8438 Federal Register / Vol. 60, No. 30 / Tuesday, February 14, 1995 / Notices

stock in which he is registered and must be able to

establish that he can meet, with his own net liquid

assets, the greater of, a minimum capital

requirement of $1,000,000 or 25% of the foregoing

position requirement.

7 15 U.S.C. 78f(b) (1988).

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30–3(a)(12) (1994).

• Agree to maintain 2 times (2.5 times, in

the case of a 15% combination) the capital

requirement specified in Rule 104.20 with

respect to each of the combined entity’s

stocks that are component stocks of the

Standard and Poor’s 500 Stock Price Index;

and

• Agree that all capital required to be

dedicated to specialist operations be

accounted for separate and apart from any

other capital of the combined entity, and that

such specialist capital may not be used for

any other aspect of the combined entity’s

operations.

The proposal also requires that

proponents of a proposed combination

that would result in a specialist unit

accounting for more than 5%, but less

than or equal to 10%, of a concentration

measure, maintain 1.5 times the capital

requirement specified in Rule 104.20

with respect to each of the combined

entity’s stocks that are components

stocks of the Standard and Poor’s 500

Stock Price Index.

IV. Discussion and Conclusion

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 Sections 6(b).7 In

particular, the Commission believes the

proposal is consistent with the Section

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

exchange be designated to promote just

and equitable principles of trade, to

prevent fraudulent and manipulative

acts, and, in general, to protect investors

and the public, in that it addresses

concerns about capitalization,

operational efficiency, and risk

management where proposed

combinations would result in large

sized specialist units.

The Commission agrees with the

NYSE that these new requirements are

appropriate in that they should

minimize the risk of financial and/or

operational failure of larger-sized units,

and ensure that such units have

sufficient, separately dedicated capital

with which to meet their market making

responsibilities. The Commission

believes that it is appropriate to modify

the Policy to place additional

capitalization requirements when

specialist units are combining. The

combined entity will be larger than

either of the two (or more) original

entities, responsible for more securities,

and financially exposed to a larger

degree. The potential impact of the

financial failure of a large-sized

specialist unit upon the NYSE would be

proportionately greater in comparison to

either original unit. Thus, imposing

more stringent capitalization

requirements upon the new unit should

decrease the probability of any such

failure, and minimize any subsequent

detrimental impact upon the market

place.

The Commission also believes that the

proposal does not impose any

unnecessary or inappropriate burden on

competition under Section 6(b)(8) of the

Act in that it establishes review

procedures to prevent potential undercapitalization of specialist units that

could hinder market quality. The

Commission recognizes that the revised

Policy can prevent certain combinations

from occurring by placing additional

requirements for such combinations to

take place. Nonetheless, the

Commission believes that the additional

requirements will help to ensure that

combinations potentially detrimental to

the market place will not be permitted.

Accordingly, any potential burden on

competition resulting from the proposal

is, in the Commission’s view, justified

as necessary and appropriate under the

Act.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (SR–NYSE–94–

46) is approved.

For the Commission, by the Division of

Market Regulations, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–3619 Filed 2–13–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Declaration of Disaster Loan Area,

North Carolina

Duplin, Lenoir, and Sampson

Counties and the contiguous Counties of

Bladen, Crave, Cumberland, Greene,

Harnett, Johnston, Jones, Onslow,

Pender, Pitt, and Wayne in the State of

North Carolina constitute a disaster area

as a result of damages caused by severe

storms and tornadoes which occurred

on January 6 and 7, 1995. Applications

for loans for physical damage may be

filed until the close of business on April

10, 1995 and for economic injury until

the close of business on November 8,

1994 at the address listed below: U.S.

Small Business Administration, Disaster

Area 2 Office, One Baltimore Place,

Suite 300, Atlanta, GA 30308, or other

locally announced locations.

The interest rates are:

Percent

For physical damage:

Homeowners With Credit Available Elsewhere ........................ 8.000

Homeowners Without Credit

Available Elsewhere ................ 4.000

Businesses With Credit Available

Elsewhere ................................ 8.000

Businesses and Non-Profit Organizations Without Credit Available Elsewhere ........................ 4.000

Others (Including Non-Profit Organizations) With Credit Available Elsewhere ........................ 7.125

For Economic Injury:

Businesses and Small Agricultural Cooperatives Without

Credit Available Elsewhere ..... 4.000

The number assigned to this disaster

for physical damage is 276412 and for

economic injury the number is 844400.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: February 8, 1995.

Philip Lader,

Administrator.

[FR Doc. 95–3593 Filed 2–13–95; 8:45 am]

BILLING CODE 8025–01–M

Commonwealth of the Northern

Mariana Islands; Declaration of

Disaster Loan Area

The Islands of Antahan, Saipan, and

Tinian in the Commonwealth of the

Northern Mariana Islands are hereby

declared a disaster area as a result of

damages caused by Typhoon Zelda

which occurred on November 3, 1994.

Applications for loans for physical

damage as a result of this disaster may

be filed until the close of business on

April 7, 1995 and for economic injury

until the close of business on November

6, 1995 at the address listed below: U.S.

Small Business Administration, Disaster

Area 1 Office, 360 Rainbow Blvd. South,

3rd Floor, Niagara Falls, NY 14303, or

other locally announced locations.

The interest rates are:

Percent

For physical damage:

Homeowners with credit available elsewhere ........................ 8.000

Homeowners without credit available elsewhere ........................ 4.000

Businesses with credit available

elsewhere ................................ 8.000

Businesses and non-profit organizations without credit available elsewhere ........................ 4.000