Federal Register / Vol. 62, No. 246 / Tuesday, December 23, 1997 / Notices 67103

9See Letter from Joseph P. Corrigan, Executive

Director, OPRA, to William Speth, Exchange, dated

November 20, 1997.

10 15 U.S.C. § 78f.

11 15 U.S.C. § 78f(b)(5).

12See note 3, supra.

13 15 U.S.C. § 78s(b)(3)(A).

14 17 CFR 240.19b–4(e).

15 17 CFR 200.30–3(a)(12).

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

2See letter from J. Craig Long, Attorney, Foley &

Lardner, to Katherine England, Assistant Director,

Division of Market Regulation, Commission, dated

December 10, 1997 (‘‘Amendment No. 1’’). The

Exchange initially submitted the proposal on

December 8, 1997. However, at the Commission’s

request, the Exchange filed Amendment No. 1 to the

proposed rule change on December 11, 1997 to

provide the reasoning for rebating the dues and

fees.

elect to list full-value, long-term index

option series (‘‘LEAPS’’), as provided

in Exchange Rule 24.9, ‘‘Terms of Index

Option Contracts.’’ The Exchange also

may provide for the listing of reducedvalue LEAPS, for which the underlying

value would be computed at one-tenth

of the value of the Index. The current

and closing Index value for any such

reduced-value LEAP will be rounded to

the nearest one-hundredth.

(e) Exercise and Settlement of Option

Contracts Based on the Index. Options

listed and traded on the Index will have

European-style exercise features and

will be ‘‘A.M.-Settled Index Options’’

within the meaning of the Exchange

Rules in Chapter XXIV, ‘‘Index

Options,’’ including Exchange Rule

24.9, which is being amended to

reference options based on the Index.

Option contracts based on the Index

will expire on the Saturday following

the third Friday of the expiration

month. Thus, the last day for trading in

an expiring series will be the second

business day preceding the expiration

date, typically a Thursday.

(f) Exchange Rules Applicable to the

Trading of Index Option Contracts.

Except as modified in this proposed rule

change, the Exchange Rules in Chapter

XXIV will apply to options listed and

traded on the Index. In addition, option

contracts based on the Index will be

subject to the position limit

requirements of Exchange Rule 24.4A,

‘‘Position Limits for Industry Index

Options.’’

The Exchange has represented that it

possesses the necessary systems

capacity to support new series that

would result from the introduction of

option contracts based on the Index. In

addition, the Options Price Reporting

Authority (‘‘OPR’’) informed the

Exchange that additional traffic

generated by options on the Index is

within OPRA’s capacity.9

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section 6

of the Act,10 in general, and furthers the

objectives of Section 6(b)(5),11 in

particular, in that it will permit trading

in option contracts based on the Index

in accordance with rules designed to

prevent fraudulent and manipulative

acts and practices, and to promote just

and equitable principles of trade.

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 proposed rule change

complies with the requirements set forth

in the Generic Index Approval Order,12

it constitutes a stated policy, practice, or

interpretation with respect to the

administration of an existing Exchange

rule, and, therefore, has become

effective pursuant to Section 19(b)(3)(A)

of the Act 13 and subparagraph (e) of

Rule 19b-4 thereunder.14 Pursuant to the

Generic Index Approval Order, the

Exchange may not list Index options for

trading prior to 30 days after December

8, 1997, the date the proposed rule

change was filed with the Commission.

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–CBOE–97–

63 and should be submitted by January

13, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–33404 Filed 12–22–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39450; File No. SR–CHX–

97–31]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange, Inc. Relating

to a Rebate to Members of Dues and

Certain Fees

December 15, 1997.

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

Securities Exchange Act of 1934

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

December 11, 1997, the Chicago Stock

Exchange, Inc. (‘‘CHX’’ 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 selfregulatory organization.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 rebate to

members (1) an amount equal to six

months of membership dues and (2) an

amount equal to twelve months of floor

telephone booth and/or post space

charges applicable to them, as set forth

in the Exchange’s Membership Dues and

Fees Schedule.
67104 Federal Register / Vol. 62, No. 246 / Tuesday, December 23, 1997 / Notices

3See Amendment No. 1.

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

5 15 U.S.C. 78f(b)(4).

6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 240.19b–4.

8 17 CFR 200.30–3(a)(12).

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 purpose of the proposed rule

change is to rebate to members an

amount equal to six months of

membership dues and an amount equal

to twelve months of floor telephone

booth and/or post space charges

applicable to them because the

Exchange has already adequately

covered its costs for the year.

The Exchange’s Finance Committee

has determined that the proposed

rebates would be consistent with the

general guidelines adopted by the

Committee with respect to the

appropriate level of capital and retained

earnings that the Exchange should

possess at any given time. Furthermore,

the Committee has focused on the

Exchange’s capitalization and

determined that even after the proposed

rebate, the Exchange will have ample

capital and resources to continue to

fulfill its proscribed duties in its

capacity as a self-regulator and as a

registered national securities exchange.3

2. Statutory Basis

The Exchange represents that

proposed rule change is consistent with

Section 6(b) of the Act,4 in general, and

furthers the objectives of Section

6(b)(4) 5 in particular, in that it provides

for the equitable allocation of reasonable

dues, fees, and other charges among the

Exchange’s members and other persons

using its facilities

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

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change constitutes

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 6 and

subparagraph (e) of Rule 19b–4

thereunder.7

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. Soliciation 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, DC. 20549. Copies of the

submission, 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 at

the Commission’s Public Reference

Room. Copies of the filing also will be

available for inspection and copying at

the principal office of the Chicago Stock

Exchange, Inc. All submissions should

refer to File No. SR–CHX–97–31 and

should be submitted by January 13,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

[FR Doc. 97–33403 Filed 12–22–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39451; File No. SR–NASD–

97–88]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers, Incorporated Relating to

Process Fees on Members That Are

Parties to Arbitration Proceedings

December 15, 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 December 11, 1997,

the National Association of Securities

Dealers, Incorporated ‘‘NASD’’ or

‘‘Association’’) 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

NASD Regulation is proposing to

amend Rule 10333 of the NASD’s Code

of Arbitration Procedure (‘‘Code’’) to

add a process fee on members that are

parties to arbitration proceedings. Below

is the text of the proposed rule change.

Proposed new language is in italics;

proposed deletions are in brackets.

10333. Member Surcharge and Process

Fees

(a) Each member [who is named as]

that is a party to an arbitration

proceeding, whether in a Claim,

Counterclaim, Cross-claim or ThirdParty Claim, shall be assessed a nonrefundable surcharge pursuant to the

schedule below when the Director of

Arbitration perfects service of the claim

naming the member on any party to the

proceeding. For each associated person

who is named, the surcharge shall be

assessed against the member or

members that employed the associated

person at the time of the events which

gave rise to the dispute, claim or

controversy. No member shall be

assessed more than a single surcharge in

any arbitration proceeding. The

surcharge shall not be [subject to

reimbursement] chargeable to any other

party under Rules 10332(c) and 10205(c)

of the Code.