61154 Federal Register / Vol. 62, No. 220 / Friday, November 14, 1997 / Notices

1Securities Exchange Act Release No. 26147

(October 3, 1988), 53 FR 39556 (October 7, 1988).

4. Gussie Y. Brown

5. Odel Clay

6. James C. Coutee

7. Barbara A. Donofrio

8. Robert C. Hoffman, Sr.

9. Ronald E. Houck

10. John A. Soderman

The person to contact for more

information is Beatrice Ezerski,

Secretary to the Board, Phone No. 312–

751–4920.

Dated: November 10, 1997.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 97–30095 Filed 11–12–97; 9:52 am]

BILLING CODE 7905–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 35–26776]

Filings Under the Public Utility Holding

Company Act of 1935, as Amended

(‘‘Act’’)

November 7, 1997.

Notice is hereby given that the

following filing(s) has/have been made

with the Commission pursuant to

provisions of the Act and rules

promulgated thereunder. All interested

persons are referred to the application(s)

and/or declaration(s) for complete

statements of the proposed

transaction(s) summarized below. The

application(s) and/or declaration(s) and

any amendments thereto is/are available

for public inspection through the

Commission’s Office of Public

Reference.

Interested persons wishing to

comment or request a hearing on the

application(s) and/or declaration(s)

should submit their views in writing by

December 1, 1997, to the Secretary,

Securities and Exchange Commission,

Washington, D.C. 20549, and serve a

copy on the relevant applicant(s) and/or

declarant(s) at the address(es) specified

below. Proof of service (by affidavit or,

in case of an attorney at law, by

certificate) should be filed with the

request. Any request for hearing shall

identify specifically the issues of fact or

law that are disputed. A person who so

requests will be notified of any hearing,

if ordered, and will receive a copy of

any notice or order issued in the matter.

After said date, the application(s) and/

or declaration(s), as filed or as amended,

may be granted and/or permitted to

become effective.

Central and South West Services, Inc.

(70–7671)

Central and South West Services, Inc.

(‘‘CSWS’’), 1616 Woodall Rodgers

Freeway, P.O. Box 660164, Dallas, Texas

75266, a non-utility subsidiary company

of Central and South West Corporation,

a registered holding company, has filed

a post-effective amendment under

sections 9(a) and 10 of the Act and rule

54 under the Act to an applicationdeclaration filed under sections 9(a) and

10 of the Act.

By orders dated August 10, 1990

(HCAR No. 25132), December 18, 1992

(HCAR No. 25714), and December 28,

1994 (HCAR No. 26206) (‘‘Orders’’),

CSWS was authorized, among other

things, to license and sell to nonassociate entities through December 31,

1997 specialized computer programs

and to provide support services to

licensees and entities that purchased the

software. The support services were to

include program enhancements and

problem resolution and were to be sold

to non-associate companies for an

amount not less than cost to CSWS.

The Orders also authorized CSWS to

make expenditures of up to $1 million

per calendar year and to make

expenditures of up to $250,000 per

project to develop or change software

for non-associate entities; to market

software and services; and to add up to

ten employees to support these

activities.

Finally, the Orders authorized CSWS

to sell reserve computer capacity and to

provide date management services to

non-associate entities provided that

CSWS would limit computer capacity

sales to non-associate entities to 50

percent of its total capacity. CSWS now requests that the

Commission extend the term of the

authorizations contained in the Orders

through December 31, 2002.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–29988 Filed 11–13–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39306; File No. SR–AMEX–

97–37]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange, Inc.,

Relating to Its Designated Options

Area

November 6, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on October 14, 1997,

the American Stock Exchange, Inc. (the

‘‘Amex’’ or the ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (the ‘‘Commission’’) the

proposed rule change as described in

Item 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 Substance of

the Proposed Rule Change

The Amex proposes to amend its

policy to include additional physically

separate locations on the Exchange’s

trading floor where options on Amexlisted stocks may trade. The information

will be found in an upcoming

information circular of the Exchange.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory 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 the

Statutory Basis for, the Proposed Rule

Change

(1) Purpose

In 1988, the Exchange received

Commission approval to trade options

on Amex-listed stocks.1 The approval

was based upon the Amex’s trading

floor for equities and options on those

equities being sufficiently separated

such that there could be no time and
Federal Register / Vol. 62, No. 220 / Friday, November 14, 1997 / Notices 61155

2Securities Exchange Act Release No. 34359 (July

12, 1994), 59 FR 36799 (July 19, 1994).

3 15 U.S.C. § 78f(b).

4 15 U.S.C. § 78f(b)(5).

place advantage derived from the

physical proximity of the two floors

which could be exploited.

Since the 1988 approval was granted,

the trading of options on Amex-listed

securities has continued to occur on the

Exchange at locations that are

physically separate from the locations

where the trading of Amex-listed stocks

occurs. The Exchange contains

additional locations that are also

physically separate from the locations

where Amex-listed stocks trade that

have yet to be designated as areas for the

trading of options on Amex-listed

stocks. The Exchange now proposes to

amend its policy to include those

additional physically separate locations

as areas where the trading of options on

Amex-listed stocks may occur (the

‘‘Designated Options Area’’).

While the number of options on

Amex-listed stocks has increased

slowly, to approximately 45 classes

since 1988, the overall number of option

classes traded on the Exchange has

increased over 350% since that time. As

a result of this increase in classes of

options traded at Amex, the Exchange

currently lacks flexibility in moving

trading units around its trading floors.

Those specialist units currently trading

options on Amex-listed stocks are

forced to remain in the current

Designated Options Area, even though

they have outgrown their space, or face

giving up those classes to move to larger

quarters. Moreover, specialist units that

currently do not trade any options on

Amex-listed stocks are unable to do so

because there is no room left in the

current Designated Options Area. The

increase in classes of options traded on

the Exchange and the Exchange’s need

for flexibility in moving the various

trading units around the Exchange’s

trading floors has made it necessary for

the Exchange to find additional

physically separate locations to include

in the Designated Options Area.

To address the above concerns, the

Exchange proposes to include in its

Designated Options Area the mezzanine

trading level located above the

Exchange’s main equity trading floor

area (the ‘‘Mezzanine’’) and that area of

the Exchange consisting of the back row

of the west side of the Exchange’s main

trading floor also referred to as the west

side of Exchange Post 12, 13, and 15

(the ‘‘Back Row’’). The Commission

recognized in 1994 that the Mezzanine

is a physically separate trading location

when it approved the inclusion of

Amex-listed stocks in stock industry

index groups provided the index traded

separate from the Exchange’s Designated

Stock Area.2 Consistent with the

Commission’s approval of that proposal,

the Mezzanine and the Back Row are

physically separate from the Designated

Stock Area so as to avoid direct sight

lines and communication by means of

hand signals between either the

Mezzanine or the Back Row and the

Designated Stock Area.

The proposed rule change will not

increase the potential for trading abuse

or manipulation as there is no line of

sight between the Mezzanine and the

Back Row and the Designated Stock

Area, thus no time or place advantage

results from the proposed rule change.

Although the proposed rule change will

not increase the potential for trading

abuse or manipulation, the Exchange

does currently have in place various

safeguards to detect and prevent any

such abuse or manipulation. These

safeguards include Amex Rule 175,

which prohibits any specialist from

acting as an options specialist or

functioning in any capacity involving

marketmaking responsibilities in any

option as to which the underlying

security is a stock in which the

specialist is registered as such.

In addition to the safeguards

contained in Amex Rules 175, the

Exchange prohibits, under Amex Rule

958, any equity specialist, odd-lot dealer

or Nasdaq market maker from acting as

a registered trader in a class of stock

options on a stock in which he is

registered in the primary market place.

This Rule also prohibits any member,

while acting as a Registered Options

Trader, if he is also registered as a

Registered Equity Trader or Registered

Equity Marketmaker, from executing a

proprietary Exchange option transaction

on an Amex-listed stock if during the

preceding 60 minutes, he has been in

the Designated Stock Area where the

Amex-listed stock is traded.

To insure compliance with the above

safeguards, the Exchange has in place

various surveillance procedures. The

Exchange’s surveillance procedures,

which are set forth at Section XI, C of

the Amex Trading Analysis Options

Surveillance Manual Concerning Paired

Security Review, including, among

other items, the preparation of daily

activity reports on Registered Options

Trader’s (‘‘ROT’’) trading activity in

Amex-listed stocks and options. These

reports are than used to analyzed ROT

trading activity to insure compliance

with Amex Rule 958.

(2) Basis

The proposed rule change is

consistent with Section 6(b) of the Act 3

in general and furthers the objectives of

Section 6(b)(5) 4 in particular in that it

is designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

facilitating transactions in securities,

and to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system.

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.

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

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 Exchange consents,

the Commission will:

(A) by order approve such 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.

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 filled 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
61156 Federal Register / Vol. 62, No. 220 / Friday, November 14, 1997 / Notices

17 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3FLEX equity options are flexible exchangetraded options contracts which overlie equity

securities. In addition, FLEX equity options provide

investors with the ability to customize basic option

features including size, expiration date, exercise

style, and certain exercise prices.

4SR–CBOE–95–43 approved in Exchange Act

Release No. 36841 (February 14, 1996), 61 FR 6666

(February 21, 1996). 5 15 U.S.C. § 78f(b).

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, N.W.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to SR–AMEX–97–37 and

should be submitted by December 5,

1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–29931 Filed 11–13–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39305; File No. SR–CBOE–

97–57]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Board Options Exchange,

Inc., Relating to Extension of the

Permissible Maturity of FLEX Equity

Options

November 6, 1997.

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 October 23, 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 CBOE proposes to change its

rules to permit a FLEX equity option to

have a term of five years in certain

circumstances.

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 Exchange is proposing to allow

FLEX equity options 3 traded on the

Exchange to have a maturity beyond

three years and up to five years in

certain circumstances. Currently, FLEX

equity options, by operation of Rule

24A.4(a)(4)(i), are limited to a maturity

of three years.

When the Exchange filed for

permission to list and trade FLEX equity

options 4 it determined to limit the

maturity of these options to three years

because, unlike FLEX Index options

which were already being traded on the

Exchange since February 1993 and

which could have a maturity of up to

five years, the Exchange was concerned

that there would not be sufficient

liquidity in many equity option classes

to support series with a longer term to

expiration. Since it has traded FLEX

equity options, however, the Exchange

has had numerous requests from brokerdealers to extend the maturity of FLEX

equity options to five years. Among the

reasons the broker-dealer firms have

been interested in seeking an extension

in the allowable maturity is that these

longer expiration FLEX equity options

might be used to hedge a firm’s longer

term issuances of structured products

linked to returns of an individual stock.

The Rule would permit the longer term

FLEX equity options to be listed when

requested by the submitting member if

the FLEX Post Official determined that

sufficient liquidity existed among

Equity FLEX qualified participants. By

allowing for the extension of the

maturity of FLEX equity options to five

years in situations where there is

demand for a longer term expiration and

where there is sufficient liquidity

among Exchange qualified marketmakers to support the request, the

proposed rule change will better serve

the needs of CBOE’s customers and the

Exchange members who make a market

for such customers.

2. Statutory Basis

The Exchange represents that the

proposed rule change is consistent with

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

any inappropriate burden on

competition.

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.

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