Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Notices 60297

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

2 17 CFR 240.19b–4.

Act of 1940 for the month of October,

1997. A copy of each application may be

obtained for a fee at the SEC’s Public

Reference Branch, 450 Fifth St., N.W.,

Washington, D.C. 20549 (tel. 202–942–

8090). An order granting each

application will be issued unless the

SEC orders a hearing. Interested persons

may request a hearing on any

application by writing to the SEC’s

Secretary at the address below and

serving the relevant applicant with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

November 24, 1997, and should be

accompanied by proof of service on the

applicant, in the form of an affidavit or,

for lawyers, a certificate of service.

Hearing requests should state the nature

of the writer’s interest, the reason for the

request, and the issues contested.

Persons who wish to be notified of a

hearing may request notification by

writing to the Secretary, SEC, 450 Fifth

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

For Further Information Contact: Diane

L. Titus, at (202) 942–0564, SEC,

Division of Investment Management,

Office of Investment Company

Regulation, Mail Stop 10–4, 450 Fifth

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

The Rodney Square Total Return Fund

[File No. 811–4806]

The Rodney Square Growth Equity

Fund [File No. 811–4807]

Summary: Each applicant seeks an

order declaring that it has ceased to be

an investment company. Neither

applicant ever made a public offering of

its securities or proposes to make a

public offering or engage in business of

any kind.

Filing Dates: Both applications were

filed on September 18, 1997.

Applicant’s Address: Rodney Square

North, 1100 North Market Street,

Wilmington, Delaware 19890–0001.

SAFECO Advisor Series Trust [File No.

811–8466]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On November 7,

1996, each series of applicant, except

Advisor GNMA Fund, made a

liquidating distribution to its

shareholders at net asset value. All of

the portfolio securities of Advisor

GNMA Fund were redeemed in-kid by

its sole remaining shareholder, SAFECO

Corporation. No expenses were incurred

in connection with the liquidation, and

unamortized organizational expenses

were paid by applicant’s investment

adviser.

Filing Date: The application was filed

on June 19, 1997.

Applicant’s Address: SAFECO Plaza,

Seattle, Washington, 98185.

Horace Mann Balanced Fund, Inc. [File

No. 811–3665]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant

transferred its assets and liabilities to

the Balanced Fund, a series of Horace

Mann Mutual Funds, on April 30, 1997,

based on the relative net asset value per

share. All expenses associated with the

Agreement and Plan of Reorganization

were borne by an affiliate of Horace

Mann Life Insurance Company, and not

by Applicant.

Filing Date: The application was filed

on July 16, 1997.

Applicant’s Address: One Horace

Mann Plaza, Springfield, Illinois 62715.

Horace Mann Short-Term Investment

Fund, Inc. [File No. 811–3666]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant

transferred its assets and liabilities to

the Short-Term Investment Fund, a

series of Horace Mann Mutual Funds,

on April 30, 1997, based on the relative

net asset value per share. All expenses

associated with the Agreement and Plan

of Reorganization were borne by an

affiliate of Horace Mann Life Insurance

Company, and not by Applicant.

Filing Date: The application was filed

on July 16, 1997.

Applicant’s Address: One Horace

Mann Plaza, Springfield, Illinois 62715.

Horace Mann Growth Fund, Inc. [File

No. 811–778]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant

transferred its assets and liabilities to

the Growth Fund, a series of Horace

Mann Mutual Funds, on April 30, 1997,

based on the relative net asset value per

share. All expenses associated with the

Agreement and Plan of Reorganization

were borne by an affiliate of Horace

Mann Life Insurance Company, and not

be Applicant.

Filing Date: The application was filed

on July 16, 1997.

Applicant’s Address: One Horace

Mann Plaza, Springfield, Illinois 62715.

Horace Mann Income Fund, Inc. [File

No. 811–3664]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant

transferred its assets and liabilities to

the Income Fund, a series of Horace

Mann Mutual Funds, on April 30, 1997,

based on the relative net asset value per

share. All expenses associated with the

Agreement and Plan of Reorganization

were borne by an affiliate of Horace

Mann Life Insurance Company, and not

by Applicant.

Filing Date: The application was filed

on July 16, 1997.

Applicant’s Address: One Horace

Mann Plaza, Springfield, Illinois 62715.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 97–29417 Filed 11–6–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39288; File No. SR–NYSE–

97–30]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the New York Stock Exchange, Inc. to

Amend and Make Permanent the

Allocation Policy and Procedures Pilot

Program

October 30, 1997.

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

Securities Act of 1934 (‘‘Act’’),1 and

Rule 19b–4 thereunder,2 notice is

hereby given that on October 20, 1997,

the New Stock Exchange, Inc. (‘‘NYSE’’

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 proposed rule change seeks to

amend and to obtain permanent

approval of the Exchange’s Allocation

Policy and Procedures pilot program.

The text of the proposed rule change is

available at the Office of the Secretary,

the NYSE, 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
60298 Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Notices

3See Securities Exchange Act Release No. 38372

(March 7, 1997) 62 FR 13421 (March 21, 1997)

(notice of filing and immediate effectiveness of File

No. SR–NYSE–97–04). On April 16, 1997, the

Exchange filed another proposed change to its

Policy not covered under the pilot program. See

Securities Exchange Act Release No. 38828 (July 9,

1997) 62 FR 39043 (July 21, 1997) (order approving

File No. SR–NYSE–97–12).

4See Securities Exchange Act Release No. 39206,

62 FR 53679 (October 15, 1997) (order approving

File No. SR–NYSE–97–27).

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 rule

change is to amend and to make

permanent the Exchange’s Allocation

Policy and Procedures pilot program.

The Exchange’s Allocation Policy and

Procedures (‘‘Policy’’) are intended: (1)

to ensure that securities are allocated in

an equitable and fair manner and that

all specialist units have a fair

opportunity for allocations based on

established criteria and procedures; (2)

to provide an incentive for ongoing

enhancement of performance by

specialist units; (3) to provide the best

possible match between specialist unit

and security; and (4) to contribute to the

strength of the specialist system.

On February 28, 1997, the Exchange

proposed to change the Policy with

respect to listing company input. The

Commission approved the filing as a

seven-month pilot program, effective

March 7, 1997 until October 7, 1997.3

On October 6, 1997, the Commission

approved an extension of the

Exchange’s pilot program, until

November 28, 1997.4

Under the pilot, listing companies

may: (1) have the Allocation Committee

select their specialist unit; or (2) make

the final selection of a specialist unit

from among a group of three to five

specialist units selected by the

Allocation Committee. The listing

company may submit a generic letter to

the Allocation Committee which may

describe desired general characteristics

of a specialist unit, but may not mention

particular specialist units. Under the

second option, the listing company

meets, either in person or by

teleconference, with the specialist units

selected by the Allocation Committee

within two business days after their

selection. The listing company must

make its decision as to a specialist unit

by the next business day.

The Exchange proposes the following

additional changes to its Policy based

upon the staff’s experience with the

pilot program:

Listing Company Input

When the listing company selects

Option (2), the Allocation Committee

will select a group of three, four or five

units that are the most qualified

specialist units among the units that

apply. It is proposed that if three units

are selected, the Allocation Committee

may select an alternate specialist unit to

be among the group of units that a

company may interview in the event a

unit is elimated. A unit could be

eleimated if it or the specialist

designated to trade the stock cannot

meet with the listing company at the

appointed time. A unit chosen as an

alternate will be informed of its status

as such. Currently, the policy is silent

regarding this procedure.

Company Letter

The Exchange proposes that the letter

submitted by the listing company focus

on the history and background of the

company and its industry; how the

company historically has funded its

operations; characteristics of its

shareholder based and any unusual

trading patterns that may result

therefrom; and any public information

regarding the company’s plans for the

future. The letter may also include the

company’s specific views on being

traded by a specialist unit with

experience in trading in its industry or

country and the company’s preference,

if any, that its stock not be traded by

specialist units which trade

competitors, in which case, names of

direct competitors should be included

in the letter. Currently, the listing

company’s letter to the Allocation

Committee describes characteristics that

focus on the specialist rather than the

listing company. The Allocation

Committee has found that letters which

describe the listing company are more

helpful to the Allocation Committee in

assessing the type of specialist unit that

would be more appropriate for the

company.

Interview Scheduling and Format

Currently, within two business days

after the selection of a group of

specialist units by the Allocation

Committee, the listing company must

meet with the specialist unit’s

representative. In addition, the listing

company must select its specialist unit

within one business day of the

interview. Experience has shown that

these time frames were too compressed

at time for company travel arrangements

or preparation by the specialist units.

Pursuant to the proposal, after the

Allocation Committee selects a group of

specialist units (under Option 2), the

listing company must meet with the

selected group of specialist units

representatives by the close of business

on the last Exchange business day of the

week in which the selection of the

group was made. As soon as practicable,

following its meeting with

representatives of the specialist units,

the listing company must select its

special unit. If a listing company meets

with any of its specialist units on the

last Exchange business day of the week,

it must take its decision on that day.

Currently, the Policy permits

telephone interviews at the request of a

listing company. In-person interviews

have been shown to be more effective.

Therefore, telephone interviews will not

be permitted for domestic listing

companies, unless the Exchange

approves for compelling circumstances.

Telephone interviews will be permitted

for non-U.S. listing companies.

Contact Between Listing Companies

and Specialist Units

Currently, the Policy is silent

regarding contact between listing

companies and specialist units.

However, the NYSE’s Information

Memo No. 97–13 states that once

allocation applications are distributed,

the exchange expects that specialist

units will have no contact with the

listing companies.

The Exchange proposes to codify into

its Policy its prohibitions on contact

between listing companies and

specialist units from the time allocation

applications are solicited until

Allocation Committee meetings. From

the selection of an interviewing pool to

the time of interviews, units may

provide material to Exchange staff no

later then two hours before the

scheduled interview. Exchange staff will

provide the material to the listing

company on the day of the interview.

Such material must be limited to

information pertaining to the specialist

unit, and may not contain information

that refers to another specialist unit or

units, except overall floorwide statistics.

The Exchange proposes that at the

interview, information or material may

be provided either orally or in writing.

Any material provided either orally or

in writing by the specialist unit must

relate only to that unit. Information

regarding other units may not be

provided, except for floorwide statistics.
Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Notices 60299

5 15 U.S.C. 78f(b)(5). 6 17 CFR 200.30–3(a)(12).

Any information contained in Exchange

documents may be provided by the unit

orally or in writing on the unit’s

letterhead. Following its interview, a

specialist unit may not have any contact

with the listing company and any

follow-up questions by the company

regarding publicly available information

on a unit must be sent to the Exchange.

If the Exchange approves, a response

will be provided. The specialist units in

the group of units interviewed will be

advised of such requests.

Spin-offs/Related Companies

This section of the Policy covers

situations in which a listing company is

a spin-off of or related to a listed

company. Currently these situations are

handled as new listings, with allocation

open to all specialist units.

Under the proposed revisions of the

Policy, a listing company that is a spinoff or related company may choose to

stay with the specialist unit registered

in the related listed company.

If the listing company chooses to have

the Allocation Committee select its

specialist, the listing company may

request, and the Allocation Committee

will honor, that it not be traded by the

specialist unit that trades the related

listed company. Alternatively, the

listing company may choose Option 2

and request that the Allocation

Committee include or exclude from the

group of specialist units, the specialist

registered in the related listed stock.

The Exchange believes that the pilot

program, as amended, should be made

permanent in that it has successfully

established flexible procedures for the

listing company to effectively

participate in the selection process of

specialist units that are most suitable to

make quality markets in the listing

company’s stock.

2. Statutory Basis

The NYSE believes the proposed rule

change is consistent with the

requirements of Section 6(b)(5) of the

Act 5 that an Exchange have rules that

are 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 protest investors and the

public interest. The Exchange believes

that the experience gained from the

pilot program suggests that the

amendments to the Policy are consistent

with these objectives in that they enable

the Exchange to further enhance the

process by which stocks are allocated

between specialist units to ensure

fairness and equal opportunity in the

process.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposal does not 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

Comments were neither solicited nor

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:

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 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 of the NYSE. All submissions

should refer to File Number SR–NYSE–

97–30 and should be submitted by

November 28, 1997.

Fifth Street, N.W., Wahsington, 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 of the NYSE. All submissions

should refer to File Number SR–NYSE–

97–30 and should be submitted by

November 28, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

[FR Doc. 97–29473 Filed 11–6–97; 8:45 am]

BILLING CODE 8010–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

[Docket No. 301–116]

Initiation of Section 302 Investigation,

Proposed Determinations and Action,

and Request for Public Comment:

Honduran Protection of Intellectual

Property Rights

AGENCY: Office of the United States

Trade Representative.

ACTION: Notice of initiation of

investigation; proposed determination

and action; request for public comment;

and public hearing.

SUMMARY: The Trade Policy Staff

Committee (TPSC) has determined that

the Government of Honduras has failed

to provide adequate and effective means

under its laws for foreign nationals to

secure, exercise and enforce exclusive

rights in intellectual property and has

recommended that the duty-free

treatment accorded Honduras under the

Generalized System of Preferences

(GSP) and the Caribbean Basin Initiative

(CBI) programs be partially withdrawn.

In light of the foregoing, the United

States Trade Representative (USTR) is

initiating an investigation under section

302(b) of the Trade Act of 1974, as

amended (the ‘‘Trade Act’’) with regard

to acts, policies, and practices of the

Government of Honduras with respect

to the protection of intellectual property

rights, and proposes to determine that

these acts, policies and practices are

actionable under section 301(b) and that

the appropriate response is a partial

suspension of tariff preference benefits