55442 Federal Register / Vol. 62, No. 206 / Friday, October 24, 1997 / Notices

1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78(b)(5).

Corporation, a registered holding

company, has filed a post-effective

amendment to its declaration under

sections 6(a) and 7 of the Act and rule

54 thereunder.

By order dated October 7, 1992

(HCAR No. 25649) (‘‘Order’’), WTU was

authorized, among other things, to issue

and sell up to an aggregate principal

amount of $150 million of First

Mortgage Bonds (‘‘Bonds’’), in one or

more series, from time to time through

December 31, 1994. WTU was

authorized to use the proceeds from the

sale of Bonds (1) to redeem all or a

portion of its then outstanding $75

million, 87⁄8% First Mortgage Bonds,

Series N, due May 1, 2016 (‘‘Series N

Bonds’’), (2) to purchase, through a

tender offer, all or a portion of its then

outstanding $65 million, 91⁄4% first

mortgage bonds, Series O, due

December 1, 2019 (‘‘Series O Bonds’’),

and (3) to repay outstanding short-term

borrowings or for other general

corporate purposes. In October 1992,

WTU issued $75 million of Bonds

pursuant to the Order. The net proceeds

from the sale of the Bonds were used to

redeem the Series N Bonds.

By order dated December 19, 1994

(HCAR No. 26194) (‘‘First Supplemental

Order’’), the Commission extended from

December 31, 1994 to December 31,

1996, the authorization to issue and sell

the remaining $75 million of Bonds.

In March 1995, WTU issued $40

million of Bonds pursuant to the Order

and the First Supplemental Order. The

newt proceeds were used to repay a

portion of WTU’s short-term debt and to

reimburse WTU’s treasury for

reacquiring approximately $10 million

of its Series O Bonds.

By order dated July 26, 1995 (HCAR

No. 26340) (‘‘Second Supplemental

Order’’), the Commission granted WTU

authority to issue and sell, through

December 31, 1997, up to an additional

$95 million of first mortgage bonds

which, together with the remaining $35

million authorized to be issued and sold

pursuant to the Order and the First

Supplemental Order, would authorize

WTU to issue and sell up to an

additional aggregate principal amount of

$130 million of first mortgage bonds

(collectively, ‘‘New Bonds’’), which may

have maturities not less than two nor

more than 40 years.

As stated in the Second Supplemental

Order, the proceeds from the sale of the

New Bonds will be used to (1) redeem

all or a portion of WTU’s outstanding

$55.203 million, Series O Bonds and/or

(2) to repay a portion of WTU’s shortterm debt, to provide working capital

and for other general corporate

purposes.

WTU now proposes that the

Commission extend its authority to

issue the New Bonds, pursuant to the

terms and conditions set forth in the

Order, the First Supplemental Order

and the Second Supplemental Order,

through December 31, 2002.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–28175 Filed 10–23–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39253; File No. SR–Amex–

97–35]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by American

Stock Exchange, Inc. Relating to

Amendments to Rule 120 (Units of

Trading)

October 17, 1997.

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

Securities Exchange Act of 1934,1 notice

is hereby given that on October 1, 1997,

the American Stock Exchange, Inc.

(‘‘Amex’’ or ‘‘Exchange’’) 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 selfregulatory 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 Amex proposes to amend

Exchange Rule 120 to provide for a unit

of trading in bonds other than $1,000 in

par value. The text of the proposed rule

change is available at the Office of the

Secretary, the Amex and the

Commission.

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

Amex Rule 120 provides for a unit of

trading in bonds of $1,000 in par value,

except for U.S. Government issues, for

which the unit of trading is the

minimum denomination in which such

securities are issued. Rule 120 also

provides that a unit of trading in stocks

is 100 shares, unless the Exchange fixes

a lesser amount.

There are instances where bond

issuers and broker-dealers underwriting

bond issuances desire an exchangelisting of bonds with a unit of trading

greater than $1,000 in par value. For

example, an issuer or underwriter may

prefer a unit of trading of $100,000 or

$250,000 in par value per trading unit

in specific cases. Such issuances, which

currently trade on the New York Stock

Exchange, can be expected to appeal

primarily to institutional investors and

to trade infrequently.

The Amex believes it is appropriate

and competitively desirable to clarify its

authority to allow listing and trading of

such issues. Rule 120, therefore, is

proposed to be amended in a manner

similar to NYSE Rule 55 to specifically

provide that a unit of trading of other

than $1,000 in par value may be

designated by the Exchange for specific

issues of bonds denominated in U.S.

dollars for foreign currencies.

(2) Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act

in general and furthers the objectives of

Section 6(b)(5) 2 in particular in that it

is designed to remove impediments to

and perfect the mechanism of a free and

open market, to promote just and

equitable principles of trade and, in

general, to protect 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 a

burden on competition.
Federal Register / Vol. 62, No. 206 / Friday, October 24, 1997 / Notices 55443

3 17 CFR 240.19b–4(e)(6).

4 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1).

2The ITS BBO is the best bid/offer quote among

the American, Boston, Cincinnati, Chicago, New

York, Pacific, Philadelphia exchanges or the

Intermarket Trading System/Computer Assisted

Execution System, as appropriate.

3The NBBO is the best bid or offer disseminated

pursuant to SEC Rule 11Ac1–1.

4 15 U.S.C. § 78f(b)(5).

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 with respect to the proposed

rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The Exchange has asserted that the

proposed rule change (i) will not

significantly affect the protection of

investors or the public interest, (ii) will

not impose any significant burden on

competition, and (iii) will not become

operative for 30 days after the date of

this filing. For the foregoing reasons and

because the Exchange provided at least

five business days notice to the

Commission of its intent to file this

proposed rule change, the rule filing

will become operative as a ‘‘noncontroversial’’ rule change pursuant to

Rule 19b–4(e)(6) under the Act.3

At any time within 60 days of the

filing of the 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.,

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 in Washington, D.C. Copies of

such filing will also be available for

inspection and copying at the principlal

office of the Amex. All submission

should refer to the file number in the

caption above and should be submitted

by November 14, 1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–28181 Filed 10–23–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39249; File No. SR–CHX–

97–20]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Stock Exchange,

Incorporated Relating to the

Exchange’s BEST Rule

October 16, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

September 12, 1997, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

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

rule change, as described in Items I, II,

and III below, which Items have been

prepared by the Exchange. 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 the Substance

of the Proposed Rule Change

The Exchange proposes to amend

Rule 37(a) of Article XX of the

Exchange’s Rules to clarify that the

Exchange’s BEST Rule guarantee is

limited to both the size and price

associated with the best bid and offer.

The text of the proposed rule change

is available at the Office of the

Secretary, the Exchange, and at the

Commission.

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

Exchange 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

Exchange 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 purpose of the proposed rule

change is to amend the Exchange’s

BEST Rule (Article XX, Rule 37) to

clarify an ambiguity concerning the

application of the BEST Rule. Currently,

the Exchange’s BEST Rule states that,

subject to certain exceptions, all agency

market orders are guaranteed an

execution on the basis of the ITS BBO 2

for Dual Trading System issues and the

NBBO 3 for Nasdaq/NM issues.

Each best bid and offer, including the

ITS BBO and NBBO, contains two

components—price and size. Because

the BEST Rule requires a specialist to

guarantee an execution on the basis of

the best bid or offer, the Exchange has

consistently interpreted this guarantee

as applying to both the size and price

associated with that best bid or offer. In

this rule change, the Exchange proposes

to add the words ‘‘size and price

associated with’’ to the beginning of the

BEST Rule to clarify that the BEST Rule

guarantee is limited to both the size and

price associated with the best bid and

offer.

This change is consistent with the

Exchange’s existing MAX Rule (Article

XX, Rule 37(b)(11)) which states that

‘‘notwithstanding anything in this Rule

to the contrary, no market order or limit

order that is marketable when entered

into the MAX System will be

automatically executed if the size

associated with the ITS BBO or NBBO,

as the case may be, is of a size less than

such market order or limit order.’’

2. Statutory Basis

The Exchange represents that

proposed rule change is consistent with

Section 6(b)(5) 4 of the Act in that it is

designed to promote just and equitable

principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect 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