Federal Register / Vol. 62, No. 238 / Thursday, December 11, 1997 / Notices 65299

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

2 17 CFR 240.19b–4.

3The Commission approved the proposed rule

change on November 19, 1997. See Securities

Exchange Act Release No. 39338, 62 FR 63209

(November 26,1997) (order approving File No. SR–

CBOE–97–48).

4According to the Exchange, the value of the

Index was reduced by one-half effective November

24, 1997. Telephone conversation between Timothy

Thompson, Senior Attorney, CBOE, and Deborah

Flynn, Division of Market Regulation, Commission,

on December 2, 1997.

5The fees may actually be less than these

amounts pursuant to the Exchange’s Prospective

Fee Reduction Schedule, the Customer Large Trade

Discount Program, and rebate programs that have

been filed with the Commission as part of the

Exchange’s fee schedule.

Services Corporation (‘‘Energy

Services’’), One Park Ridge Center, P.O.

Box 15746, Pittsburgh, Pennsylvania

15244–0746, and CNG Power Company

(‘‘Power’’), One Park Ridge Center, P.O.

Box 15746, Pittsburgh, Pennsylvania

15244–0746, a nonutility subsidiary

company of Energy Services, have filed

an application-declaration under

sections 6(a), 7, 12(b), 13 and 32 of the

Act and rules 45, 53, 54, 83, 87, 90 and

91 under the Act.

CNG proposes that Power become the

vehicle for CNG investments in exempt

wholesale generators (‘‘EWGs’’) in the

U.S. Investments in EWGs would be

made with internally generated funds.

CNG proposes that intermediate

companies be formed to make EWG

investments (‘‘Intermediate

Companies’’). The Intermediate

Companies will be special-purpose

subsidiaries that may acquire interests

in other corporations, joint ventures,

partnerships, and other investment

entities created to invest in EWGs.

CNG, Energy Services, Power and its

subsidiary companies, including the

Intermediate Companies, seek

Commission authorization to enter into

guarantee arrangements, to obtain letters

of credit, and otherwise to provide

credit support through December 31,

2002 with respect to EWG investments.

The maximum aggregate limit on all

such credit support would be $150

million.

Energy Services and its affiliates

propose to perform services or

construction for, or sell goods to, EWGs

in which Power has acquired an

interest. Services, construction and

goods may be market-priced if the EWGs

provide no services, construction or

goods to CNG utility companies in the

U.S.

Energy Services and its affiliates also

propose to contract with CNG

companies to provide those services,

construction and goods to EWGs.

Services, construction and goods

obtained from U.S. CNG utility

companies would be cost-priced but

services, construction and goods from

CNG non-utility subsidiary companies

would be cost-priced or market-priced—

provided that services, construction and

goods from CNG non-utility subsidiary

companies ‘‘substantially’’ involved in

the provision of services, construction

or goods to U.S. CNG utility companies

would be cost-priced.

Energy Services has authorized

capital of 4,000 shares of common stock,

$1.00 par value per share (‘‘Common

Stock’’). CNG proposes to change the

par value of each share of Common

Stock from $1.00 to $10,000 and

increase the authorized shares to 50,000

shares. CNG states that the issuance of

addition Common Stock for $10,000 per

share will allow Energy Services to

consummate additional equity financing

for the proposed transitions and for

other authorized or exempt transactions.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–32368 Filed 12–10–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39389; File No. SR–CBOE–

97–60]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Inc., Relating to Transaction Fees for

Options on the Standard & Poor’s 100

Stock Index

December 3, 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 November

20, 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 CBOE. 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 modify the

Exchange transaction fees applicable to

transactions in options on the Standard

& Poor’s 100 Stock Index (‘‘OEX’’).

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

CBOE 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 CBOE 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 recently filed with the

Commission a proposed rule change 3 in

which the Exchange informed the

Commission that Standard & Poor’s

(‘‘S&P’’) intended to reduce the value of

its S&P 100 Stock Index (‘‘Index’’) to

one-half of its present value by doubling

the divisor used in calculating the

Index.4 In connection with the ‘‘split’’ of

the OEX, the Exchange has evaluated

the appropriateness of the current fee

schedule and has determined to reduce

the transaction fees applicable to

transactions in OEX. The current and

proposed transaction fees absent any

reduction or rebate 5 are: (1) For

customer trades for options with a

premium less than $1—current: $0.20

per contract side; proposed: $0.15 per

contract side; (2) for customer trades of

options with a premium equal to or

greater than $1—current: $0.40 per

contract side; proposed: $0.30 per

contract side; (3) for member firm

proprietary trades—current: $0.10 per

contract side: proposal: $0.06 per

contract side; and (4) for market-maker

trades—current: $.06 per contract side;

proposed: $.05 per contract side. The

foregoing fee changes are being

implemented by the Exchange pursuant

to CBOE Rule 2.22. The Exchange will

distribute a circular to its members to

notify them of these fee changes.

The Exchange is adopting this fee

reduction for transactions in OEX

options in order to promote trading in

these options after the split in OEX. The

Exchange believes that the reduction in

the fees may encourage more

participation in the trading of these

options.
65300 Federal Register / Vol. 62, No. 238 / Thursday, December 11, 1997 / Notices

6 15 U.S.C. 78f(b).

7 15 U.S.C. 78(b)(4).

8 15 U.S.C. 78s(b)(3)(A).

9 17 CFR 19b–4(e).

10 17 CFR 200.30–3(a)(12).

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

2Amendment No. 1 is a report which discusses

the impact of the Exchange’s Pilot Program for

Equity and Index Option Specialist Enhanced Parity

Splits. See Letter from Michele R. Weisbaum, Vice

President and Associate General Counsel,

Exchange, to Michael Walinskas, Esquire, Division

of Market Regulation, Commission, dated November

7, 1997.

3Securities Exchange Act Release No. 34606

(Aug. 26, 1994), 59 FR 45741 (Sept. 2, 1994).

4Securities Exchange Act Release No. 35028

(Nov. 30, 1994), 59 FR 63151 (Dec. 7, 1994).

5Securities Exchange Act Release No. 35429

(Mar. 1, 1995), 60 FR 12802 (Mar. 8, 1995).

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of

Section 6(b)(4) of the Act 7 in particular,

in that it is designed to provide for the

equitable allocation of reasonable dues,

fees, and other changes among CBOE

members.

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.

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 foregoing rule change establishes

or changes a due, fee, or other charge

imposed by the Exchange and therefore

has become effective pursuant to

Section 19(b)(3)(A) of the Act 8 and

subparagraph (e) of Rule 19b–4 9

thereunder. At any time within 60 days

of the filing of such 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

proposes of the Act.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing.

Persons making written submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street NW.,

Washington, DC 20549. Copies of the

submissions, 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, 450 Fifth Street NW.,

Washington, DC. Copies of such filing

also will be available for inspection and

copying at the CBOE. All submissions

should refer to File No. SR–CBOE–97–

60 and should be submitted by January

2, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–32367 Filed 12–10–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39401; File No. SR–Plx 97–

48]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and

Amendment No. 1 Thereto by the

Philadelphia Stock Exchange, Inc.

Relating to the Extension and

Amendment of the Pilot Program for

Equity and Index Option Specialist

Enhanced Parity Splits

December 4, 1997.

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

Securities Exchange Act of 1934

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

November 5, 1997, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ 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 Exchange. On

November 14 1997, the Exchange filed

with the Commission Amendment No. 1

to the proposed rule change.2 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 extend

until December 31, 1998, the Exchange’s

enhanced parity split pilot program for

equity and index option specialists

(‘‘Pilot Program’’). The Pilot Program is

currently scheduled to expire on

December 31, 1997. The Exchange also

seeks to modify the application of the

Pilot Program so that: (i) the enhanced

parity split would not apply to all index

options, in addition to applying to 50%

of each specialist’s equity options and

all new options allocated to the

specialist during the year; and (ii)

specialists would be permitted to revise

the list of eligible equity options on a

quarterly basis, rather than annually.

The proposed rule change will revise

Exchange Rule 1014(g) ‘‘Equity Option

and Index Option Priority and Parity,’’

and its corollary Option Floor Procedure

Advice B–6.

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 an

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

On August 26, 1994, the Commission

approved the Exchange’s Pilot Program

to provide enhanced specialist

participation in parity equity option

trades.3 Initially, the Pilot Program was

approved for a one year period ending

August 26, 1995. On November 30,

1994, the Commission approved the

Exchange’s request to include index

option specialists in the Pilot Program.4

The Pilot Program was later revised on

March 1, 1995, with respect to

situations where less than three

controlled accounts are on parity with

the specialist.5 The Pilot Program has

subsequently been renewed on three