Correction to Final Rule:
Regulation of Exchanges and Alternative Trading Systems¹

SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 202, 240, 242 and 249

RIN 3235-AH41

Regulation of Exchanges and Alternative Trading Systems; Correction

AGENCY: Securities and Exchange Commission.

ACTION: Correction to final regulations.

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 §§ 242.301(b)(5)(i)(D) and (E) and §§ 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 D.C. 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 ² does not apply to this rulemaking since these correcting amendments do not require any "collection of information."

Section 23(a)(2) of the Exchange Act ³ 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 ⁴ and Section 3 of the Exchange Act, ⁵ as amended by the recently enacted National Securities Markets Improvements Act of 1996, ⁶ 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.

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)".

	Jonathan G. Katz
	Secretary

Dated: March 11, 1999

Footnotes

-[1]- Release No. 34-40760a; File No. S7-12-98

-[2]- 44 U.S.C. 3501 et seq.

-[3]- 15 U.S.C. 78w(a)(2).

-[4]- 15 U.S.C. 77b.

-[5]- 15 U.S.C. 78c.

-[6]- Pub. L. No. 104-290, 106, 110 Stat. 3416 (1996).

http://www.sec.gov/rules/final/3440760a.htm