Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Notices 42847

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3 In order for the Exchange to meet quickly

changing market conditions, the Commission

granted the changes described in this proposal

temporary accelerated approval on June 18, 1997.

See Securities Exchange Act Release No. 38744

(June 18, 1997), 62 FR 34334 (June 25, 1997).

4Securities Exchange Act Release No. 38745

(June 18, 1997), 62 FR 34336 (June 25, 1997).

Control No. 3235–0121

Form 18–K, SEC File No. 270–108,

OMB Control No. 3235–0120

Form F–80, SEC File No. 270–357,

OMB Control No. 3235–0404

Notice is hereby given that, pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) has submitted to the

Office of Management and Budget

requests for extension of the previously

approved collections of information

discussed below.

Form 18 is used for the registration of

securities under the Securities Exchange

Act of 1934 of any foreign government

or political subdivision thereof. It is

filed on occasion. An estimated 5

respondents file Form 18 annually for a

total burden of 40 hours.

Form 18–K is an annual report for

foreign governments and political

subdivisions thereof. It provides

updated information concerning

registered securities. An estimated 11

respondents file Form 18–K annually for

a total burden of 88 hours.

Form F–80 is a form used to register

under the Securities Act of 1933

securities of certain issuers to be issued

in exchange offers or a business

combination. It is filed on occasion. An

estimated 5 respondents file Form F–80

annually for a total burden of 10 hours.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a currently valid

control number.

General comments regarding the

above information should be directed to

the following persons: (i) Desk Officer

for the Securities and Exchange

Commission, Office of Information and

Regulatory Affairs, Office of

Management and Budget, Room 3208,

New Executive Office Building,

Washington, D.C. 20503; and (ii)

Michael E. Bartell, Associate Executive

Director, Office of Information

Technology, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Comments

must be submitted to OMB within 30

days of this notice.

Dated: August 1, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20913 Filed 8–7–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Issuer Delisting; Notice of Application

To Withdraw From Listing and

Registration; (Benchmark Electronics,

Inc., Common Stock, $.10 Par Value)

File No. 1–10560

August 4, 1997.

Benchmark Electronics, Inc.

(‘‘Company’’) has filed an application

with the Securities and Exchange

Commission (‘‘Commission’’), pursuant

to Section 12(d) of the Securities

Exchange Act of 1934 (‘‘Act’’) and Rule

12d2–2(d) promulgated thereunder, to

withdraw the above specified security

(‘‘Security’’) from listing and

registration on the American Stock

Exchange, Inc. (‘‘Amex’’ or

‘‘Exchange’’).

The reasons cited in the application

for withdrawing the Security from

listing and registration include the

following:

The Company’s Security is listed on

the New York Stock Exchange (‘‘NYSE’’)

effective May 13, 1997. The Company’s

Board of Directors resolved on April 4,

1997 to withdraw the Company’s

Security from listing on Amex to avoid

the direct and indirect cost and the

division of the market resulting from

dual listing.

The Company has complied with Rule

18 of the American Stock Exchange

(‘‘Amex’’) by filing with such Exchange

a certified copy of preambles and

resolutions adopted by the Company’s

Board of Directors (‘‘Directors’’)

authorizing the withdrawal of its

common stock from listing on the Amex

and by setting forth in detail to such

Exchange the reasons for such proposed

withdrawal, and the facts in support

thereof.

By letter dated April 30, 1997, the

Amex stated that the Exchange would

not interpose an objection to the

Company’s application to withdraw its

Security from listing.

Any interested person may, on or

before August 25, 1997, submit by letter

to the Secretary of the Securities and

Exchange Commission, 450 Fifth Street,

N.W., Washington, D.C. 20549, facts

bearing upon whether the application

has been made in accordance with the

rules of the exchange and what terms,

if any, should be imposed by the

Commission for the protection of

investors. The Commission, based on

the information submitted to it, will

issue an order granting the application

after the date mentioned above, unless

the Commission determines to order a

hearing on the matter.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–20910 Filed 8–7–97; 8:45 am]

BILLING CODE 8010–01–M

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[Release No. 34–38897; File No. SR–NYSE–

97–21]

Self-Regulatory Organizations; New

York Stock Exchange, Inc.; Order

Granting Approval to Proposed Rule

Change Relating to Trading

Differentials for Equity Securities

August 1, 1997.

On June 16, 1997, the New York Stock

Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’)

submitted to the Securities and

Exchange Commission (‘‘Commission’’),

pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a

proposed rule change to replace

references to specific minimum

variations with general language

regarding minimum variations, to

replace its minimum increment of oneeighth of a dollar with one-sixteenth of

a dollar, and to make conforming

changes to several other rules.3

The proposed rule change was

published for comment in the Federal

Register on June 25, 1997.4 No

comments were received. This order

approves the proposal.

Exchange Rule 62 currently provides

fixed minimum trading variations for

stocks traded on the Exchange. The

Exchange proposes to amend Rule 62 to

remove the references to specific

minimum variations and to replace it

with general language. The Exchange

believes this amendment to Rule 62 will

provide flexibility so that the Exchange

could permit its members to trade at

increments smaller than NYSEestablished trade variations in order to

match other markets’ bids or offers for

the purpose of preventing Intermarket

Trading System (‘‘ITS’’) trade-throughs.

The Exchange proposes to set the
42848 Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Notices

5The Exchange previously only allowed quotes in

eighths for equity securities that are above $1.00,

sixteenths for equity securities that are below $1.00

but above $0.50, and thirty-seconds in stocks below

$0.50. NYSE Rule 62.

6 15 U.S.C. 78f(b) and 78k–1. In approving this

rule change, the Commission notes that it has

considered the proposal’s impact on efficiency,

competition, and capital formation, consistent with

Section 3 of the Act. Id. § 78c(f).

7Securities Exchange Act Release No. 38571 (May

5, 1997), 62 FR 25682 (May 9, 1997) (approving an

Amex proposal to reduce the minimum trading

increment to 1⁄16 for certain Amex-listed equity

securities); Securities Exchange Act Release No.

38678 (May 27, 1997), 62 FR 30363 (June 6, 1997)

(approving a Nasdaq rule change to reduce the

minimum quotation increment to 1⁄16 for certain

Nasdaq-listed securities).

8These changes, however, may become effective

upon filing if they meet certain statutory

requirements. See 15 U.S.C. 78s(b)(3)(A)(i) and 17

CFR 240.19b–4(e).

9The rule change is consistent with the

recommendation of the Division of Market

Regulation (‘‘Division’’) in its Market 2000 Study,

in which the Division noted that the 1⁄8 minimum

variation can cause artificially wide spreads and

hinder quote competition by preventing offers to

buy or sell at prices inside the prevailing quote. See

SEC, Division of Market Regulation, Market 2000:

An Examination of Current Equity Market

Developments 18–19 (Jan. 1994).

10A study that analyzed the reduction in the

minimum tick size from 1⁄8 to 1⁄16 for securities

listed on the Amex priced between $1.00 and $5.00

found that, in general, the spreads for those

securities decreased significantly while trading

activity and market depth were relatively

unaffected. See Hee-Joon Ahn, Charles Q. Chao, and

Hyuk Choe, Tick Size, Spread, and Volume, 5 J.

Fin. Intermediation 2 (1996).

11 15 U.S.C. 78s(b)(2).

12 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2Letter from Nandita Yagnick, New Product

Development, Phlx, to Margaret Blake, Division of

Market Regulation, Commission (July 29, 1997).

3The prices, weightings and the divisor change

for the Index are attached as Exhibit B to File No.

SR–Phlx–97–30.

4See Securities Exchange Act Release No. 38207

(January 27, 1997), 62 FR 5268 (order approving the

listing and trading of options and LEAPS on the

Phlx Oil Service Index).

5Amendment No. 1 indicates that the index value

was set at $75.00 as an experiment to attract order

flow from the retail investment community.

minimum variation for most stocks at

one-sixteenth of a dollar.5

In addition to Rule 62, several other

Exchange rules incorporate specific

references to minimum trading

variations. The Exchange proposes to

make conforming changes to these rules

(Rule 95.30, Rule 118, Rule 127, and

Rule 440B) by removing references to

specific minimum trading variations of

one-eighth of a dollar.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. In particular, the Commission

believes the proposal comports with the

requirements of Section 6 and Section

11A of the Act.6

Recently, there has been a movement

within the industry to reduce the

minimum trading and quotation

increments imposed by the various selfregulatory organizations (‘‘SROs’’). Both

the American Stock Exchange (‘‘Amex’’)

and The Nasdaq Stock Market

(‘‘Nasdaq’’) have recently reduced their

minimum increments.7 In addition,

several third market makers have begun

quoting securities in increments smaller

than the primary markets. The proposed

rule change will allow the NYSE the

flexibility it needs to address this

development and remain competitive

with these markets. Nevertheless, the

Commission notes that any further

change in the minimum increments

constitutes (1) a change in a stated

policy, practice, or interpretation with

respect to the meaning, administration,

or enforcement of an existing rule of the

NYSE, or (2) a change in an existing

order-entry or trading system of an SRO,

or (3) both. Therefore, the Exchange is

still obligated to file such proposed

changes with the Commission.8

The Commission also believes the

proposed rule change will likely

enhance the quality of the market for the

affected NYSE-listed securities.

Allowing the NYSE to permanently

quote all securities in finer increments

will facilitate quote competition.9 This

should help produce more accurate

pricing of such securities and can result

in tighter quotations.10 In addition, if

the quoted markets are improved by

reducing the minimum increment, the

change could result in added benefits to

the market such as reduced transaction

costs.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,11 that the

proposed rule change (SR–NYSE–97–

21) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20828 Filed 8–6–97; 8:45 am]

BILLING CODE 8010–01–M

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[Release No. 34–38894; File No. SR–Phlx–

97–30]

Self-Regulatory Organizations;

Philadelphia Stock Exchange, Inc.;

Notice of Filing of Proposed Rule

Change Relating to Doubling the Value

for the Phlx Oil Service Index

August 1, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

June 27, 1997, the Philadelphia Stock

Exchange Inc., (‘‘Phlx’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by Phlx. On July 29,

1997, Phlx amended the proposed rule

change (‘‘Amendment No. 1’’).2 The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Phlx proposes to change the index

value for the Phlx Oil Service Index

(‘‘OSX’’) by reducing the base market

divisor to half of its current value.3

Options trading with the new index

value (‘‘new index options’’) will trade

with the current symbol OSX. The

Exchange will convert the existing

index options (‘‘existing index options’’

or ‘‘OSB Options’’) to the symbol OSB.

The existing index options using the old

index value will continue to trade until

expiration or until no open interest

remains, at which time the series will be

delisted. The Exchange will not open

any new series in the existing index

options after the new index options

begin trading.

II. Self-Regulatory Organization’s

Statement of the Purpose of, Statutory

Basis for, the Proposed Rule Change

In its filing with the Commission,

Phlx included statements concerning

the purpose of an basis for the proposed

rule change. The text of these statements

may be examined at the places specified

in Item IV below. Phlx has prepared

summaries, set forth in section A, B, and

C below, of the most significant aspects

of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The Exchange began trading the OSX

on February 24, 1997.4 The Index is a

price-weighted industry index

composed of 15 stocks involved in the

oil service industry. In an effort to

enhance the trading activity, OSX was

initially indexed to a Value of $75.00 on

December 31, 1996.5 Since the

commencement of trading, the OSX has

traded an average of 1000 contracts

daily garnering steady volume and open

interest. However, the exchange has

received numerous comments from OSX