Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Notices 14173

6 15 U.S.C. § 78f(b)(5).

7See, e.g., Section 107A of the Amex Company

Guide; Section 703.19 of the NYSE Listed Company

Manual.

8The affected provisions currently prevent the

listing of (1) any cash settled product settled in any

currency other than U.S. dollars or (2) any product

that has a mandatory redemption price of less than

three dollars. In addition, CBOE proposes to

eliminate the provision requiring a minimum of 100

public holders if the security is traded in thousand

dollar denominations.

9See e.g., Securities Exchange Act Release No.

27753 (March 1, 1990), 55 FR 8626 (March 8, 1990)

(order approving File No. SR–Amex–89–29). For

example, a stock index-linked note that was payable

in foreign currency would raise important

regulatory issues among which might include the

need to address appropriate product term and risk

disclosure, customer suitability, and settlement

procedures. Accordingly, the Commission expects

the CBOE to consult with it on the need to file a

Section 19(b) rule change to list a product with

such terms under the Rule 31.5 listing standards.

10See Securities Exchange Act Release No. 37472

(July 23, 1996), 61 FR 40058 (July 31, 1996)

(approving File No. SR–Phlx–96–28); Securities

Exchange Act Release No. 37165 (May 3, 1996), 61

FR 21215 (May 9, 1996) (approving File No. SR–

Amex–96–15).

11 15 U.S.C. § 78f(b)(5).

12 15 U.S.C. § 78s(b)(2).

13 15 U.S.C. § 78s(b)(2).

14 17 CFR 200.30–3(a)(12).

1 15 U.S.C. § 78s(b)(1).

2 17 CFR 240.19b–4.

3On March 14, 1997, the CSE filed Amendment

No. 1 to its proposal with the Commission. The

amendment redesignates the proposal as a

‘‘noncontroversial’’ rule filing under Rule 19b–

4(e)(6) under the Act rather than a filing under Rule

19b–4(e). See Letter from Adam Gurwitz, Vice

President Legal and Secretary, CSE, to Elaine

Darroch, Attorney-Adviser, Division of Market

Regulation, dated March 14, 1997.

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

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 CBOE. All submissions should

refer to File No. SR–CBOE–97–01 and

should be submitted by April 15, 1997.

IV. Commission’s Findings and Order

Granting Approval of Proposed Rule

Change

The Commission has reviewed

carefully the CBOE’s proposed rule

change and proposed Amendment No. 1

and believes, for the reasons set forth

below, this proposal is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

believes the proposal is consistent with

Section 6(b)(5) 6 of the Act which

requires national securities exchanges to

have rules designed to remove

impediments to and perfect the

mechanism of a free and open market

and in general, to protect investors and

the public interest.

The Commission notes that the CBOE

proposal conforms the CBOE’s listing

standards for ‘‘Other Securities’’ to

those of other exchanges.7 As such, the

Commission believes the proposal

should allow the Exchange to compete

more effectively with other exchanges

for the listing of these types of

securities. The Commission notes that

although it is reasonable for the

Exchange to delete from CBOE’s rules

certain mandatory listing standards for

‘‘Other Securities,’’ 8 proposals that

deviate from these standards might raise

novel or significant regulatory issues

that would require a proposed rule

change to list the product.9 Further, in

approving the elimination of the 100

holder requirement where the security

is traded in thousand dollar

denominations, the Commission notes

that the rule will still require that the

security have a minimum market value

at issuance of $4 million. This should

help to ensure that issuances in $1,000

denominations are large enough to

support a liquid market.

The Commission finds good cause for

approving the foregoing rule change

proposal and proposed Amendment No.

1 on an accelerated basis prior to the

thirtieth day after the date of

publication thereof in the Federal

Register. As discussed above, the

proposal received no comments.10

Based on the above, the Commission

finds that consistent with Sections

6(b)(5) 11 and 19(b)(2) 12 of the Act, good

cause exists to accelerate approval of the

proposal, as amended.

It is therefore ordered, pursuant to

section 19(b)(2) 13 of the Act, that the

proposed rule change (SR–CBOE–97–

01), including Amendment No. 1, is

hereby approved on an accelerated

basis.

For the Commission, by the Division of

Market Regulation, pursuant to the delegated

authority.14

Jonathan G. Katz,

Secretary.

[FR Doc. 97–7395 Filed 3–24–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38413; File No. SR–CSE–

97–05]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Cincinnati Stock Exchange, Inc.

Relating to Regulatory Data

Submissions

March 18, 1997.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 2 thereunder,

notice is hereby given that on March 6,

1997, as amended on March 14, 1997,3

The Cincinnati Stock Exchange,

Incorporated (‘‘CSE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission the proposed rule change

as described in Items I, II, and III below,

which Items have been prepared by the

CSE. The Commission is publishing this

notice to solicit comments on the

proposed rule change form interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CSE hereby proposes to amend

Rule 4.2 to add Interpretation .02 to

clarify CSE members’ obligation to

provide regulatory information

routinely to the Exchange. The text of

the proposed rule change is available at

the office of the Secretary, CSE 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

CSE 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 CSE 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 the

Statutory Basis for, the Proposed Rule

Change

(1) Purpose

In December, 1995, in an attempt to

improve the quality and quantity of

available regulatory data, the Exchange

requested that members submit certain

regulatory data to CSE on a daily basis.

Members were informed of this

requirement by Regulatory Circular #95–

04, dated December 22, 1995. As part of

its ongoing attempt to enhance its

examination and surveillance programs,

the Exchange now proposes to codify

this data submission requirement by

adding Interpretation .02 to Rule 4.2,

Furnishing of Records.
14174 Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Notices

4 15 U.S.C. § 78f(b).

5 15 U.S.C. § 78f(b)(5).

6The Commission waived the five-day prefiling

requirement, because the Commission had the

opportunity to review the proposal when it was

filed as SR–CSE–97–04, pursuant to Section

19(b)(2) of the Act. The previous proposal was

withdrawn on March 6, 1997 and refiled pursuant

to Section 19(b)(3)(A) of the Act.

7Although the proposal was originally filed with

the Commission on March 6, 1997, the Commission

notes that any substantive amendment to a

proposed rule change filed under Rule 19b–4(e)(6)

causes the 30-day delayed implementation period

to be restarted from the date of the filing of the

amendment. See Securities Exchange Act Release

No. 35123 (Dec. 20, 1994), 59 FR 66692 (Dec. 28,

1994).

8 15 U.S.C. § 78s(b)(3).

9 17 CFR 240.19b–4(e)(6).

10The 60 day abrogation period commences from

March 14, 1997, the date of the submission of the

substantive amendment.

11 17 CFR 200.30–3(a)(12).

Pursuant to Regulatory Circular #95–

04, members are currently required to

submit certain data pertaining to agency

orders and proprietary trades. The

Exchange recognizes, however, that the

types of data it requires will likely

change as CSE’s regulatory program

evolves. The proposed rule change will

therefore impose a general regulatory

data submission requirement that will

refer members to the current Regulatory

Circular delineating order, market, and

transaction submission requirements. In

this way, the Exchange will retain the

flexibility necessary for effective

regulatory surveillance and enforcement

efforts.

(2) Basis

The Exchange believes that the

proposed rule change is consistent with

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

furthers the objectives of Section

6(b)(5) 5 in particular in that it is

designed to promote just and equitable

principles of trade, 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 CSE 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

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; (3)

was provided to the Commission for its

review at least five days prior to the

filing date; 6 and (4) does not become

operative for 30 days from March 14,

1997,7 the rule change has become

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

of the Act 8 and Rule 19b–4(e)(6) 9

thereunder. In particular, the

Commission believes the proposal

qualifies as a ‘‘noncontroversial filing’’

in that the proposed standards do not

significantly affect the protection of

investors or the public interest and do

not impose any significant burden on

competition. At any time within 60 days

of the filing of the proposed rule

change,10 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 the

furtherance of the purposed 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

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 CSE. All submissions

should refer to File No. SR–CSE–97–05

and should be submitted by April 15,

1997.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Jonathan G. Katz,

Secretary.

[FR Doc. 97–7392 Filed 3–24–97; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–38411; File No. SR–NYSE–

97–01]

Self-Regulatory Organization; Notice of

Filing of Proposed Rule Change by

New York Stock Exchange, Inc.

Relating to Amendments to Rule 431

(‘‘Margin Requirements’’)

March 17, 1997.

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

Securities Exchange Act of 1934, 15

U.S.C. 78s(b)(1), notice is hereby given

that on January 9, 1997 the New York

Stock Exchange, Inc. (‘‘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 selfregulatory organization. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange has filed amendments

to Rule 431 (‘‘Margin Requirements’’).

The change consists of amendments

regarding permitted market maker and

specialist offset positions being

eliminated from Regulation T of the

Federal Reserve Board (‘‘FRB’’) and to

acknowledge specific provisions of Rule

15c3–1 of the Securities Exchange Act

of 1934 (‘‘the Net Capital Rule’’). The

proposed rule change also incorporates

in Rule 431 cash account transactions

permitted by the FRB and SEC, as well

as incorporating several definitions.

Proposed new language is italicized;

proposed deletions are in brackets.

Proposed Amendment of Rule 431

Margin Requirements

Rule 431. (a) through (f)(2)(I)

unchanged.

(J) Registered specialists, market

makers or traders.—Notwithstanding

the other provisions of this sub-section

(f)(2), a member organization may clear

and carry the listed option transactions

of one or more registered specialists,

registered market makers or registered

traders in options (which registered

traders are deemed specialists for all

purposes under the Securities Exchange

Act of 1934 pursuant to the rules of a

national exchange) (hereinafter referred

to as ‘‘specialist(s)’’, upon a ‘‘Good

Faith’’ margin basis satisfactory to the

concerned parties, provided [that all

real and potential risks in accounts

carried under such arrangements are at

all times adequately covered by the

margin maintained in the account or in

the absence thereof, by the carrying