19544 Federal Register / Vol. 63, No. 75 / Monday, April 20, 1998 / Notices

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

5 15 U.S.C. 78f(b)(5). 6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 200.30(a)(12).

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

all the Exchange’s index options,

including sales practice rules, margin

requirements and floor trading

procedures. Position limits on reduced

value long term Index options will be

equivalent to the position limits for

regular (full value) Index options and

would be aggregated with such options

(for example, if the position limit for the

full value options is 15,000 contracts on

the same side of the market, then the

position limit for the reduced value

options will be 150,000 contracts on the

same side of the market).

The exercise settlement value for all

of the Index’s expiring options will be

calculated based upon the primary

exchange regular way opening sale

prices for the component stocks. In the

case of Nasdaq/NMS listed securities,

the first reported regular way sale price

will be used. If any component stock

does not open for trading on its primary

market on the last trading day before

expiration, then the prior day’s last sale

price will be used in the calculation.

Exchange Rules Applicable to Stock

Index Options

Amex Rules 900C through 980C will

apply to the trading of option contracts

based on the Index. These rules cover

issues such as surveillance, exercise

prices, and position limits. Surveillance

procedures currently used to monitor

trading in each of the Exchange’s other

index options will also be used to

monitor trading in options on the

Computer Hardware Index. The Index is

deemed to be a Stock Index Option

under Rule 901C(a) and a Stock Index

Industry Group under Rule 900C(b)(1).

With respect to Rule 903C(b), the

Exchange proposes to list near-themoney (i.e., within ten points above or

below the current index value) option

series on the Index at 21⁄2 point strike

(exercise) price intervals when the value

of the Index is below 200 points. In

addition, the Exchange expects that the

review required by Rule 904C(c) will

result in a position limit of 15,000

contracts with respect to options on this

Index.

(2) Statutory Basis

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 prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, 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 Exchange does not believe that

the proposed rule change will impose

any 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

The foregoing rule change has become

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

of the Act.6 The Amex may not list

options for trading on the Index prior to

30 days after the date the proposed rule

change was filed with the Commission.

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 the 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,

including whether the submission is

consistent with the Act. 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 in Washington, D.C. Copies of

such filing will also be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to the file No. SR–Amex

98–14 and should be submitted by May

11, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–10335 Filed 4–17–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39850; File No. SR–DCC–

98–02]

Self-Regulatory Organizations; Delta

Clearing Corp.; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change Relating to the

Authorization of Tullet & Tokyo

Securities, Inc. To Participate as a

Broker for Over-the-Counter U.S.

Treasury Options Trades

April 10, 1998.

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

Securities Exchange Act of 1934

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

March 6, 1998, Delta Clearing Corp.

(‘‘DCC’’) 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 primarily by DCC.

The Commission is publishing this

notice to solicit comments from

interested persons on the proposed rule

change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change notifies the

Commission that Tullet & Tokyo

Securities, Inc. (‘‘Tullet’’) has been

authorized by DDC to participate as a

broker in the over-the-counter system

(‘‘system’’) operated for options on U.S.

treasury securities.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DCC 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. DCC has prepared

summaries, set forth in sections (A), (B),
Federal Register / Vol. 63, No. 75 / Monday, April 20, 1998 / Notices 19545

2The Commission has modified the text of the

summaries prepared by DCC.

3Securities Exchange Act Release No. 39236

(October 14, 1997) 62 FR 54661 [File No. SR–DCC–

97–04] (order approving the Combined Procedures).

4 15 U.S.C. 78q–1.

5 15 U.S.C. 78s(b)(3)(A)(iii).

6 17 CFR 240.19b–4(e)(5). 7 17 CFR 200.30–3(a)(12).

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

2Securities Exchange Act Release No. 39647

(February 11, 1998), 63 FR 8508.

3 DTC has informed the Commission that DTCeligible UIT units usually are held in the FAST

system.

and (C) below, of the most significant

aspect of such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

Pursuant to the Procedures for

Clearing of Securities and Financial

Instrument Transactions (‘‘Combined

Procedures’’),3 multiple brokers may

participate in the system operated by

DCC and new brokers may be

authorized by DCC to participate in the

system. DCC has authorized Tullet,

which is currently an authorized broker

in the system for repurchase agreement

(‘‘repo’’) and reverse repo trades, to

participate as a broker in the system

operated for options on U.S. treasury

securities.

DCC believes that the proposed rule

change is consistent with the

requirements of Section 17A of the Act 4

and the rules and regulations

thereunder because it facilitates the

prompt and accurate clearance and

settlement of securities transactions.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DCC does not believe that the

proposed rule change will impose any

burden on competition that is not

necessary or appropriate in furtherance

of the purpose of the Act.

(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.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

19(b)(3)(A)(iii) 5 of the Act and pursuant

to Rule 19b–4(e)(4) 6 promulgated

thereunder because the proposal effects

a change in an existing service of a

registered clearing agency that does not

adversely affect the safeguarding of

securities or funds in the custody or

control of the clearing agency or for

which it is responsible and does not

significantly affect the respective rights

or obligations of the filing of the

clearing agency or persons using the

service. At any time within sixty days

of the filing of such 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,

including whether the proposed rule

change is consistent with the Act.

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

Section, 350 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of DCC. All submissions should

refer to File No. SR–DCC–98–02 and

should be submitted by May 11, 1998.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–10342 Filed 4–17–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39852; File No. SR–DTC–

97–12]

Self-Regulatory Organizations; The

Depository Trust Company; Order

Approving a Proposed Rule Change To

Establish a Voluntary Redemption and

Sales Service for Depository Eligible

Units of Unit Investment Trust

April 10, 1998.

On June 27, 1997, The Depository

Trust Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) and on January 22,

1998, amended as proposed rule change

(File No. SR–DTC–97–12) pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’).1 Notice

of the proposal was published in the

Federal Register on February 19, 1998.2

No comment letters were received. For

the reasons discussed below, the

Commission is approving the proposed

rule change.

I. Description

Under the rule change, DTC will

establish the investor’s voluntary

redemptions and sales service

(‘‘IVORS’’), a redemption and sales

service for depository eligible units of

unit investment trusts (‘‘UITs’’). IVORS

will offer two basic UIT services: (1)

redemption of units with the UIT

transfer agent for cash payment and (2)

sales of units to the UIT sponsor for

cash payment. IVORS initially will be

available to eligible DTC participants by

way of DTC’s participant terminal

system (‘‘PTS’’).

IVORS will be available only if: (1)

the UIT units are DTC-eligible and are

held in DTC’s fast automated securities

transfer (‘‘FAST’’) system; 3 (2) the

FAST transfer agent currently is or

agrees to become a full service DTC

participant; and (3) the UIT’s lead

sponsor or its clearing agent agrees to

participant in IVORS as a DTC

participant.

When a UIT becomes eligible for

IVORS, its FAST transfer agent will

submit initial standing instructions for

the UIT to an IVORS database on PTS

regarding participants’ ability to redeem

or to sell units through IVORS. The UIT

sponsor will be able to make daily

changes to those standing instructions

by way of PTS. When a participant

holding UIT units in its DTC account

submits a request through IVORS to

surrender the units for their value,

IVORS will determine which of the two

basic services (i.e., redemption or sale)

is available for the units based on the

standing instructions for the UIT in the

IVORS database. The participant

submitting the UIT units will have the

choice of accepting the determination of

which of the two services is available or

canceling its request to surrender its

units.

On the date of the participant’s

request to surrender the units (‘‘T’’),

IVORS will move the surrendered units

from the participant’s free position to its

‘‘IVORS pending surrender segregation