9224 Federal Register / Vol. 62, No. 40 / Friday, February 28, 1997 / Notices

U.S. government securities that are processed

through Cedel involving a U.S. counterparty or its

affiliate.

17 15 U.S.C. 781q–1(a)(2).

18 17 CFR 200.30–3(a)(16).

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 38307

(February 19, 1997) (Amex–97–04).

4The industries represented by these companies

include: packaged software providers; computer

programming consulting firms; and computer

outsourcing services.

5See Exchange Rule 902C(c).

6See Exchange Rule 902C(d).

7See Exchange Rule 902C(e).

comment on whether there should be a

concentration limit whereby Cedel

would be prohibited from reaching its

entire volume limit for U.S. debt and

equity securities by processing

transactions involving the U.S. debt or

equity securities of only one or a limited

number of issuers.

The Commission invites commenters

to discuss any other issues that may

arise or restrictions that should be

imposed in connection with any

modification of Cedel’s exemption order

to permit Cedel to offer securities

processing services for U.S. debt and

equity securities that have not been

discussed in this notice or adequately

addressed in the Cedel exemption order.

B. Fair Competition

As discussed in the Cedel notice,

Section 17A of the Exchange Act

requires the Commission in exercising

its authority under that section to have

due regard for the maintenance of fair

competition among clearing agencies.17

Therefore, the Commission invites

commenters to address what the likely

effect on competition and on the U.S.

securities markets would be if the

Commission modifies Cedel’s

exemption from registration as a

clearing agency to permit Cedel to

process U.S. debt and equity securities

transactions involving U.S. entities.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing

application by March 31, 1997. Such

written data, views, and arguments will

be considered by the Commission in

deciding whether to expand Cedel’s

exemption from registration to include

processing U.S. debt and equity

securities. Persons desiring to make

written submissions should file six

copies thereof with the Secretary,

Securities and Exchange Commission,

450 Fifth Street, N.W., Washington, D.C.

20549. Reference should be made to File

No. 600–29. Copies of the application

and copying at the Commission’s Public

Reference Room 450 Fifth Street, N.W.,

Washington, D.C. 20549.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.18

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–5026 Filed 2–27–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38324; File No. SR–Amex–

97–07]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the American Stock

Exchange, Inc., Relating to the

Disclaimer Provisions of Amex Rule

902C

February 24, 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 January

29, 1997, the American Stock Exchange,

Inc. (‘‘Amex’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I and II below, which Items have

been prepared by the self-regulatory

organization. The Exchange has

requested accelerated approval for the

proposal. This order approves the

Amex’s proposal on an accelerated basis

and solicits comments from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Amex is proposing to amend

Exchange Rule 902C to include the de

Jager Year 2000 Index (‘‘Index’’) in the

disclaimer provisions of the Rule.

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 III 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

In conjunction with a proposal to list

and trade options on the de Jager Year

2000 Index, the Amex is proposing to

amend Exchange Rule 902C to provide

a disclaimer for de Jager & Company, a

consulting company active in promoting

awareness of the ‘‘Year 2000’’ problem.

The Exchange’s proposal to list and

trade options on the Index has been

given summary effectiveness treatment

pursuant to Section 19(b)(3)(A) of the

Act.3

The Amex and de Jager & Company

have developed a new index called The

de Jager Year 2000 Index, based entirely

on shares of widely-held companies

whose business is expected to benefit

from the need of companies,

governments, and others to address and

resolve the ‘‘Year 2000’’ problem.4 The

‘‘Year 2000’’ problem arises because

most business application software

programs (mainframe, client/server, and

personal computer) written over the

past twenty years use only two digits to

specify the year, rather than four.

Therefore, on January 1, 2000, unless

the software is corrected, most

computers with time-sensitive software

programs will recognize the year as

‘‘00’’ and may assume that the year is

‘‘1900.’’ This could either force the

computer to shut down or lead to

incorrect calculations. The Index will be

calculated and maintained by the Amex.

A representative of de Jager & Company

will be available to advise the Exchange

when, pursuant to Exchange Rule

901C(b), the Amex substitutes stocks, or

adjusts the number of stocks included in

the Index, based on changing conditions

in the ‘‘Year 2000’’ industry or in the

event of certain types of corporate

actions. It is anticipated that the Amex

will consult with de Jager & Company

on a quarterly basis to review possible

candidates for removal from or

inclusion in the Index.

The disclaimer, identical in content to

disclaimers currently in place for

Standard & Poor’s Corporation (‘‘S&P’’),5

Morgan Stanley & Co. Incorporated,6

and Inter@ctive Enterprises L.L.C.,7

states that de Jager & Company does not

guarantee the accuracy or completeness

of the Index, makes no express or

implied warranties with respect to the

Index, and will have no liability for any

damages, claims, losses, or expenses

caused by errors in the Index

calculation.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act in general and
Federal Register / Vol. 62, No. 40 / Friday, February 28, 1997 / Notices 9225

8See supra note 3.

9See Exchange Rules 902C(c), (d), and (e).

10 15 U.S.C. § 78s(b)(2) (1988).

11 17 CFR 200.30–3(a)(12).

1Cedel, socie ́te ́ anonyme (formerly the Centrale

de Livaison de Valeurs Mobilie`res) was established

in 1970. On January 1, 1995, Cedel, socie ́te ́

anonyme was converted into Cedel Bank to perform

lending, clearing, and settlement activities, and a

parent company, Cedel International, was created

into which Cedel transferred the nonbanking

subsidiaries. Cedel Bank is a wholly-owned

subsidiary of Cedel International. Cedel Bank is

licensed in Luxembourg both as a bank and as a

‘‘professionnel du secteur financier’’ (‘‘PSF’’) and is

under the supervision of the Institut Monetaire

Luxembourgeois (‘‘IML’’), Luxembourg’s banking

and securities regulatory authority. Cedel

International is licensed as a non-bank PSF and also

is under the supervision of the IML. The IML

establishes capital and liquidity requirements,

evaluates the financial condition and performance

of all Luxembourg financial institutions, conducts

on-site inspections, and monitors all financial

institutions and their controlling companies for

adherence to Luxembourg laws and regulations. On

April 24, 1996, the Federal Reserve Board granted

Cedel Bank’s request to establish a representative

office in New York.

2Copies of the application for exemption are

available for inspection and copying at the

Commission’s Public Reference Room.

3 15 U.S.C. 78q–1.

4 17 CFR 240.17Ab2–1.

5Securities Exchange Act Release No. 37309

(June 12, 1996), 61 FR 31201 (notice of filing of

application for exemption from registration as a

clearing agency) (‘‘Cedel Notice’’).

6Letters from John H. Huffstutler, Senior Vice

President and Chief Regulatory Counsel, Bank of

America National Trust and Savings Association

(July 17, 1996); Guillaume de Beaufort,

Administration Head, Paribas Capital Markets (July

18, 1996); Pierre Vermenouze, Senior Vice

President, Banque et Finance Internationales (July

17, 1996); Thomson Ng, Executive Director of

Operations, Fuji International Finance (HK) Limited

(July 18, 1996); John Macfarlane, Managing

Director, Salomon Brothers Inc (July 19, 1996);

Monroe R. Sonnenborn, Managing Director, Morgan

Stanley & Co. Incorporated (July 22, 1996); JeanMarie Grenet, Operations Head, and Jimmy Hew,

Deputy Operations Head, Paribas Merchant Banking

Asia Limited (July 23, 1996); Lo Kit-sang, Manager,

Sin Hua Bank Ltd. (July 22, 1996); Fan Jian Hua,

Manager, and Zhu Wen Xiang, Chief Dealer, The

Investment Company of The People’s Republic of

China (Singapore) Pte Ltd (July 26, 1996); Gilbert

Lee and Richard Yiu Tak Shing, Bannque Nationale

de Paris (July 29, 1996); and Augustine Chua,

Deputy Manager, Rapobank (August 1, 1996) to

Jonathan Katz, Secretary, Commission. These

comment letters for File No. 600–29 are available

for inspection and copying in the Commission’s

Public Reference Room.

furthers the objectives of Section 6(b)(5)

in particular in that it is designed to

prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of change, to foster

cooperation and coordination with

persons engaged in facilitating

transactions in securities, and to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The self-regulatory organization 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

Comments were neither solicited nor

received with respect to the proposed

rule change.

III. 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

changes that are filed with the

Commission, and all written

communications relating to the

proposed rule changes 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

Section, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filings also will be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to File No. SR–Amex–97–

05 and should be submitted by March

21, 1997.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the

proposed rule change is consistent with

the Act and the rules and regulations

thereunder applicable to a national

securities exchange, and, in particular,

the requirements of Section 6(b)(5)

thereunder.

The Commission believes that it is

reasonable for de Jager & Company to be

released from liability for any damages,

claims, losses, or expenses related to the

accuracy or completeness of the Index

or caused by errors in the Index

calculation. The Commission notes that

de Jager & Company will not be

involved, except in the limited advisory

capacity described above, in the

calculation or maintenance of the Index.

The Commission finds good cause to

approve the proposal prior to the

thirtieth day after the date of

publication of notice of filing thereof in

the Federal Register in that this rule

filing is being filed in connection with

the Exchange’s proposal to list and trade

options on the Index, which has been

given summary effectiveness treatment

pursuant to Section 19(b)(3) of the Act.8

In addition, this proposal raises no new

issues as the Commission has

previously approved similar proposals

by the Amex to release various entities

from certain liability for damages

resulting from the use of their products

where these entities have no active role

in the trading and calculation of the

index value.9 Accordingly, the

Commission believes that it is

consistent with Sections 6(b)(5) and

19(b)(2) of the Act to approve the

proposed rule change on an accelerated

basis.

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) 10 of the Act, that the

proposed rule change (File No. SR–

Amex–97–05) is hereby approved on an

accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

[FR Doc. 97–5028 Filed 2–27–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38328; International Series

Release No. 1058; File No. 600–29]

Self-Regulatory Organizations; Cedel

Bank; Order Approving Application for

Exemption From Registration as a

Clearing Agency

February 24, 1997.

On August 31, 1995, Cedel Bank,

socie ́te ́ anonyme, Luxembourg

(‘‘Cedel’’) 1 filed with the Securities and

Exchange Commission (‘‘Commission’’)

an application on Form CA–1 2 for

exemption from registration as a

clearing agency pursuant to Section 17A

of the Securities Exchange Act of 1934

(‘‘Exchange Act’’) 3 and Rule 17Ab2–1

thereunder.4 Notice of Cedel’s

application was published in the

Federal Register on June 19, 1996.5

Eleven comment letters were received in

response to the notice of filing of the

Cedel application.6 This Order grants

Cedel’s application for exemption from

registration as a clearing agency to

permit Cedel to offer clearance,

settlement, and credit support services

to U.S. and non-U.S. entities for

transactions in U.S. government

securities subject to the conditions and

limitations that are set forth below.