Federal Register / Vol. 62, No. 235 / Monday, December 8, 1997 / Notices 64611

2 If the dispute involves Funds with separate

Boards of Trustees, the Trustees of each Fund will

select an independent arbitrator that is satisfactory

to each party.

1OPRA is a National Market System Plan

approved by the Commission pursuant to Section

11A of the Exchange Act and Rule 11Aa3–2

thereunder. Securities Exchange Act Release No.

17638 (Mar. 18, 1981).

The Plan provides for the collection and

dissemination of last sale and quotation information

on options that are traded on the member

exchanges. The five exchanges which agreed to the

OPRA Plan are the American Stock Exchange

(‘‘AMEX’’); the Chicago Board Options Exchange

(‘‘CBOE’’); the New York Stock Exchange (‘‘NYSE’’);

the Pacific Exchange (‘‘PCX’’); and the Philadelphia

Stock Exchange (‘‘PHLX’’).

Interfund Loans.2 The arbitrator will

resolve any problem promptly, and the

arbitrator’s decision will be binding on

both Funds. The arbitrator will submit,

at least annually, a written report to the

Trustees setting forth a description of

the nature of any dispute and the

actions taken by the Funds to resolve

the dispute.

16. Each Fund will maintain and

preserve for a period of not less than six

years from the end of the fiscal year in

which any transaction under the credit

facility occurred, the first two years in

an easily accessible place, written

records of all such transactions setting

forth a description of the terms of the

transaction, including the amount, the

maturity, and the rate of interest on the

loan, the rate of interest available at the

time on short-term repurchase

agreements and commercial bank

borrowings, and such other information

presented to the Fund’s Trustees in

connection with the review required by

conditions 13 and 14.

17. Janus Capital will prepare and

submit to the Trustees for review an

initial report describing the operations

of the credit facility and the procedures

to be implemented to ensure that all

funds are treated fairly. After the credit

facility commences operations, Janus

Capital will report on the operations of

the credit facility at the Trustees’

quarterly meetings.

In addition, for two years following

the commencement of the credit facility,

the independent public accountant for

each Fund that is a registered

investment company shall prepare an

annual report that evaluates Janus

Capital’s assertion that it has established

procedures reasonably designed to

achieve compliance with the conditions

of the order. The report shall be

prepared in accordance with the

Statements on Standards for Attestation

Engagements No. 3 and it shall be filed

pursuant to Item 77Q3 of Form N–SAR.

In particular, the report shall address

procedures designed to achieve the

following objectives: (a) that the

Interfund Rate will be higher than the

Repo Rate but lower than the Bank Loan

Rate; (b) compliance with the collateral

requirements as set forth in the

application; (c) compliance with the

percentage limitations on interfund

borrowing and lending; (d) allocation of

interfund borrowing and lending

demand in an equitable manner and in

accordance with procedures established

by the Trustees; and (e) that the interest

rate on any Interfund Loan does not

exceed the interest rate on any third

party borrowings of a borrowing Fund at

the time of the Interfund Loan.

After the final report is filed, the

Fund’s external auditors, in connection

with their Fund audit examinations,

will continue to review the operation of

the credit facility for compliance with

the conditions of the application and

their review will form the basis, in part,

of the auditor’s report on internal

accounting controls in Form N–SAR.

18. No Fund will participate in the

credit facility unless it has fully

disclosed in its SAI all material facts

about its intended participation.

For the SEC, by the Division of Investment

Management, under delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–32029 Filed 12–5–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Sunshine Act Meeting

Notice is hereby given, pursuant to

the provisions of the Government in the

Sunshine Act, Pub. L. 94–409, that the

Securities and Exchange Commission

will hold the following meeting during

the week of December 8, 1997.

A closed meeting will be held on

Thursday, December 11, 1997, at 2:30

p.m.

Commissioners, Counsel to the

Commissioners, the Secretary to the

Commission, and recording secretaries

will attend the closed meeting. Certain

staff members who have an interest in

the matters may also be present.

The General Counsel of the

Commission, or his designee, has

certified that, in his opinion, one or

more of the exemptions set forth in 5

U.S.C. 552b(c) (4), (8), (9)(A) and (10)

and 17 CFR 200.402(a) (4), (8), (9)(i) and

(10), permit consideration of the

scheduled matters at the closed meeting.

Commissioner Unger, as duty officer,

voted to consider the items listed for the

closed meeting in a closed session.

The subject matter of the closed

meeting scheduled for Thursday,

December 11, 1997, at 2:30 p.m., will be:

Institution and settlement of

injunctive actions.

Institution and settlement of

administrative proceedings of an

enforcement nature.

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 at (202)

942–7070.

Dated: December 4, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–32168 Filed 12–4–97; 11:06 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39380; File No. SR–OPRA–

97–5]

Options Price Reporting Authority;

Notice of Filing and Immediate

Effectiveness of Amendment to OPRA

Plan Revising the Allocation of

Revenues Between OPRA’s Basic

Accounting Center and OPRA’s Index

Option Accounting Center

December 1, 1997.

Pursuant to Rule 11Aa3–2 under the

Securities Exchange Act of 1934

(‘‘Exchange Act’’), notice is hereby given

that on November 5, 1997, the Options

Price Reporting Authority (‘‘OPRA’’),1

submitted to the Securities and

Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) an amendment to the

Plan for Reporting of Consolidated

Options Last Sale Reports and

Quotation Information (‘‘Plan’’). The

amendment revises the allocation of

revenues between OPRA’s basic

accounting center and the index option

accounting center. OPRA has designated

this proposal as concerned solely with

administration of the Plan, permitting

the proposal to become effective upon

filing pursuant to Rule 11Aa3–2(c)(3)(i)

under the Exchange Act. The

Commission is publishing this notice to

solicit comments from interested

persons on the amendment.

I. Description and Purpose of the

Amendment

The purpose of the amendment is to

revise revenue allocations under the

Plan between OPRA’s basic accounting

center and the index option accounting

center. Currently, the Plan provides for
64612 Federal Register / Vol. 62, No. 235 / Monday, December 8, 1997 / Notices

2 17 CFR 200.30–3(a)(29).

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

2A copy of DTC’s proposed call lottery

procedures is attached as Exhibit A to DTC’s

proposed rule change, which is available for

inspection and copying at the Commission’s Public

Reference room or through DTC.

3The Commission has modified the text of the

summaries prepared by DTC.

4For a discussion of DTC’s call lottery process,

refer to Securities Exchange Act Release Nos. 21523

(November 27, 1984), 49 FR 47352 (File No. SR–

DTC–84–09) (filing and immediate effectiveness of

proposed rule change); 30552 (April 2, 1992) 57 FR

12352 (File No. SR–DTC–90–02) (order temporarily

approving a proposed rule change by the DTC

relating to the establishment of a procedure to recall

certain deliveries which have created short

positions as a result of call lotteries); 35034

(November 30, 1994) 59 FR 63396 (File Nos. SR–

DTC–94–08 and SR–DTC–94–09) (order granting

temporary approval of proposed rule changes to

establish procedures to recall certain deliveries

which have created short positions as a result of

call lotteries and rejected deposits); and 36651

(December 28, 1995) 61 FR 429 (File No. SR–DTC

95–21) (order granting accelerated permanent

approval of a proposed rule change concerning

short position reclamation procedures).

5The terms of certain issues allows the issuer to

call part of the outstanding security for redemption

at certain times during the issue’s life. This type of

security is referred to as a callable security. Callable

securities are either preferred stock or bonds which

the issuer is permitted or required to redeem before

the stated maturity. Generally when an issuer calls

a security, the issuer’s trustee publishes notice that

the issue has been called or in the case of registered

securities, mails notice to the registered holders.

6The call publication date is the date on which

the issuer gives notice of the redemption.

allocation of revenues on the basis of a

75% allocation to the basic accounting

center and 25% to the index option

accounting center. Because OPRA has

not yet unbundled the index option

service and has no current plans to do

so, there is no specified portion of the

system revenues derived from the index

option service. When OPRA adopted the

fixed allocations several years ago, the

allocations reflected the relative market

share at the time. However, the volume

of index options has decreased relative

to that of equity options, so that the

current allocation formula no longer

reflects the relative market share of

index and equity options. Therefore, the

amendment proposes to replace the

existing allocation formula with a

formula that is expressly based on

current relative market share, so that as

relative market share changes from time

to time, it will no longer be necessary

to amend the OPRA Plan in order to

maintain a fair and appropriate

allocation of these revenues. The

proposed Plan amendment will change

the allocations from a fixed basis to a

relative market share basis until such

time as OPRA might impose separate

charges for access to information and

facilities pertaining to index option

securities.

II. Solicitation of Comments

Pursuant to Rule 11Aa3–2(c)(3), the

amendment is effective upon filing with

the Commission. The Commission may

summarily abrogate the amendment

within 60 days of its filing and require

refiling and approval of the amendment

by Commission order pursuant to Rule

11Aa3–2(c)(2), if it appears to the

Commission that such action is

necessary or appropriate in the public

interest; for the protection of investors

and the maintenance of fair and orderly

markets; to remove impediments to, and

perfect the mechanisms of, a National

Market System; or otherwise in

furtherance of the purposes of the

Exchange Act.

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

submission, all subsequent

amendments, and 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 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.

Copies of the filing will also be available

at the principal offices of OPRA. All

submissions should refer to File No.

SR–OPRA–97–5 and should be

submitted by December 29, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–31960 Filed 12–5–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39373; File No. SR–DTC–

97–14]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing of a Proposed Rule Change

Relating to Revisions to the

Procedures for Running Call Lotteries

on Issues of Book Entry Only

Securities

November 28, 1997.

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

Securities Exchange Act of 1934

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

July 2, 1997, The Depository Trust

Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–DTC–97–14) as

described in Items I, II, and III below,

which items have been prepared

primarily by DTC. 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 purpose of the proposed rule

change is to amend DTC’s procedures

for running call lotteries for book-entry

only (‘‘BEO’’) issues of securities. Under

the revisions, DTC will run lotteries

using its participants’ positions as of the

close of business on the day DTC

announces the lottery instead of the call

publication date.2

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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 place specified

in Item IV below. DTC has prepared

summaries, set forth in sections A, B,

and C below, of the most significant

aspects of such statements.3

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to revise DTC’s call lottery

procedures for BEO securities.4

Currently, DTC’s call lottery process

allocates partially called securities 5

among participants having positions in

the called securities based on the

participants’ positions on the call

publication date.6 Under the proposed

rule change, DTC will run the call

lotteries using participants’ positions as

of the close of business on the day DTC

announces the call lottery. The

proposed rule change does not set forth

any other amendments to DTC’s call

lottery procedures.

DTC believes that changing its

procedures solely for BEO securities

will reduce the number of short

positions without any adverse impact to