Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices 53373

9 15 U.S.C. 78q–1(b)(3)(F).

10 15 U.S.C. 78q–1(a)(2)(A)(ii).

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

12 17 CFR 200.30-3(a)(12).

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

2 17 CFR 240.19b–4.

be modified without the approval of the

clearing organization. These changes are

intended for the protection of OCC and

BOTCC. OCC has informed the

Commission that all other changes to

the market professionals agreements are

either stylistic or nonsubstantive in

nature.

OCC believes that the proposed rule

change is consistent with the purposes

and requirements of section 17A of the

Act because cross-margining enhances

the safety of the clearing system while

providing lower clearing margin costs to

participants.

(B) Self-Regulatory Organization’s

Statement on Burden of Competition

OCC does not believe that the

proposed rule change would impose any

burden on competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Written comments were not and are

not intended to be solicited with respect

to the proposed rule change, and none

have been received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F) of the Act 9

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody and control of

the clearing agency or for which it is

responsible. Section 17A(a)(2)(A)(ii) of

the Act 10 directs the Commission to use

its authority under the Act to facilitate

the establishment of transactions in

securities, securities options, contracts

of sale for future delivery and options

thereon, and commodity options. The

Commission believes that the proposed

rule change is consistent with these

requirements under the Act.

Similar to other cross-margining

arrangements to which OCC is a party,

the current proposal links and

coordinates the clearance and

settlement facilities of OCC and BOTCC

with respect to shared management of

risks associated with the clearing

members’ intermarket portfolios and

with respect to information sharing

regarding the financial condition of

participating joint and affiliated

members. The Commission views crossmargining arrangements as a significant

risk reduction method because they

provide a means whereby individual

clearing organizations do not have to

manage independently the risk

associated with some components (i.e.,

the futures or options component) of a

clearing member’s total portfolio.

Therefore, cross-margining programs

serve to help OCC assure the

safeguarding of securities and funds and

to facilitate the establishment of linked

or coordinated facilities for the

clearance and settlement of futures and

options, transactions in securities.

OCC has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after

publication of the notice of filing. The

Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after

publication of the notice of the filing

because the proposed changes to the

OCC/BOTCC cross-margining program

are based on the OCC/CME/CCC crossmargining program, which the

Commission has previously approved.

In addition, the Commission does not

expect to receive any adverse comments

on the proposed rule change.

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, NW.,

Washington, DC 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 in

the Commission’s Public Reference

Section 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of OCC. All submissions should

refer to File No. SR–OCC–97–14 and

should be submitted by November 4,

1997.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

OCC–97–14) be and hereby is approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27052 Filed 10–10–97; 8:45 am]

BILLING CODE 8010–10–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39188; File No. SR–PCX–

97–35]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Pacific Exchange, Inc., Relating to

the Listing and Trading of Portfolio

Depositary Receipts

October 2, 1997.

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

Securities Exchange Act of 1934

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

notice is hereby given that on August

25, 1997, the Pacific Exchange, Inc.

(‘‘PCX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I, II

and III below, which Items have been

prepared by the self-regulatory

organization. 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 PCX proposes to adopt new rules

relating to the listing and trading of

Portfolio Depositary Receipts (‘‘PDRs’’).

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 it 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

1. Purpose

The Exchange proposes to adopt new

Rule 8.300 to accommodate the trading
53374 Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices

3The Commission notes that PCX has not

identified a particular trading product that it seeks

to list pursuant to the proposed listing standards.

Prior to trading a particular product, PCX may have

to submit an additional Section 19(b) filing that

more specifically addresses potential issues

associated with items such as the composition,

calculation and dissemination of the applicable

index.

4See Securities Exchange Act Release No. 38221

(January 31, 1997), 62 FR 5871 (February 7, 1997)

& note 7 therein.

of PDRs, i.e., securities that are interests

in a unit investment trust (‘‘Trust’’)

holding a portfolio of securities linked

to an index. Each Trust will provide

investors with an instrument that (1)

closely tracks the underlying portfolio

of securities, (2) trades like a share of

common stock, and (3) pays holders of

the instrument periodic dividends

proportionate to those paid with respect

to the underlying portfolio of securities,

less certain expenses (as described in

the Trust prospectus).

Under the proposal, the Exchange

may list and trade, or trade pursuant to

unlisted trading privileges, PDRs based

on one or more stock indexes or

securities portfolios.3 PDRs based on

each particular stock index or portfolio

will be designated as a separate series

and identified by a unique symbol. The

stocks that are included in an index or

portfolio on which PDRs are based will

be selected by the Exchange, or by

another person having a proprietary

interest in and authorize use of such

index or portfolio, and may be revised

as may be deemed necessary or

appropriate to maintain the quality and

character of the index or portfolio.

In connection with an initial listing,

the Exchange proposes that, for each

Trust of PDRs, the Exchange will

establish a minimum number of PDRs

required to be outstanding at the time of

commencement of Exchange trading,

and such minimum number will be filed

with the Commission in connection

with any required submission under

Rule 19b–4 for each Trust. If the

Exchange trades a particular PDR

pursuant to unlisted trading privileges,

the Exchange will follow the listing

exchange’s determination of the

appropriate minimum number.

Because the Trust operates on an

open-end type basis, and because the

number of PDR holders is subject to

substantial fluctuations depending on

market conditions, the Exchange

believes it would be inappropriate and

burdensome on PDR holders to consider

suspending trading in or delisting a

series of PDRs, with the consequent

termination of the Trust, unless the

number of holders remains severely

depressed during an extended time

period. Therefore, twelve months after

the formation of a Trust and

commencement of Exchange trading, the

Exchange will consider suspension of

trading in, or removal from listing of, a

Trust when, in its opinion, further

dealing in such securities appears

unwarranted under the following

circumstances:

(a) If the Trust on which the PDRs are

based has more than 60 days remaining

until termination and there have been

fewer than 50 record and/or beneficial

holders of the PDRs for 30 or more

consecutive trading days; or

(b) if the index on which the Trust is

based is no longer calculated; or

(c) if such other event occurs or

condition exists, which, in the opinion

of the Exchange, makes further dealings

in such securities on the Exchange

inadvisable.

A Trust will terminate upon removal

from Exchange listing and its PDRs will

be redeemed in accordance with

provisions of the Trust prospectus. A

Trust may also terminate under such

other conditions as may be set forth in

the Trust prospectus. For example, the

sponsor of the Trust (the ‘‘Sponsor’’),

following notice to PDR holders, will

have discretion to direct that the Trust

be terminated if the value of securities

in such Trust falls below a specified

amount.

Trading of PDRs. Dealing in PDRs on

the Exchange will be conducted

pursuant to the Exchange’s general

agency-auction trading rules. The

Exchange’s general dealing and

settlement rules would apply, including

its rules on clearance and settlement of

securities transactions and its equity

margin rules. Other generally applicable

Exchange equity rules and procedures

would also apply, including, among

others, rules governing the priority,

parity and precedence of orders and the

responsibilities of specialists.

With respect to trading halts, the

trading of PDRs would be halted, along

with the trading of all other listed or

traded stocks, in the event the ‘‘circuit

breaker’’ thresholds are reached.4 PCX

does not propose to automatically halt

trading or delay opening of index-based

PDRs upon the triggering of futures

price limits for the S&P 500 Composite

Price Index, S&P’’ 100 Composite Price

Stock Index (‘‘S&P’’ ‘‘100 Index’’) or

Major Market Index (‘‘MMI’’) futures

contracts. Such an event, however,

could be considered by the Exchange,

along with other factors, such as a halt

in trading in S&P 100 Index Options

(‘‘OEX’’), S&P 500 Index Options

(‘‘SPX’’), or Major Market Index Options

(‘‘XMI’’), in deciding whether to halt

trading in PDRs.

The Exchange will issue a circular to

its Members and Member Organizations

informing them of Exchange policies

regarding trading halts in such

securities. The circular will make clear

that, in addition to other factors that

may be relevant, the Exchange may

consider factors such as those set forth

in Rule 7.11, the Exchange’s rule

governing trading halts for index

options, in exercising its discretion to

halt or suspend trading. For a PDR

based on an index, these factors would

include whether trading has been halted

or suspended in the primary market(s)

for any combination of underlying

stocks accounting for 20% or more of

the applicable current index group

value; or whether other unusual

conditions or circumstances detrimental

to the maintenance of a fair and orderly

market are present.

Disclosure. Proposed Rule 8.300(c)

requires that Members and Member

Organizations provide to all purchasers

of each series of PDRs a written

description of the terms and

characteristics of such securities, in a

form approved by the Exchange, not

later than the time a confirmation of the

first transaction in such series of PDRs

is delivered to such purchaser. In this

regard, a Member or Member

Organization carrying an omnibus

account for a non-member broker-dealer

will be required to inform such nonmember than execution of an order to

purchase PDRs for such omnibus

account will be deemed to constitute an

agreement by the non-member to make

such written description available to its

customers on the same terms as are

directly applicable to Member or

Member Organizations. The written

description must be included with any

sales material on that series of PDRs that

a Member provides to customers or the

public. Moreover, other written

materials provided by a Member or

Member Organization to customers or

the public making specific reference to

a series of PDRs as an investment

vehicle must include a statement in

substantially the following form: ‘‘A

circular describing the terms and

characteristics of [the series of PDRs] is

available from your broker. It is

recommended that you obtain and

review such circular before purchasing

[the series of PDRs]. In addition, upon

request you may obtain from your

broker a prospectus for [the series of

PDRs].’’ Additionally, as noted above,

the Exchange requires that Members and

Member Organizations provide

customers with a copy of the prospectus

for a series of PDRs upon request.
Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices 53375

5SPDRs and MidCap SPDRs are defined and

discussed more fully below.

6See Securities Exchange Act Release No. 31591

(December 11, 1992), 57 FR 60253 (December 18,

1992).

7The S&P MidCap 400 Index is a capitalizationweighted index of 400 actively traded securities

that includes issues selected from a population of

1,700 securities, each with a year-end market-value

capitalization of between $200 million and $5

billion. The issues included in the Index cover a

broad range of major industry groups, including

industrials, transportation, utilities, and financials.

8See Securities Exchange Act Release No. 35534

(March 24, 1995), 60 FR 16686 (March 31, 1995).

9The SPDR Trust may terminate at an earlier time

under certain circumstances, as provided in the

prospectus.

10The Trustee will abstain from voting if the

stocks held by the Trust cannot be voted in

proportion as all other shares of the securities are

voted.

11A Portfolio Deposit also will include a cash

payment equal to a pro rata portion of the dividends

accrued on the Trust’s portfolio securities since the

last dividend payment by the Trust, plus or minus

an amount designed to compensate for any

difference between the net asset value of the

Portfolio Deposit and the S&P 500 Index caused by,

among other things, the fact that a Portfolio Deposit

cannot contain fractional shares.

12The Trust is structured so that the net asset

value of an individual SDPR should equal one-tenth

of the value of the S&P 500 Index.

13The Amex has designated 1⁄64’s as the

minimum fraction for trading in SPDRs. The

Exchange has proposed this same minimum

variation for the trading of SPDRs on the PCX.

14An investor redeeming a Creation Unit will

receive Index securities and cash identical to the

Portfolio Deposit required of an investor wishing to

purchase a Creation Unit on that particular day.

Since the Trust will redeem in kind rather than for

cash, the Trustee will not be forced to maintain

cash reserves for redemptions. This should allow

the Trust’s resources to be committed as fully as

possible to tracking the S&P 500 Index, enabling the

Trust to track the Index more closely than other

basket products that must allocate a portion of their

assets for cash redemption.

Two existing PDRs, SPDRs, and

MidCap SPDRs, are traded on the

American Stock Exchange (‘‘Amex’’).5

The Exchange is not asking for

permission to list SPDRs or MidCap

SPDRs at this time, but rather with trade

SPDRs and MidCap SPDRs pursuant to

unlisted trading privileges once the

generic listing standards set forth herein

are approved.

Pursuant to Rule 12f–5 under the Act,

in order to trade a particular class or

type of security pursuant to unlisted

trading privileges, the Exchange must

have rules providing for transactions in

such class or type of security. The Amex

has enacted listing standards for PDRs,

and the Exchange’s proposed rule

change is designed to create similar

standards for PDR listing and/or trading

on the PCX. As stated above, the

Exchange proposes to trade SPDRs and

MidCap SPDRs pursuant to unlisted

trading privileges upon arrival of this

rule filing.

Because the Exchange is not itself

listing SPDRs and MidCap SPDRs, but

will merely be trading these securities

pursuant to unlisted trading privileges,

the Exchange will not independently

ensure conformity of SPDRs and

MidCap SPDRs to PCX listing standards.

Instead, the Exchange will rely on the

primary market to determine whether

SPDRs and MidCap SPDRs meet the

relevant listing standards. If at a later

time the Exchange desires to list SPDRs

and MidCap SPDRs, the Exchange will

request SEC approval for that listing in

a separate proposed rule change filed

pursuant to Section 19(b) of the Act, the

Exchange will independently ensure

that SPDRs and MidCap SPDRs conform

to the Exchange’s own listing standards.

The remainder of this section of the

filing merely provides background

information on SPDRs and MidCap

SPDRs. The information, taken mostly

from SR–AMEX–94–52 and SR–AMEX–

92–18, describes the structure and

mechanics of SPDRs and MidCap

SPDRs.

SPDRs and MidCap SPDRs Generally.

On December 11, 1992, the Commission

approved Amex Rules 1000 et seq.6 to

accommodate trading on the Amex of

PDRs generally. The Sponsor of each

series of PDRs traded on the Amex is

PDR Services Corporation, a whollyowned subsidiary of the Amex. The

PDRs are issued by a Trust in a specified

minimum aggregate quantity (‘‘Creation

Unit’’) in return for a deposit consisting

of specified numbers of shares of stock

plus a cash amount.

The first Trust to be formed in

connection with the issuance of PDRs

was based on the S&P 500 Composite

Stock Price Index (‘‘S&P’’ Index), known

as Standard & Poor’s Depositary

Receipts (‘‘SPDRs’’). SPDRs have been

trading on Amex since January 29, 1993.

The second Trust to be formed in

connection with the issuance of PDRs

was based on the S&P MidCap 400

Index,7 known as Standard & Poors

MidCap 400 Depositary Receipts

(‘‘MidCap SPDRs’’).8 The Sponsor of the

two Trusts has entered into trust

agreements with a trustee in accordance

with Section 26 of the Investment

Company Act of 1940. PDR Distributors,

Inc. (‘‘Distributor’’) acts as underwriter

of both SPDRs and MidCap SPDRs on an

agency basis. The Distributor is a

registered broker-dealer, a member of

the National Association of Securities

Dealers, Inc., and a wholly-owned

subsidiary of Signature Financial Group,

Inc.

SPDRs. It is anticipated that the term

of the SPDR Trust will be 25 years.9 The

Trustee of the SPDR Trust will have the

right to vote any of the voting stocks

held by the Trust, and will vote such

stocks of each issuer in the same

proportion as all other voting shares of

that issuer voted.10 Therefore, SPDR

holders will not be able to directly vote

the shares of the issuers underlying the

SPDRs.

The Trust will issue SPDRs in

exchange for ‘‘Portfolio Deposits’’ of all

of the S&P 500 Index securities

weighted according to their

representation in the Index.11 An

investor making a Portfolio Deposit into

the Trust will receive a ‘‘Creation Unit’’

composed of 50,000 SPDRs.12 The price

of SPDRs will be based on a current bid/

offer market.13 SPDRs will not be

redeemable individually, but may be

redeemed in Creation Unit size (i.e.,

50,000 SPDRs). Specifically, a Creation

Unit may be redeemed for an-in-kind

distribution of securities identical to a

Portfolio Deposit.14 PDR Distribution

Services, Inc., a registered broker-dealer,

will act as underwriter of SPDRs on an

agency basis.

MidCap SPDRs. All orders to create

MidCap SPDRs in Creation Unit Size

aggregations (which has been set at

25,000) must be placed with the

Distributor, and it will be the

responsibility of the Distributor to

transmit such orders to the Trustee.

To be eligible to place orders to create

MidCap SPDRs as described below, an

entity or person either must be a

participant in the Continuous Net

Settlement (‘‘CNS’’) system of the

National Securities Clearing Corporation

(‘‘NSCC’’) or a Depositary Trust

Company (‘‘DTC’’) participant. Upon

acceptance of an order to create MidCap

SPDRs, the Distributor will instruct the

Trustee to initiate the book-entry

movement of the appropriate number of

MidCap SPDRs to the account of the

entity placing the order. MidCap SPDRs

will be maintained in book-entry form at

DTC.

Payment with respect to creation

orders placed through the Distributor

will be made by: (1) The ‘‘in-kind’’

deposit with the Trustee of a specified

portfolio of securities that is formulated

to mirror, to the extent practicable, the

component securities of the underlying

index or portfolio, and (2) a cash

payment sufficient to enable the Trustee

to make a distribution to the holders of

beneficial interests in the Trust on the

next dividend payment date as if all the

securities had been held for the entire

accumulation period for the distribution

(‘‘Dividend Equivalent Payment’’),

subject to certain adjustments. The

securities and cash accepted by the
53376 Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices

15PDRs may be created in other than Creation

Unit size aggregations in connection with the DTC

Dividend Reinvestment Service (‘‘DRS’’).

16The creation of PDRs in connection with the

DTC DRS represents the only circumstances under

which PDRs can be created in other than Creation

Unit size aggregations.

17 15 U.S.C. 78f(b)(5).

Trustee are referred to, in the aggregate,

as a ‘‘Portfolio Deposit.’’

It is anticipated that the term of the

MidCap SPDR Trust will be 25 years.

Issuance of MidCap SPDRs. Upon

receipt of a Portfolio in payment for a

creation order placed through the

Distributor as described above, the

Trustee will issue a specified number of

MidCap SPDRs, which aggregate

number is referred to as a ‘‘Creation

Unit.’’ The Amex anticipates that a

Creation Unit will be made up of 25,000

MidCap SPDRs.15 Individual Mid Cap

SPDRs can then be traded in the

secondary market like other equity

securities. Portfolio Deposits are

expected to be made primarily by

institutional investors, arbitragers, and

the Exchange specialist.

The Trustee or Sponsor will make

available: (1) On a daily basis, a list of

the names and required number of

shares for each of the securities in the

current Portfolio Deposit; (2) on a

minute-by-minute basis throughout the

day, a number representing the value

(on a per MidCap SPDR basis) of the

securities portion of a Portfolio Deposit

in effect on such date; and (3) on a daily

basis, the accumulated dividends, less

expenses, per outstanding Mid Cap

SPDR.

The Amex has set the minimum

fractional trading variation for MidCap

SPDRs at 1⁄64 of $1.00. The Exchange is

proposing this same minimum variation

for MidCap SPDRs.

Redemption of MidCap SPDRs. Mid

Cap SPDRs in Creation Unit size

aggregations will be redeemable in kind

by tendering them to the Trustee. While

holders may sell MidCap SPDRs in the

secondary market at any time, they must

accumulate at least 25,000 (or multiples

thereof) to redeem them through the

Trust. MidCap SPDRs will remain

outstanding until redeemed or until the

termination of the Trust. Creation Units

will be redeemable on any business day

in exchange for a portfolio of the

securities held by the Trust identical in

weighting and composition to the

securities portion of a Portfolio Deposit

in effect on the date a request is made

for redemption, together with a ‘‘Cash

Component’’ (as defined in the Trust

prospectus), including accumulated

dividends, less expenses, through the

date of redemption. The number of

shares of each of the securities

transferred to the redeeming holder will

be the number of shares of each of the

component stocks in a Portfolio Deposit

on the day a redemption notice is

received by the Trustee, multiplied by

the number of Creation Units being

redeemed. Nominal service fees may be

charged in connection with the creation

and redemption of Creation Units. The

Trustee will cancel all tendered

Creation Units upon redemption.

Distributions for MidCap SPDRs. The

MidCap SPDR Trust will pay dividends

quarterly. The regular quarterly exdividend date for MidCap SPDRs will be

the third Friday in March, June,

September, and December, unless that

day is a New York Stock Exchange

holiday, in which case the ex-dividend

date will be the preceding Thursday.

Holders of MidCap SPDRs on the

business day preceding the ex-divident

date will be entitled to receive an

amount representing dividends

accumulated through the quarterly

dividend period preceding such exdividend date net of fees and expenses

for such period. The payment of

dividends will be made on the last

Exchange business day in the calendar

month following the ex-dividend date

(‘‘Dividend Payment Date’’). On the

Dividend Payment Date, dividends

payable for those securities with exdividend dates falling within the period

from the ex-dividend date most recently

preceding the current ex-dividend date

will be distributed. The Trustee will

compute on a daily basis the dividends

accumulated within each quarterly

dividend period. Dividend payments

will be made through DTC and its

participants to all such holders with

funds received from the Trustee.

The MidCap SPDR Trust intends to

make the DTC DRS available for use by

MidCap SPDR holders through DTC

participant brokers for reinvestment of

their cash proceeds. The DTC DRS is

also available to holders of SPDRs.

Because some brokers may choose not to

offer the DTC DRS, an interested

investor would have to consult his or

her broker to ascertain the availability of

dividend reinvestment through that

broker. The Trustee will use the cash

proceeds of MidCap SPDR holders

participating in the reinvestment to

obtain the Index securities necessary to

create the requisite number of SPDRs.16

Any cash remaining will be distributed

pro rata to participants in the dividend

reinvestment.

2. Basis

The proposed rule change is

consistent with Section 6(b)(5) of the

Act 17 in that it fosters cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities,

removes impediments to and perfects

the mechanism of a free and open

market and a national market system

and protects investors and the public

interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition that is 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

Written comments on the proposed

rule change were neither solicited nor

received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 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

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will—

A. By order approve such 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 the

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
Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Notices 53377

18 17 CFR 200.30(a)(12).

filing will also be available for

inspection and copying at the principal

office of the PCX. All submissions

should refer to File No. SR–PCX–97–35

and should be submitted by October 31,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.18

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27042 Filed 10–10–97; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Agency Information Collection

Activities: Proposed Collection

Requests

This notice lists information

collection packages that will require

submission to the Office of Management

and Budget (OMB), in compliance with

Public Law 104–13 effective October 1,

1995, The Paperwork Reduction Act of

1995.

1. Application for Retirement

Insurance Benefits—0960–0007. The

Social Security Administration uses the

information on Form SSA–1 to

determine an individual’s entitlement to

retirement insurance benefits. The

respondents are applicants for

retirement benefits.

Number of Respondents: 1,600,000.

Frequency of Response: 1.

Average Burden Per Response: 10.5

minutes.

Estimated Annual Burden: 280,000

hours.

2. Physician’s/Medical Officer’s

Statement, Patient’s Capability to

Manage Benefits—0960–0024. The

Social Security Administration uses the

information on Form SSA–787 to

determine whether an individual is

capable of handling his/her benefits.

The information is also used for leads in

selecting a representative payee. The

respondents are physicians of the

beneficiaries or medical officers of

institutions where beneficiaries reside.

Number of Respondents: 120,000.

Frequency of Response: 1.

Average Burden Per Response: 10

minutes.

Estimated Annual Burden: 20,000

hours.

3. Claimant’s Statement When

Request for Hearing Is Filed and The

Issue Is Disability—0960–0316. The

Social Security Administration requires

that applicants for disability benefits

provide the updated medical

information requested on Form HA–

4486, to facilitate processing their Old

Age, Survivors and Disability Insurance

(OASDI) and Supplemental Security

Income (SSI) claims. This information

also enables the Administrative Law

Judge hearing the case to fully inquire

into the claimant’s medical condition.

The respondents are applicants for

OASDI and SSI Benefits.

Number of Respondents: 283,460.

Frequency of Response: 1.

Average Burden Per Response: 15

minutes.

Estimated Annual Burden: 70,865

hours.

4. Representative Payee Report of

Benefits and Dedicated Account—0960–

0576. The Social Security

Administration uses Form SSA–6233 to

ensure that payment of SSI benefits is

made to a relative, another person, or an

organization when the best interests of

the beneficiary would be served. The

form is also used to ensure that the

representative payee is using the

benefits received for the beneficiary’s

current maintenance and personal needs

and that expenditures of funds from the

dedicated account are in compliance

with the law. The respondents are

individual and organizational

representative payees required by law to

establish a separate (‘‘dedicated’’)

account in a financial institution for

certain past-due SSI monthly benefits.

Number of Respondents: 30,000.

Frequency of Response: 1.

Average Burden Per Response: 20

minutes.

Estimated Annual Burden: 10,000

hours.

Written comments and

recommendations regarding the

information collection(s) should be sent

within 60 days from the date of this

publication, directly to the SSA Reports

Clearance Officer at the following

address: Social Security Administration,

DCFAM, Attn: Nicholas E. Tagliareni,

6401 Security Blvd., 1–A–21 Operations

Bldg., Baltimore, MD 21235.

In addition to your comments on the

accuracy of the Agency’s burden

estimate, we are soliciting comments on

the need for the information; its

practical utility; ways to enhance its

quality, utility and clarity; and on ways

to minimize burden on respondents,

including the use of automated

collection techniques or other forms of

information technology.

To receive a copy of any of the forms

or clearance packages, call the SSA

Reports Clearance Officer on (410) 965–

4125 or write to him at the address

listed above.

Date: October 6, 1997.

Nicholas E. Tagliareni,

Reports Clearance Officer Social Security

Administration.

[FR Doc. 97–27121 Filed 10–10–97; 8:45 am]

BILLING CODE 4190–29–P

TENNESSEE VALLEY AUTHORITY

Sunshine Act Meeting

AGENCY HOLDING THE MEETING: Tennessee

Valley Authority (Meeting No. 1498).

TIME AND DATE: 9 a.m. (CDT), October 15,

1997.

PLACE: TVA Allen Fossil Plant

Assembly Room, 2574 Plant Road,

Memphis, Tennessee.

STATUS: Open.

Agenda

Approval of minutes of meeting held

on September 8, 1997.

New Business

B—Purchase Awards

B1. Increase in the amount of an

existing Blanket Purchase Order with

ABB Power T&D Company, Inc., from

$7.99 million to $26 million.

B2. Approval to enter into a contract

with Allied Welding & Safety, LLC, for

welding supplies and equipment for all

TVA locations.

C—Energy

C1. Approval to supplement

engineering services contracts with

Midpoint International Corporation

(TV–95252V) and Martin-Williams

International, Inc. (TV–95264V), to

provide engineering services in a staff

augmentation role for TVA Nuclear. The

supplements will add a cumulative

amount not to exceed $8.5 million and

extend the term of the contracts to

September 30, 2000.

C2. Public auction sale of Cawood

Branch Coal Lease, Red Bird Coal

Reserves, Harlan and Leslie Counties,

Kentucky (Tract No. XEKCR–39L) and

delegation of authority to the Vice

President, Fuel Supply and Engineering,

or a designated representative, to

administer, amend, or modify the terms

of the lease.

E—Real Property Transactions

E1. Grant of permanent easement to

the State of Alabama for a bridge

project, affecting approximately 1.15

acres of land on Bear Creek in Marion

County, Alabama (Tract No. XTBCSF–

1H).

E2. Grant of permanent easement to

the State of Tennessee for State

Highway No. 306 improvement project,