Federal Register / Vol. 60, No. 48 / Monday, March 13, 1995 / Notices 13495

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

2For a complete description of the Legal Expert

System, refer to Securities Exchange Act Release

Nos. 33756 (March 11, 1994), 59 FR 13350 [File No.

SR–MSTC–94–02] (order approving a rule change

regarding the Legal Expert System’s fees and a

clarification disclaiming any liability on MSTC’s

part for any misinformation contained in the Legal

Expert System) and 35098 (December 13, 1994), 59

FR 65551 [SR–MSTC–94–17] (order modifying the

pricing structure of the Legal Expert System).

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

On February 10, 1995, the Exchange

requested comments from the

participants of the Intermarket Trading

System (‘‘ITS’’) pursuant to Section

8(e)(iii) of the ITS Plan. On February 17,

1995, the NYSE submitted a brief

comment letter in which they had only

one substantive and one procedural

comment. The NYSE believes that the

CSE mischaracterized the functioning of

NYSE specialists and misapplied the

term ‘‘internalize’’ within the Statement

of Purpose of the filing. The NYSE

contends that the term ‘‘internalize’’ is

inapplicable to the NYSE. The CSE,

within the Statement of Purpose, states

‘‘On the NYSE and other exchanges, a

unitary specialist can (emphasis added),

without the price competition of other

specialists, internalize order flow of his

or her firm or an affiliated firm.’’

Regarding the procedural comment,

the NYSE states that the CSE has not

summarized or responded in detail to

prior comments made on CSE’s

preferencing pilot. The CSE has not

received any comments, prior to this

NYSE letter, on either CSE’s initial

filing proposing preferencing (SR–CSE–

90–06, Release No. 34–27910) or any of

the six amendments/extensions

subsequently approved by the

Commission. However, on August 25,

1993, the NYSE took the opportunity to

include within their comment letter

regarding the Boston Stock Exchange’s

Competing Specialists proposal (SR–

BSE–93–12, Release No. 34–32549),

comments on the preferencing pilot at

the CSE. The CSE, in a letter to Brandon

Becker, Director, Division of Market

Regulation dated March 18, 1994,

accordingly addressed certain assertions

concerning the CSE which appeared in

correspondence from the NYSE. The

CSE, under separate letter, requested the

Secretary to place copies within files

SR–CSE–93–03 and SR–CSE–94–01.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the 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 the 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, 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, DC 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–95–03

and should be submitted by April 3,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6085 Filed 3–10–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35447; File No. SR–MSTC–

95–03]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by Midwest

Securities Trust Company Relating to

the Legal Expert System Fees

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

Securities Exchange Act of 1934

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

January 27, 1995, the Midwest

Securities Trust Company (‘‘MSTC’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by MSTC. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organizations

Statement of the Terms of Substance of

the Proposed Rule Change

MSTC proposes to waive the fees

associated with the Legal Expert System

until March 1, 1995.2

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

MSTC 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. MSTC has prepared

summaries, set forth in section (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 purpose of the proposed change

is to waive the fees for the Legal Expert

System until March 1, 1995.

The text of the proposed rule change

is as follows with additions italicized:

MSTC LEGAL EXPERT SYSTEM

Terminal inquiry

1–2,500 inquiries per

month.

$0.50/inquiry.

2,501–5,000 ...................... 0.35/inquiry.

5,001–10,000 .................... 0.26/inquiry.

10,001 and over ................ 0.17/inquiry.

MSTC full legal deposit participants

will receive a free inquiry for each legal

deposit submitted to MSTC. The free

inquiries are only valid in the month the

legal deposit is made.

The above terminal inquiry fees are

waived until March 1, 1995.

The proposed rule change is

consistent with Section 17A of the Act

in that it provides for the equitable

allocation of reasonable fees and other

charges among participants using its

facilities.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

MSTC does not believe that the

proposed rule change will impose a
13496 Federal Register / Vol. 60, No. 48 / Monday, March 13, 1995 / Notices

3 15 U.S.C. 78s(b)(3)(A) (1988).

4 17 CFR 240.19b–4(e) (1994).

5 17 CFR 200.30(a)(12) (1994).

1On November 9, 1994, the MSRB filed

Amendment No. 1 with the Commission.

Amendment No. 1 withdraws from the filing the

proposed amendment to rule G–37(g)(iv)(A). The

MSRB had proposed to amend the definition of

‘‘municipal finance professional’’ contained in rule

G–37(g)(iv)(A) to exempt retail sales persons from

being deemed ‘‘municipal finance professionals.’’

2 15 U.S.C. § 78s(b)(1).

3 17 CFR 240.19b–4.

4The Board published the text of the proposed

rule change in the August 1994 MSRB Reports, Vol.

14, No. 4, at 27–32.

5Letter from Mark D. Schwartz, Esq. (‘‘Schwartz’’)

to Arthur Levitt, Chairman, Commission, dated

September 18, 1994 (‘‘Schwartz Letter’’); Letter from

Heather L. Ruth, President, Public Securities

Association (‘‘PSA’’) to Jonathan G. Katz, Secretary,

Commission, dated September 18, 1994 (‘‘PSA

Letter’’); Letter from Patrick J. Manning, President,

Chemical Securities Inc. (‘‘Chemical’’) to Jonathan

G. Katz, Secretary, Commission, dated September

30, 1994 (‘‘Chemical Letter’’); Letter from Rhonda

G. Kirschner, Senior Attorney and Corporate Vice

President, Paine Webber Inc. (‘‘Paine Webber’’) to

Jonathan G. Katz, Secretary, Commission, dated

September 30, 1994 (‘‘Paine Webber Letter’’); Letter

from Robin L. Wiessmann, Principal, Artemis

Capital Group, Inc. (‘‘Artemis’’) to Jonathan G. Katz,

Secretary, Commission, dated September 29, 1994

(‘‘Artemis Letter’’); Letter from W. Robb Hough, Jr.,

President, William R. Hough & Co. (‘‘Hough’’) to

Jonathan G. Katz, Secretary, Commission, dated

September 29, 1994 (‘‘Hough Letter’’); Letter from

Robert K. Dalton, Vice Chairman and William H.

Coughlin, President, George K. Baum & Co.

(‘‘Baum’’) to Jonathan G. Katz, Secretary,

Commission, dated September 28, 1994 (‘‘Baum

Letter’’); Letter from Brian C. Underwood, Vice

President—Director of Compliance, A.G. Edwards &

Sons, Inc. (‘‘Edwards’’) to Jonathan G. Katz,

Secretary, Commission, dated September 29, 1994

(‘‘Edwards Letter’’); Letter from Samuel J. Winer,

Esq., Arter & Hadden to Jonathan G. Katz, Secretary,

Commission, dated October 20, 1994 (‘‘Arter &

Hadden Letter’’); Letter from A. George Saks,

Executive Vice President, Secretary and General

Counsel, Smith Barney Inc. (‘‘Smith Barney’’) to

Jonathan G. Katz, Secretary, Commission, dated

September 29, 1994 (‘‘Smith Barney Letter’’); Letter

from Steven D. Vander Clay, Vice President, NBD

Bank, N.A. (‘‘NBD’’) to Jill C. Finder, Assistant

General Counsel, MSRB, dated October 20, 1994

(‘‘NBD Letter’’).

6Securities Exchange Act Release No. 33868

(April 7, 1994), 59 FR 17621 (April 13, 1994)

(‘‘Approval Order’’). The rule applies to

contributions made on and after April 25, 1994.

7See Securities Exchange Act Release No. 34161

(June 6, 1994), 59 FR 30379 (June 13, 1994). The

interpretations were published in the June 1994

MSRB Reports.

8Securities Exchange Act Release No. 34160

(June 3, 1994); 59 FR 30376 (June 13, 1994).

9See Securities Exchange Act Release No. 35128

(December 20, 1994), 59 FR 66989 (December 28,

1994); Securities Exchange Act Release No. 34603

(August 25, 1994), 59 FR 45049 (August 31, 1994).

See also MSRB Reports, Vol. 14, No. 5, at 8

(December 1994); Vol. 14, No. 4, at 27–32 (August

1994). The interpretations also are available for

inspection and copying at the Commission’s public

reference room and at the Board.

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Comments were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

19(b)(3)(A) 3 of the Act and Rule 19b–

4(e) 4 thereunder in that it establishes or

changes a due, fee, or other charge

imposed by MSTC. At any time within

sixty days of the filing of such rule

change, the Commission summarily may

abrogate such rule change if it appears

to the Commission that such act is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act.

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, N.W.

Washington D.C. 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 at

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of MSTV. All submissions should

refer to File No. SR–MSTC–95–03 and

should be submitted by April 3, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–6087 Filed 3–10–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35446; File No. SR–MSRB–

94–14]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the Municipal Securities Rulemaking

Board Relating to Rule G–37 on

Political Contributions and

Prohibitions on Municipal Securities

Business, and Rule G–8 on

Recordkeeping

March 6, 1995.

On August 18, 1994, the Municipal

Securities Rulemaking Board (‘‘Board’’

or ‘‘MSRB’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’ 1 a proposed rule change

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

Securities Exchange Act of 1934

(‘‘Act’’),2 and Rule 19b–4 thereunder.3

The proposed rule change amends rule

G–37 on political contributions and

prohibitions on municipal securities

business, and rule G–8 concerning

recordkeeping.4

Notice of the proposed rule change,

together with the substance of the

proposal, was provided by issuance of a

Commission release (Securities

Exchange Act Release No. 34630,

September 1, 1994) and by publication

in the Federal Register (59 FR 46682,

September 9, 1994). Eleven comment

letters were received.5 This order

approves the proposed rule change.

I. Introduction

On April 7, 1994, the Commission

approved Board rule G–37, concerning

political contributions and prohibitions

on municipal securities business.6 In

response to numerous inquiries received

by the Board concerning the application

of the rule, on May 24, 1994, the Board

filed with the Commission a Question

and Answer (‘‘Q&A’’) interpretation of

the rule.7 On June 3, 1994, the

Commission approved amendments to

the rule which (i) provide a procedure

whereby dealers may seek relief from

the rule’s prohibition on business, in

limited circumstances, and (ii) clarify

certain definitions in the rule.8 The

Board has filed with the Commission

subsequent Q&A interpretations of the

rule.9 The rule change approved herein

also is intended to address concern over

certain aspects of rule G–37.

II. Amendments to Rule G–37 and Rule

G–8

The rule change approved today

amends rule G–37 and rule G–8 by: (i)

amending the definition of municipal

finance professional by designating as a

municipal finance professional any

associated person who is both (a) a

municipal securities principal or a

municipal securities sales principal and

(b) a supervisor of any person primarily

engaged in municipal securities

representative activities or who solicits

municipal securities business; (ii)

amending the definition of municipal

finance professional so that any person

designated as a municipal finance