[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Rules and Regulations]
[Pages 1385-1386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-823]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release No. 34-38139; File No. S7-30-95
RIN 3235-AG66]
Order Execution Obligations
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; Revised Effective Date; Revised Compliance Dates.
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SUMMARY: The Securities and Exchange Commission is delaying the
effective date and compliance dates for Rule 11Ac1-4 (``Limit Order
Display Rule'') and amendments to Rule 11Ac1-1 (``ECN Amendment'')
(cumulatively ``Order Execution Rules'').
DATES: Effective Date: The effective date shall be January 20, 1997 for
Sec. 240.11Ac1-4 and amendments to Sec. 240.11Ac1-1, published on
September 12, 1996 (61 FR 48290), and revised by rule published on
January 9, 1997, except that the effective date for Sec. 240.11Ac1-
1(a)(25)(ii) remains April 10, 1997.
Compliance Dates: Each of the first three scheduled phase-in dates
for compliance with the Order Execution Rules are being delayed one
week, so that the first compliance date with respect to exchange-traded
securities and 50 Nasdaq stocks shall be January 20, 1997, the phase-in
date for an additional 100 Nasdaq securities shall be February 7, 1997,
and the phase-in date for an additional 850 Nasdaq securities shall be
February 28, 1997.
FOR FURTHER INFORMATION CONTACT:
Betsy Prout Lefler, Special Counsel, Gail Marshall-Smith, Special
Counsel, or David Oestreicher, Special Counsel, (202) 942-0158,
Division of Market Regulation, Securities and Exchange Commission, 450
Fifth Street, N.W., Mail Stop 5-1, Washington, D.C. 20549.
SUPPLEMENTARY INFORMATION:
I. Background
On August 28, 1996, the Securities and Exchange Commission
[[Page 1386]]
(``Commission'') adopted Rule 11Ac1-4,\1\ the ``Limit Order Display
Rule,'' and amendments to Rule 11Ac1-1, the ``ECN Amendment,'' to
require OTC market makers and exchange specialists to display certain
customer limit orders, and to publicly disseminate the best prices that
the OTC market maker or exchange specialist has placed in certain
electronic communications networks (``ECNs''), or to comply indirectly
with the ECN Amendment by using an ECN that furnishes the best market
maker and specialist prices therein to the public quotation system.\2\
In the Adopting Release, the Commission deemed the effective date of
these initiatives January 10, 1997. Thereafter, the Commission modified
the effective date of the rules to January 13, 1997, and established
compliance dates with respect to the Limit Order Display Rule and the
ECN Amendment so that compliance with the rules would be phased-in over
several months.\3\
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\1\ 17 CFR 240.11Ac1-4.
\3\ The Commission also amended subsection (a)(25)(ii) of the
Quote Rule, thereby expanding the coverage of the Quote Rule to all
exchange-traded securities. Thereafter, the Commission determined
that it was appropriate to make this aspect of the amendments
effective April 10, 1997. See Securities Exchange Act Release No.
38110, infra note 3. The present order does not change that date
and, therefore, the effective date of subsection (a)(25)(ii) of the
Quote Rule remains April 10, 1997.
\3\ See Securities Exchange Act Release Nos. 37972 (November 22,
1996), and 38110 (January 2, 1997).
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In order to allow market participants more time to adapt to the
Order Execution Rules and the National Association of Securities
Dealers' recently proposed amendments to its Small Order Execution
System, SelectNet, and other rules to accommodate the Order Execution
Rules, the Commission is hereby modifying the effective dates and
compliance dates as follows: (1) the effective date for the Limit Order
Display Rule and the amendments to the Quote Rule adopted August 28,
1996, shall be January 20, 1997. The effective date for the Quote Rule
definition of ``subject security,'' Sec. 240.11Ac1-1(a)(25)(ii),
remains April 10, 1997; (2) each of the first three scheduled phase-in
dates for compliance with the Order Execution Rules are being delayed
one week, so that the first compliance date with respect to exchange-
traded securities and 50 Nasdaq stocks shall be January 20, 1997, the
phase-in date for an additional 100 Nasdaq securities shall be February
7, 1997, and the phase-in date for an additional 850 Nasdaq securities
shall be February 28, 1997. The remaining compliance dates for the
Limit Order Display Rule and the ECN Amendment remain unchanged.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority, 17 CFR 200.30(a)(62).
Dated: January 8, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-823 Filed 1-9-97; 8:45 am]
BILLING CODE 8010-01-M
