Document e7xoooL6j7zormpOwL455rJag

12-22-75 (DKR) BUSINESS POLICIES (No. 246) A - 5 In (tic lengthy release accompanying its new rule, the Commission said it won't re move existing exchange restrictions on principal transactions until both the SEC and the Na tionul Market Advisory Board have time to study "the consequences" ol sucli action. "In addition," the release said, "the Commission needs additional time to develop and propose such new rules (and to eliminate such existing rules) as may be necessary or appropriate in the context of an environment permitting off-board market making by retail firms." The SEC said it would reconsider whether to remove trading restrictions for principal transactions no later than March 1, 1977. By that date, the SEC said, the Commission will have had an opportunity to consider the "views and recommendations" of the Market Advisory Board on the subject. Significantly, the Commission said its action on the off-board rules was designed to crystalline industry action on creation of a composite limit order "book" that would tie to gether all exchanges and all tim'd market makers. "The Commission believes that the answer to the problem of providing adequate pro tection for public limit orders is not to maintain existing rules which perforce provide only imperfect protection and have certain undesirable anticompetitive effects, but rather to use the advanced technology now available to provide for a computerized central limit order re pository, or composite book. . . . The Commission believes that substantial progress can be made in developing a composite book prior to the date established for elimination of agen cy- restrictions on off-board trading. " Additionally, the SEC said it would propose another rule requesting self-regulators and/or securities information processors ("vendors" such as Bunker Ramo or GTE) to submit plans for creation of an electronic Lx >k that would not be "dominated or controlled" by a single market center. -0 - ENVIRONMENT: EPA PROPOSES PROGRAM FOR liLlMtNATING l'CB PRODUCTION, USE A program to reduce the "serious threat" of polychlorinated biphenyls (PCBs) by elim inating their production, importation, and use "as rapidly as possible" was announced today by Environmental Protection Agency Administrator Russell E. Tram. "PCBs constitute a significant hazard tu human health and the environment and must be immediately and effectively controlled with every means at our disposal, " Drain told a press conference. However, he said, EPA has no authority under existing law to stop or restrict uses of PCBs, and until passage of toxic substances control legislation, "wc must rely heavily on voluntary actions by industry." Die EPA program consists of the following regulatory and administrative actions: EPA regional offices are to work with the states to establish requirements under the National Pollutant Discharge Elimination System to eliminate PCBs from the process wastes of all manufacturers of PCBs and of capacitors and transformers that use PCBs. Manufacturers of PCBs, capacitors, and transformers are requested to develop as l'upidly as possible "safe and environmentally acceptable alternatives" for PCBs. Train said a meeting with manufacturers will be scheduled in January to "discuss and lay out" specific Plans. HONS 032537 Puhlithud ly THE nUKKAU OF NATIONAL AFFAIRS, INC., WASHINGTON, D.C. 20037 RIhIiI ol t|vniliirlltiti tmtl t*li at rilml loti traerved A - 6 (No. 246) BUSINESS POLICIES (DPR) 12-22-7S Electric utility companies and other major users of capacitors and transformers were requested to control the use and disposal of their PCBs. A meeting to discuss this goal also will be scheduled on January, Train said. State governors will be asked to "examine and apply their authorities to deal with the 1'CU problem." Federal agencies will be asked to Inventory their uses of PCBs and PCB-containing materials In order to develop plans for their adequate management and safe disposal. Programs will be Initiated to find ways for eliminating discharges from other sources of PCBs, such as paper recycling operations, the investment casting industry, and the dis posal of electrical consumer products. Under Section 3J1 of the Federal Water Pollution Control Act, regulations will be proposed soon to control environmental damage from spills of hazardous substances, Including PCBs. Proposed Regulations: The proposed regulations will include a list of more than 300 chemicals the (JTscliarge of which would pose a danger to public health, based on the results of toxicity tests conducted on mammals, fish and aquatic plants. Train said die list may be modified as needed, and be said inclusion of a particular substance on die list depends on evaluation of toxicological data as well as Information on production, distribution and use. The proposals will state that the designated substances are considered "nonremovable" due to chemical and physical characteristics, a determination which "does not relieve the discharger from the responsibility to take emergency response action to limit a spill's harmful effects on the environment, " Train said. The proposed regulations will group the designated substances In four categories based on their relative potential hazard to the aquatic environment. A "harmful quantity" figure will be assigned to each group, to apply to all substances within the group. Tile proposal also will Include fines up to $5 million for illegal discharge or spill of the designated substances. However, a fine of more than $5,000 can be assessed only in cases where gross negligence is shown to be the cause of the spill or where there Is failure to take action to limit the harmful effects. The proposed regulations will apply to all discharge sources, Including transportation systems such as tankers, and to fixed facilities such as industrial plants. They will com plement existing oil spill control programs which EPA conducts with the Coast Guard, the agency said. Train told the press conference that an estimated 700 million pounds of PCBs have been produced and used In the U.S. in the past 45 years. Although some of this has been degradrd, the majority of it Is contained in landfills and bottom sediments of lakes and rivers ond In air and water concentrations, he said. About 300 million pounds are currently in use, he added. Train said the PCBs already in the environment are the most troublesome problem to be faced because they arc about 20 times as persistent as DDT. Train said the Monsanto Industrial Chemicals Company Is the sole producer of PCBs In the U.S., with an amwal production of 40 million pounds. Another one million pounds are Imported annually by transformer- and capacitor manufacturers, he said. There is "no reason to expect non-cooperation" from Industry in this program. Train said. MQNS 032538 p,,briHiM*a t*v Tin-- minsAU or nationai. ai-i-aius. inc., Washington, d.c. rmm 12-22-75 (DER) BUSINESS POLICIES (No. 246) A - 7 Steps that could Lie taken by industry, Train said, are to label products which contain PCBs, to eliminate the use of PCBs ifalternatives exist, toaccelerateresearch on and testing of substitutes, and to ensure that PCB-containingproducts remain inclosed cycles during use and when disposed. Train said lie hopes toxic substances control legislation will be passed In the next sesslon of Congress, but he "did not want to use the lack of legislation as a crutch for EPA inactlon." He suid the proposed program would not lead to "quick and easy reduction" of the amounts of PCBs already in the environment, but control of discharges would help arrest the rapid growth of the problem. "Ultimately, however, only the elimination of PCBs will yield a significant and pernianent solution, " Train su1 -0 - MONETARY POLICY: YEO DENIES BIS WILL ACT OTHER THAN AS'CDMPETITIVE BIDDER IN GOLD AUCTION Reports that the Bank for International Settlements, in Zurich, Switzerland, will act as a "safety net" in the upcoming regular gold auctions by the International Monetary Fund through its trust fund are unfounded, Treasury Undersecretary for Monetary Affairs Edwin Yeo said at a news conference today in Washington, D.C. There is "no understanding that any one institution would behave in any other way than as a competitive bidder, " Yeo said. BIS, other banks, and dealers will be "free to submit competitive bids in the traditional way, " he added. The mechanisms for accomplishing the transfer are still being worked out. "It Is legally the Fund's gold," Yeo said. "Gold is an asset, and those assets are being used . . . for the financing of (remedies to) balance of payments difficulties. The BIS and other bidders will reflect the interests of those they see in the market." IMF will set the schedule for the auctions early next year, he said. Asked if the United States would bid through BIS for any gold, Yeo replied, "I can't think of any circumstances (in which it would)." He said BIS' role is not as a central bank. Yeo said the IMF auctions "do not rule out" Treasury gold sales. Group of 10: Yeo reported on the results of the December 19 Group of JO finance ministers meeting in Paris. "The spirit of Ramboulllet was very much in evidence" at the G-10 meeting, as well.as at die ministers' conference, he said. He referred to a sense of cooperation and willingness to "develop accommodations" that he said also characterized die November economic summit. He cited the understanding on exchange rates reached between the United States and French Finance Minister Jean-Picrre Fourcade ns "a firm one, a very constructive one." Exchange Rates: Article 4 of the ministerial meeting communique, which deals with exchange rales,"will be revised and presented at a January meeting of finance ministers in Jamaica, Yeo said. As now worded, the article agreed to broaden consultations and lo counter erratic exchange rate fluctuations, to keep IMF Managing Director II. Johannes Witteveen informed of progress, and to proceed oil a "pragmatic" basis. Before the Jamaica meeting, IMF will thoroughly review the text of the interim agree ment and make recommendations aiming at "an end result of underlying economic and finan cial equilibrium, " rather Ilian a system Imposed from outside, Yeo said. IXibliclii'd by THK I1URFAU OF NATIONAL AFFAIRS, INC., WASHINGTON, D.C. 200.17 | ( I | ! ! i | i I | o, <* m g g *