44740 Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Notices

8See Securities Exchange Act Release No. 37337

(June 19, 1996), 61 FR 33561 (June 27, 1996).

9Options with a time to expiration greater than

two weeks and less than or equal to one year shall

have the following bid/ask spreads:

10 15 U.S.C. 78f(b)(5) (1988).

11The Commission notes that the current

entitlement for Submitting Members in FLEX

Equity options will remain unchanged at 25% of

the trade regardless of the number of participants

to the trade.

12The Commission also believes that the

proposed rule change will not result in any injury

to public customers as customer orders on parity

will not receive a smaller participation than any

other crowd participant.

13 15 U.S.C. 78s(b)(2) (1988).

14 17 CFR 200.30–3(a)(12).

The proposed rule change also

amends the language of sub-paragraphs

(e)(iii) (A) and (B) of CBOE Rule 24A.5

to state that a submitting member ‘‘will

have priority to execute’’ the specified

share of a trade that is the subject of a

RFQ, instead of the term ‘‘be permitted

to execute.’’ The Exchange initially

adopted this rule language in Securities

Exchange Act Release No. 37337 in

order to clarify that a member may cross

more than the designated share as to

which he has priority if no one else is

willing to trade at the same or a better

price.8 The current filing inadvertently

utilized the old rule language.

Amendment No. 1 to the filing clarifies

that the original rule language will

remain unchanged.

The Exchange is also proposing to

impose maximum bid-offer spreads on

certain FLEX Index options. Currently,

under CBOE Rule 24A.9 (d), marketmakers are not required to quote a

minimum bid-offer spread in FLEX

options because of the unique nature of

the product in which new series are

established periodically by the

submission of a RFQ. Based on

experience over the last four years,

however, the Exchange has determined

that it is appropriate to establish

maximum bid-offer spreads for Index

FLEX AMMs when quoting Europeanexercise FLEX options overlying the

S&P 100 Index (‘‘OEX’’) or the S&P 500

Index (‘‘SPX’) with a time to expiration

of more than two weeks and less than

two years.9 The Exchange expects that

the establishment of these spreads will

increase customer confidence in the

CBOE markets for these products. The

CBOE also believes that the

establishment of these maximum bidoffer spreads will ensure tight markets

for the majority of the Index FLEX RFQs

submitted to the CBOE floor; the

proposed spreads would have applied to

77% of the RFQs submitted in 1996.

The Exchange also believes that if, as

expected, the reduction in the

entitlement of a trade to a Submitting

Member encourages more active

participation by market-makers in the

quoting process, then bid-offer spreads,

through competition, should decrease in

any event.

Where Bid Is Maximum Bid/Ask Spread Is

Less than $5 ..................... 3⁄4 of $1

At least $5, but not more

than $10.

$1

At least $10, but not

more than $20.

$1.50

At least $20 ...................... $2

Where Bid Is Maximum Bid/Ask Spread Is

Options with a time to expiration greater than one year

and less than two years shall have the following maximum bid/ask spreads:

Where Bid Is Maximum Bid/Ask Spread Is

Less than $10 ................... $1.50

At least $10, but not

more than $20.

$2

At least $20, but not

more than $40.

$3

At least $40 ...................... $4

Compare CBOE Rule 8.7 regarding maximum bid/ask

spreads for non-Flex options.

Because the proposed rules should

encourage more active participation of

market-makers in the establishment of

bid-ask spreads as well as require the

quoting of spreads on FLEX Index

options within a certain range, CBOE

believes that the proposed rules are

consistent with and further the

objectives of Section 6(b)(5) of the Act

in that they are designed to improve

communications to and from the

Exchange’s trading floor in a manner

that promotes just and equitable

principles of trade, prevents fraudulent

and manipulative acts and practices,

and maintains fair and orderly markets.

II. Findings and Conclusions

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, and, in particular, the

requirements of Section 6(b)(5).10 The

Commission finds that CBOE’s proposal

to reduce the Submitting Member’s

entitlement rate to the greater of 25% or

a proportional share of the trade should

serve to encourage more active

participation by market-makers in FLEX

Index options. Specifically, because

participating market-makers will be

entitled to a greater share of the FLEX

trade, they should have more incentive

to make markets in FLEX Index options.

More active participation should, in

turn, result in increased liquidity for the

product, which would serve to enhance

the market for FLEX Index options.11

Accordingly, the Commission believes

that this portion of the CBOE filing is

consistent with the Act in that it should

facilitate transactions in securities

consistent with investor protection and

in furtherance of the public interest.12

The Commission also believes that

CBOE’s proposal to impose maximum

bid-offer spreads for Index FLEX AMMs

when quoting European-style FLEX

options overlying the OEX or the SPX

should serve to potentially tighten

spreads as well as to ensure that the

spreads are no larger than the

predetermined range. The Commission

believes that the potential for tighter

markets in FLEX OEX and SPX

contracts as a result of the adoption of

maximum bid-ask spreads should serve

to increase investors’ confidence that

the quoted market for these options

represents fair and indicative prices. In

this regard, the CBOE may wish to adopt

maximum bid-ask spreads for other

FLEX options. Accordingly, the

Commission believes the Exchange’s

proposal to impose maximum bid-offer

spreads for certain FLEX Index options

is consistent with the Act in that it

should facilitate trading in securities.

It therefore is ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–CBOE–97–

16), as amended, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–22293 Filed 8–21–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[License No. 07/07–0099]

Civic Ventures Investment Fund, L.P.,

Notice of Issuance of a Small Business

Investment Company License

On March 18, 1996, an application

was filed by Civic Ventures Investment

Fund, L.P., at One Metropolitan Square,

211 North Broadway, Suite 2380, St.

Louis, Missouri 63102 with the Small

Business Administration (SBA)

pursuant to Section 107.300 of the

Regulations governing small business

investment companies (13 C.F.R.

107.300 (1997)) for a license to operate

as a small business investment

company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 07/07–0099 on

August 1, 1997, to Civic Ventures

Investment Fund, L.P. to operate as a

small business investment company.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)
Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Notices 44741

Dated: August 14, 1997.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 97–22327 Filed 8–21–97; 8:45 am]

BILLING CODE 8025–01–M

SMALL BUSINESS ADMINISTRATION

Adoption of FA$TRAK Pilot Loan

Program; Meeting

AGENCY: Small Business Administration.

ACTION: Public meeting on Adoption

FA$TRAK Pilot Loan Program for SBA

Loans made under Section 7(a) of the

Small Business Act.

SUMMARY: On March 6, 1995, the SBA

published in the Federal Register a

notice establishing the FA$TRAK loan

program as a pilot program to test the

implications of allowing selected SBA

lenders to use their own documentation

and procedures to approve SBA

guaranteed loans under $100,000. In

return, participating lenders received a

maximum SBA guaranty of 50 percent.

On September 9, 1997, the SBA will

hold a public meeting as part of its

evaluation of whether to adopt

FA$TRAK as a permanent SBA program

and extend the program to additional

qualified lenders.

DATES: September 9, 1997, 1:30 p.m. to

4:30 p.m.

LOCATION: Eisenhower Conference

Room, U.S. Small Business

Administration, 409 3rd Street, SW.,

Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT:

Charles Thomas, Chief Pilot Operations,

Office of Financial Assistance, (202)

205–6656.

SUPPLEMENTARY INFORMATION:

FA$TRAK, which is part of the

Preferred Lenders Program, was

conceived to streamline the process by

which a lender receives a guaranty from

the SBA. The program was designed to

utilize, to the maximum extent possible,

the existing documentation and

procedures of participating lenders.

Under the program, lenders are

permitted to use their own application

forms, internal credit memoranda,

notes, collateral documents, servicing

documentation, and liquidation

documentation. The SBA made every

effort to minimize the use of

government mandated forms under this

program.

Lenders participating in the pilot

were authorized to attach an SBA

guaranty to an approved loan without

having to submit the loan to an SBA

field office for a credit analysis or

review. Loans were instead forwarded to

a centralized SBA processing center

(Sacramento) for the assignment of an

SBA loan number and a determination

of borrower eligibility.

In return for this authority and

autonomy, lenders agreed to limit the

maximum loan amount to $100,000,

accept a maximum guaranty of 50

percent, and waive payment on

defaulted loans until after the lender has

completed liquidation and SBA has

reviewed the underlying documentation

supporting the loan.

Approximately 18 banks or bank

holding companies have participated in

the pilot, although together with their

affiliates they number about 60 lenders.

From its inception through July 18,

1997, 5,824 FA$TRAK loans for $243

million were approved. A preliminary

review of the FA$TRAK portfolio has

been completed and no significant

problems or adverse trends have been

revealed in either the pilot’s operation

or the loss rates associated with the

program. In addition, onsite reviews of

several of the leading FA$TRAK lenders

did not indicate any apparent or

systemic problems.

In considering what action we should

take regarding the FA$TRAK pilot, the

Agency will look at a variety of issues

including, but not limited to, the

following: Should—

(1) The program be adopted as a

permanent SBA loan program? (2) the

program be limited to SBA ‘‘Preferred

Lenders’’? (3) if not, what criteria

should be used to qualify FA$TRAK

lenders? (4) participants be encouraged/

required to adopt electronic processing

of FA$TRAK loan applications via the

Internet? (5) lines of credit loans

revolve, for example, for a maximum of

five years and then be ‘‘termed out’’ for

as much as an additional five years? (6)

the maximum loan amount under the

program be increased? (7) interest rates

for loans made under the program be

subject to different limitations? (8)

collateral be required for FA$TRAK

loans? and, (9) other regular 7(a)

policies be changed for FA$TRAK.

Hearing

To ensure the widest possible public

participation, the SBA will hold a

public hearing on this proposal in

Washington, DC at the Small Business

Administration at 409 3rd Street, SW.,

Washington, DC 20416. The meeting

will be held on September 9, 1997, from

1:30 p.m. to 4:30 p.m. in the Eisenhower

Conference Room.

Interested parties will be given a

reasonable time for an oral presentation

and may submit written statements of

their oral presentation in advance. If

you wish to make a presentation, please

contact Ms. Lula M. Gardner at (202)

205–6485 at least five days before the

hearing. If a large number of

participants desires to make statements,

a time limitation on each presentation

will be imposed.

Members of the hearing panel may ask

questions of the speaker, but speakers

will not be allowed to question each

other. Please submit written questions

in advance to the Chair. If the Chair

determines them to be relevant, the

Chair will direct them to the appropriate

panel member.

Jane Palsgrove Butler,

Acting Associate Administrator for Financial

Assistance.

[FR Doc. 97–22331 Filed 8–21–97; 8:45 am]

BILLING CODE 8025–01–M

SMALL BUSINESS ADMINISTRATION

Region V Wisconsin State Advisory

Council Meeting; Public Meeting

The U.S. Small Business

Administration Wisconsin State

Advisory Council, located in the

geographical area of Milwaukee,

Wisconsin, will hold a public meeting

from 12:00 p.m. to 1:00 p.m., August 25,

1997, at Metro Milwaukee Area

Chamber (MMAC), Association of

Commerce Building, 756 North

Milwaukee Street, Fourth Floor—The

Milwaukee Room, Milwaukee,

Wisconsin, to discuss such matters as

may be presented by members, staff of

the U.S. Small Business Administration,

or others present.

For further information, write or call

Kimberly R. West, U.S. Small Business

Administration, 310 W. Wisconsin Ave.,

Room 400, Milwaukee, Wisconsin

53029, telephone (414) 297–1092.

Dated: August 15, 1997.

Eugene Carlson,

Associate Administrator, Office of

Communications & Public Liaison.

[FR Doc. 97–22328 Filed 8–21–97; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF STATE

[Public Notice 2587]

Office of Foreign Missions (OFM);

Information Collection Under Review

Office of Management and Budget

(OMB) approval is being sought for the

information collection listed below. The

purpose of this notice is to allow 60

days for public comments from the date

listed at the top of this page in the

Federal Register. This process is

conducted in accordance with 5 Code of

Federal Regulation, part 1320.10.