for comment in Securities

Exchange Act Release No. 35092

(December 12, 1994), 59 FR 65554

(December 20, 1994). No comments

were received on the proposal.

Currently, the NYSE requires listed

companies to publish interim earnings

statements as press reports, but does not

require that such statements also be sent

to shareholders. The rule change to

paragraph 203.02 of the NYSE’s Listing

Company Manual will continue to make

the distribution of interim reports to

shareholders voluntary, but will require

that corporations choosing to distribute

interim reports to shareholders must

distribute the reports to both registered

and beneficial shareholders.

The NYSE proposal is the product of

a review by various industry groups,

including the American Society of

Corporate Secretaries and the Securities

Industry Association, of listed

companies’ dissemination of interim

earnings reports to shareholders. The

groups have been attempting to achieve

some uniformity among listed

companies in the handling of interim

earnings reports. Presently, while some

listed companies distribute interim

reports to both record and beneficial

shareholders, some listed companies

only send interim reports to record

shareholders, and some do not send

interim reports to any shareholders. The

cost of providing interim reports to

beneficial shareholders has been

identified as a factor that discourages

listed companies from making a full

distribution of interim listed companies

from making a full distribution of

interim reports. Because broker-dealers

that hold investors’ securities in the
9710 Federal Register / Vol. 60, No. 34 / Tuesday, February 21, 1995 / Notices

3 15 U.S.C. § 78f(b) (1988).

4The interim reports that are the subject of the

NYSE’s rule change are not the quarterly financial

reports required to be filed with the Commission on

Form 10–Q pursuant to the Commission’s authority

under Sections 13(a) and 15(d) of the Securities

Exchange Act of 1934. See 15 U.S.C. §§ 78m(a) and

78o(d) (1988). The reports are voluntarily prepared

and published by companies as part of their

shareholder relations activities.

5 15 U.S.C. 78s(b)(2) (1988).

6 17 CFR 200.30–3(a)(12) (1993).

broker-dealers’ own name (‘‘streetname’’) charge issuers a fee for

distributing interim reports to beneficial

shareholders, many listed companies

choose not to distribute them.

The industry review considered the

cost of requiring interim reports to be

mailed to all shareholders, particularly

where securities are held in ‘‘streetname.’’ In this regard, while the

industry groups have not reached an

agreement with respect to the fees

charged issuers to distribute interim

reports to shareholders, they have

reached agreement on the need to

submit reports to registered and

beneficial shareholders. This agreement

is reflected in the NYSE’s 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 a national securities

exchange, and, in particular, with the

requirements of Section 6(b).3 In

particular, the Commission believes the

proposal is consistent with the Section

6(b)(5) requirements that the rules of an

exchange be designed to promote just

and equitable principles of trade, to

foster cooperation and coordination

with persons engaged in regulating,

clearing, settling, processing

information with respect to, and

facilitating transactions in securities, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public.

Although the Commission does not

require public companies to distribute

interim reports to shareholders,4 it

believes that it is appropriate for the

NYSE to improve the distribution by its

listed companies of interim reports to

shareholders. The NYSE proposal will

accomplish this by ensuring equal

treatment of record and beneficial

shareholders in the distribution of

reports. In addition, the NYSE’s rule

change reflects the results of the

compromise reached by the various

industry groups with regard to

distribution of interim reports. The

Commission believes the NYSE’s

adoption of this industry policy should

help to create uniformity in the

practices of NYSE-listed companies

with respect to their distribution of

interim financial reports.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,5 that the

proposed rule change (SR–NYSE–94–

42) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delayed

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4159 Filed 2–17–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2761]

Washington, Declaration of Disaster

Loan Area; Amendment #1

The above-numbered Declaration is

hereby amended to include Pierce

County in the State of Washington as a

contiguous county as a result of

damages caused by heavy rains and

flooding which occurred throughout

December 1994.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is

March 30, 1995, and for economic

injury the deadline is October 27, 1995.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)

Dated: February 10, 1995.

Philip Lader,

Administrator.

[FR Doc. 95–4080 Filed 2–17–95; 8:45 am]

BILLING CODE 8025–01–M

Public Meeting

The National Small Business

Development Center Advisory Board

will hold a public meeting on March 7,

1995, from 9 AM through 4 PM, at U.S.

Small Business Administration, Office

of Small Business Development Centers

Conference Room, 4th Floor, 409 3rd

Street, SW., Washington, DC 20416.

The purpose of the meeting is to

discuss such matters as may be

presented by Advisory Board members,

staff of the SBA, or others present.

For further information, write or call

Mary Ann Holl, SBA, 4th Floor, 409 3rd

Street, SW., Washington, DC 20416,

telephone 202/205–7302.

Dorothy A. Overal,

Director, Office of Advisory Councils.

[FR Doc. 95–4081 Filed 2–17–95; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[OST Docket 50125]

Department of Transportation

Proposed Environmental Justice

Strategy

AGENCIES: Office of the Secretary:

Departmental Office of Civil Rights and

Office of the Assistant Secretary for

Transportation Policy; DOT.

ACTION: Request for comment on U.S.

Department of Transportation proposed

environmental justice strategy.

SUMMARY: Executive Order 12898,

signed by President Clinton on February

11, 1994, directs each Federal agency to

develop a strategy to address

environmental justice concerns in its

programs, policies and regulations. The

thrust of the Executive Order is to avoid

disproportionately high and adverse

impacts on minority and low-income

populations with respect to human

health and the environment.

The Department of Transportation

(DOT) has prepared a proposed

environmental justice strategy. The

proposed strategy describes the

approach we are considering to achieve

environmental justice objectives

throughout the Department. To help us

formulate the final strategy, we are

soliciting comments from a broad range

of organizations and individuals with an

interest in environmental justice and

transportation matters.

DATES: Comments are requested by

March 1, 1995. Late-filed comments will

be considered to the extent practicable.

ADDRESSES: Comments should be sent to

Docket Clerk, Docket 50125, Department

of Transportation, 400 7th Street, SW.,

Room PL 401, Washington, DC 20590.

To facilitate consideration of the

comments, commenters are requested to

file six copies of each submission.

Comments will be available for

inspection at this address from 9 a.m. to

5 p.m., Monday through Friday.

Commenters who wish the Department

to acknowledge receipt of their

comments should include a stamped,

self-addressed postcard with their

comments. The Docket Clerk will datestamp the postcard and mail it back to

the commenter.

FOR FURTHER INFORMATION CONTACT:

Ira Laster, Jr., Office of Environment,

Energy, and Safety, Office of the

Assistant Secretary for Transportation

Policy, telephone (202) 366–4859, or

Alyce Boyd-Stewart, Departmental

Office of Civil Rights, telephone (202)

366–9366, U.S. Department of