[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Rules and Regulations]
[Pages 1384-1385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-620]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 200
[Release No. 34-38111]
Delegation of Authority to Director of Division of Market
Regulation
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
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SUMMARY: The Commission is amending its rules to delegate authority to
the Director of the Division of Market Regulation to provide exemptive
relief
[[Page 1385]]
pursuant to the recently adopted Limit Order Display Rule (Rule 11Ac1-
4(d)), and to delegate authority to delay the effective dates or
compliance dates for any aspect of the implementation or operation of
the Limit Order Display Rule or the recent amendments to the Quote Rule
(Rule 11Ac1-1). This delegation will help to expedite and enhance the
orderly implementation of the recently adopted Limited Order Display
Rule and the amendments to the Quote Rule.
EFFECTIVE DATE: January 2, 1997.
FOR FURTHER INFORMATION CONTACT: Betsy Prout Lefler, Special Counsel,
Division of Market Regulation, 202/942-0170.
SUPPLEMENTARY INFORMATION: On August 28, 1996, the Securities and
Exchange Commission adopted amendments to the Quote Rule and a new
Limit Order Display Rule.\1\ The Limit Order Display Rule generally
requires exchange specialists and OTC market makers to display customer
limit orders that are at prices superior to the market maker's or
specialist's own quote, subject to certain exceptions. The amendments
to the Quote Rule, among other things, (1) require OTC market makers
and exchange specialists to include in their public quotes any better
prices that they have placed in certain electronic communications
networks (``ECN Amendments''); (2) deems an OTC market maker or
specialist in compliance with the ECN Amendment if it inputs such
prices into an ECN that furnishes the best market maker and specialist
prices therein to an exchange or association for inclusion in the
public quotation system, and provides access to those prices equivalent
to the access that would have been afforded market participants if the
market maker or specialist had updated its own quote; and (3) expands
the definition of ``OTC market maker'' to mean any dealer who holds
itself out as being willing to buy from and sell to its customers, or
otherwise, a security covered under the Quote Rule for its own account
on a regular and continuous basis otherwise than on an exchange in
amounts of less than block size.
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\1\ Securities Exchange Act Release No. 37619A (September 6,
1996), 61 FR 48290 (``Adopting Release'').
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Both the Limit Order Display Rule and the Quote Rule contain
provisions that allow the Commission to grant exemptive relief from
various provisions of the rules to market participants and self-
regulatory organizations.\2\ While the Director of the Division of
Market Regulation already has delegated authority to grant exemptive
relief under the Quote Rule, the present amendment to Rule 30-3 \3\
authorities the Director of the Division of Market Regulation to grant
the exemptive the relief described in the Limit Order Display Rule.
This delegation will provide flexibility to ensure orderly
implementation of the recently adopted Limit Order Display Rule in
instances where immediate action is necessary to ensure the protection
of investors and the maintenance of fair and orderly markets. The
present amendment to Rule 30-3 also authorizes the Director of the
Division of Market Regulation to modify as needed the compliance dates
and effective dates for operation of the Quote Rule, as amended, or of
the Limit Order Display Rule.
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\2\ 17 CFR 240.11Ac1-4(d); 17 CFR 240.11Ac1-1(d).
\3\ 17 CFR 200.30-3.
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The Commission finds, in accordance with Section 553(b)(3)(A) of
the Administrative Procedure Act,\4\ that this amendment relates solely
to agency organization, procedures, or practice, and does not relate to
a substantive rule. Accordingly, notice and opportunity for public
comment are unnecessary, and publication of the amendment 30 days
before its effective date is also unnecessary.
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\4\ 5 U.S.C. 553(B)(3)(A).
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List of Subjects in 17 CFR Part 200
Administrative practice and procedure, Authority delegations
(Government agencies).
Text of Amendment
For the reasons set out in the preamble, Title 17, Chapter II of
the Code of Federal Regulations is amended as follows:
PART 200--ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND
REQUESTS
1. The authority citation for Part 200 continues to read in part as
follows:
Authority: 15 U.S.C. 77s, 78d-1, 78d-2, 78w, 7811(d), 79t,
77sss, 80a-37, 80b-11, unless otherwise noted.
* * * * *
2. Section 200.30-3 is amended by adding paragraphs (a)(61) and
(a)(62) as follows:
Sec. 200.30-3 Delegation of authority to Director of Division of
Market Regulations.
* * * * *
(a) * * *
(61) To grant exemptions from Rule 11Ac1-4 (``Rule'')
(Sec. 240.11Ac1-4), pursuant to paragraph (d) of the rule.
(62) From January 2, 1997 through February 17, 1997, to modify for
a period not to exceed 60 days, the effective date or the compliance
date of Rule 11Ac1-1 (Sec. 240.11Ac1-1) or Rule 11Ac1-4
(Sec. 240.11Ac1-4), or amendments to Rule 11Ac1-1 or Rule 11Ac1-4, with
respect to any party affected by such rules.
* * * * *
By the Commission.
Dated: January 2, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-620 Filed 1-9-97; 8:45 am]
BILLING CODE 8010-01-M