Federal Register / Vol. 62, No. 169 / Tuesday, September 2, 1997 / Notices 46393

5Securities Exchange Act Release Nos. 38571

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

(approving File No. SR–Amex–97–14); 38678 (May

27, 1997), 62 FR 30363 (June 6, 1997) (approving

File No. SR–NASD–97–27); 38897 (Aug. 1, 1997),

62 FR 42847 (Aug. 8, 1997) (approving SR–NYSE–

97–21).

6Securities Exchange Act Release Nos. 38590

(May 9, 1997), 62 FR 26832 (May 15, 1997)

(approving File No. SR–CHX–97–08; reducing the

trading increment from eighths to sixteenths for

securities that are traded on the Exchange and on

the Amex); 38704 (May 30, 1997), 62 FR 31467

(June 9, 1997) (approving File No. SR–CHX–97–11

on a temporary basis; a similar reduction in the

trading increment for securities that are traded on

the Exchange and on Nasdaq); 38717 (June 5, 1997),

62 FR 32134 (June 12, 1997) (approving File No.

SR–CHX–97–12 on a temporary basis; a similar

reduction in the trading increment for securities

that are traded on the CHX and on the NYSE); and

38719 (June 5, 1997) (approving File No. SR–CHX–

97–14 on a temporary basis; a similar reduction in

the trading increment for securities that are traded

only on the Exchange).

7See File Nos. SR–CHX–97–11, SR–CHX–97–12,

and SR–CHX–97–14.

8The proposal also makes conforming changes to

CHX Rule 35; the Exchange’s rule regarding when

a security is quoted ‘‘ex-dividend,’’ ‘‘exdistribution,’’ ‘‘ex-rights,’’ or ‘‘ex-interest.’’

9 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(f) of the Act. Id. § 78c(f).

10The 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).

11A 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).

12These 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).

13 15 U.S.C. § 78s(b)(2).

14 15 U.S.C. § 78s(b)(2).

15 17 CFR 200.30–3(a)(12).

Amendment No. 1 on an accelerated

basis.

III. Description of the Proposal

Recently, there has been a movement

within the industry to reduce the

minimum trading and quotation

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

example, the New York Stock Exchange

(‘‘NYSE’’), The Nasdaq Stock Market

(‘‘Nasdaq’’), and the American Stock

Exchange (‘‘Amex’’) have recently

reduced their minimum increments.5 In

addition, several third market makers

have begun quoting securities in

increments smaller than the primary

markets. The CHX responded by

submitting rule filings that matched the

primary markets’ changes.6 In order to

permit a quick response to rapidly

changing market conditions, however,

some of those proposals were granted

only temporary accelerated approval.7

The current proposal. The current

proposal seeks permanent approval of

those rule changes.8

III. Commission’s Findings

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.9

The proposed rule change will likely

enhance the quality of the market for the

affected securities. Allowing the CHX to

permanently quote and trade equity

securities in finer increments will

facilitate quote competition.10 This

should help produce more accurate

pricing of such securities and can result

in tighter quotations.11 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.

The proposed rule change also will

allow the CHX the flexibility it needs to

address the recent transition to smaller

increments and to remain competitive

with competing market centers.

Nevertheless, the Commission notes that

any further change in the minimum

increment 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 CHX, or (2) a change

in an existing order-entry or trading

system of the CHX, or (3) both.

Therefore, the Exchange is obligated to

file such proposed changes with the

Commission.12

The Commission finds good cause for

approving Amendment No. 1 prior to

the thirtieth day after the date of

publication of notice of filing thereof in

the Federal Register. This amendment

does not raise any new, significant

regulatory concerns. It simply conforms

the CHX’s proposal to similar rules of

the NYSE and the Amex by slightly

modifying the level at which trading

securities in increments of 1⁄32 of a

dollar may occur. Therefore, the

Commission believes that granting

accelerated approval to Amendment No.

1 is appropriate and consistent with

Section 19(b)(2) of the Act.13

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning Amendment No.

1. Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. § 552, will be

available for inspection and copying at

the Commission’s Public Reference

Room, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of the CHX. All submissions

should refer to File No. SR–CHX–97–13

and should be submitted by September

23, 1997.

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,14 that the

proposed rule change (SR–CHX–97–13)

is approved, including Amendment No.

1 on an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–23135 Filed 8–29–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice No. 2598]

Ad Hoc on the 1998 International

Telecommunication Union Policy

Forum; International

Telecommunications Advisory

Committee (ITAC) Meeting Notice

The Department of State announces

the establishment, under its

International Telecommunications

Advisory Committee (ITAC), of an Ad

Hoc Group to prepare for the Second

World Telecommunication Policy

Forum (WTPF). The first three meetings

will be held at the Department of State,

2201 ‘‘C’’ Street, N.W., Washington,

D.C., as follows:
46394 Federal Register / Vol. 62, No. 169 / Tuesday, September 2, 1997 / Notices

Wednesday, September 17, 1997, 1:30–

4:00 p.m., Room 1107

Wednesday, September 24, 1997, 1:30–

4:00 p.m., Room 1408

Wednesday, October 8, 1997, 1:30–4:00

p.m., Room 1207

The purpose of ITAC is to advise the

Department on policy, technical and

operational matters and to provide

strategic planning recommendations,

with respect to international

telecommunications and information

issues. To assist in preparations for

certain meetings of the International

Telecommunication Union (ITU), the

Department establishes ad hoc groups

open to any and all government,

industry or other interested participants

in accordance with the ITAC advisory

committee charter. The purpose and

agenda of this ITAC Ad Hoc Group is to

develop and recommend positions and,

as appropriate, written contributions for

submission by the United States in

connection with the 1998 WTPF, as

described below. Questions regarding

the agenda or Ad Hoc activities in

general may be directed to the

chairman, Richard Shrum, State

Department, at 202–647–0050; Fx: 202–

647–7407, e-mail

(uuencode):shrumre@ms6820wpoa.usstate.gov.

The ITU will convene the second

Policy Forum in Geneva, March 16–18,

1998, in order to discuss and exchange

views on the theme of trade in

telecommunications services. The

agenda will include: (a) the general

implications for the ITU membership of

the World Trade Organization (WTO)

agreement on trade in basic telecom

services, with respect to telecom

policies, regulations and regulatory

structures, and the implications for

developing countries, particularly with

respect to financial strategies to promote

network and service, development; (b)

actions to assist ITU membership in

adapting to changes in the telecom

environment including analysis of the

current situation and possible

cooperative actions to facilitate

transition; and (c) the evolution of the

international telecom environment,

particularly the current accounting and

settlement system. Discussions at the

WTPF shall be based on a report of the

Secretary-General, incorporating

contributions and comments of the ITU

membership, which will serve as the

sole working document of the Forum.

Preparations for WTPF will include an

informal group of experts convened by

the Secretary-General to assist in

developing the report, and a working

group of representatives of the ITU–T

and ITU–D Sectors and the ITU

Secretariat to conduct case studies in

developing countries.

All participants may join in

discussions, subject to instructions of

the chair. In this regard, entry to the

building is controlled. If you wish to

attend, please send a fax to 202–647–

7407 at least 24 hours before the

scheduled meeting, providing name,

affiliation, date of birth and social

security number, to arrange for preclearance. One of the following valid

photo ID’s is required for admittance:

U.S. driver’s license with picture,

passport, Government ID (company ID’s

are not accepted). Enter through the ‘‘C’’

Street Main Lobby.

Dated: August 26, 1997.

John T. Gilsenan,

Acting ITAC Executive Director.

[FR Doc. 97–23165 Filed 8–29–97; 8:45 am]

BILLING CODE 4710–45–M

DEPARTMENT OF STATE

[Public Notice No. 2599]

Ad Hoc on the International

Telecommunication Union Strategic

Planning Working Group International

Telecommunications Advisory

Committee (ITAC); Meeting Notice

The Department of State announces

the establishment, under its

International telecommunications

Advisory Committee (ITAC), of an Ad

Hoc Group to prepare for the ITU

Strategic Planning Working Group. The

first three meetings will be held at the

Department of State, 2202 ‘‘C’’ Street,

N.W., Washington, D.C., as follows:

Wednesday, September 17, 1997, 9:30–

12:00 noon, Room 1107

Wednesday, September 24, 1997, 9:30–

12:00 noon, Room 1408

Wednesday, October 8, 1997, 9:30–12:00

noon, Room 1207

The purpose of ITAC is to advise the

Department on policy, technical and

operational matters and to provide

strategic planning recommendations,

with respect to international

telecommunications and information

issues. To assist in preparations for

certain meetings of the International

Telecommunication Union (ITU), the

Department establishes ad hoc groups

open to any and all government,

industry or other interested participants

in accordance with the ITAC advisory

committee charter. The purpose and

agenda of this ITAC Ad Hoc Group is to

develop and recommend positions and,

as appropriate, written contributions for

submission by the United States to the

ITU Working Group described below.

Questions regarding the agenda or Ad

Hoc activities in general may be

directed to the chairman, Richard C.

Beaird, State Department, at 202–647–

5832; Fx: 202–647–5957.

The ITU Strategic Planning Working

Group will prepare a draft strategic plan

for the Union for 1999–2003, including

linkages among overall policies, Sector

priorities and programs, and financial

factors for the period. The draft strategic

plan will be considered at the May,

1998 session of Council, and ultimately

at the upcoming Plenipotentiary

Conference in Minneapolis. ITU

Member States and Sector Members are

invited to submit comments on the draft

plan by November 30. The ITU Working

Group will convene a meeting in

February 1998 in order to finalize the

draft strategic plan.

All participants may join in

discussions, subject to instructions of

the chair. In this regard, entry to the

building is controlled. If you wish to

attend, please send a fax to 202–647–

5957 at least 24 hours before the

scheduled meeting, providing name,

affiliation, date of birth and social

security number, to arrange for preclearance. One of the following valid

photo ID’s is required for admittance:

U.S. driver’s license with picture,

passport, Government ID (company ID’s

are not accepted). Enter through the ‘‘C’’

Street Main Lobby.

Dated: August 26, 1997.

John T. Gilsenan,

Acting ITAC Executive Director.

[FR Doc. 97–23166 Filed 8–29–97; 8:45 am]

BILLING CODE 4710–45–M

DEPARTMENT OF STATE

[Public Notice No. 2597]

Advisory Committee on Private

International Law; Meeting of Study

Group on Electronic Commerce

The Department of State’s Advisory

Committee Study Group on Electronic

Commerce will hold its next meeting

Thursday, September 18 in Washington,

DC from 10 a.m.–4:30 p.m. The purpose

of the meeting is to review legal issues

and possible international guidelines,

model national laws or other

international legal initiatives on

electronic signatures, including digital

signature systems, that could be

developed by international

organizations.

The Advisory Committee meeting is

scheduled immediately prior to

meetings of the National Conference of

Commissioners on Uniform State Laws

(NCCUSL) new Drafting Group on a

proposed uniform electronic