68326 Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Notices

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

2 17 CFR 240.19b–4. 3 15 U.S.C. 78f(b)(5)

OPM and other agencies use form OPM–

1368B to collect the RNO data from

applicants being considered for

selection under the Outstanding Scholar

provision of the decree. Using the

standardized form makes it easier to

collect and consolidate the required

data for use by the Federal Government

and by the plaintiffs. OPM and agencies

do not need to use form OPM–1368B to

collect data on applicants being

considered through traditional

examining processes; court-required

data on those applicants are collected as

part of an application process not

required for Outstanding Scholars.

The form OPM–1386B is not

considered in the selection process, but

is used only to collect statistical data.

Annual Reporting Burden

Approximately 100,000 forms will be

processed annually. The average

estimated response time is 5 minutes for

a total public burden of 8,333 hours.

U.S. Office of Personnel Management.

Janice R. Lachance,

Director.

[FR Doc. 97–34056 Filed 12–30–97; 8:45 am]

BILLING CODE 6325–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39479; File No. SR–CBOE–

97–61]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by The

Chicago Board Options Exchange, Inc.

to Delete References to Market

Performance Committee and Floor

Procedure Committee and Make Other

Conforming Changes

December 22, 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 December

2, 1997, the Chicago Board Options

Exchange, Incorporated (‘‘CBOE’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I, II,

and III below, which Items have been

prepared by the CBOE. The Exchange

has designated the proposed rule change

as concerned solely with the

administration of the Exchange under

Section 19(b)(3)(A) of the Act, which

renders the proposal effective upon

filing of this proposal by the

Commission. 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 delete from its

rules any specific references to a

particular Floor Procedure Committee or

Market Performance Committee. The

term ‘‘appropriate’’ will be added to all

references that currently relate to these

committees. The text of the proposed

rule change is available at the Office of

the Secretary, the CBOE and at the

Commission.

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 parts of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed

amendment is to delete from the CBOE

rules any specific references to, and add

‘‘appropriate’’ to all references that

currently relate to, a particular Floor

Procedure Committee (‘‘FPC’’) or Market

Performance Committee (‘‘MPC’’). For

instance, any reference to ‘‘SPX Floor

Procedure Committee’’ or ‘‘OEX Market

Performance Committee’’ will be

changed to ‘‘appropriate Floor

Procedure Committee’’ or ‘‘appropriate

Market Performance Committee.’’

The Exchange is proposing to make

the change at this time because it

recently determined to create two new

committees, the Index Floor Procedure

Committee and the Index Market

Performance Committee. These two

committees will replace the OEX Floor

Procedure Committee and the OEX

Market Performance Committee,

respectively. In addition to governing

the trading or market performance

issues of S&P 100 Index Options

(‘‘OEX’’), the new committees likely will

be given jurisdiction over options on the

Dow Jones Industrial Average (‘‘DJX’’),

Nasdaq 100 Index options (‘‘NDX’’),

and, in the case of the Index Market

Performance Committee, the S&P Index

Options (‘‘SPX’’). The Exchange is

retaining the SPX Floor Procedure

Committee to oversee SPX trading

issues.

In trying to accommodate these new

committees specifically in the rules, the

Exchange believes a better approach is

to make reference to the ‘‘appropriate’’

FPC or the ‘‘appropriate’’ MPC. In this

way, the Exchange will have the

flexibility to delegate the functions

under the rules to the appropriate

committee and will not have to make a

rule change merely, for instance, to

accommodate a future change in the

title of a committee or to accommodate

the delegation of a new product to a

committee. As the authority exercised

by these committees is delegated

pursuant to Exchange rules, the title of

the committees exercising their

authority should not be relevant.

The Exchange is also proposing to

delete Interpretation .08 to Rule 6.20.

Interpretation .08 permits a member of

a FPC to act in the capacity of a Floor

Official. However, the Exchange

believes that members of the

appropriate MPC should handle this

role because Floor Officials commonly

deal with issues under the jurisdiction

of the MPC. Members of the appropriate

MPC can act as Floor Officials under

Interpretation .09 to Rule 6.20.

The Exchange also is deleting

references to the SPX Advisory

Committee in Rule 24.15(a)(i) because

this committee no longer exists.

Additionally, the Exchange is proposing

to delete Rule 24A.1(s) because it is

unnecessary as a result of the proposed

rule change. Finally, the Exchange is

proposing to change all references to

Floor ‘‘Procedures’’ Committee to Floor

‘‘Procedure’’ Committee for consistency.

The CBOE believes the proposed rule

change is consistent with the

requirements of Section 6(b)(5) 3 of the

Act which requires, among other things,

that the rules of the Exchange be

designed to promote just and equitable

principles of trade, foster cooperation

among persons engaged in facilitating

securities transactions, and protect

investors and the public interest. The

CBOE believes that this proposal

complies with the Act because the

CBOE is amending its rules to generalize

certain committee references to facilitate

compliance.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposed rule change does not impose

any burden on competition that is not
Federal Register / Vol. 62, No. 250 / Wednesday, December 31, 1997 / Notices 68327

4 15 U.S.C. 78s(b)(3)(A)(iii).

5 17 CFR 240.19b–4(e)(3).

6 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3Amendment No. 1 amends Exchange Rule 24.13,

‘‘Trading Rotations,’’ Interpretation .03, and

eliminates the 50% fixed test as a factor in the

determination whether an opening rotation in an

index option class may be delayed. See Letter from

Paul E. Dengel, Schiff Hardin & Waite, to Michael

Walinskas, Senior Special Counsel, Division of

Market Regulation, Commission, dated September

10, 1997.

4The Commission notes that this proposed rule

change does not address or impact the Exchange’s

circuit breaker trading halt rule and policy.

However, the proposal makes a conforming change

to Exchange Rule 24.7(c) that amends certain

language cross referencing the Exchange’s circuit

breaker trading halt rule, Exchange Rule 6.3B,

‘‘Trading Halts Due to Extraordinary Market

Volatility.’’

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The Exchange has designated this

proposal as concerned solely with the

administration of the Exchange under

Section 19(b)(3)(A)(iii) 4 of the Act and

Rule 19b-4(e)(3) 5 thereunder, which

renders the proposal effective upon

filing with the Commission.

At any time within sixty days of the

filing of this 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, N.W.,

Washington, D.C. 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 in

the Commission’s Public Reference

Room, 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 CBOE. All submissions should

refer to File No. SR–CBOE–97–61 and

should be submitted by January 21,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–34059 Filed 12–30–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39480; File No. SR–CBOE–

97–36]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Incorporated; Order Granting Approval

to Proposed Rule Change and Notice

of Filing and Order Granting

Accelerated Approval of Amendment

No. 1 to Proposed Rule Change

Revising the Exchange Rules

Governing the Halting and Resumption

of Trading in Index Options

December 22, 1997.

I. Introduction

On July 25, 1997, the Chicago Board

Options Exchange, Incorporated

(‘‘CBOE’’ or ‘‘Exchange’’) submitted to

the Securities and Exchange

Commission (‘‘Commission’’), pursuant

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule

19b–4 thereunder,2 a proposed rule

change to revise the Exchange rules

governing the halting and resumption of

trading in index options on the

Exchange.

The proposed rule change was

published for comment in Securities

Exchange Act Release No. 38962 (Aug.

22, 1997), 62 FR 45890 (Aug. 29, 1997).

No comments were received on the

proposal. The Exchange filed

Amendment No. 1 to the proposed rule

change with the Commission on

September 15, 1997.3 This order

approves the proposed rule change

including, on an accelerated basis,

Amendment No. 1.

II. Description of the Proposal

The Exchange seeks to amend

Exchange Rule 24.7, ‘‘Trading Halts or

Suspensions,’’ to eliminate certain fixed

percentage tests that presently apply to

the decision to halt trading in index

options as well as the decision to

resume trading after such a halt. The

proposed rule change also makes certain

conforming changes to related Exchange

rules.4

A. Trading Halts

Currently, under Exchange Rule

24.7(a)(i), one of the enumerated factors

that the designated Exchange officials

may consider in deciding whether to

halt trading in an index option is

whether trading has been halted or

suspended in underlying stocks whose

weighted value presents ‘‘20% or more

of the index value.’’ The Exchange has

expressed concern that by including a

fixed percentage test among those

factors that ‘‘may be considered,’’ the

present rule may imply that it would be

improper for the designated Exchange

officials to consider trading

interruptions in underlying stocks

whose weighted value represents less

than 20% of the index value.

The Exchange believes this

interpretations conflicts with the

purpose of Exchange Rule 24.7, which

grants designated Exchange officials the

discretion to halt index option trading

whenever they ‘‘conclude in their

judgment that such action is appropriate

in the interests of a fair and orderly

market and to protect investors.’’

Because Exchange Rule 24.7(a)(i)–(iv)

sets forth a non-exclusive list of factors

that Exchange officials may consider in

exercising that discretion, the Exchange

contends it would be inappropriate to

forbid those officials from considering

trading disruptions in underlying stocks

that fall below a predetermined level.

Accordingly, the proposed rule change

would clarify that Exchange officials, in

evaluating whether to halt trading in

index options, are not limited to

situations in which 20% of the

underlying stocks have halted, but

rather may consider ‘‘the extent to

which’’ trading is not occurring in the

underlying stocks.

In addition, the proposed rule change

would provide Exchange officials with

the flexibility to consider not only

whether trading in underlying stocks

has been ‘‘halted or suspended,’’ but

also whether such trading is ‘‘not

occurring.’’ The term ‘‘halted or

suspended’’ indicates that Exchange

authorities have taken formal action to

discontinue trading in stock. However,

in deciding whether to continue trading

a derivative instrument like an index