Federal Register / Vol. 60, No. 49 / Tuesday, March 14, 1995 / Notices 13745

5Securities Exchange Act Release No. 35287

(January 27, 1995), 60 FR 6743 (February 3, 1995)

(‘‘Approval Order’’).

6See letter from Salvatore Pallante, Senior Vice

President, Member Firm Regulation, NYSE, to Holly

Smith, Associate Director, Division of Market

Regulation, Commission, dated March 1, 1995.

7See Approval Order, footnote 7.

8The example in the Approval Order concerns a

broker-dealer with three accounts—account 1 has

short interest of 100 shares, account 2 has short

interest of 225 shares and account 3 is long 150

shares. As indicated in the Approval Order, if the

three accounts are for different customers then the

broker-dealer shall report a gross short interest of

325 (not netted to 175). In contrast to the Approval

Order, however, if account 1 is a firm customer

account, and accounts 2 and 3 are firm proprietary

accounts, the broker-dealer would still report total

short interest of 325 (not netted to 75), as the

broker-dealer would not net the firm’s proprietary

positions but would report a total gross short

position (customer 100 and firm 225).

9 15 U.S.C. 78f(b) and 78o–3 (1988).

10 15 U.S.C. 78s(b)(2) (1988).

11 17 CFR 200.30–3(a)(12) (1994).

the proposal from either notice

publication.

The Commission issued an order on

January 27, 1995, approving the

proposed rule changes referenced

above.5

II. Discussion

As explained in the Approval Order,

the purpose of the rule changes is to

ensure that all broker-dealers registered

in the United States report open short

positions to an SRO. The proposed rule

changes emanated from an initiative by

the SROs, as Intermarket Surveillance

Group (‘‘ISG’’) members, to ensure

uniform short position reporting in U.S.

traded securities.

Substantively, the new reporting

requirements will continue to include

stocks and warrants, including odd-lots,

in each such security traded on a United

States securities exchange or

association. Further, the reports will

continue to include both customer and

proprietary positions.

At the time the Approval Order was

published, the Commission understood

that broker-dealers with multiple

proprietary accounts netted such

accounts for purposes of reporting their

short positions. In the interim, however,

it has come to light that industry

practice varies and that the preferred

method is not to net multiple accounts.

Specifically, the NYSE indicated in a

letter submitted to the Commission on

March 1, 1995, that ‘‘firms will use the

gross method of reporting short interest

positions rather than netting.’’ The

remaining ISG participants that adopted

the rules at hand have confirmed that

industry practice should not be

disrupted for purposes of reporting firm

short interest positions. The NYSE

requested that the Approval Order be

modified to reflect industry practice at

the time of the rule filing.6

The Commission notes that the

method of calculation was not a

determinative factor in the decision to

approve the short interest reporting

rules. Rather, the Commission’s goal

was to assure uniformity in the

calculation of short positions to provide

comparable information to the

marketplace. In this regard, the

Commission has not identified

advantages of one method over the other

and agrees that, consistent with industry

practice, short interest positions for both

like and non-like accounts may be

reported gross for purposes of the new

reporting requirements.

The Approval Order included an

example to illustrate the method, net

reporting, which the Commission

understood to be the industry standard.7

The modification requested by the

NYSE would be reflected in this

example by providing that the firm

would not net its proprietary accounts.8

The Commission finds that the

clarification does not alter the statutory

basis relied upon in the Approval Order.

The Commission continues to believe,

therefore, that the short interest position

reporting rules and methodology for

such calculation as outlined herein 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)

and 15A.9 In particular, the Commission

believes the proposal is consistent with

the Sections 6(b)(5) and 15A(b)(6)

requirements that the rules of an

exchange be designed 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 the proposal

should enhance the ability of the SROs,

both collectively and individually, to

monitor short interest reporting, and to

reinforce their regulatory and

surveillance capabilities in this area.

III. Conclusion

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,10 that the

Approval Order is hereby revised as

described above.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6163 Filed 3–13–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Reporting and Recordkeeping

Requirements Under OMB Review

ACTION: Notice of reporting requirements

submitted for review.

SUMMARY: Under the provisions of the

Paperwork Reduction Act (44 U.S.C.

Chapter 35), agencies are required to

submit proposed reporting and

recordkeeping requirements to OMB for

review and approval, and to publish a

notice in the Federal Register notifying

the public that the agency has made

such a submission.

DATE: Comments should be submitted

within 30 days of this publication in the

Federal Register. If you intend to

comment but cannot prepare comments

promptly, please advise the OMB

Reviewer and the Agency Clearance

Officer before the deadline.

COPIES: Request for clearance (OMB 83–

1), supporting statement, and other

documents submitted to OMB for

review may be obtained from the

Agency Clearance Officer. Submit

comments to the Agency Clearance

Officer and the OMB Reviewer.

FOR FURTHER INFORMATION CONTACT:

Agency Clearance Officer: Cleo

Verbillis, Small Business

Administration, 409 3rd Street, SW., 5th

Floor, Washington, DC 20416,

Telephone: (202) 205–6629.

OMB Reviewer: Donald Arbuckle,

Office of Information and Regulatory

Affairs, Office of Management and

Budget, New Executive Office Building,

Washington, DC 20503.

Title: Program Evaluation SBA 7(a)

Loan Program.

Form No.: N/A.

Frequency: On Occasion.

Description of Respondents: 7(a) loan

applicants.

Annual Responses: 1,700.

Annual Burden: 312.

Dated: March 2, 1995.

Calvin Jenkins,

Assistant Administrator for Administration.

[FR Doc. 95–6251 Filed 3–13–95; 8:45 am]

BILLING CODE 8025–01–M

[Declaration of Disaster Loan Area #2760;

Amendment #3]

California; Declaration of Disaster

Loan Area

The above-numbered Declaration is

hereby amended, effective February 27,

1995, to include Kings County in the

State of California as a disaster area due

to damages resulting from winter storms

causing flooding, landslides, mud and
13746 Federal Register / Vol. 60, No. 49 / Tuesday, March 14, 1995 / Notices

debris flows beginning on January 3,

1995, and continuing.

All counties contiguous to Kings

County have previously been declared.

All other information remains the

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

applications for physical damage is

March 13, 1995, and for economic

injury the deadline is October 10, 1995.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)

Dated: March 8, 1995.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 95–6250 Filed 3–13–95; 8:45 am]

BILLING CODE 8025–01–M

[License No. 01/71–0363

Notice of Issuance of a Small Business

Investment Company License

On November 7, 1994, a notice was

published in the Federal Register (59

FR 55522) stating that an application

had been filed by Pioneer Ventures

Limited Partnership II, Boston,

Massachusetts with the Small Business

Administration (SBA) pursuant to

Section 107.102 of the Regulations

governing small business investment

companies (13 CFR 107.102 (1994)) for

a license to operate as a small business

investment company.

Interested parties were given until

close of business on November 22, 1994

to submit their comments to SBA. No

comments were received. Notice is

hereby given that, pursuant to Section

301(c) of the Small Business Investment

Act of 1958, as amended, after having

considered the application and all other

pertinent information, SBA issued

License No. 01/71–0363 on February 6,

1995, to Pioneer Ventures Limited

Partnership II to operate as a small

business investment company.

The Licensee will have initial private

capital of $2.6 million and has

commitments for additional capital

which are expected to reflect total

capital of $15.0 million when fully

invested. The Licensee will be owned

by institutional investors. Limited

partners with a larger than 10%

partnership interest include the

Massachusetts Bay Transportation

Authority Retirement Fund, Middlesex

County Contributory Retirement

System, The Pioneer Group, Inc.,

Worcester County Contributory

Retirement System, and Cambridge

Retirement System.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)

Dated: March 7, 1995.

Robert D. Stillman,

Associate Administrator for Investment.

[FR Doc. 95–6225 Filed 3–13–95; 8:45 am]

BILLING CODE 8025–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

Negotiation of Chilean Accession to

the North American Free Trade

Agreement

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice of negotiations regarding

Chile’s entry into the North American

Free Trade Agreement (NAFTA), notice

of goods and services that may be

covered by such negotiations, and of

public hearings and request for public

comment concerning such negotiations.

SUMMARY: This publication gives notice

that the United States, along with the

Governments of Canada and Mexico,

expects to undertake negotiations with

the Republic of Chile regarding its

accession to (i.e., inclusion in) the

NAFTA. This publication also (1)

identifies the range of Chilean articles

(products) for which U.S. tariffs and

non-tariff measures may be reduced or

eliminated as a result of the

negotiations; (2) provides notice of a

request by the United States Trade

Representative (the USTR) to the

International Trade Commission

(Commission) for advice concerning the

economic effects of Chilean accession;

and (3) gives notice that the Trade

Policy Staff Committee (TPSC) invites

public comments on, and will conduct

public hearings concerning, the

negotiations.

FOR FURTHER INFORMATION CONTACT:

For procedural questions concerning

public comments or public hearings,

contact Carolyn Frank, Executive

Secretary, Trade Policy Staff Committee,

Office of the USTR, (202) 395–9557. All

other questions should be directed to

Jane Earley, Director for Chilean Affairs,

(202) 395–5190, or James Southwick,

Assistant General Counsel, (202) 395–

7203.

SUPPLEMENTARY INFORMATION:

1. Background

The NAFTA entered into force

between the United States, Canada, and

Mexico on January 1, 1994. On

December 11, 1994, President Clinton,

and the heads of state of Canada, Chile,

and Mexico agreed to begin the process

by which Chile will accede to the

NAFTA. The four governments plan to

hold a ministerial meeting in May, 1995,

concerning Chile’s accession, and

substantive negotiations may begin

shortly thereafter.

2. Articles That May Be Considered in

Trade Negotiations

All articles provided for in the

Harmonized Tariff Schedule of the

United States (HTSUS) that are products

of Chile will be considered for duty

reduction or elimination and for the

elimination or reduction of non-tariff

barriers.

3. Advice From the U.S. International

Trade Commission

On March 7, 1995, under authority

delegated by the President, the USTR

requested the Commission, pursuant to

section 332(g) of the Tariff Act of 1930

(codified at 19 U.S.C. 1332(g)), to

provide advice to the President, with

respect to each article listed in the

HTSUS, as to the probable economic

effect of (1) providing duty-free

treatment for imports of products of

Chile on industries in the United States

producing like or directly competitive

articles and on consumers; and (2)

eliminating U.S. non-tariff measures

that are inconsistent with the NAFTA.

In addition, the USTR requested advice

on the probable economic effect on U.S.

exports to Chile of (3) the removal of

Chilean import duties; and (4) the

removal of Chilean nontariff measures

that are inconsistent with the NAFTA.

Finally, the USTR requested the

Commission to provide a report on (5)

the nature and extent of services

transactions between the United States

and Chile, the key U.S. services

industries that export services to Chile,

the principal barriers impeding the

participation of U.S. service providers

in the Chilean market, and the effect of

such barriers on U.S. services providers.

The USTR requested the Commission

to provide its advice as soon as possible,

but no later than six months after the

date of the letter.

4. Public Comments and Testimony

In conformity with TPSC regulations

(15 CFR part 2003), the Chairman of the

TPSC invites written comments and/or

oral testimony of interested persons in

a public hearing on the desirability and

economic effects of Chilean accession to

the NAFTA.

Comments are particularly invited on:

(a) Economic costs and benefits to

U.S. producers and consumers of

removal of all tariff barriers to trade

between Chile and the United States

and between and among Chile and the

current NAFTA parties and, in the case

of articles for which immediate