Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13203

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 34345 (July

11, 1994), 59 FR 36245 (July 15, 1994) (approval for

index options on the Phone Index). 4 15 U.S.C. 78f(b)(5).

the Commission’s Public Reference

Room. 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–97–12 and should be

submitted by April 9, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–6892 Filed 3–18–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38383; File No. SR–Phlx–

97–12]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Relating to the Maintenance Criteria for

the PHLX Phone Index

March 11, 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 March 5,

1997, the Philadelphia Stock Exchange

Inc. (‘‘Phlx’’ 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 Exchange.

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 Phlx, pursuant to Rule 19b–4 of

the Act, proposes to amend the

maintenance standards applicable to the

PHLX Phone Index (‘‘Index’’) to allow

the number of stocks in the index to

decline to six stocks without having to

delist the index.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and the

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

Phlx 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 Phlx 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 Index is a capitalization weighted

index composed of eight widely held

U.S. companies created as a result of the

divestiture of American Telephone and

Telegraph Co. (‘‘AT&T’’) in 1983. The

Index includes seven regional telephone

companies spun off from AT&T and

AT&T itself.3 Currently, the Index

would not meet the maintenance

standards if less than 90% of the

component stocks in the Index, by

weight, are eligible for Exchange options

trading or if the number of stocks in the

index ever decreases to less than eight

or increases to more than ten. In such

case, the Exchange is required to wind

down the Index by restricting trading to

closing only transactions and not

opening any new series of options on

the Index unless a new Rule 19b–4

filing is submitted to the Commission

and approved.

The Exchange is proposing, herein, to

amend the maintenance standards to

allow the number of component stocks

in the index to decrease to six without

having to wind down the Index. Thus,

if the number of stocks in the index

decreases to less than six or increases to

more than ten, the Exchange would

restrict trading to closing only

transactions and not open any new

series of options on the Index until it

seeks and gains approval for such a

revised index. The 90% Exchange

options eligibility maintenance standard

will still apply.

The Exchange expects that in the near

future, two separate mergers involving

four of the components may occur.

NYNEX and Bell Atlantic are proposing

a merger with Bell Atlantic as the

survivor and SBC Communications is

proposing to merge with Pacific Telesis

with SBC Communications as the

survivor. If these two mergers are

consummated, the Index would only

have six component issues which would

still pass the new proposed

maintenance criteria.

2. Basis

The Phlx believes that the proposed

rule change is consistent with Section 6

of the Act in general and furthers the

objective of Section 6(b)(5) in

particular 4, in that it is designed to

promote just and equitable principles of

trade, to prevent fraudulent and

manipulative acts and practices, and to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, as well as

to protect investors and the public

interest.

B. Self-Regulatory Organization’s

Statement on the Burden on

Competition

The PHLX 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

No written comments were solicited

or received 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 the

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 self-regulatory

agency consents, the Commission will:

(A) By order approve the 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

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

Section, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such
13204 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices

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

2 17 CFR 240.19b–4 (1991).

3Securities Exchange Act Release No. 26468

(January 18, 1989), 54 FR 3713 (January 25, 1989)

(File No. SR–PHLX–88–45).

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

5 17 CFR 240.19b–4(e).

filing will also be available for

inspection and copying at the principal

office of the PHLX. All submissions

should refer to File No. SR–PHLX–97–

12, and should be submitted by April 9,

1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–6893 Filed 3–18–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38394; File No. SR–PHLX–

97–09]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Relating to a New Technology Fee and

Amended Transfer Fee

March 12, 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 February

27, 1997, the Philadelphia Stock

Exchange, Inc. (‘‘PHLX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the PHLX. 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 PHLX proposes to amend its

schedule of dues, fees and charges to: (a)

increase the existing transfer fee from

$300 to $500; and (b) adopt a technology

fee of $100 per month applicable to all

members and foreign currency option

participants not also holding legal title

to a PHLX regular membership.

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

PHLX 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 PHLX 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

The purpose of the proposed rule

change is to amend the PHLX’s fee

schedule in two ways. First, the

Exchange’s transfer fee, currently $300,

will be increased to $500. This fee is

imposed on the transferee at the time of

transfer of legal or equitable title to any

PHLX regular membership or foreign

currency option participation. Transfers

require significant staff time to process.

Processing involves drafting letters and

invoices to the parties, posting the

notice in the membership bulletin,

creating and updating membership files

and changing the Exchange’s data base

to reflect the transfer. Over the last eight

years, the number of transfers each week

has dramatically increased, thus,

placing an increased burden on staff

time and resources. The transfer fee

increase reflects the higher costs of

processing these transfers. This fee was

last increased from $200 to $300 in

1989.3 The new fee will go into effect on

March 1, 1997.

The second change will be to adopt a

technology fee which will be assessed

upon all PHLX regular membership

holders and foreign currency option

participants who do not also possess a

PHLX regular membership. The fee will

be a monthly $100 fee which will be

billed on March 1, 1997, for the period

March 1 to June 30, 1997, ($400) and on

July 1, 1997, for the period July 1

through December 31, 1997 ($600). The

new technology fee will reflect the costs

of needed upgrades to the operating

systems on the three trading floors,

system software modifications, year

2000 modifications and hardware

upgrades to handle expected increased

trading volumes and anticipated

increases due to Securities Industry

Automation Corporation and Options

Price Reporting Authority’s

communication changes. Additionally,

system development costs for new risk

management systems, order handling

rule revisions, specialized quote feeds

and new products will be captured by

this fee.

The proposed rule change is

consistent with Section 6 of the Act in

general, and in particular, with Section

6(b)(4), in that it provides for the

equitable allocation of reasonable dues,

fees and other charges among its

members and other persons using its

facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The PHLX 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

No written comments were either

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective on February 27, 1997, pursuant

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

subparagraph (e)(2) of Rule 19b–4 5

thereunder, because the proposed rule

change establishes or changes a due, fee,

or other charge. At any time within 60

days of the filing of such 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

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. Copies of such filing will also be

available for inspection and copying at

the principal office of the PHLX. All

submissions should refer to File No.

SR–PHLX–97–09 and should be

submitted by April 9, 1997.