54886 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

1 15 U.S.C. § 78s(b)(1).

Registration; (Tivoli Industries, Inc.,

Common Stock, $.001 Par Value;

Redeemable Class A Warrants to

Purchase $.001 Par Value Common

Stock, expiring Sept. 21, 1997;

Redeemable Class B Warrants to

Purchase $.001 Par Value Common

Stock, expiring Sept. 21, 1997) File No.

1–13338.

Tivoli Industries, Inc. (‘‘Company’’)

has filed an application with the

Securities and Exchange Commission

(‘‘Commission’’), pursuant to Section

12(d) of the Securities Exchange Act of

1934 (‘‘Act’’) and Rule 12d2–2(d)

promulgated thereunder, to withdraw

the above specified securities

(‘‘Securities’’) from listing and

registration on the Boston Stock

Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’).

The reasons cited in the application

for withdrawing the Securities from

listing and registration include the

following:

The Company’s Securities have been

listed for trading on both the BSE and

Nasdaq Small Cap Stock Market since

September 21, 1994.

The Company has complied with the

rules of BSE by setting forth in detail to

such Exchange the reasons for such

proposed withdrawal, and the facts in

support thereof. In making the decision

to withdraw its Securities from listing

on the BSE, the Company considered

the direct and indirect costs and

expenses attendant on maintaining the

dual listing of its Securities on the

NASDAQ SmallCap Stock Market and

the BSE. The Company does not see any

particular advantage in the dual trading

of its Securities and believes that dual

listing would fragment the market for its

securities.

By letter dated September 23, 1997,

the BSE has informed the Company that

it has no objection to the withdrawal of

the Company’s Securities from listing

on the BSE.

Any interested person may, on or

before November 6, 1997, submit by

letter to the Secretary of the Securities

and Exchange Commission, 450 Fifth

Street, N.W., Washington, D.C. 20549,

facts bearing upon whether the

application has been made in

accordance with the rules of the

exchange and what terms, if any, should

be imposed by the Commission for the

protection of investors. The

Commission, based on the information

submitted to it, will issue an order

granting the application after the date

mentioned above, unless the

Commission determines to order a

hearing on the matter.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–27901 Filed 10–21–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 39235; File No. SR–CTA/CQ–

97–2]

Consolidated Tape Association; Notice

of Filing and Immediate Effectiveness

of Second Charges Amendment to the

Second Restatement of the

Consolidated Tape Association Plan

and First Charges Amendment to the

Restated Consolidated Quotation Plan

October 14, 1997.

Pursuant to Rule 11Aa3–2 of the

Securities Exchange Act of 1934

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

September 26, 1997, the Consolidated

Tape Association (‘‘CTA’’) and the

Consolidated Quotation (‘‘CQ’’) Plan

Participants (‘‘Participants’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’)

amendments to the Restated CTA Plan

and CQ Plan. The amendments (a)

establish a new Network A fee (i.e., one

cent per ‘‘quote packet’’) for

interrogation services that vendors offer

on a pay-for-use basis, (b) eliminate the

Network A Class F and Class H program

classification charges, (c) reclassify the

Network A Class G program

classification charge and (d) raise the

monthly Network A fee applicable to

nonprofessional subscribers from $4.25

to $5.25. In addition, the amendment to

the CTA Plan raises the monthly

connection fee for delivery of the ticker

signal by means of AT&T from $200 to

$250.

Pursuant to Rule 11Aa3–2(c)(3)(i), the

CTA and CQ Participants have

designated the amendments as

establishing or changing fees and other

charges collected on behalf of all of the

sponsors and participants, which

renders the amendments effective upon

receipt of this filing by the Commission.

The Commission is publishing this

notice to solicit comments from

interested persons on the amendments.

I. Description and Purpose of the

Amendments

A. Rule 11Aa3–2

The purpose of the amendments is to

allow the Participants under the Plans

that make Network A last sale

information and quotation information

available (‘‘the Network A Participants’’)

to establish a new and additional

pricing alternative for vendors of, and

subscribers to, certain Network A

market data interrogation services. That

pricing alternative has proved popular

and successful in the context of a pilot

program. In addition, the amendments

eliminate two categories of program

classification fees, reclassify a third

category of program classification fee

and increase the monthly

nonprofessional subscriber fee by $1.

The amendment to the CTA Plan also

increases the monthly connection fee

that applies for delivery of the ticker

signal by AT&T by $50.

1. Usage-Based Charge

a. One Cent Per Quote. The Network

A Participants propose to establish a fee

of one cent for each real-time ‘‘quote

packet’’ that vendors disseminate to

subscribers on a pay-for-use basis

during the hours that the Network A

Participants are open for trading (a ‘‘perquote charge’’). For the purposes of this

charge, a ‘‘quote packet’’ refers to a

group of one or more data elements

relating to the same issue. Last sale

price, bid, offer, transaction size,

quotation size, opening price, high

price, low price, trading volume and net

change in price are all examples of data

elements that might be part of the same

‘‘quote packet,’’ either individually or in

combination. An index value qualifies

as a ‘‘quote packet’’ in and of itself.

In order to take advantage of the perquote charge, a vendor must document

in its Exhibit A that it has the ability to

measure accurately the number of quote

packets and must have the ability to

report aggregate quote packet quantities

to the Network A Participants on a

monthly basis.

The Network A Participants will

impose the per-quote charge only on the

dissemination of the real-time market

data. Vendors may provide delayed data

services in the same manner as they do

today.

The per-quote charge is payable on a

monthly basis and is payable by the

vendor providing the service, rather

than the vendor’s subscribers. It

represents a new and additional

alternative to existing rates. That is,

vendors may elect to continue to offer

monthly display device services subject

to the current rates for per-device

services (rather than the newly

established per-quote charge) and also

may elect, either in addition or as a

substitute, to disseminate data pursuant

to the per-quote charge.
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices 54887

The Network A Participants anticipate

that the nonprofessional subscriber

community will be more likely to

embrace the per-quote charge than the

professional subscriber community. In

fact, making market data more readily

available to individual investors is one

of the primary motivations for

establishing the per-quote charge.

However, the Network A Participants

will not require vendors charging on a

per-quote basis to differentiate between

professional and nonprofessional

subscribers.

Contractually, the Network A

Participants intend to require vendors

(A) to incorporate into their agreements

with subscribers the form of addendum

to vendor-subscriber agreements that the

Participants have adopted or (B) to

incorporate substantively similar

provisions to those found in that

addendum into the vendors’ agreements

with subscribers, rather than to have

each subscriber sign the consolidated

Network A subscriber agreement. (The

Network A Participants will review and

pass upon the adequacy of those

‘‘incorporating agreements.’’)

b. The Pilot Programs. Since 1991, the

Network A Participants have conducted

a pilot program pursuant to which they

have allowed vendors of PC dial-up and

paging services to pay for those services

based on the quantity of quote packets

disseminated. The pilot fee was one-half

cent per quote packet and was assessed

for quote packets disseminated during

the period from market open to market

open. Thirteen vendors participated in

the pilot program. The terms of the

program prohibited those vendors from

providing delayed data services during

the hours that the Participants were

open for trading.

CTA’s experience with the pilot

demonstrated two things. First, it

demonstrated that demand for usagebased pricing is considerable. (As noted

above, the per-quote pilot program has

grown to include thirteen vendor

organizations. The aggregate number of

quote packets disseminated has

increased substantially each year.) The

Participants welcome that demand

because it suggests that usage-based

services will promote an important goal

of the Participants and of the national

market system that Congress established

when it passed the 1975 Amendments

to the Act: the widespread

dissemination of real-time market data.

Second, it made clear that vendors

prefer to have the flexibility of

providing delayed data services

pursuant to the delayed data fee

schedule at the same time as they are

providing real-time usage-based

services. (Approximately six vendors

that elected not to participate in the

pilot program have indicated that they

have an interest in providing services

pursuant to per-quote charges once the

Network A Participants allow them to

continue to provide their delayed data

services.) Initially, it was hoped that the

inexpensive rate for the receipt of realtime data pursuant to the pilot program

would cause vendors to feel comfortable

in substituting one-half cent per quote

real-time services for delayed services,

thereby allowing us to promote the use

of real-time data instead of delayed data.

However, the vendors expressed a

different view. The inability to provide

delayed data services alongside a usagebased service under the pilot program

discouraged many potential pilot

program participants, including all of

the major traditional market data

vendors, from taking part in the pilot

program.

To accommodate the preference for

providing real-time usage-based services

and delayed data services at the same

time, the Network A Participants

propose to set the per-quote charge at

one cent per quote packet (as opposed

to one-half cent per-quote packet which

has applied during the pilot program),

to impose the per-quote charge only on

real-time market data and to allow

vendors to provide delayed data

services in the same way as they do

today.

Given the success of the pilot

programs and the market demand for

per-quote charges, the Network A

Participants are hereby looking to

accommodate the vendor community by

making it possible for all vendors to

meter market data on a per-quote basis.

The Network A Participants note that

the Commission has approved an

identical one-cent-per-quote usagebased fee for the Nasdaq Stock Market,

Inc.

2. Program Classification Charges

The amendments eliminate the Class

F and Class H program classification

charges and reclassify Class G as a

component of display device charges.

a. Class F. The Class F charges of $250

per month for last sale price information

and $250 per month for quotation

information permit vendors of delayed

market data services to provide a realtime price in order to allow their

subscribers to verify the market price of

a security before entering an automated

order for that security through a

personal computer. The introduction of

usage-based services eliminates the

need for that charge. At one cent per

quote, a vendor’s customers could check

the market prior to entering orders

50,000 times per month before the

vendor would reach the fee equivalent

of the Class F charges.

b. Class G. Program classification G

imposes display device fees on

automated telephone voice response

services, based upon the concept of

device equivalents. That is, the charge is

set at the device fee that would apply

for a number of devices equal to the

maximum number of inquiries to which

the vendor’s automated voice response

service can respond simultaneously.

The Network A Participants propose to

recharacterize the Class G charge as a

device fee, rather than a separate

program classification charge. They will

simply apply device fees to automated

telephone voice response services based

on device equivalents, just as today. The

amount of the charge remains

unchanged.

c. Class H. The Class H charge applies

to automated printer report services.

Historically, only one vendor has ever

provided such a service and it ceased

providing that service some years ago.

The absence of demand for this type of

service eliminates the need for the Class

H computer program classification

charge.

3. Nonprofessional Subscriber Charge

The Network A Participants

established a separate category of fees

(one fee for Network A last sale prices

and a separate fee for Network A quotes)

for nonprofessional subscribers in 1983.

In October 1986, the Network A

Participants consolidated fees for

Network A last sale prices and quotes

and reduced nonprofessional subscriber

Network A fees from $7.50 per month

for Network A last sale prices and $6.00

per month for Network A quotes to a

consolidated rate of $4.00 per month for

both Network A prices and quotes. In

1991, the Network A Participants

increased the consolidated

nonprofessional subscriber rate to $4.25

per month. Those rates have not

increased since. The Network A

Participants believe that the

introduction of a per-quote charge to

facilitate the provision of usage-based

services presents a meaningful

alternative pricing mechanism for

nonprofessional subscribers and

believes that the $1.00 increase is

justified. Therefore, the Network A

Participants propose to increase the

consolidated Network A

nonprofessional monthly rate from

$4.25 to $5.25 per month.

4. Ticker Charge

Under the CTA Plan, the Network A

Participants impose a charge that is

designed to recover the ticker network

expense that common carrier AT&T
54888 Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices

imposes on the Network A Participants

for the delivery of the ticker signal to

ticker customers in the United States.

The proposed increase is designed to

offset increases in those expenses that

AT&T has recently imposed on the

Network A Participants.

The present per connection charge for

AT&T’s delivery of the ticker signal was

set at $200 on July 1, 1996. Since then,

Network A has absorbed increases in

AT&T common carrier costs and the

Network A Participants have

determined to pass those increased costs

along to customers. The increase applies

only to leased line service in the

continental United States (except

downtown New York City). Rates for

customers receiving service in New

York City south of Chambers Street or

by means of satellite remain unchanged,

as common carrier rates for those

services are not affected by the recent

rate increases.

The number of Network A ticker

connections has declined from a peak of

6,200 in 1982 to a current level of 1,076.

Further declines are predicted and the

long-term viability of this service is

questionable. The Network A

Participants have determined to

continue to offer the low speed ticker

service, but not to subsidize the

product, and to periodically review

market demand for the service.

* * * * *

This amendment furthers the national

market system objectives regarding the

dissemination of last sale information

delineated in Sections 11A(a)(1)(C),

11A(a)(1)(D) and 11A(a)(3)(B) of the Act.

B. Governing or Constituent Documents

Not applicable.

C. Implementation of Amendment

The Network A Participants approved

the per-quote service at their August 6,

1997 meeting and shortly thereafter,

began the process of notifying those

vendors that participate in the one-halfcent-per-quote pilot program that: (a)

The Network A Participants have

determined to terminate the one-halfcent-per-quote pilot program, and (b)

those vendors may convert to the onecent-per-quote model upon the

satisfactory completion of the necessary

contract work. That will allow the pilot

program participants to continue to

provide their services pursuant to usagebased fees in an uninterrupted manner

or to elect to terminate the provision of

services pursuant to usage-based fees. In

addition, upon filing the amendments

with the Commission, the Network A

Participants will again notify those

vendors, this time to require the pilot

program participants to either convert to

the cent-per-quote service within 30

days from the date of the filing or

terminate the distribution of market data

on a per-quote basis.

The Network A Participants have also

begun the process of notifying those

vendors that do not participate in the

pilot program but that have expressed

an interest in the proposed per-quote

service that they may commence to

provide the proposed service upon the

completion of an appropriate contract.

Hereafter, the Network A Participants

will assist any additional vendors that

express interest in the per-quote service.

For the purpose of educating the

investment community about the perquote service, the Network A

Participants have prepared a ‘‘Fact

Sheet,’’ a copy of which is included for

the Commission’s information.

Upon filing the amendments with the

Commission, the Network A

Participants will notify organizations

that are subject to the Class F program

classification charges of the elimination

of those charges, will notify distributors

of services to nonprofessional

subscribers of the increase in the nonprofessional subscriber fee, and will

notify recipients of the ticker signal

from AT&T of the increase in the ticker

connection fee.

D. Development and Implementation

Phases

See Item I(C).

E. Analysis of Impact on Competition

The Participants believe the proposed

amendments will impose no burden on

competition.

F. Written Understanding or Agreements

Relating to Interpretation of, or

Participation in, Plan

Not applicable.

G. Approval by Sponsors in Accordance

With Plan

Under Section XII(b)(iii) of the CTA

Plan and Section IX(b)(iii) of the CQ

Plan, each of the Participants must

execute a written amendment to the

Plan before an amendment to that Plan

can become effective.

H. Description of Operation of Facility

Contemplated by the Proposed

Amendment

Not applicable.

I. Terms and Conditions of Access

See Item I(A).

J. Method of Determination and

Imposition, and Amount of, Fees and

Charges

See Item I(A) and the text of the

amendments.

K. Method and Frequency of Processor

Evaluation

Not applicable.

L. Dispute Resolution

Not applicable.

II. Rule 11Aa3–1 (Solely in its

Application to the Amendments to the

CTA Plan)

A. Reporting Requirements

Not applicable.

B. Manner of Collecting, Processing,

Sequencing, Making Available and

Disseminating Last Sale Information

Not applicable.

C. Manner of Consolidation

Not applicable.

D. Standards and Methods Ensuring

Promptness, Accuracy and

Completeness of Transaction Reports

Not applicable.

E. Rules and Procedures Addressed to

Fraudulent or Manipulative

Dissemination

Not applicable.

F. Terms of Access to Transaction

Reports

See Item I(A).

G. Identification of Marketplace of

Execution

Not applicable.

III. Solicitation of Comments

The CTA has designated this proposal

as establishing or changing fees and

other charges collected on behalf of all

of the sponsors and participants which

under Section 11Aa3–2(c)(3)(i) of the

Act renders the proposal effective upon

receipt of this filing by the Commission.

The Commission may summarily

abrogate the amendment within sixty

days of its filing and require refiling and

approval of the amendments by

Commission order pursuant to Section

11Aa3–2(c)(3)(iii), if it appears to the

Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors

and maintenance of fair and orderly

markets, to remove impediments to and

perfect the mechanisms of a National

Market System, or otherwise in

furtherance of the purposes of the Act.

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
Federal Register / Vol. 62, No. 204 / Wednesday, October 22, 1997 / Notices 54889

2 17 CFR 200.30–3(a)(27).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3See letter from Claire McGrath, Vice President

and Special Counsel, Derivative Securities, Amex,

to Ivette Lopez, Assistant Director, Office of Market

Supervision, Division of Market Regulation,

Commission, dated August 18, 1997 (‘‘Amendment

No. 1’’).

4See letter from Claire McGrath, Vice President

and Special Counsel, Derivative Securities, Amex,

to Sharon Lawson, Senior Special Counsel, Office

of Market Supervision, Division of Market

Regulation, Commission, dated September 18, 1997.

5See Securities Exchange Act Release Nos. 36858

(February 16, 1996), 61 FR 7295 (February 27, 1996)

Continued

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. Copies of such filing will also be

available for inspection and copying at

the principal office of the CTA. All

submissions should refer to the file

number in the caption above and should

be submitted by November 12, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27902 Filed 10–21–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Sunshine Act Meeting

Notice is hereby given, pursuant to

the provisions of the Government in the

Sunshine Act, Pub. L. 94–409, that the

Securities and Exchange Commission

will hold the following meeting during

the week of October 20, 1997.

A closed meeting will be held on

Tuesday, October 21, 1997, at 10:00 a.m.

Commissioners, Counsel to the

Commissioners, the Secretary to the

Commission, and recording secretaries

will attend the closed meeting. Certain

staff members who have an interest in

the matters may also be present.

The General Counsel of the

Commission, or his designees, has

certified that, in his opinion, one or

more of the exemptions set forth in 5

U.S.C. 552b(c) (4), (8), (9)(A) and (10)

and 17 CFR 200.402(a) (4), (8), (9)(i) and

(10), permit consideration of the

scheduled matters at the closed meeting.

Commissioner Hunt, as duty officer,

voted to consider the items listed for the

closed meeting in a closed session.

The subject matter of the closed

meeting scheduled for Tuesday, October

21, 1997, at 10:00 a.m., will be:

Institution of injunctive actions.

Institution and settlement of administrative

proceedings of an enforcement nature.

At time, changes in Commission

priorities require alterations in the

scheduling of meeting items. For further

information and to ascertain what, if

any, matters have been added, deleted

or postponed, please contact: The Office

of the Secretary at (202) 942–7070.

Dated: October 15, 1997.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–28129 Filed 10–20–97; 11:46

am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39211; File No. SR–Amex–

97–27]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and

Amendment No. 1 Thereto by the

American Stock Exchange, Inc., to

Establish Hedge Exemptions From

Narrow-Based and Broad-Based Index

Options Position and Exercise Limits

October 7, 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 4,

1997, the American Stock Exchange,

Inc. (‘‘Amex’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by the selfregulatory organization. On August 18,

1997, the Amex submitted to the

Commission an amendment to the

proposal.3 The Amex also submitted a

letter regarding certain aspects of its

proposal.4 This order approves the

Amex’s proposal, as amended, and

solicits comments from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to amend (1)

Amex Rule 904C to establish hedge

exemptions from narrow-based and

broad-based index option position

limits, and (2) Amex Rule 905C to

establish corresponding exemptions

from index option exercise limits.

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

Amex 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 Amex 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

Currently, position and exercise limits

for index options are the same for all

investors, regardless of whether the

investor holds a portfolio of stocks

which could hedge an index options

position. The Exchange now proposes to

adopt a hedge exemption from narrowbased and broad-based index options

position and exercise limits. The

Exchange believes that such an

exemption is necessary to meet the

needs of investors who use index

options for investment and hedging

purposes.

According to the Exchange, on

various occasions during the last few

months, member firms have, on behalf

of managers of large portfolios, such as

pension and insurance funds, indicated

that the current position limits for index

options have restricted the use of such

options in hedging stock portfolios.

Many institutional investors and

portfolio managers invest in portfolios

of stocks which could be readily hedged

with Exchange traded index options.

Current position and exercise limits,

however, hamper their ability to fully

utilize index options to hedge their

positions. According to the Exchange,

the proposed hedge exemptions from

index option position and exercise

limits should increase the depth and

liquidity of index options markets and

allow more effective hedging by

investors without increasing the

potential for market disruption. The

exemptions are similar to exemptions

previously approved by the Commission

for the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’).5