53672 Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Notices

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4. 3 15 U.S.C. § 78f(b).

the limits contained in section

12(d)(1)(A) of the Act.

3. Before approving any advisory

contract under section 15 of the Act, the

board of trustees of a Fund, including a

majority of the trustees who are not

‘‘interested persons’’ of the Fund as

defined in section 2(a)(19) of the Act,

will find that the advisory fees charged

under the contract are based on services

provided that are in addition to, rather

than duplicative of, services provided

under any New Underlying Fund

advisory contract. This finding, and the

basis upon which the finding was made,

will be recorded fully in the minute

books of the Fund.

4. Any sales charges or distribution or

service-related fees charged with respect

to shares of a Fund, when aggregated

with any sales charges or distribution or

service-related fees paid by the Fund

with respect to the shares of any New

Underlying Fund, will not exceed the

limits set forth in rule 2830 of the NASD

Conduct Rules.

5. Each Fund and each New

Underlying Fund will be part of the

same ‘‘group of investment companies,’’

as defined in section 12(d)(1)(G)(ii) of

the Act.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27171 Filed 10–14–97; 8:45 am]

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Sunshine Act Meeting

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [To be Published].

STATUS: Closed Meeting.

PLACE: 450 Fifth Street, NW.,

Washington, DC.

DATE PREVIOUSLY ANNOUNCED: To be

Published.

CHANGE IN THE MEETING: Time Change.

The time for the closed meeting

scheduled for Tuesday, October 14,

1997, at 10:30 a.m., has been changed to

11:00 a.m.

At times, 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 (202) 942–

7070.

Dated: October 9, 1997.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–27436 Filed 10–10–97; 12:17

pm]

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[Release No. 34–39219; File No. SR–CBOE–

97–51]

October 8, 1997.

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Board Options Exchange,

Inc., Relating to Gratuities

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

Securities Exchange Act of 1934

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule

19b–4 thereunder,2 notice is hereby

given that on September 25, 1997, the

Chicago Board Options Exchange, Inc.

(‘‘CBOE’’ 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 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 Exchange proposes to amend

Exchange Rule 4.4 (‘‘Rule’’) governing

gratuities. The text of the proposed rule

change is available at the Office of the

Secretary, CBOE 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

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 purpose of the proposed change

to Rule 4.4 is to increase the dollar

value, from $50.00 to $100.00, of

gratuities or compensation that may be

given in any one year by an Exchange

member to an Exchange employee

without the prior consent of the

Exchange. Gratuities are gifts of any

kind, including, but not limited to, cash.

Gratuities or compensation in an

amount less than those specified in the

Rule do not require any prior consent.

Currently, pursuant to Rule 4.4, the

amount permitted under the Rule to be

given by a CBOE member to an

employee of any other member or of any

non-member broker, dealer, bank or

institution, without the prior consent of

the employer and of the Exchange is

$100, and the amount permitted to be

given by a CBOE member to an

Exchange employee without prior

Exchange permission is $50. The CBOE

proposes to increase the amount

permitted to be given by a CBOE

member to an Exchange employee from

$50 to $100. The purpose of this change

is to account for inflation that has

occurred since the $50 amount was

established in 1980.

Also, the rule language is being

revised to clarify that Exchange consent

is required if a member wants to give a

gratuity of over $100 to an Exchange

employee. The Exchange proposes to

change the current construction of the

Rule in order to clarify that the final

phrase requiring consent refers to both

Exchange employees, as well as

employees of any other member or of

any non-member broker, dealer, bank or

institution.

2. Statutory Basis

The Exchange represents that the

proposed rule change is consistent with

Section 6(b)(5) of the Act 3 in that it

promotes just and equitable principles

of trade, fosters cooperation among

persons engaged in facilitating securities

transactions, 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 inappropriate burden on

competition.
Federal Register / Vol. 62, No. 199 / Wednesday, October 15, 1997 / Notices 53673

4 17 CFR 200.20–3(a)(12). 1 15 U.S.C. § 78s(b)(1)(1988).

2See Securities Exchange Act Release No. 29812

(October 11, 1991), 56 FR 52082 (October 17, 1991)

(order approving File No. SR–NASD–90–33) (‘‘Pilot

Approval Order’’).

3See Securities Exchange Act Release No. 33037

(October 8, 1993), 58 FR 53752 (October 18, 1993)

(order approving File No. SR–NASD–93–50)

(extending the pilot operation of the Service for two

years through October 11, 1995).

4See Securities Exchange Act Release No. 36359

(October 11, 1995), 60 FR 53820 (October 17, 1995)

(order approving File No. SR–NASD–95–46)

(extending the pilot operation of the Service for two

years through October 11, 1997).

5Regardless of the opening time chosen by the

Service market maker, the Service market marker is

required to fulfill all of the obligations of a Service

market maker from that time (i.e., 3:30 a.m., 5:30

a.m., or 7:30 a.m. ET) until the European Session

closes at 9:00 a.m. ET. See Securities Exchange Act

Release No. 32471 (June 16, 1993), 58 FR (June 22,

1993) (order approving File No. SR–NASD–92–54).

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments were either

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the 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 the proposed

rule change, or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing. In

addition, the Commission encourages

commenters to consider whether: (1)

The acceptance of cash or its equivalent

should be permitted in any

circumstance; (2) there are presently

adequate safeguards against the

solicitation of gratuities; and (3) all

offers of gratuities, whether accepted or

not, should be recorded in a timely

manner by the employee, and such

records should be maintained by his

employer. 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the Exchange. All

submissions should refer to File No.

SR–CBOE–97–51 and should be

submitted by November 5, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–27282 Filed 10–14–97; 8:45 am]

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[Release No. 34–39216; File No. SR-NASD–

97–72]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the National

Association of Securities Dealers, Inc.,

Relating to Extension of the Nasdaq

International Service Pilot Program

October 7, 1997.

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

Securities Exchange Act of 1934

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

September 30, 1997, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’) filed with

the Securities and Exchange

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

the proposed rule change as described

in Items I and II 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 parties and

approving this proposal on an

accelerated basis.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The NASD proposes to extent for one

year, until October 9, 1998: (1) The pilot

term of the Nasdaq International Service

(‘‘Service’’); and (2) the effectiveness of

certain rules (‘‘International Rules’’) that

are unique to the Service. The proposal

does not entail any modification of the

International Rules. The present

authorization for the Service and the

International Rules expires on October

11, 1997.

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

NASD 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 NASD 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 NASD proposes to extend for one

year, until October 9, 1998, the pilot

operation of the Service and the

effectiveness of the International Rules

governing broker-dealers’ access to and

use of the Service. The existing pilot

operation of the Service and the

International Rules was originally

authorized by the Commission in

October 1991 2 and the Service was

launched on January 20, 1992. The pilot

has since been extended 3 and is set to

expire on October 11, 1997.4

The Service supports an early trading

session running from 3:30 a.m. to 9:00

a.m. Eastern Time (‘‘ET’’) on each U.S.

business day (‘‘European Session’’) that

overlaps the business hours of the

London financial markets. Participation

in the Service is voluntary and is open

to any authorized NASD member firm or

its approved broker-dealer affiliate in

the U.K. A member participates as a

Service market maker either by staffing

its trading facilities in the U.S. or the

facilities of its approved affiliate during

the European Session. The Service also

has a variable opening feature that

permits Service market makers to elect

to participate starting from 3:30 a.m.,

5:30 a.m., or 7:30 a.m. ET. The election

is required to be made on a security-bysecurity basis at the time a firm registers

with the NASD as a Service market

maker.5 At present, there are no Service

market makers participating in the

Service.

As noted above, the NASD is seeking

to extend the pilot term for one year.

During this period, the NASD will

continue to evaluate the Service’s

operation and consider possible

enhancements to the Service to broaden