Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Notices 20301

NYSE Rule 476(a)(11) permits the NYSE to bring

disciplinary action against a member, member

organization, allied member, approved person,

registered or non-registered employee for failing to

comply with an NYSE request to submit books and

records to the NYSE or any other SRO and for

failure to furnish information to or to appear or

testify before the NYSE or other SRO. The NYSE

has proposed an amendment to Rules 27,

476(a)(11), and 477 to require persons under

Exchange jurisdiction to comply with information

requests from commodities markets and

associations and foreign self-regulatory

organizations and associations. Securities Exchange

Act Release No. 36831 (Feb. 12, 1996), 61 FR 6279

(Feb. 16, 1996) (notice of File No. SR–NYSE–95–

43). Currently, Art. V, Sec. 4(a) of the AMEX Rules

facilitates examinations being conducted by another

exchange.

6 15 U.S.C. 78o–3.

1The NASD originally submitted the proposed

rule change on April 24, 1996. Amendment No. 1,

submitted on April 29, 1996, states that the Board

of Directors of NASD Regulation, Inc. authorized

the filing of the proposed rule change with the

Commission on April 26, 1996. Amendment No. 2,

submitted on April 30, 1996, amends Rule 10334(h)

to extend the effective date of that Rule to August

1, 1996.

2Formerly Section 46 of the Code of Arbitration

Procedure, NASD Manual, Code of Arbitration

Procedure, Art. III, § 46 (CCH) ¶ 3746.

would permit the NASD to require

members and associated persons to

provide information to any other

domestic or foreign SROs, associations,

securities or contract markets or

regulators of such markets with whom

the Association has entered into

agreements providing for the exchange

of regulatory information. By amending

Rule 8210, the NASD also will have

explicit authority to discipline members

and associated persons who fail to

provide information to other domestic

or foreign SROs, associations, securities

or contract markets or regulators of such

markets with whom the NASD has

information sharing agreements.

Finally, the NASD is proposing to

insert the phrase ‘‘the Market

Surveillance Committee’’ in that part of

Subparagraph (a) of Rule 8210 that

references the District Business Conduct

Committee and the Board of Governors,

and the phrase ‘‘any Market

Surveillance Committee,’’ after the

phrase ‘‘any District Business Conduct

Committee’’ in Subparagraph (e)(1) of

Rule 8220. The change conforms Rules

8210 and 8220 with references to the

Market Surveillance Committee in the

definitions and relevant titles of the

Code of Procedure.

2. Statutory Basis

The NASD believes that the proposed

rule change is consistent with the

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

Act,6 which require, among other

things, that the rules of the Association

be designed to foster cooperation and

coordination with persons engaged in

regulating securities transactions. The

proposed rule change is consistent with

these objectives in that it clarifies that

the Association has the authority to

require members to provide information

to other domestic or foreign selfregulatory organizations, associations,

securities or contract markets or

regulators of such markets for regulatory

purposes and to discipline those

members who fail or refuse to provide

such information.

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

No written comments were either

solicited or received.

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 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 File No.

SR–NASD–96–14 and should be

submitted by May 27, 1996.

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. 96–11228 Filed 5–3–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37154; File No. SR–NASD–

96–18]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by National Association

of Securities Dealers, Inc. Relating to

the Temporary Extension of

Effectiveness of Arbitration

Procedures for Large and Complex

Cases

April 30, 1996.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on April 30, 1996,1 the

National Association of Securities

Dealers, Inc. (‘‘NASD’’ or ‘‘Association’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I and II below, which Items

have been prepared by the NASD. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The NASD is proposing to

temporarily extend the effectiveness of

the arbitration Procedures for Large and

Complex Cases, Rule 10334 of the Code

of Arbitration Procedure (‘‘Code’’),2 to

August 1, 1996. Below is the text of the

proposed rule change. Proposed new

language is in italics; proposed

deletions are in brackets.

Code of Arbitration Procedure

* * * * *

Procedures for Large and Complex Cases

Rule 10334

* * * * *
20302 Federal Register / Vol. 61, No. 88 / Monday, May 6, 1996 / Notices

3 15 U.S.C. 78o–3.

Temporary Effectiveness

(h) This Section 46 shall remain in

effect [for one year from May 2, 1995]

until August 1, 1996 unless modified or

extended prior thereto by the Board of

Governors.

II. Self-Regulatory Organization’s

Statement of the Purpose of and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

NASD 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. 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

The Procedures for Large and

Complex Cases, adopted effective May

2, 1995, for a one-year pilot test and

codified at Rule 10334 of the Code

(formerly Section 46) will expire on

May 2, 1996. Since Rule 10334 became

effective, the Rule has been used on

occasion by parties to large and complex

cases.

In addition, the NASD’s Arbitration

Policy Task Force, which issued its

report on ‘‘Securities Arbitration

Reform’’ in January 1996, has

recommended that the one-year pilot

test of Rule 10334 be extended in order

to permit the NASD to gather additional

data and analyze the low usage rate of

the procedures.

The NASD believes that the proposed

rule change is consistent with the

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

Act 3 because it permits the NASD to

continue to specify procedures in the

Code for large and complex cases. This

serves the public interest by enhancing

the satisfaction and perceived fairness

of such proceedings by the parties to

such proceedings. To the extent the

parties to such proceedings express

increased satisfaction with the

resolution of eligible matters, the goal of

providing the investing public with a

fair, efficient and cost-effective forum

for the resolution of disputes is

advanced.

(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

The NASD has requested that the

Commission find good cause pursuant

to Section 19(b)(2) for approving the

proposed rule change prior to the 30th

day after publication in the Federal

Register. The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to the NASD and, in

particular, the requirements of Section

15A and the rules and regulations

thereunder. The Commission finds good

cause for approving the proposed rule

change prior to the 30th day after the

date of publication of notice of filing

thereof in that accelerated approval will

benefit users of the arbitration process

in that providing a temporary extension

of the procedures for large and complex

cases will permit arbitration

participants to continue to use the

procedures until a one-year extension is

submitted to the Commission for

approval.

Rule 10334 expires by its terms on

May 2, 1996. The NASD is asking that

the effectiveness of the Rule be

temporarily extended until August 1,

1996, in order to permit the NASD to

submit a proposed rule change to extend

the effectiveness of the rule for one year.

In addition, the application of the Rule

to any case submitted to arbitration is

voluntary. Thus, extending the

effectiveness of the Rule will not have

any adverse impact on the investing

public.

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, DC 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 SR–NASD–

96–18 and should be submitted by May

27, 1996.

It is therefore ordered, pursuant to

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

proposed rule change SR–NASD–96–18

be, and hereby is, approved through

August 1, 1996.

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. 96–11229 Filed 5–3–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37151; File No. SR–NYSE–

96–10]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the New

York Stock Exchange, Inc. Relating to

Six-Month Extension of Pilot Program

To Display Price Improvement on the

Execution Report Sent to the Entering

Firm

April 29, 1996.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on April 19, 1996, the

New York Stock Exchange, Incorporated

(‘‘NYSE’’ or ‘‘Exchange’’) 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 the self-regulatory

organization. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organizations’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change extends for

six months the program filed as a pilot

in Securities Exchange Act Release Nos.

36421 (October 26, 1995), 60 FR 55625

(November 1, 1995) (File No. SR–NYSE–

95–35) and 36489 (November 16, 1995),

60 FR 58123 (November 24, 1995) (File