9948 Federal Register / Vol. 64, No. 39 / Monday, March 1, 1999 / Proposed Rules

SECURITIES AND EXCHANGE (‘‘Exchange Act’’). Debt obligations of The securities in question were not COMMISSION foreign governments are not exempted eligible for the exemption if they were securities under either of these statutes. registered under the Securities Act or 17 CFR Part 240 The Securities and Exchange were the subject of any American [Release No. 34±41090, International Series Commission (‘‘SEC’’ or ‘‘Commission’’), depositary receipt so registered. A Release No. 1183, File No. S7±4±99] however, has adopted Rule 3a12–8 (17 futures contract on the covered debt CFR 240.3a12–8) (‘‘Rule’’) under the obligation under the Rule is deemed to RIN 3235±AH68 Exchange Act to designate debt be a ‘‘qualifying foreign futures obligations issued by certain foreign Exemption of the Securities of the contract’’ if the contract is deliverable governments as exempted securities Kingdom of Sweden under the outside the United States and is traded under the Exchange Act solely for the 3 Securities Exchange Act of 1934 for on a board of trade. purpose of marketing and trading The conditions imposed by the Rule Purposes of Trading Futures Contracts futures contracts on those securities in were intended to facilitate the trading of on Those Securities the United States. As amended, the futures contracts on foreign government AGENCY: Securities and Exchange foreign governments currently securities in the United States while Commission. designated in the Rule are Great Britain, requiring offerings of foreign ACTION: Proposed rule. Canada, Japan, Australia, France, New government securities to comply with Zealand, Austria, Denmark, Finland, the the federal securities laws. Accordingly, SUMMARY: The Commission proposes for Netherlands, Switzerland, Germany, the the conditions set forth in the Rule were comment an amendment to Rule 3a12– Republic of Ireland, Italy, Spain, Mexico designed to ensure that, absent 8 that would designate debt obligations and, most recently, Brazil, Argentina registration, a domestic market in issued by the Kingdom of Sweden as and Venezuela (the ‘‘Designated Foreign unregistered foreign government ‘‘exempted securities’’ for the purpose Governments’’). As a result, futures securities would not develop, and that of marketing and trading of futures contracts on the debt obligations of markets for futures on these instruments contracts on those securities in the these countries may be sold in the would not be used to avoid the United States. The amendment is United States, as long as the other terms securities law registration requirements. intended to permit futures trading on of the Rule are satisfied. In particular, the Rule was intended to the sovereign debt of Sweden. The Commission today is soliciting ensure that futures on exempted DATES: Comments should be submitted comments on a proposal to amend Rule sovereign debt did not operate as a by March 31, 1999. 3a12–8 to add the debt obligations of the surrogate means of trading the ADDRESSES: All comments should be Kingdom of Sweden (‘‘Sweden’’) to the unregistered debt.4 submitted in triplicate and addressed to list of Designated Foreign Governments Subsequently, the Commission Jonathan G. Katz, Secretary, Securities whose debt obligations are exempted by amended the Rule to include the debt and Exchange Commission, 450 Fifth Rule 3a12–8. To qualify for the securities issued by Japan, Australia, Street, NW, Washington, DC 20549. exemption, futures contracts on the debt France, New Zealand, Austria, Comments also may be submitted obligations of Sweden would have to Denmark, Finland, the Netherlands, electronically at the following E-mail meet all the other existing requirements Switzerland, Germany, Ireland, Italy, address: [email protected]. All of the Rule. Spain, Mexico and, most recently, 5 comments should refer to File No. S7– II. Background Brazil, Argentina and Venezuela. 4–99; this file number should be 1 Rule 3a12–8 was adopted in 1984 3 included on the subject line if e-mail is As originally adopted, the Rule required that the pursuant to the exemptive authority in board of trade be located in the country that issued used. Comment letters will be available Section 3(a)(12) of the Exchange Act in the underlying securities. This requirement was for public inspection and copying at the order to provide a limited exception eliminated in 1987. See Securities Exchange Act Commission’s Public Reference Room, Release No. 24209 (March 12, 1987), 52 FR 8875 from the CEA’s prohibition on futures 450 Fifth Street, NW, Washington, DC (March 20, 1987). overlying individual securities.2 As 4 20549. Electronically submitted The CFTC regulates the marketing and trading originally adopted, the Rule provided of foreign futures contracts. CFTC rules provide that comment letters will also be posted on that the debt obligations of Great Britain any person who offers or sells a foreign futures the Commission’s Internet web site contract to a U.S. customer must be registered and Canada would be deemed to be (http://www.sec.gov). under the CEA, unless otherwise specifically exempted securities, solely for the exempted. FOR FURTHER INFORMATION CONTACT: purpose of permitting the offer, sale, 5 As originally adopted, the Rule applied only to Joshua Kans, Attorney, Office of Market and confirmation of ‘‘qualifying foreign British and Canadian government securities. See Supervision (‘‘OMS’’), Division of futures contracts’’ on such securities. Original Adopting Release, supra note 1. In 1986, Market Regulation (’’Division’’), the Rule was amended to include Japanese government securities. See Securities Exchange Act Securities and Exchange Commission 1 See Securities Exchange Act Release No. 20708 Release No. 23423 (July 11, 1986), 51 FR 25996 (Mail Stop 10–1), 450 Fifth Street, N.W., (‘‘Original Adopting Release’’) (March 2, 1984), 49 (July 18, 1986). In 1987, the Rule was amended to Washington, D.C. 20549, at 202/942– FR 8595 (March 8, 1984); Securities Exchange Act include debt securities issued by Australia, France 0079. Release No. 19811 (‘‘Original Porposing Release’’) and New Zealand. See Securities Exchange Act (May 25, 1983), 48 FR 24725 (June 2, 1983). Release No. 25072 (October 29, 1987), 52 FR 42277 SUPPLEMENTARY INFORMATION: 2 In approving the Futures Trading Act of 1982, (November 4, 1987. In 1988, the Rule was amended Congress expressed its understanding that neither to include debt securities issued by Austria, I. Introduction the SEC nor the Commodity Futures Trading Denmark, Finland, the Netherlands, Switzerland, Under the Commodity Exchange Act Commission (‘‘CFTC’’) had intended to bar the sale and West Germany. See Securities Exchange Act of futures on debt obligations of the United Release No. 26217 (October 26, 1988), 53 FR 43860 (‘‘CEA’’), it is unlawful to trade a futures Kindgom of Great Britain and Northern Ireland to (October 31, 1988). In 1991 the Rule was again contract on any individual security U.S. persons, and its expectation that amended to (1) include debt securities offreed by unless the security in question is an administrative action would be taken to allow the the Republic of Ireland and Italy, (2) change the exempted security (other than a sale of such futures contracts in the United States. country designation of ‘‘West Germany’’ to the See Original Proposing Release, supra note 1, 48 FR ‘‘Federal Republic of Germany,’’ and (3) replace all municipal security) under the Securities at 24725 (citing 128 Cong. Rec H7492 (daily ed. references to the informal names of the countries Act of 1933 (‘‘Securities Act’’) or the September 23, 1982) (statements of Representatives listed in the Rule with references to their official Securities Exchange Act of 1934 Daschle and Wirth)). names. See Securities Exchange Act Release No.

VerDate 25-FEB-99 11:53 Feb 26, 1999 Jkt 183247 PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 E:\FR\FM\01MRP1.XXX pfrm03 PsN: 01MRP1 Federal Register / Vol. 64, No. 39 / Monday, March 1, 1999 / Proposed Rules 9949

III. Discussion would continue to apply. OM has market for the security, when OM Stockholm AB of Sweden represented that the securities determining whether to include a (‘‘OM’’), and its British affiliate OMLX, underlying the futures contracts it will sovereign issuer in the list of Designated The London Securities and Derivatives be listing are not registered in the Foreign Governments. 10 Exchange Limited (‘‘OMLX’’), have United States, that delivery will occur Sweden meets the credit rating proposed that the Commission amend through book entry registration in the standard. Moody’s Investors Service 3a12–8 to include the sovereign debt of Swedish Central Securities Depository, (‘‘Moody’s’’) has assigned Sweden a Sweden. OM and OMLX (which will be and that both OM and OMLX are long-term local currency credit rating of collectively referred to as ‘‘OM’’) have ‘‘boards of trade’’ as defined by the Aa1 and a long-term foreign currency 11 stated that they are listing standardized CEA. credit rating of Aa2. Standard & Poor’s futures contracts on Swedish In the most recent determinations to (‘‘S&P’’) has assigned Sweden a long- government securities for trading on amend the Rule to include Mexico, term local currency credit rating of AAA their respective markets, beginning with Brazil, Argentina, and Venezuela, the and a long-term foreign currency credit a futures contract on the ten-year Commission considered primarily rating of AA+. whether market evidence indicated that Swedish government bond. The The Commission also observes that an active and liquid secondary trading applicants wish to make those futures market data indicates that there exists market exists for the sovereign debt of contracts available to U.S. investors.6 an active and liquid trading market for those countries.12 Prior to the addition The Swedish National Debt Office has Swedish issued debt instruments. As of of those countries to the Rule, the submitted a letter supporting OM’s September 30, 1998, the total Swedish application to amend the Rule.7 The Commission considered principally whether the particular sovereign debt public debt outstanding was equivalent Commission in 1988 proposed adding to approximately US$179.4 billion Sweden to the list of countries had been rated in one of the two highest rating categories 13 by at least two (1409 billion Swedish kronor designated under the Rule,8 but rejected (‘‘SEK’’)).16 The largest portion of this the proposal because of opposition from nationally recognized statistical rating 14 debt, Treasury bonds the Swedish government.9 organizations (‘‘NRSROs’’). The Commission continues to consider the (Statsobligationsla˚n) denominated in Under the proposed amendment, the Swedish kronor, amounted to existing conditions set forth in the Rule existence of a high credit rating as indirect evidence of an active and liquid approximately US$95.7 billion (SEK 752 (i.e., that the underlying securities not 17 secondary trading market,15 as well as billion). Treasury bills be registered in the United States, the (Statsskuldva¨xlar) denominated in futures contracts require delivery considering trading data as evidence of an active and liquid secondary trading Swedish kronor amounted to outside the United States, and the approximately US$25.7 billion (SEK 202 contracts be traded on a board of trade) 18 10 A number of Swedish government debt billion). Foreign currency- securities denominated in U.S. dollars have been denominated debt amounted to 30166 (January 8, 1992), 57 FR 1375 (January 14, registered under the Securities Act. The Rule does approximately US$46.9 billion (SEK 368 1992). In 1994, the Rule was amended to include not exempt futures contacts on those securities. debt securities issued by Spain. See Securities billion).19 11 See OM petition, supra note 6. Exchange Act Release No. 34908 (October 27, 1994), 12 59 FR 54812 (November 2, 1994). In 1995, the Rule See, e.g., Securities Exchange Act Release No. 16 Data regarding the amount of outstanding debt was amended to include the debt securities of 36530 (November 30, 1995), 60 FR 62323 was obtained from ‘‘Den Svenska Statsskulden: The Mexico. See Securities Exchange Act Release No. (December 6, 1995) (amending the Rule to add Swedish Central Government Debt,’’ September 30, 36530 (November 30, 1995), 60 FR 62323 Mexico because the Commission believed that as a 1998, available from the website of the Swedish (December 6, 1995). In 1996, the Rule was amended whole, the market for Mexican sovereign debt was to include debt securities issued by Brazil, sufficiently liquid and deep for the purposes of the national Debt Office (http://www.sndo.se). All U.S. Argentina, and Venezuela. See Securities Exchange Rule); Securities Exchange Act Release No. 36940 dollar equivalents set forth in this release are based Act Release No. 36940 (March 7, 1996), 61 FR (March 7, 1996), 61 FR 10271 (March 13, 1996) on a conversion rate of SEK 7.8565 for US$1.00 in 10271 (March 13, 1996). (amending the Rule to add Brazil, Argentina and effect as of September 30, 1998. 6 See Letters from Philip McBride Johnson, Venezuela because the Commission believed that The last four countries added to the list—Mexico, counsel for OM and OMLX, to Jonathan Katz, the market for the sovereign debt of those countries Brazil, Argentina and Venezuela—had lower Secretary, Commission, dated June 11, 1998; was sufficiently liquid and deep for the purposes amounts of public debt. See Securities Exchange Memorandum provided by OM and OMLX to the of the Rule). Act Release No. 36530 (December 6, 1995), 60 FR Division of Market Regulation on July 6, 1998; 13 The two highest categories used by Moody’s 62323 (December 6, 1995) (outstanding Mexican Letter from Philip Johnson to Michael Walinskas, Investor Services (‘‘Moody’s’’) for long-term debt government debt amounted to approximately Deputy Associate Director, Division, Commission, are ‘‘Aaa’’ and ‘‘Aa.’’ The two highest categories US$87.5 billion face value as of March 31, 1995); dated July 24, 1998; Letters from Philip Johnson to used by Standard & Poor’s (‘‘S&P’’) for long-term Securities Exchange Act Release No. 36940 (March Joshua Kans, Attorney, Division, Commission, debt are ‘‘AAA’’ and ‘‘AA.’’ 7, 1996), 61 FR 10271 (March 13, 1996) (public and dated August 20, September 11 and October 2, 14 See, e.g., Securities Exchange Act Release No. publicly guaranteed debt of Brazil, Argentina and 1998; Letter from Philip Johnson to Michael 30166 (January 6, 1992) 57 FR 1375 (January 14, Venezuela amounted to approximately US$86 Walinskas, dated December 7, 1998 (collectively 1992) (amending the Rule to include debt securities billion, US$55 billion and US$74 billion, ‘‘OM petition’’). issued by Ireland and Italy—Ireland’s long-term respectively, as of December 31, 1993). 7 See Letter from Tomas Magnusson, Director and sovereign debt was rated Aa3 by Moody’s and AA¥ 17 The outstanding Treasury bonds include General Counsel, Swedish National Debt Office, to by S&P, and Italy’s long-term sovereign debt was approximately US$78.2 billion (SEK 614 billion) Jonathan Katz, Secretary, Commission, dated June rated Aaa by Moody’s and AA+ by S&P); and worth of benchmark bonds, approximately US$5.5 29, 1998. Securities Exchange Act Release No. 34908 (October billion (SEK 42.9 billion) worth of non-benchmark 8 See Securities Exchange Act Release No. 25998 27, 1994), 59 FR 54812 (November 2, 1994) bonds, and approximately US$11.9 billion (SEK (August 16, 1998), 53 FR 31709 (August 19, 1988). (amending the Rule to include Spain, which had 93.7 billion) worth of inflation linked bonds. 9 The Embassy of Sweden submitted two letters long-term debt ratings of Aa2 from Moody’s and AA 18 Other types of Swedish currency-denominated in response to the 1988 proposal, noting that from S&P). debt included approximately US$6.9 billion (SEK currency controls prohibiting non-residents from 15 See, e.g., Securities Exchange Act Release No. 54.8 billion) worth of lottery bonds. A total of holding Swedish kronor-denominated securities 36213 (September 11, 1995), 60 FR 48078 US$132.5 billion (SEK 1041 billion) in Swedish would preclude development of a market for (September 18, 1995) (proposal to add Mexico to government debt was denominated in Swedish physically settled futures on such securities, and list of countries encompassed by rule); Securities kronor. stating that in any case it was not in the Swedish Exchange Act Release No. 24428 (May 5, 1987), 52 19 Foreign-currency denominated debt includes government’s interest that such a market develop. FR 18237 (May 14, 1987) (proposed amendment, approximately US$36.4 billion (SEK 285.7 billion) As a matter of international comity, the which was not implemented, that would have worth of public issues, US$7.9 billion (SEK 62.1 Commission chose not to add Sweden to the Rule. extended the rule to encompass all countries rated billion) worth of private placements, and US$3.8 See Securities Exchange Act Release No. 26217 in one of the two highest categories by at least two billion (SEK 30.1 billion) worth of commercial (October 26, 1988), 53 FR 43860 (October 31, 1988). NRSROs). paper.

VerDate 25-FEB-99 11:53 Feb 26, 1999 Jkt 183247 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\01MRP1.XXX pfrm03 PsN: 01MRP1 9950 Federal Register / Vol. 64, No. 39 / Monday, March 1, 1999 / Proposed Rules

OM has submitted data indicating that In light of the above data, the proposed amendment to Rule 3a12–8. In secondary market trading in Treasury Commission preliminarily believes that particular, the Commission requests bonds amounted to approximately the debt obligations of Sweden should commentators to address whether the US$1.156 trillion (SEK 9079 billion) in be subject to the same regulatory proposed amendment would generate 1996, approximately US$1.343 trillion treatment under the Rule as the debt the anticipated benefits, or impose any (SEK 10,550 billion) in 1997, and obligations of the Designated Foreign costs on U.S. investors or others. approximately US$593 billion (SEK Governments. VI. Effect of the Proposed Amendment 4662 billion) in the first six months of IV. General Request for Comments on Competition, Efficiency and Capital 1998.20 The average daily trading Formation volume during that period ranged from The Commission seeks comments on approximately US$2.72 billion (SEK the desirability of designating the debt Section 23(a)(2) of the Exchange 21.4 billion) for the month of July 1996 securities of Sweden as exempted Act 24 requires the Commission, in to approximately US$8.35 billion (SEK securities under Rule 3a12–8. adopting rules under the Exchange Act, 65.6 billion) for the month of October Comments should address whether the to consider the competitive effect of 1997.21 OM adds that in 1997, there trading or other characteristics of such rules, if any, and to refrain from were 109,128 transactions in benchmark Sweden’s sovereign debt warrant an adopting a rule that would impose a Treasury bonds, 27,525 transactions in exemption for purposes of futures burden on competition not necessary or non-benchmark Treasury bonds, and trading. Commentators may wish to appropriate in furthering the purposes 1999 transactions in inflation-linked discuss whether there are any legal or of the Exchange Act. Moreover, Section Treasury bonds.22 policy reasons for distinguishing 3 of the Exchange Act 25 as amended by OM has also submitted data stating between Sweden and the Designated the National Securities Markets that secondary market trading in Foreign Governments for purposes of Improvement Act of 1996 26 provides Treasury bills amounted to the Rule. The Commission also requests that whenever the Commission is approximately US$439.4 billion (SEK information regarding the potential engaged in a rulemaking and is required 3452 billion) in 1996, approximately impact of the proposed rule on the to consider or determine whether an US$487.6 billion (SEK 3831 billion) in economy on an annual basis. If possible, action is necessary or appropriate in the 1997, and approximately US$209.3 commenters should provide empirical public interest, the Commission shall billion (SEK 1645 billion) in the first six data to support their views. The consider, in addition to the protection of months of 1998. The average daily Commission also seeks comments on investors, whether the action will the general application and operation of trading volume during that period promote efficiency, competition and the Rule given the increased ranged from approximately US$1.18 capital formation. globalization of the securities markets billion (SEK 9.3 billion) for the month In light of the standards cited in since the Rule was adopted. of May 1996 to approximately US$2.64 Sections 3 and 23(a)(2) of the Exchange billion (SEK 20.7 billion) for the month V. Costs and Benefits of the Proposed Act, the Commission preliminarily of March 1997. OM adds that in 1997, Amendments believes that the proposed amendment to the Rule will promote efficiency, there were 38,634 transactions in The Commission has considered the Treasury bills.23 competition and capital formation. The costs and benefits of the proposed proposal is intended to expand the amendment to the Rule, and the 20 range of financial products available in OM petition, supra note 6. OM states that the Commission preliminarily believes that statistics about secondary market trading in the United States, and will make Swedish debt were derived from data specially the proposed amendment offers available to U.S. investors an additional prepared by the Swedish Central Securities potential benefits for U.S. investors, product to use to hedge the risks Depository. Id. with no direct costs. If adopted, the 21 OM has submitted data stating that the average associated with the trading of the proposed amendment would allow U.S. underlying sovereign debt of Sweden. daily trading volume for Treasury bonds decreased and foreign boards of trade to offer in to approximately US$2.11 billion (SEK 16.6 billion) Insofar as the proposed amendment for the month of July 1998. the United States, and U.S. investors to contains limitations, they are designed 22 OM states that secondary market trading for trade, a greater range of futures contracts to promote the purposes of the Swedish government debt is primarily conducted on foreign government debt obligations. Exchange Act by ensuring that futures on a phone-based and screen-based over-the- Moreover, the trading of futures on the counter market conducted by a number of dealers, trading on government securities of with transactions in Treasury bonds and Treasury sovereign debt of Sweden should Sweden is consistent with the goals and bills registered at the PMX Exchange at the end of provide U.S. investors with a vehicle for purposes of the federal securities laws the trading day. OM petition, supra note 6. hedging the risks involved in the trading 23 OM states that secondary market trading in by minimizing the impact of the Rule on of the underlying sovereign debt of securities trading and distribution in the lottery bonds was equivalent to approximately Sweden. The Commission does not US$512 million (SEK 4.03 billion) in 1996, US$449 United States. million (SEK 3.53 billion) in 1997, and US$213 anticipate that the proposed amendment The Commission requests comments million (SEK 1.67 billion) in the first half of 1998. would result in any direct cost for U.S. as to whether the amendment to the OM has not provided secondary market trading data investors or others because the proposed Rule will have any anti-competitive for other Swedish debt securities. According to OM, amendment would impose no transaction data for Swedish government debt effects. denominated in foreign currencies is extremely recordkeeping or compliance burdens, difficult to obtain. OM further contends that and merely would provide a limited VII. Administrative Requirements because a number of Swedish government debt purpose exemption under the federal Pursuant to section 605(b) of the securities denominated in U.S. dollars have been securities laws. The restrictions registered under the Securities Act of 1933, and Regulatory Flexibility Act, 5 U.S.C. therefore are not eligible for exemption under the imposed under the proposed 605(b), the Chairman of the Commission Rule, secondary market data for securities amendment are identical to the has certified that the amendment denominated in non-kronor currencies is less restrictions currently imposed under the proposed herein would not, if adopted, significant. See id. terms of the Rule and are designed to OM states that it presently does not intend to list any futures on inflation-linked bonds, treasury protect U.S. investors. 24 15 U.S.C. 78w(a)(2). bonds with repurchase agreements, lottery bonds or The Commission requests comments 25 15 U.S.C. 78c. commercial papers. Id. on the costs and benefits of the 26 Pub. L. No. 104–290, 110 Stat. 3416 (1996).

VerDate 25-FEB-99 11:53 Feb 26, 1999 Jkt 183247 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\01MRP1.XXX pfrm03 PsN: 01MRP1 Federal Register / Vol. 64, No. 39 / Monday, March 1, 1999 / Proposed Rules 9951 have a significant economic impact on Dated: February 23, 1999. Aslabama through the Department of a substantial number of small entities. Margaret H. McFarland, Environmental Management. On This certification, including the reasons Deputy Secretary. October 23, 1998, the State of Alabama therefor, is attached to this release as Note: Appendix A to the Preamble will not through the Department of Appendix A. We encourage written appear in the Code of Federal Regulations. Environmental Management (ADEM) comments on the Certification. submitted a SIP submittal to revise the Commentators are asked to describe the Appendix A—Regulatory Flexibility Act Certification ADEM Administrative Code for the Air nature of any impact on small entities Pollution Control Program. Revisions and provide empirical data to support I, Arthur Levitt, Jr., Chairman of the were made to Chapter 335–3–1— the extent of the impact. Securities and Exchange Commission, hereby General Provisions. In the final rules certify, pursuant to 5 U.S.C. § 605(b), that the The Paperwork Reduction Act does proposed amendment to Rule 3a12–8 section of this Federal Register, the EPA not apply because the proposed (‘‘Rule’’) under the Securities Exchange Act is approving the State’s SIP revision as amendment does not impose of 1934 (‘‘Exchange Act’’), which would a direct final rule without prior proposal recordkeeping or information collection define the government debt securities of the because the Agency views this as a requirements, or other collections of Kingdom of Sweden (‘‘Sweden’’) as noncontroversial revision amendment information which require the approval exempted securities under the Exchange Act and anticipates no adverse comments. A of the Office of Management and Budget for the purpose of trading futures on such detailed rationale for the approval is set under 44 U.S.C. 3501, et seq. securities, will not have a significant economic impact on a substantial number of forth in the direct final rule. If no VIII. Statutory Basis small entities for the following reasons. First, adverse comments are received in the proposed amendment imposes no record- response to the direct final rule, no The amendment to Rule 3a12–8 is keeping or compliance burden in itself and further activity is contemplated in being proposed pursuant to 15 U.S.C. merely allows, in effect, the marketing and relation to this proposed rule. If EPA 78a et seq., particularly sections 3(a)(12) trading in the United States of futures receives adverse comments, the direct and 23(a), 15 U.S.C. 78c(a)(12) and contracts overlying the government debt final rule will be withdrawn and all 78w(a). securities of Sweden. Second, because public comments received will be futures contracts on the nineteen countries List of Subjects in 17 CFR Part 240 whose debt obligations are designated as addressed in a subsequent final rule ‘‘exempted securities’’ under the Rule, which based on this proposed rule. The EPA Reporting and recordkeeping already can be traded and marketed in the will not institute a second comment requirements, Securities. U.S., still will be eligible for trading under period on this document. Any parties the proposed amendment, the proposal will Text of the Proposed Amendment interested in commenting on this not affect any entity currently engaged in document should do so at this time. For the reasons set forth in the trading such futures contracts. Third, because those primarily interested in trading such DATES: To be considered, comments preamble, the Commission is proposing futures contracts are large, institutional must be received by March 31, 1999. to amend Part 240 of Chapter II, Title 17 investors, neither the availability nor the of the Code of Federal Regulations as unavailability of these futures products will ADDRESSES: Written comments should follows: have a significant economic impact on a be addressed to Kimberly Bingham, at substantial number of small entities, as that the EPA Regional Office listed below. PART 240ÐGENERAL RULES AND term is defined for broker-dealers in 17 CFR The interested persons wanting to REGULATIONS, SECURITIES 240.0–10. examine these documents should make EXCHANGE ACT OF 1934 Arthur Levitt, Jr. an appointment with the appropriate Chairman. office at least 24 hours before the 1. The authority citation for Part 240 Dated: February 23, 1999. visiting day. Copies of the documents continues to read in part as follows: [FR Doc. 99–4953 Filed 2–26–99; 8:45 am] relative to this action are available for Authority: 15 U.S.C. 77c, 77d, 77g, 77j, public inspection during normal BILLING CODE 8010±01±P 77s, 77z–2, 77eee, 77ggg, 77nnn, 77sss, 77ttt, business hours at the following 78c, 78d, 78f, 78i, 78j, 78j–1, 78k, 78k–1, 78l, locations. 78m, 78n, 78o, 78p, 78q, 78s, 78u–5, 78w, 78x, 78ll(d), 78mm, 79q, 79t, 80a–20, 80a–23, ENVIRONMENTAL PROTECTION Air and Radiation Docket and 80a–29, 80a–37, 80b–3, 80b–4 and 80b–11, AGENCY Information Center (Air Docket 6102), unless otherwise noted. U.S. Environmental Protection * * * * * 40 CFR Part 52 Agency, 401 M Street, SW, 2. Section 240.3a12–8 is amended by [AL±049±1±9907b; FRL±6235±9] Washington, DC 20460 removing the word ‘‘or’’ at the end of U.S. Environmental Protection Agency, paragraph (a)(1)(xviii), removing the Approval and Promulgation of Region 4, Atlanta Federal Center, Air, ‘‘period’’ at the end of paragraph Implementation Plans Alabama: Pesticides, and Toxics Management (a)(1)(xix) and adding ‘‘; or’’ in its place, Revisions to the Alabama Department Division, Air Planning Branch, 61 and adding paragraph (a)(1)(xx), to read of Environmental Management (ADEM) Forsyth Street, Atlanta, Georgia as follows: Administrative Code for the Air 30303–3104. Pollution Control Program § 240.3a12±8 Exemption for designated FOR FURTHER INFORMATION CONTACT: foreign government securities for purposes AGENCY: Environmental Protection Kimberly Bingham of the EPA Region 4, of futures trading. Agency (EPA). Air Planning Branch at (404) 562–9038 (a) * * * ACTION: Proposed rule. and at the above address. (1) * * * SUMMARY: The Environmental Protection SUPPLEMENTARY INFORMATION: For (xx) The Kingdom of Sweden. Agency (EPA) proposes to approve the additional information see the direct * * * * * State Implementation Plan (SIP) final rule which is published in the By the Commission. revision submitted by the State of rules section of this Federal Register.

VerDate 25-FEB-99 11:53 Feb 26, 1999 Jkt 183247 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\01MRP1.XXX pfrm03 PsN: 01MRP1