[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10540]
[[Page Unknown]]
[Federal Register: May 3, 1994]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release No. 34-33965; File No. S7-3-94]
RIN 3235-AG03
Recordkeeping and Reporting Requirements for Trading Systems
Operated by Brokers and Dealers
AGENCY: Securities and Exchange Commission.
ACTION: Extension of comment period.
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SUMMARY: The Securities and Exchange Commission is extending the date
by which comments must be received on proposed rule 17a-23 under the
Securities Exchange Act of 1934 (``Act'') from April 19, 1994 to May
19, 1994. The proposed rule would establish recordkeeping and reporting
requirements for broker-dealer sponsors of certain automated securities
trading systems (``broker-dealer trading systems'' or ``BDTSs'').
DATES: Comments should be received on or before May 19, 1994.
ADDRESSES: Comments should be submitted in triplicate and addressed to
Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450
Fifth Street NW., Mail Stop 6-9, Washington D.C. 20549. Comment letters
should refer to File No. S7-3-94. All comment letters received will be
made available for public inspection and copying in the Commission's
Public Reference Room, 450 Fifth Street NW., Washington, DC 20549.
FOR FURTHER INFORMATION CONTACT:
Gordon K. Fuller, Special Counsel, Sheila C. Slevin, Branch Chief, or
Kristen N. Geyer, Attorney Advisor, 202/942-0794 or 202/942-0792.
SUPPLEMENTARY INFORMATION: On February 9, 1994, the Commission
published proposed rule 17a-23 under the Act.\1\ The proposal would
establish a uniform recordkeeping and reporting structure for broker-
dealer sponsors of broker-dealer trading systems, requiring those
broker-dealer sponsors to make available to the Commission and the
appropriate self-regulatory organization (``SRO''), system-specific
information about activity occurring in those systems. The Commission
is extending the comment period on the proposal from April 19, 1994 to
May 19, 1994 in order to receive the benefit of comments from the
greatest possible number of interested persons.
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\1\Securities Exchange Act Release No. 33605 (February 9, 1994),
59 FR 8368 (February 18, 1994).
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The proposal raises a number of complex issues with respect to the
regulation of broker-dealer trading systems, including the consistency
of the proposal with the policies underlying the Act and the
appropriate scope of the requirements imposed under the proposal. The
Commission has received only two comments on the proposal to date.
Accordingly, the Commission is concerned that the current comment
period may not permit interested persons sufficient time to address
these issues in a thorough manner.\2\ Moreover, the lack of a
sufficient volume of comments to comprise an adequate record
potentially undermines the quality of any determination the Commission
ultimately may make with respect to the proposal.\3\ Accordingly, in
order to receive the benefit of comments from the greatest possible
number of interested persons, the Commission is extending the comment
period on the proposal from April 19, 1994 to May 19, 1994.
\2\A number of potential commenters have called the staff to
inquire whether the Commission will extend the comment period.
\3\The Commission's experience with proposed rule 15c2-10 under
the Act, which the Commission recently withdrew (Securities Exchange
Act Release No. 33621 [February 14, 1994], 59 FR 8379), indicates
that an extension of time may assist interested persons in
formulating their views and help ensure that the Commission is
provided with an adequate record. Proposed rule 15c2-10 would have
established a comprehensive regulatory framework for certain
automated securities trading systems that are not operated as
facilities of national securities exchanges or associations. The
Commission twice extended the comment period on proposed rule 15c2-
10, for a total of 45 days (from June 19 to August 2, 1989). The
Commission received 17 comments on its proposal. However, only five
of those 17 comments were received during the initial comment
period; the remaining 12 comments were submitted during the
subsequent 45-day extended period. If the same pattern holds with
respect to the current proposal, extension of the comment period
could provide the Commission with a substantial number of additional
comments upon which to base its determination.
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Dated: April 26, 1994.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-10540 Filed 5-2-94; 8:45 am]
BILLING CODE 8010-01-M
