Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Notices 18161

4 15 U.S.C. 78f(b)(5) (1988).

5Conversation between David Semak & Michael

Pierson, PSE, and Amy Bilbija, Commission, on

March 24, 1995. The Exchange also indicated that,

currently, there is only one member firm that will

fall under the purview of the proposed amendment.

The Exchange anticipates that only in rare

occasions other members will need to make the

arrangements provided for in the proposed rule

change.

6See Securities Exchange Act Release No. 35146

(December 23, 1994), 60 FR 518 (January 4, 1995).

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

8 17 CFR 200.30–3(a)(12) (1994).

115 U.S.C. § 78s(b) (1988).

2Securities Exchange Act Release No. 35197

(January 6, 1995), 60 FR 3007.

3Letter from P. Howard Edelstein, President

Electronic Settlements Group, Thomson Trading

Services, Inc., to Jonathan G. Katz, Secretary,

Commission (January 30, 1995).

4Securities Exchange Act Release Nos. 33023

(October 6, 1993), 58 FR 52891 (adopting Rule

15c6–1) and 34952 (November 9, 1994), 59 FR

59137 (changing the effective date from June 1,

1995, to June 7, 1995).

that rule change to allow such members

and member organizations to report

their ‘‘short’’ positions to self-regulatory

organizations other than the Exchange.

Specifically, the Exchange is

proposing to add a new Commentary .02

to Rule 2.6(f) to provide that members

and member organizations for which the

Exchange is the DEA need not report

short positions to the Exchange as

provided in Rule 2.6(f), Commentary

.01, if such member or member

organization has made arrangements,

satisfactory to the Exchange, to report

such positions to another self-regulatory

organization.

2. Statutory Basis

The Exchange believes the proposal is

consistent with Section 6(b) of the Act,

in general, and Section 6(b)(5), in

particular, in that it is designed to

protect investors and the public interest,

to prevent fraudulent and manipulative

acts and practices, and to promote just

and equitable principles of trade.

B. Self-Regulatory Organization’s

Statement of Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any 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

Written comments on the proposed

rule change were neither solicited nor

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 PSE. All submissions

should refer to File No. SR–PSE–95–08

and should be submitted by May 1,

1995.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the PSE’s

proposal to adopt an interpretation to its

short interest position reporting rules

permitting a member to report such

positions to another self-regulatory

organization, pursuant to an

arrangement satisfactory to the

Exchange, 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.4 Section

6(b)(5) requires, among other things,

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. Further, the Commission notes

that the Exchange has represented that,

as the Designated Examining Authority

(‘‘DEA’’), the Exchange will review

compliance with its short interest rules

during each oversight examination.

Such examinations are conducted on a

regular basis pursuant to the Exchange’s

status as DEA. Finally, the Exchange’s

financial compliance office will modify

its examination module to ensure that

the examiner checks for compliance

with the short interest reporting rules.5

The Commission believes that the PSE

proposal to adopt Commentary .02 as

outlined above furthers the objectives of

Section 6(b)(5) of the Act in that it

should facilitate the efficient reporting

of short interest positions without

imposing an undue burden upon brokerdealers.

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 allow

the PSE to ensure compliance with the

short position reporting rules

implemented as of March 1, 1995.

Further, the new short position

reporting procedure was noticed

previously in the Federal Register for

the full statutory period and the

Commission did not receive any

comments on it.6

It is therefore ordered, pursuant to

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

change is hereby approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

[FR Doc. 95–8666 Filed 4–7–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35553; File No. SR–Amex–

94–57]

Self-Regulatory Organizations;

American Stock Exchange, Inc.; Order

Approving Proposed Rule Change

Relating to Implementation of a ThreeDay Settlement Standard

March 31, 1995.

On December 23, 1994, the American

Stock Exchange, Inc. (‘‘Amex’’) filed a

proposed rule change (File No. SR–

Amex–94–57) with the Securities and

Exchange Commission (‘‘Commission’’)

pursuant to Section 19(b) of the

Securities Exchange Act of 1934

(‘‘Act’’).1 Notice of the proposal was

published in the Federal Register on

January 12, 1995, to solicit comments

from interested persons.2 The

Commission received one written

comment.3 As discussed below, this

order approves the proposed rule

change.

I. Description

In October 1993, the Commission

adopted Rule 15c6–1 under the Act

which will become effective June 7,

1995.4 The rule establishes three

business days after the trade date

(‘‘T+3’’), instead of five business days

(‘‘T+5’’), as the standard settlement

cycle for most securities transactions.

Several of the Amex’s rules are

interrelated with the T+5 settlement

time frame. The purpose of the

proposed rule change is to amend

Amex’s rules consistent with a T+3
18162 Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Notices

5Letter from Ivonne Nagy, Special Counsel,

Amex, to Michele Bianco, Attorney, Office of

Securities Processing, Division of Market

Regulation, Commission (December 30, 1994).

6Friday, June 2, will be the last trading day with

five business day settlement. Monday, June 5, and

Tuesday, June 6, will be trading days with four

business day settlement. Wednesday, June 7, will be

the first trading day with three business day

settlement. As a result, trades from June 2 and June

5 will settle on Friday, June 9. Trades from June 6

and June 7 will settle on Monday, June 12.

7Letter from P. Howard Edelstein, President,

Electronic Settlement Group, Thomson Trading

Services, Inc., to Jonathan G. Katz, Secretary,

Commission (January 30, 1995).

8 15 U.S.C. 78f (1988).

9The adopting release stated, ‘‘the value of

securities positions can change suddenly causing a

market participant to default on unsettled positions.

Because the markets are interwoven through

common members, default at one clearing

corporation or by a major market participant or enduser could trigger additional failures resulting in

risk to the national clearance and settlement

system.’’ Securities Exchange Act Release No.

33023 (October 6, 1993), 58 FR 52891.

settlement standard for securities

transactions.

Rule 124(c) specifies the delivery date

for regular way transactions which will

be shortened to T+3. The references to

a seller’s option delivery to be made not

less than six business days after the

trade date contained in Rules 124(d) and

205C(2) will be changed to not less than

four business days.

Rules 17(b) and 179(a) will require

that all transactions and orders entered

on a specialist’s book in an issue of

rights shall be made ‘‘next day’’ during

the three business days preceding the

final day for dealings in an issue of

rights. Rules 17(c) and 179(b) will

require all transactions and orders

entered on a specialist’s book in

warrants shall be made for cash during

the three final business days for trading

in such issue. Rule 179(c) will require

an order in an expiring equity securities

entered on a specialist’s book to be for

‘‘next day’’ delivery during the final

three business days preceding the final

day for trading.

The proposal will shorten by two days

the time frames contained in Rule

423(4) for delivery of agent instructions

with respect to receipt versus payment

(‘‘RVP’’) or delivery versus payment

(‘‘DVP’’) customer transactions. The

proposal will shorten by two days the

time frames contained in Rule 830 for

the ex-divident period and the ex-rights

period (if the terms of the subscription

are known sufficiently in advance) for

stock transactions not made in cash. In

addition, the proposal eliminates the

separate ex-dividend and ex-right

periods for transfers outside of New

York.

Rule 858 directs settlement in

contracts in bonds dealt in ‘‘and

interest.’’ The proposal will amend Rule

858 to provide that with respect to

seller’s option contracts, there shall be

added to the contract price interest on

the principle amount at the rate

specified in the bond, which shall be

computed up to but not including the

day when delivery would have been due

if the contract had been made ‘‘regular

way.’’

Rule 862 will require that the return

of loans of securities must be made on

the third business day following the day

on which notice is given. Rule 866 will

require a loan of securities to be

deliverable on the third business day

following the day of the loan unless

otherwise agreed to by the parties. Rule

882 will require that a seller deliver to

the buyer a due-bill for dividends or

rights to subscribe within three days

after the record date if a security is sold

before it is ex-dividend or ex-rights and

delivery is made after the record date.

The references in Rule 882 to the

equivalent New York record date will be

eliminated.

Amex has requested that the proposed

rule change become effective on the

same date as Rule 15c6–1.5 Rule 15c6–

1 is scheduled to become effective on

June 7, 1995. The transition from T+5

settlement to T+3 settlement will occur

over a four day period.6

II. Written Comment

The Commission received one

comment letter from Thomson Trading

Services, Inc. (‘‘Thomson’’) suggesting

that additional regulatory changes may

be necessary to implement T+3

settlement.7 Thomson believes that the

Amex should amend Rule 423(5) which

requires the use of the facilities of a

securities depository for confirmation

and acknowledgement of all depositoryeligible transactions.

III. Discussion

The Commission believes the

proposal is consistent with the

requirements of Section 6 of the Act.8

Specifically, Section 6(b)(5) states that

the rules of the exchange must be

designed to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, and

processing information. Amex’s rules

and other self-regulatory organizations’

rules currently establish the standard

time frame for settlement of securities

transactions. On June 7, 1995, the new

settlement cycle of T+3 will be

established, as mandated by the

Commission’s Rule 15c6–1. As a result,

the Amex’s current rules providing for

a T+5 settlement cycle will be

inconsistent with Commission rules.

This proposal will amend the Amex’s

rules to harmonize them with a T+3

settlement cycle.

In addition, the Commission believes

that the proposed rule change is

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

Act in that it protects investors and the

public interest by reducing the risk to

clearing corporations, their members,

and public investors which is inherent

in settling securities transactions. The

reduction of the time period for

settlement of most securities

transactions will correspondingly

decrease the number of unsettled trades

in the clearance and settlement system

at any given time. Thus fewer unsettled

trades will be subject to credit and

market risk, and there will be less time

between trade execution and settlement

for the value of those trades to

deteriorate.9

While the Thomson letter supports

the Amex’s efforts to shorten the

settlement cycle for securities

transactions, Thomson believes that the

Amex should amend Rule 423(5), which

requires the use of the facilities of a

securities depository for the

confirmation and acknowledgement of

all DVP and RVP depository-eligible

transactions. The Commission believes

that the issue raised by the Thomson

letter need not be resolved prior to the

approval of the proposed rule change.

Discussions regarding Thomson’s

concerns are underway among the

Commission, Thomson, DTC, and the

Securities Industry Association. The

Commission will continue to work with

the industry to address Thomson’s

concerns. However, if the proposed rule

change is not approved prior to the June

7, 1995, effective date of Rule 15c6–1,

the Amex rules will conflict with the

Commission Rule 15c6–1.

The Thomson letter suggests that

approval of the proposed rule change

without amendments to Rule 423 raises

competitive concerns. Under the Act,

the Commission’s responsibility is to

balance the perceived anticompetitive

effects of a regulatory policy or decision

against the purpose of the Act that

would be advanced by the policy or

decisions and the costs associated

therewith. The Commission notes that

the anticompetitive effects pointed to by

Thomson, if in fact there are any

anticompetitive effects, are not caused

by the proposed rule change approved

by this order but rather by an existing

Amex rule. The Commission is

reviewing Thomson’s claim but does not

believe that approval of this proposal

will itself create any burdens on

competition. Moreover, as discussed

above, the rule advances fundamental

purposes under the Act, namely the
Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Notices 18163

10 15 U.S.C. § 78f (1988).

11 15 U.S.C. § 78s(b)(2) (1988).

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

efficient clearance and settlement of

securities.

IV. Conclusion

For the reasons stated above, the

Commission finds that Amex’s proposal

is consistent with Section 6 of the Act.10

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,11 that the

proposed rule change (File No. SRAmex–94–57) be and hereby is

approved, effective June 7, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8709 Filed 4–7–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

National Small Business Development

Center Advisory Board; Public Meeting

The National Small Business

Development Center Advisory Board

will hold a public meeting on May 17,

1995, from 9 am through 4 pm, at the

U.S. Small Business Administration, 7th

Floor, 633 17th Street, Denver, Colorado

80202.

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 Council.

[FR Doc. 95–8700 Filed 4–7–95; 8:45 am]

BILLING CODE 8025–01–M

Houston District Advisory Council;

Public Meeting

The U.S. Small Business

Administration Houston District

Advisory Council will hold a public

meeting on Thursday, April 27, 1995 at

1:30 p.m. in the SBA Conference Room,

9301 Southwest Freeway, Suite 550,

Houston, Texas 77074–1591, to discuss

matters as may be presented by

members, staff of the U.S. Small

Business Administration, or others

present.

For further information, write or call

Mr. Melton Wilson, Jr., District Director,

U.S. Small Business Administration,

9301 Southwest Freeway, Suite 550,

Houston, Texas 77074–1591, (713) 773–

6500.

Dated: April 4, 1995.

Dorothy A. Overal,

Director, Office of Advisory Council.

[FR Doc. 95–8699 Filed 4–7–95; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Application of Eagle Canyon Airlines,

Inc., for Certificate Authority

AGENCY: Department of Transportation.

ACTION: Notice of Order to Show Cause

(Order 95–4–8) Docket 50073.

SUMMARY: The Department of

Transportation is directing all interested

persons to show cause why it should

not issue an order finding Eagle Canyon

Airlines, Inc., fit, willing, and able, and

awarding it a certificate of public

convenience and necessity to engage in

interstate scheduled air transportation

of persons, property, and mail.

DATES: Persons wishing to file

objections should do so no later than

April 19, 1995.

ADDRESSES: Objections and answers to

objections should be filed in Docket

50073 and addressed to the

Documentary Services Division (C–55,

Room PL–401), U.S. Department of

Transportation, 400 Seventh Street SW.,

Washington, DC 20590 and should be

served upon the parties listed in

Attachment A to the order.

FOR FURTHER INFORMATION CONTACT: Ms.

Carol A. Woods, Air Carrier Fitness

Division (X–56, room 6401), U.S.

Department of Transportation, 400

Seventh Street SW., Washington, DC

20590, (202) 366–2340.

Dated: April 4, 1995.

Patrick V. Murphy,

Acting Assistant Secretary for Aviation and

International Affairs.

[FR Doc. 95–8698 Filed 4–7–95; 8:45 am]

BILLING CODE 4910–62–P

Office of Commercial Space

Transportation

LEO Market Assessment

Notice is hereby given of an

assessment of the low earth orbit (LEO)

space market that will be undertaken by

the Office of Commercial Space

Transportation (OCST) of the

Department of Transportation (DOT).

This assessment will be an update to a

prior study of the LEO market that

OCST conducted in February 1994,

which was completed on the basis of

information collected at a public

meeting on February 10, 1994, and

through private submittals. As with the

former study, DOT is undertaking the

assessment in support of its

participation in various interagency

working groups on space transportation

and the efforts by the Office of the

United States Trade Representative

(USTR) to negotiate and/or monitor

compliance with commercial space

launch trade agreements between the

U.S. and various economies-intransition (EITs) offering commercial

space launch services.

In order to complete the current

assessment, DOT is again seeking data

from interested parties that would assist

in defining LEO launch requirements

and in projecting future space

transportation needs to support market

demands. Specifically, OCST is

interested in obtaining projections of the

number of LEO payloads that will be

launched between the years 1995–2010,

as well as assessments of the types of

services that may result from LEO

satellites and their applications (e.g.,

remote sensing, mobile

communications). OCST is also

interested in obtaining short and longrange projections of the potential

revenues that may be generated by these

space-based systems. For purposes of

this study, LEO can be considered to

include Medium Earth Orbit (MEO)

requirements as well (e.g., proposed

communications satellite constellations

in MEO).

At the present time, DOT does not

plan to hold a public meeting to discuss

new developments in the LEO market.

Rather, the process for collecting

information shall rely on written

submissions, which can be provided to

DOT by any interested party.

Submissions designated as proprietary

will be treated confidentially. Due to the

immediate need for this data to support

the various DOT and interagency efforts,

written submissions should be provided

as quickly as possible, and no later than

noon on April 24, 1995, to the Office of

Commercial Space Transportation,

Room 5415, 400 Seventh Street, SW.,

Washington, DC 20590 or by fax to (202)

366–72cc. Additional information may

be obtained by contacting Ms. Patti

Grace Smith at (202) 366–8960 or

Richard W. Scott, Jr. at (202) 366–2936.

Dated: April 5, 1995.

Patti Grace Smith,

Associate Managing Director, Office of

Commercial Space Transportation.

[FR Doc. 95–8837 Filed 4–6–95; 11:35 am]

BILLING CODE 4910–62–P