[Federal Register Volume 64, Number 51 (Wednesday, March 17, 1999)]
[Rules and Regulations]
[Pages 13065-13066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6411]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 202, 240, 242 and 249

[Release No. 34-40760A; File No. S7-12-98]
RIN 3235-AH41


Regulation of Exchanges and Alternative Trading Systems; 
Correction

AGENCY: Securities and Exchange Commission.

ACTION: Correction to final regulations.

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SUMMARY: This document contains corrections to the final regulations 
which were published Tuesday, December 22, 1998, (63 FR 70844). The 
regulations related to regulation of exchanges and alternative trading 
systems.

EFFECTIVE DATE: April 21, 1999, except Secs.  242.301(b)(5)(i)(D) and 
(E) and Secs. 242.301(b)(6)(i)(D) and (E), which shall become effective 
on April 1, 2000.

FOR FURTHER INFORMATION CONTACT: Kevin Ehrlich, Attorney, at (202) 942-
0778, Division of Market Regulation, Securities and Exchange 
Commission, 450 Fifth Street, N.W., Washington, DC 20549-1001.

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections 
relate to the regulation of exchanges and alternative trading systems.

Need for Correction

    As published, the final regulations contain a rule designation 
which was previously designated by another final rule. In the final 
rules for OTC derivatives dealers, published on Tuesday, November 3, 
1998, new Rule 17a-4(b)(10) was adopted and became effective on January 
4, 1999. The final rules for the regulation of exchanges and 
alternative trading systems erroneously also designated a new Rule 17a-
4(b)(10). This correction redesignates the Rule 17a-4(b)(10) contained 
in the regulation of exchanges and alternative trading systems release 
as Rule 17a-4(b)(11) and makes the necessary changes throughout the 
release text and final rules.
    Under section 553(b), notice of proposed rulemaking is not required 
when the agency for good cause finds that notice and public procedure 
thereon are ``impracticable, unnecessary, or contrary to the public 
interest.'' Because the amendments adopted today are technical 
corrections to clarify the rule designations, the Commission finds that 
publishing the amendments for comment would be unnecessary. The rule 
being amended was adopted after notice and the opportunity for public 
comment.
    Under section 553(d), publication of a substantive rule not less 
than 30 days before its effective date is required except as otherwise 
provided by the agency for good cause. For the same reasons as 
described above with respect to notice and opportunity for comment, the 
Commission finds that there is good cause for having the rule become 
effective on April 21, 1999.
    The Paperwork Reduction Act of 1995 \1\ does not apply to this 
rulemaking since these correcting amendments do not require any 
``collection of information.''
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    \1\ 44 U.S.C. 3501 et seq.
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    Section 23(a)(2) of the Exchange Act \2\ requires the Commission to 
consider the anti-competitive effects of any rules it adopts 
thereunder, and to balance them against the benefits that further the 
purposes of the Act. Furthermore, section 2 of the Securities Act \3\ 
and section 3 of the Exchange Act,\4\ as

[[Page 13066]]

amended by the recently enacted National Securities Markets 
Improvements Act of 1996,\5\ provide that whenever the Commission is 
engaged in rulemaking and is required to consider or determine whether 
an action is necessary or appropriate in the public interest, the 
Commission shall also promote efficiency, competition, and capital 
formation. Because the amendments here do not effect any substantive 
change in the rules they do not have any anti-competitive effects. 
Because they correct mistakes or clarify ambiguity present in the 
Commission's rules, they serve to promote efficiency, competition, and 
capital formation, and are therefore in the public interest.
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    \2\ 15 U.S.C. 78w(a)(2).
    \3\ 15 U.S.C. 77b.
    \4\ 15 U.S.C. 78c.
    \5\ Pub. L. 104-290, 106, 110 Stat. 3416 (1996).
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Correction of Publication

    Accordingly, the publication on December 22, 1998 of the final 
regulations which were the subject of FR Doc. 98-33299 beginning on 
page 70844 is corrected as follows:
    1. On page 70845 in the first column under XII. in the table of 
contents, ``D. Rule 17a-4(b)(10)'' is corrected to read ``D. Rule 17a-
4(b)(11)''.
    2. On page 70909 in the second column, line 11 of the last 
paragraph, ``17a-4(b)(10)'' is corrected to read ``17a-4(b)(11)''.
    3. On page 70911 in the third column, 9th line from the bottom in 
the last paragraph, ``Rule 17a-4(b)(10)'' is corrected to read ``Rule 
17a-4(b)(11)''.
    4. On page 70913 in the second column, heading ``D. Rule 17a-
4(b)(10)'' is corrected to read ``D. Rule 17a-4(b)(11)'' and lines 5 
and 11 of the last paragraph, ``Rule 17a-4(b)(10)'' is corrected to 
read ``Rule 17a-4(b)(11)''.
    5. On page 70913 in the third column in the first line, ``Rule 17a-
4(b)(10)'' is corrected to read ``Rule 17a-4(b)(11)''.
    6. On page 70919 in the third column, the last line of instruction 
11, ``paragraph (b)(10)'' is corrected to read ``paragraph (b)(11)''.
    7. On page 70920 in the first column at the first line, the 
designation ``(10)'' is corrected to read ``(11)''.
    8. On page 70920 in the first column in the first paragraph, lines 
11 and 16, ``(b)(10)'' is corrected to read ``(b)(11)''.

    Dated: March 11, 1999.
Jonathan G. Katz,
Secretary.
[FR Doc. 99-6411 Filed 3-16-99; 8:45 am]
BILLING CODE 8010-01-P