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
Federal Register / Vol. 62, No. 238 / Thursday, December 11, 1997 / Notices 65301

6Securities Exchange Act Release Nos. 36122

(Aug. 18, 1995), 60 FR 44530 (Aug. 28, 1995); 37524

(Aug. 5, 1996), 61 FR 42080 (Aug. 13, 1996); and

38924 (Aug. 11, 1997), 62 FR 44160 (Aug. 19, 1997).

7A controlled account is defined as ‘‘any account

controlled by or under common control with a

member broker-dealer.’’ Customer accounts, which

include discretionary accounts, are defined as all

accounts other than controlled accounts and

specialists accounts. See Exchange Rule 1014(g).

8The proposed rule change would not alter the

mandatory application of the enhanced parity split.

Telephone conversation between Michele R.

Weisbaum, Vice President and Associate General

Counsel, Exchange, and Michael L. Loftus,

Attorney, Division of Market Regulation,

Commission (November 26, 1997).

9The Exchange also has a different enhanced

parity split program in place for ‘‘new’’ option

specialist units trading newly listed options classes

where the specialist is on parity with two or more

registered options traders. See Securities Exchange

Act Release No. 34109 (May 25, 1994), 59 FR 28570

(June 2, 1994), That program was approved on a

permanent basis and, therefore, is not included in

the subject of this filing.

10Securities Exchange Act Release No. 38924

(Aug. 11, 1997), 62 FR 44160 (Aug. 19, 1997).

11Securities Exchange Act Release No. 35499

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

12Enforcement No. 95–12, Business Conduct

Committee, Exchange.

13The Commission again notes that in connection

with any future request by the Exchange for the

Commission to either further extend or permanently

approve the Pilot Program, the Exchange will be

required to submit a Report discussing: (i) Whether

the Pilot Program has generated any evidence of any

adverse effect or competition or investors, in

particular, or the market for equity or index options,

in general; (ii) whether the Exchange has received

any complaints, either written or otherwise,

concerning the operation of the Pilot Program; and

(iii) whether the Exchange has taken any

disciplinary action against or commenced any

investigation, examinations, or inquiries concerning

the operation of the Pilot Program, as well as the

outcome of any such matter.

14 15 U.S.C. 78f.

15 15 U.S.C. 78f(b)(5).

occasions,6 most recently until

December 31, 1997.

The Pilot Program works as follows:

when an equity or index option

specialist is on parity with one

controlled account 7 and the order is for

more than five contracts, the specialist

will receive 60% of the contracts and

the controlled account will receive 40%.

When the specialist is on parity with

two controlled accounts and the order is

for more than five contracts, the

specialist will receive 40% of the

contracts and each controlled account

will receive 30%. When the specialist is

on parity with three or more controlled

accounts and the order is for more than

five contracts, the specialist will be

counted as two crowd participants

when dividing up the contracts. In any

of these situations, if a customer is on

parity, he will not be disadvantaged by

receiving a lesser allotment than any

other crowd participant, including the

specialist.

It should be noted that the application

of this enhanced parity split is

mandatory. Therefore, with respect to

any equity or index options transaction

that implicates that enhanced parity

split, the specialist is required to accept

the preferential allocation and may not

decline the enhancement.8

Presently, the enhanced parity split is

not made available to all equity and

index options traded on the Exchange.

Rather, the enhanced parity split applies

to only 50% of each specialist unit’s

issues listed as of the renewal date of

the pilot each year, and to all option

classes listed after that date.9 The

Exchange seeks to continue to study

these rules under the auspices of the

Pilot Program. However, the Exchange

proposes to modify the application of

the Pilot Program in the following

respects: (i) While equity options would

continue to be included in the pool of

options from which each specialist

chooses 50%, all index options would

receive the enhanced parity split; and

(ii) specialists would be allowed to

revise the list of eligible equity options

on a quarterly basis, instead of on an

annual basis. It also should be noted

that all new option classes listed after

the renewal date of the Pilot Program

each year will continue to receive the

enhanced parity split. The Exchange has

represented that these changes were

made to better match the enhancement

with the options in which specialists are

expending the most money, time and

effort in making competitive, liquid

markets. Accordingly, the Exchange

requests that the Pilot Program, as

amended, be extended until December

31, 1998.

In connection with the most recent

extension of the Pilot Program,10 it was

noted that prior to granting another

extension or permanent approval of the

Pilot Program, the Commission would

require the Exchange to submit a report

(‘‘Report’’) discussing: (i) Whether the

Pilot Program has generated any

evidence of any adverse effect on

competition or investors, in particular,

or the market for equity or index

options, in general; (ii) whether the

Exchange has received any complaints,

either written or otherwise, concerning

the operation of the Pilot Program; and

(iii) whether the Exchange has taken any

disciplinary action against, or

commenced any investigations,

examinations, or inquiries concerning

the operation of the Pilot Program, as

well as the outcome of any such matter.

The Report, which the Exchange filed

on November 14, 1997, as Amendment

No. 1, is summarized below.

With respect to the issue of

competition, the Exchange found that

the enhanced parity split as originally

proposed was overly burdensome when

only one or two controlled accounts

were on parity with the specialist.

Consequently, the Pilot Program was

amended on March 1, 1995, in order to

make the enhanced parity split more

equitable in those situations.11 Later

that year, the Exchange established a

subcommittee composed of four

specialists, four Registered Options

Traders (‘‘ROTs’’), and one floor broker.

The composition of the subcommittee

was intended to represent all of the

different interests on the trading floor

and in the market. The subcommittee

has met on numerous occasions to

analyze the Pilot Program and its effect

on competition, investors, and the

market in general. The subcommittee

members have discussed the operation

of the Pilot Program and have

concluded there is not evidence of any

adverse effects on competition or

investors or the market for equity or

index options.

As to the second issue concerning

complaints about the Pilot Program, the

provision requiring the specialist to

assure that the customer is not

disadvantaged has been strictly enforced

without incident and the Exchange has

not received any complaints either

orally or in writing from investors or

Exchange members regarding

inequitable splits or the Pilot Program in

general.

Finally, as to the third pilot relating

to disciplinary actions, investigations,

examinations or inquiries; no violations

were either investigated or commenced

this year. However, two years ago the

Exchange did bring one disciplinary

case against an equity option specialist

for making an inequitable split among

himself and the ROTs in the crowd.12 In

that instance, the specialist was

censured and suspended for one week

as part of a settlement.13

The Exchange further notes that its

Options Committee is continuing to

review the effectiveness of the Pilot

Program and the effectiveness of the

existing review criteria and system of

selecting subject options. The Exchange

expects the Options Committee to

complete its review during the

upcoming year.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6 of the Act,14 in general, and

with Section 6(b)(5),15 in particular, in

that it is designed to promote just and

equitable principles of trade; to prevent

fraudulent and manipulative acts and
65302 Federal Register / Vol. 62, No. 238 / Thursday, December 11, 1997 / Notices

16The proposed rule change filing is deemed filed

as of the date Amendment No. 1 was received by

the Commission.

17 15 U.S.C. 78s(b)(3)(A).

18 17 CFR 240.19b–4(e)(6). 19 17 CFR 200.30–3(a)(12).

practices; to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities; 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.

Specifically, the Exchange believes that

the proposal balances the competing

interests of specialists and market

makers while assisting specialists in

making tight and liquid markets in

assigned issues. The proposal also

protects the public interest by requiring

quarterly reviews and assuring that a

customer’s participation is never

disadvantaged by the enhanced parity

split.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe 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

The Exchange did not solicit or

receive written comments with respect

to the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (ii) does not impose any

significant burden on competition; and

(iii) does not become operative for 30

days from November 14, 1997, the date

on which it was filed,16 and the

Exchange provided the Commission

with written notice of its intent to file

the proposed rule change at least five

business days prior to the filing date, it

has become effective pursuant to

Section 19(b)(3)(A) of the Act 17 and

Rule 19b–4(e) (6) 18 thereunder.

At any time within 60 days of the

filing of the proposed 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

purposes of the Act.

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, 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 persons, 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

Section, 450 Fifth Street, NW.,

Washington, DC 20549. 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–Phlx–97–48

and should be submitted by January 2,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.19

[FR Doc. 97–32369 Filed 12–10–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Senior Executive Service; Performance

Review Board Members

ACTION: Standing Roster of Members of

this Agency’s Senior Executive Service.

SUMMARY: Section 4314(c)(4) of Title 5,

requires Federal agencies publish

notification of the appointment of

individuals who may serve as members

of that Agency’s Performance Review

Boards (PRB). The following is a

standing roster:

1. Paul Weech, Chief of Staff:

2. Chris Sale, Chief Operating Officer;

3. John Whitmore, Deputy to the

Associate Deputy Administrator for

Government Contracting and

Minority Enterprise Development;

4. Mary K. Swedin, Assistant

Administrator for Congressional

and Legislative Affairs;

5. John Gray, Associate Deputy

Administrator for Economic

Development;

6. Carolyn J. Smith, Assistant

Administrator for Human

Resources;

7. Herbert Mitchell, Deputy Associate

Administrator for Disaster

Assistance;

8. Mark Stephens, Deputy General

Counsel;

9. John Smith, District Director

(Chicago);

10. Erline Patrick, Assistant

Administrator for Equal

Employment Opportunity and Civil

Rights Compliance;

11. Darryl Dennis, Counselor to the

Administrator;

12. Charles Anderson, District Director

(Miami);

13. Monika Harrison, Associate

Administrator for Business

Initiatives;;

14. Judith Roussel, Associate

Administrator for Government

Contracting;

15. Mark Quinn, District Director (San

Francisco);

16. Larry Wilson, Chief Financial

Officer;

17. Jeanne Saddler, Counselor to the

Administrator;

18. John T. Spotila, General Counsel;

19. David Kohler, Associate General

Counsel for General Law;

20. Eric Benderson, Associate General

Counsel for Litigation;

21. Elizabeth Myers; Senior Advisor to

the Administrator;

22. Jadine Neilsen, Senior Advisor to

the Administrator;

23. Mona Mitnick, Assistant

Administrator for Hearings and

Appeals;

24. Edward Eugene Carlson, Associate

Administrator for Communications

and Public Liaison;

25. Gregory Walter, Deputy Chief

Financial Officer;

26. Bernard Kulik, Associate

Administrator for Disaster

Assistance;

27. Jane Butler, Deputy Associate

Administrator for Financial

Assistance;

28. Arnold Rosenthal, Assistant

Administrator for Borrower and

Lender Servicing;

29. Don Christensen, Associate

Administrator for Investment;

30. Robert Moffitt, Associate

Administrator for Surety

Guarantees;

31. Johnnie Albertson, Associate

Administrator for Small Business

Development Centers;

32. Jeanne Scalter, Acting Deputy to the

Associate Deputy Administrator for

Economic Development;;

33. James Van Wert, Senior Advisor for

Policy and Planning;

34. Lawrence Barrett, Acting Associate

Deputy Administrator for

Management and Administration;