5268 Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Notices

1On January 24, 1997, the Exchange filed with

the Commission an amendment (‘‘Amendment No.

1’’) to the proposed rule change. The amendment,

among other things, clarifies what actions the

Exchange may take in consultation with the

Commission in the event that the Index fails to meet

certain maintenance criteria. Letter from Nandita

Yagnik, Esq., New Product Development, PHLX, to

Janet Russell-Hunter, Esq., Special Counsel, Office

of Market Supervision, Division of Market

Regulation, SEC, dated January 23, 1997.

2A list of the specific issues together with their

number of shares and percentage in the Oil Service

Index as of December 23, 1996 is attached to the

filing as Exhibit B.

3Securities exchange Act Release No. 34157 (June

3, 1994), 59 FR 30062 (‘‘Generic Index Approval

Order’’).

4Supra note 3.

[Release No. 34–38207; File No. SR–PHLX–

97–02]

Self-Regulatory Organizations; Notice

of Filing of and Immediate

Effectiveness of Proposed Rule

Change by the Philadelphia Stock

Exchange, Inc. Proposing to List and

Trade Options and LEAPS on the PHLX

Oil Service Index

January 27, 1997.

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

Securities Exchange Act of 1934, 15

U.S.C. 78s(b)(1), notice is hereby given

that on January 22, 1997, the

Philadelphia Stock Exchange Inc. filed

with the Securities and Exchange

Commission the proposed rule change

as described in Items I, II, and III below,

which Items have been prepared by the

self-regulatory organization.1 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

The Philadelphia Stock Exchange,

Inc. (‘‘PHLX’’ or the ‘‘Exchange’’)

pursuant to Rule 19b–4 of the Securities

Exchange Act of 1934 (‘‘Act’’) proposes

to list and trade options and LEAPS on

the PHLX Oil Service Index (‘‘Oil

Service Index’’ or ‘‘Index’’) composed of

the stocks of 15 corporations involved

in the oil service industry.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for the Proposed Rule

Change

In its filing with the Commission, the

self-regulatory organization included

statements concerning the purpose of

and basis for the proposed rule change

and discussed any comments its

received on the proposed rule change.

The text of these statements may be

examined at the places specified in Item

IV below. The self-regulatory

organization has prepared summaries,

set forth in sections 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 purpose of the proposed rule

change is to list for trading European

style options on the PHLX Oil Service

Index, a new index developed by the

Exchange. The Oil Service Index is

comprised of 15 companies operating in

the oil service industry. The companies

included within the index provide

drilling and production services, oil

field equipment, onshore and offshore

drilling and support services and

geophysical/reservoir services.2 The

Exchange also represents that the Oil

Service Index meets the generic criteria

for listing options on narrow-based

indexes as set forth in PHLX Rule

1009A. Accordingly, the Exchange is

submitting this proposed rule change

pursuant to and in accordance with the

procedures set forth in the

Commission’s generic index approval

order 3 and the PHLX proposes to list

and trade options on the Index no

sooner than 30 days after the filing date

of this proposed rule change.

Ticker Symbol: OSX.

Settlement Value Symbol: OSV.

Underlying Index: The PHLX Oil

Service Index is a price weighted index

composed of 15 stocks from the Oil

Service industry that are traded on

either in the New York Stock Exchange

(‘‘NYSE’’) or the NASDAQ market

(‘‘NASDAQ’’), and are, therefore,

reported securities as defined in Rule

11Aa3–1 under the Act. Further, they all

presently meet the Exchange’s listing

criteria for equity options contained in

PHLX Rule 1009 and are currently the

subject of listed options on U.S. options

exchanges.

As of December 23, 1996, the market

capitalization of all stocks in the index

exceeded $60 billion and such

individual capitalizations ranged from

$392 million to $25 billion. All 15

component issues in the Index had

monthly trading volumes in excess of

one million shares over each of the past

six months from July through December

1996. Accordingly, the Exchange

represents that with respect to the

criteria for market capitalization and

trading volume, the Index satisfies the

generic listing standards as stated in

PHLX Rule 1009A. Further, the largest

single component represents 16.6% of

the weight of the index and the five

highest weighted components do not in

the aggregate account for more than

60% of the weight of the index. The

value of the index is set at 75 as of

December 31, 1996.

Index Calculation: The Index is a

price weighted index. To compute the

Oil Service Index, the following formula

would be used:

SP SP SP

divisor

1 2 17 100 + +⋅ ⋅ ⋅

×

Where:

SP- current stock price

divisor = number of stocks in the index

Index Maintenance: To maintain the

continuity of the Index, the divisor will

be adjusted to reflect non-market

changes in the price of the component

securities as well as changes in the

composition of the index. Changes

which may result in divisor adjustments

include but are not limited to stock

splits, dividends, spin-offs, certain

rights issuances and mergers and

acquisitions.

The Exchange shall maintain the

index in accordance with the Generic

Index Approval Order.4 If the Index fails

at any time to satisfy the maintenance

criteria set forth in the Generic Index

Approval Order, the Exchange will

immediately notify the Commission of

that fact and will not open for trading

any additional series of options on the

Index unless failure is determined by

the Exchange not to be significant and

the Commission concurs in that

determination or unless the continued

listing of options on the PHLX Oil

Service Index has been approved by the

Commission under Section 19(b)(2) of

the Act. In addition to not opening for

trading any additional series, the

Exchange may, in consultation with the

Commission, prohibit opening purchase

transactions in series of options
Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Notices 5269

5Pending approval by the Commission, the PHLX

proposes to utilize its own internal system’s

calculation of index values in certain

circumstances. See SR–PHLX–96–36 Regarding

Index Value Calculations by the Index Calculation

Engine (‘‘ICE’’) System.

6The Commission notes that pursuant to Article

XVII, Section 4 of the Options Clearing

Corporation’s (‘‘OCC’’) by-laws, OCC is empowered

to fix an exercise settlement amount in the event

it determines a current index value is unreported

or otherwise unavailable. Further, OCC has the

authority to fix an exercise settlement amount

whenever the primary market for the securities

representing a substantial part of the value of an

underlying index is not open for trading at the time

when the current index value (i.e., the value used

for exercise settlement purposes) ordinary would be

determined. See Securities Exchange Act Release

No. 37315 (June 17, 1996), 61 FR 42671 (order

approving SR–OCC–95–19). 7Supra note 3.

previously opened for trading. (e.g.,

PHLX Rule 1010).

Absent Commission approval, the

Exchange will not increase the number

of components to more than 20 or

decrease the number to fewer than 10,

and in no event will the Exchange

decrease the number of components

within the index to less than nine

components. The PHLX will not make

any change in the composition of the

Index that would cause fewer than 90%

of the stocks, by weight or fewer than

80% of the total number of stocks in the

index to qualify as stocks eligible for

equity options trading under PHLX Rule

1009. The Exchange represents that only

U.S. companies are represented in the

Oil Service Index. However, if non-U.S.

components (stocks or American

Depositary Receipts) are added that are

not subject to comprehensive

surveillance sharing agreements

between the PHLX and the primary

exchange on which the components are

traded, those components will account

for no more than 20% of the index by

weight.

The PHLX Oil Service Index value

will be disseminated every 15 seconds

during the trading day. The PHLX has

retained Bridge Data Inc. to compute

and to do all necessary maintenance of

the Index.5 Pursuant to PHLX Rule

1100A, updated Index values will be

disseminated and displayed by means of

primary market prints reported by the

Consolidated Tape Association and over

the facilities of the Options Price

Reporting Authority. The Index value

will also be available on broker-dealer

interrogation devices to subscribers of

the options information.

Unit of Trading: Each options contract

will represent $100, the index

multiplier, times the Index value. For

example, an Index value of 200 will

result in an option contract value of

$20,000 (100 x 200).

Exercise Price: The Exercise prices

will be set in accordance with PHLX

Rule 1101A(a).

Settlement Value: The Index value for

purposes of setting outstanding Index

options and Index LEAPS contracts

upon expiration will be calculated

based upon the regular way opening

sale prices for each of the Index’s

component stocks in their primary

market on the last trading day prior to

expiration. In the case of the National

Market Securities traded through

NASDAQ, the first reported sale price

will be used for the final settlement

value for expiring Index options

contracts. If any of the component

stocks do not open for trading on the

last trading day before expiration, then

the settlement value will be determined

in accordance with the by-laws and

rules of the Options Clearing

Corporation (‘‘OCC’’).6

Last Trading Day: The last trading day

will be the Thursday prior to the third

Friday of the month for options which

expire on the Saturday following the

third Friday of that month.

Trading Hours: 9:30 a.m. to 4:10 p.m.

EST.

Position and Exercise Limits: The

PHLX Oil Service Index is an industry

index. The PHLX will employ position

and exercise limits pursuant to PHLX

Rules 1001A(b)(i) and 1002A,

respectively. The position and exercise

limits will, therefore, be 15,000

contracts.

Expiration Cycles: Three-months from

the March, June, September, December

cycle plus at least 2 additional nearterm months. LEAPS will also be traded

on the Index pursuant to PHLX Rule

1101A(b)(iii).

Exercise Style: Exercise style will be

European.

Premium Quotations: Premiums will

be expressed in terms of dollars and

fractions of dollars pursuant to PHLX

Rule 1033A. For example, a bid or offer

of 11⁄2 will represent a premium per

options contract of $150 (11⁄2 x 100).

The options will be traded pursuant

to current PHLX Rules governing the

trading of index options (see,

particularly, PHLX Rule 1000A through

1102A and generally PHLX Rules 1000

through 1072). The Exchange also

represents that surveillance procedures

currently used to monitor trading in

index options will be applicable to this

Index. These procedures include having

complete access to trading activity in

the underlying securities which are all

traded on either the NYSE or NASDAQ.

In addition, the Intermarket

Surveillance Group Agreement (‘‘ISG

Agreement’’) dated July 14, 1983, as

amended on January 29, 1990 will be

applicable to the trading of options on

the Index.

The proposed rule change is

consistent with Section 6 of the Act in

general, and in particular with Section

6(b)(5), in that it is designed to promote

just and equitable principles of free

trade, prevent fraudulent and

manipulative acts and practices, to

foster cooperation and coordination

with persons engaged in regulating,

clearing, settling, processing

information with respect to and

facilitating transactions in securities to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, as well as

to protect investors and the public

interest.

B. Self-Regulatory Organization’s

Statement on the Burden on

Competition

The PHLX does not believe that the

proposed rule change will impose any

inappropriate burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments were solicited

or received at the time of the filing.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing rule change

complies with the standards set forth in

the Generic Index Approval Order,7 it

has become effective pursuant to

Section 19(b)(3)(A) of the Act and

subparagraph (e) of Rule 19b–4

thereunder. Pursuant to the Generic

Index Approval Order, the Exchange

may not list Index options for trading

prior to 30 days after the date that the

amended proposed rule change was

formally filed with the Commission. At

any time within 60 days of the filing of

such proposed rule change, the

Commission may summarily abrogate

such rule change if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors

or otherwise in furtherance of the

purposes of the Act.

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.,
5270 Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Notices

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

Section, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office at the PHLX. All submissions

should refer to File No. SR–PHLX–97–

02, and should be submitted by

February 25, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–2629 Filed 2–3–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2923]

Nevada; Declaration of Disaster Loan

Area (Amendment #1)

In accordance with notices from the

Federal Emergency Management

Agency, dated January 15 and 17, 1997,

the above-numbered Declaration is

hereby amended to include Mineral and

Churchill Counties, including the

Walker River Paiute tribal lands located

in Lyon, Churchill, and Mineral

Counties in the State of Nevada as a

disaster area due to damages caused by

severe storms, flooding, and mud and

land slides. This declaration is further

amended to establish the incident

period for this disaster as beginning on

December 20, 1996 and continuing

through January 17, 1997.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Esmeralda, Lander and Nye in the State

of Nevada may be filed until the

specified date at the previously

designated location.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is

March 4, 1997, and for loans for

economic injury the deadline is October

3, 1997.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: January 23, 1997.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 97–2741 Filed 2–3–97; 8:45 am]

BILLING CODE 8025–01–P

[Declaration of Disaster Loan Area #2918]

New York; Declaration of Disaster

Loan Area, (Amendment #2)

In accordance with a notice from the

Federal Emergency Management

Agency, dated January 14, 1997, the

above-numbered Declaration is hereby

amended to include Tompkins County

in the State of New York as a disaster

area due to damages caused by severe

thunderstorms, high winds, rain and

flooding which occurred November 8–

15, 1996.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Cayuga and Cortland in the State of New

York may be filed until the specified

date at the previously designated

location.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is

February 7, 1997, and for loans for

economic injury the deadline is

September 9, 1997.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: January 23, 1997.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 97–2740 Filed 2–3–97; 8:45 am]

BILLING CODE 8025–01–P

[Declaration of Disaster Loan Area #2927]

Washington; Declaration of Disaster

Loan Area

As a result of the President’s major

disaster declaration on January 17, 1997,

I find that King and Snohomish

Counties in the State of Washington

constitute a disaster area due to

damages caused by winter storms, land

and mud slides, and flooding beginning

on December 26, 1996 and continuing.

Applications for loans for physical

damages may be filed until the close of

business on March 18, 1997, and for

loans for economic injury until the close

of business on October 17, 1997 at the

address listed below: U.S. Small

Business Administration, Disaster Area

4 Office, P. O. Box 13795 Sacramento,

CA 95853–4795, or other locally

announced locations. In addition,

applications for economic injury loans

from small businesses located in the

contiguous counties of Chelan, Island,

Kitsap, Kittitas, Pierce, Skagit, and

Yakima in the State of Washington may

be filed until the specified date at the

above location.

Interest rates are:

Percent

For Physical Damage:

Homeowners with credit available elsewhere ........................ 8.000

Homeowners without credit available elsewhere ........................ 4.000

Businesses with credit available

elsewhere ................................ 8.000

Businesses and non-profit organizations without credit available elsewhere ........................ 4.000

Others (including non-profit organizations) with credit available

elsewhere ................................ 7.250

For Economic Injury:

Businesses and small agricultural

cooperatives without credit

available elsewhere ................. 4.000

The number assigned to this disaster

for physical damage is 292711 and for

economic injury the number is 935400.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: January 23, 1997.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 97–2742 Filed 2–3–97; 8:45 am]

BILLING CODE 8025–01–P

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

Notice of Meeting of the Industry

Sector Advisory Committee on Small

and Minority Business (ISAC 14)

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice of meeting.

SUMMARY: The Industry Sector Advisory

Committee on Small and Minority

Business (ISAC 14) will hold a meeting

on February 24, 1997 from 9:45 a.m. to

4:00 p.m. The meeting will be open to

the public from 9:45 a.m. to 12:45 p.m.

DATES: The meeting is scheduled for

February 24, 1997, unless otherwise

notified.

ADDRESSES: The meeting will be held at

the Department of Commerce in Room

4830, located at 14th Street and

Constitution Avenue, NW., Washington,

DC, unless otherwise notified.

FOR FURTHER INFORMATION CONTACT:

Millie Sjoberg, Department of

Commerce, 14th St. and Constitution

Ave., NW., Washington, DC 20230, (202)