Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices 50647

3According to MBSCC’s rules, the term account

generally means any account maintained by MBSCC

on behalf of a participant for the comparison,

margining, and clearing of trades.

4According to MBSCC’s rules, the term

‘‘participant fund’’ means the fund for which

provision is made in Article IV to which

participants are required to make basic deposits,

minimum market margin differential deposits, and

market margin differential deposits.

5 17 CFR 200.30–3(a)(12).

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

2Securities Exchange Act Release No. 38625 (May

13, 1997), 62 FR 27638.

3Similarly, OCC permits its clearing members to

use certain publicly traded units of beneficial

interest in unit investment trusts (‘‘trust units’’) as

margin deposits under the conditions specified in

subparagraph (4) of Rule 604(d). Currently, the only

trust units approved for deposit as margin are

Standard & Poor’s (‘‘S&P’’) Depository Receipts

(‘‘SPDR’s’’) on the S&P 500 Index and S&P 400 MidCap Index.

4The proposed rule change also makes numbering

changes to Rule 1801 as a result of the addition of

new subparagraph (b)(2).

MBSCC believes that the proposed

rule change will further protect MBSCC

in the event a participant fails to

discharge its liabilities. In this respect,

MBSCC will treat all of a participant’s

accounts 3 and obligations as belonging

to such participant regardless of the

identity of the original underlying party.

In addition, MBSCC believes that the

proposed rule change will remove any

doubt that a participant’s participant

fund 4 deposits will be available for all

of the participant’s transactions

regardless of the source. Furthermore,

MBSCC believes that this proposed rule

change will foreclose any attempt by a

nonparticipant to assert a claim against

MBSCC with respect to a trade.

MBSCC believes that the proposed

rule change is consistent with Section

17A of the Act and the rules and

regulations promulgated thereunder in

that it will enhance MBSCC’s ability to

protect itself and its participants against

loss.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

MBSCC does not believe that the

proposed rule change will impose any

burden on competition not necessary or

appropriate in furtherance of the

purposes of the Act.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

MBSCC has not solicited or received

comments relating to the proposed rule

change. MBSCC will notify the

Commission of any written comments

received by MBSCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

ninety days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so findings or

(ii) as to which MBSCC consents, the

Commission will:

(A) By order approve such proposed

rule change or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

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 provisions of

5 U.S.C. 552, will be available for

inspection and copying in the

Commission’s Public Reference Room,

450 Fifth Street, N.W., Washington, D.C.

20549. Copies of such filing will also be

available for inspections and copying at

the principal office of MBSCC. All

submissions should refer to the File No.

SR–MBSCC–97–5 and should be

submitted by October 17, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25519 Filed 9–25–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39104; File No. SR–OCC–

97–01]

Self-Regulatory Organizations; The

Options Clearing Corporation; Order

Approving a Proposed Rule Change

Permitting the Use of Certain Fund

Shares to Satisfy Margin Requirements

and Permitting the Use of Certain Fund

Shares and Trust Units as Escrow

Deposits

September 22, 1997.

On February 21, 1997, The Options

Clearing Corporation (‘‘OCC’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) a

proposed rule change (File No. SR–

OCC–97–01) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’).1 Notice of the proposal

was published in the Federal Register

on May 20, 1997.2 No comment letters

were received. For the reasons

discussed below, the Commission is

approving the proposed rule change.

I. Description

(1) Using Fund Shares as a Form of

Margin

The proposal amends subparagraph

(4) of OCC Rule 604(d), which sets forth

the margin deposit eligibility

requirements for debt and equity issues,

to permit OCC’s clearing members to

deposit as a form of margin collateral

fund shares issued by open-end

management investment companies that

hold portfolios or baskets of common

stocks (‘‘fund shares’’).3 The proposal

amends the term ‘‘stock’’ defined Rule

604(d)(4) to include fund shares. Fund

shares will have to meet the

requirements applicable to stocks under

Rule 604(d) and be of a class approved

by OCC for deposit as margin to be

eligible for deposit as margin collateral.

Because Rule 604(d)(1) requires that a

stock be exchange listed or traded on

the NASDAQ National Market System,

the ‘‘publicly traded’’ requirement of

subparagraph (4) has been deleted. The

proposal also amends Section 11 of

OCC’s Interpretations and Policies to

require that OCC’s Membership/Margin

Committee (‘‘Committee’’) approve

classes of fund shares for deposit as

margin. Presently, World Equity

Benchmark Shares (‘‘WEBS’’) listed on

the American Stock Exchange are the

only class of fund shares the Committee

has approved.

(2) Using Fund Shares and Trust Units

as Escrow Deposits

The proposal amends OCC Rule

1801(b), which relates to index option

escrow deposits, by adding new

subparagraph (2) which will define the

term ‘‘common stocks’’ to include fund

shares and trust units.4 By adding this

definition, OCC Rule 1801(b) now

permits clearing members to use fund

shares and trust units as part of an

escrow deposit made with respect to

index call option contracts carried in a
50648 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Notices

5OCC has filed with the Commission a proposed

rule change that will authorize OCC to issue and

clear options on fund shares and trust units.

Securities Exchange Act Release No. 38706 (June 2,

1997, 62 FR 31468. OCC also asserts that, if

approved by the Commission, fund shares and trust

units will by definition become ‘‘underlying

securities as defined by Article I, Section 1 of OCC’s

bylaws,’’ and escrow deposits with respect to call

option contracts on these underlying securities

carried in a short position will be automatically

permitted under the existing provisions of OCC

Rule 610, which relates to the deposit of underlying

securities in lieu of margin.

6OCC has indicated that if the Commission

approves the proposal, OCC will send a notice to

each of its custodian banks advising them that the

term ‘‘common stocks’’ as used in the Amended and

Restated On-Line Escrow Deposit Agreement

includes the SPDRs and WEBS identified above.

7 15 U.S.C. 78q–1(b)(3)(F).

8Securities Exchange Act Release No. 38105,

(December 31, 1996) 62 FR 1014 [File No. SR–OCC–

96–13] (order approving a proposed rule change

relating to unit investment trusts as margin

collateral). 9 17 CFR 200.30–3(a)(12).

short position in a clearing members’

customer account.5

The language of the new definition

parallels that of Rule 604(d), as

amended herein. Accordingly, fund

shares and trust units deposited as

index option escrow deposits must meet

the existing requirements for deposits of

common stock under Rule 1801(b) and

must be of a class approved by OCC for

deposit as margin collateral. Because the

Committee already has approved for

deposit as margin SPDRs on the S&P

500 Index and S&P 400 Mid-Cap Index

(as an eligible class of trust units) and

WEBS (as an eligible class of fund

shares), upon approval of this rule filing

SPDRs and WEBS will be eligible for

use as escrow deposits for short

positions in index call options.6

II. Discussion

Section 17A(b)(3)(F) 7 of the Act

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds in

its custody or control or for which it is

responsible. Because fund shares and

trust units, among other things, must be

either traded on a national securities

exchange or designated as a national

market system security to be eligible as

margin collateral, the proposal ensures

that only liquid securities will be

accepted as a form of margin or an

escrow deposit. In addition, fund shares

and trust units are typically traded and

cleared like shares of common stock and

are typically held in book-entry form at

a securities depository.8 As a result,

OCC believes it will be able to readily

perfect a security interest in deposited

fund shares and will be able to liquidate

them if necessary. Furthermore, OCC

already has had an opportunity to gain

experience in accepting trust units as a

form of margin and will be able to use

this experience in expanding to fund

shares. Therefore, the Commission

believes that OCC’s proposed rule

change is consistent with OCC’s

obligations under the Act to safeguard

securities and funds.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

OCC–97–01) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25520 Filed 9–25–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Performance Review Board:

Membership

AGENCY: Securities and Exchange

Commission.

ACTION: Notice of membership of

Performance Review Board.

SUMMARY: In accordance with 5 U.S.C.

4314(c)(4), the U.S. Securities and

Exchange Commission announces the

appointment of Performance Review

Board members.

EFFECTIVE DATE: November 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Carol S. Smith, U.S. Securities and

Exchange Commission, Washington, DC

20549 (202) 942–4198.

The following are the names and

present titles of the individuals

appointed to the Performance Review

Board established by the U.S. Securities

and Exchange Commission.

Name, Title, Organization

Jennifer Scardino, Chief of Staff, Office

of the Chairman

James M. McConnell, Executive

Director, Office of the Executive

Director

Richard Walker, General Counsel, Office

of the General Counsel

For the Chairman, by the Executive

Director, pursuant to delegated authority.

Dated: September 18, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–25605 Filed 9–25–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Data Collection Available for Public

Comments and Recommendations

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995, this

notice announces the Small Business

Administration’s intentions to request

approval on a new, and/or currently

approved information collection.

DATES: Comments should be submitted

on or before November 25, 1997.

FOR FURTHER INFORMATION CONTACT:

Curtis B. Rich, Management Analyst,

Small Business Administration, 409 3rd

Street, S.W., Suite 5000, Washington,

D.C. 20416. Phone Number: 202–205–

6629.

SUPPLEMENTARY INFORMATION:

Title: ‘‘Request for Management and

Technical Assistance’’.

Type of Request: Revision of

Currently Approved Collection.

Form No: 641.

Description of Respondents:

Individuals Requesting Counseling

Management Counseling from SBA.

Annual Responses: 450,000.

Annual Burden: 59,850.

Title: ‘‘Counselor’s Case Report’’.

Tye of Request: Revisions of Currently

Approved Collection.

Form No: 641A.

Description of Respondents: SBI and

Score Counselors.

Annual Responses: 450,000.

Annual Burden: 90,000.

Comments: Send all comments

regarding these information collections

to John Bebris, Director, Business

Education & Resource Management,

Small business Administration, 409 3rd

Street, S.W., Suite 6100, Washington,

D.C. 20416. Phone No: 202–205–7424.

Send comments regarding whether these

information collections are necessary for

the proper performance of the function

of the agency, accuracy of burden

estimate, in addition to ways to

minimize these estimates, and ways to

enhance the quality.

Jacqueline White,

Chief, Administrative Information Branch.

[FR Doc. 97–25627 Filed 9–25–97; 8:45 am]

BILLING CODE 8025–01–M