66170 Federal Register / Vol. 62, No. 242 / Wednesday, December 17, 1997 / Notices

11The Exchange will not require JBO clearing

members to establish ownership standards that

meet any minimum guidelines in addition to the

rules of the Exchange. As a result, clearing members

will possess the discretion to develop the

ownership criteria governing their JBO accounts.

However, should the Exchange learn of any

inappropriate ownership standards through its

audit and surveillance activities, the Exchange will

move to correct the impropriety. 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).

12 12 CFR 220.11.

13 15 U.S.C. 78f. 14 15 U.S.C. 78f(b)(5). 15 17 CFR 200.30–3(a)(12).

gross haircuts calculated for all options

market maker and JBO participant

accounts, in aggregate, is attributable to

options market maker transactions. A

JBO clearing firm conducting a primary

options market maker business must

include the gross deductions calculated

for all JBO participant accounts in its

ration of gross options market maker

deductions to adjusted net capital.

Further, each JBO clearing member

shall adjust its net worth daily by

deducting any deficiency between a JBO

participant’s account equity and the

proprietary haircut calculated pursuant

to Rule 15c3–1 for the positions

maintained in the JBO account. As

previously referenced, each clearing

member which maintains JBO accounts

must require and maintain equity of

$1,000,000 for each JBO participant,

over all related funds. The clearing

member is required to issue a margin

call if the JBO participant’s account

equity falls below the $1,000,000

threshold. Finally, each JBO clearing

member will be required to establish

and maintain written ownership

standards for JBO accounts.11 The

clearing member also must develop risk

analysis standards which are acceptable

to the Exchange.

Margin Requirements. The Exchange

proposes to revise Exchange Rule 722,

Margin Accounts, to permit a member

organization to carry the accounts of

JBO participants on a good faith margin

basis. The JBO accounts must comply

with the requirements established in

Regulation T, Section 220.11,12 and

Exchange Rule 703, as modified above.

JBO participants must maintain equity

of at least $1,000,000 in their accounts.

If the equity falls below $1,000,000, the

JBO clearing firm must issue a margin

call for additional funds or securities

which must be satisfied within 5

business days.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6 of the Act,13 in general, and

with Section 6(b)(5),14 in particular, in

that it is designed 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. The Exchange further

believes that the proposed rule change

is designed to ensure the reasonableness

of JBO arrangements in accordance with

the FRB’s directive in its recent

amendments to Regulation T.

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

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 approved 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

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, N.W.,

Washington, D.C. 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–97–56

and should be submitted by January 7,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–32824 Filed 12–16–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Greater Washington Investments, Inc.;

Notice of Surrender of License

Notice is hereby given that Unco

Ventures, Ltd. (Unco), 520 Post Oak

Blvd., Suite 130, Houston, TX 77027–

9405, has surrendered its license to

operate as a small business investment

company under the Small Business

Investment Act of 1958, as amended

(the Act). Unco was licensed by the

Small Business Administration on

September 30, 1988.

Under the authority vested by the Act

and pursuant to the Regulations

promulgated thereunder, the surrender

was acted on this date, and accordingly,

all rights, privileges and franchises

derived therefrom have been terminated

(Catalog of Federal Domestic Assistance

Program No. 59.11, SmallBusiness

Investment Companies)

Dated: December 8, 1997.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 97–32816 Filed 12–16–97; 8:45 am]

BILLING CODE 8025–01–M

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

Modification of the Tariff-Rate Import

Quota for Certain Cheeses From

Hungary

AGENCY: Office of the United States

Trade Representative.

ACTION: Modification of the Harmonized

Tariff Schedule of the United States.

SUMMARY: This document modifies

Additional U.S. Notes 21 and 25 to