25258 Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices

9This fee schedule was part of a previous

Exchange rule filing. See Exchange Act Release No.

35636 (April 21, 1995) 60 FR 20781 (April 27, 1995)

(order approving new listing fees for SCOR

Securities, SR–PSE–95–03).

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

2 17 CFR 240.19b–4.

3 In Amendment No. 1, the PHLX proposes to

amend its filing so that the position limits for the

European Currency Unit will be 200,000 contracts

on the same side of the market, rather than 100,000

contracts, as originally proposed. In addition, in

Amendment No. 1, the PHLX agrees that it will

consult with the Commission, prior to the

conversion to the Euro on January 1, 1999, to

determine whether a Rule 19b–4 filing is necessary.

Rule 3.3(b) No change.

* * * * *

Rule 3.3(c) No change.

* * * * *

Rule 3.3(d) No change.

* * * * *

Rule 3.3(e) No change.

* * * * *

Rule 3.3(f) No change.

* * * * *

Rule 3.3(g) No change.

* * * * *

Rule 3.3(h) No change.

* * * * *

Paragraphs (i) through (s). Reserved.

Disclosure Policies

Rule 3.3(t) No change.

* * * * *

¶3579 Suspension of Issuer

Withdrawal from Listing

Rule 3.4(a). No change.

Rule 3.4(b). No change.

¶3585 Maintenance Requirements

and Delisting Procedures

Rule 3.5(a). No change.

* * * * *

Tier I Securities

Maintenance Requirements

Common Stock—Select Market

Companies

Rule 3.5(b) No change.

* * * * *

Preferred Stock and Similar Issues

Rule 3.5(c) No change.

* * * * *

Bonds and Debentures

Rule 3.5(d) No change.

* * * * *

Warrants

Rule 3.5(e) No change.

* * * * *

Contingent Value Rights (‘‘CVRs’’)

Rule 3.5(f) No change.

Unit Investment Trusts (‘‘UITs’’)

* * * * *

Rule 3.5(g) No change.

* * * * *

Paragraphs (h) through (l). Reserved.

Tier II Securities

Maintenance Requirements

Common Stock—Development Stage

Companies

Rule 3.5(m) No change.

* * * * *

Preferred Stock and Similar Issues

Rule 3.5(n) No change.

* * * * *

Bonds and Debentures

Rule 3.5(o) No change.

* * * * *

Warrants

Rule 3.5(p). No change.

* * * * *

Paragraphs (q) and (r). Reserved.

[Rule 3.5(r)—Deleted]

Other Reasons for Suspending or

Delisting

Rule 3.5(s) No change.

* * * * *

Delisting Procedures

Rule 3.5(t) No change.

* * * * *

Options

¶ 3591

Rule 3.6 No change.

Rule 3.6(a) No change.

* * * * *

Rule 3.6(b) No change.

* * * * *

Rule 3.6(c) No change.

* * * * *

Rule 3.6(d) No change.

* * * * *

* * * * *

¶3598 Withdrawal of Approval of

Underlying Securities

Rule 3.7(a). No change.

* * * * *

Rule 3.7(b). No change.

* * * * *

[SCOR Marketplace 9

Original Listings

The Original Listing fees are fixed fees

and issuers are not charged by the

number of shares being listed.

Common Stock—$5,000.00

Preferred Stock—$5,000.00

Processing Fee

*Per Original Listing Application—

$500.00

Name Change—$250.00

Change in Par Value—$250.00

* This is a fixed charge for the review of

potential listings and is non-refundable.

Issues approved for listing may have this

charge credited toward the original listing

fee.

Substitution of Original Listing

Per Application: Fixed charge of

$750.00

Substitution may occur as a result of

a change in state of incorporation,

reincorporation under laws of same

state, a reverse stock split,

recapitalizations, or similar events.

Listing of Additional Shares

Per Application: $.0025 per share

Minimum charge of $500.00

Maximum charge of $2,500.00

Maximum charge of $5,000.00 per

annum

Annual Maintenance Fee

For one issue—$1,000.00

For each additional issue—$500.00

Payable January of each year

following listing.

Conversion Fee

Conversion from the SCOR Marketplace

to Tiers I or II.

Common Stock—$15,000.00

[FR Doc. 98–12143 Filed 5–6–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39940; International Series

Release No. 1131; File No. SR–PHLX–98–

17]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Philadelphia Stock

Exchange, Inc., Relating to Listing and

Trading Options on the European

Currency Unit

April 30, 1998.

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 April 6,

1998, the Philadelphia Stock Exchange

(‘‘PHLX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

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

rule change as described in Items I and

II below, which Items have been

prepared by the PHLX. On April 27,

1998, the Exchange filed Amendment

No. 1 to the proposed rule change.3 The
Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices 25259

See Letter from Nandita Yagnik, Counsel, PHLX, to

Sharon Lawson, Senior Special Counsel, Division of

Market Regulation (‘‘Division’’), Commission, dated

April 23, 1998.

4See Securities Exchange Act Release No. 38764

(June 24, 1997) 62 FR 35535 (July 1, 1997) (SR–

PHLX–97–26).

5The Exchange agrees that before trading in Euro

options, it will consult with the Commission to

determine whether a Rule 19b–4 filing pursuant to

Section 19(b) of the Act is necessary. See

Amendment No. 1, supra note 3.

6See PHLX Rule 1000(b)35, which defines

European style as an option contract that may be

exercised only on the day that it expires.

7See Rule 1000(b)34, which defines American

style as an option contract that may be exercised at

any time until its expiration.

8According to the Exchange, although the PHLX

had been granted approval to list and trade both

European and American style non-customized

options on the ECU, only American style noncustomized options had been listed and traded by

the Exchange. Telephone conversation between

Nandita Yagnik, Counsel, PHLX, and Deborah

Flynn, Attorney, Division, Commission, on April

28, 1998.

9The specifications for the proposed ECU options

are identical to those applied to the ECU options

previously traded on the PHLX. In addition, we

note that the same option trading rules that applied

to trading the former ECU contract will apply to the

new contract.

10Currently, the consumer margin requirement,

composed of an add-on percentage for all PHLX

currency options, is 4% of the underlying contract

value (with the exception of the Italian lira and the

Spanish peseta, which is 7%, and the Mexican

peso, which is 17%). A proposed rule change has

been filed with the Commission to calculate the

add-on percentage based on the three-year historical

volatility of the respective currency. In the case of

the ECU, the anticipated customer margin levels

using the proposed methodology would be 3% at

this time. See Securities Exchange Act Release No.

39856 (April 13, 1998) 63 FR 19554 (April 20, 1998)

(SR–PHLX–97–63).

11 15 U.S.C. 78f.

12 15 U.S.C. 78f(b)(5).

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons and is

granting accelerated approval to the

proposed rule change, as amended.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change.

The Exchange proposes to relist for

trading options on the European

Currency Unit (‘‘ECU’’). The Exchange

seeks to trade this product prior to the

European Summit scheduled for May 2

and 3, 1998, in order to attract order

flow based on a renewed interest in the

ECU as well as growing interest in the

events surrounding the eventual

introduction of a single European

currency, the Euro. The text of the

proposed rule change is available at the

Office of the Secretary, the PHLX, and

at the Commission.

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 its received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item III 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

In July 1997, the Exchange delisted

options on the ECU from the noncustomized environment.4 Specifically,

Rule 1009 provides that options on the

ECU are only available as customized

options traded pursuant to Rule 1069.

However, with the advent of the Euro,

customers as well as the membership

have expressed interest in reintroducing

options on the ECU in the noncustomized environment. In January of

1999, the ECU is scheduled to convert

to the Euro on a one-to-one basis.

During the Summit planned for early

May 1998, the European Council Heads

of State should determine which

member states fulfill the necessary

conditions outlined in the Maastrict

Treaty and will participate in the

European Monetary Union (‘‘EMU’’) in

January of 1999. On January 1, 1999, the

conversion rate will be set for all

European currencies which are

participating in the EMU. The ECU

should thus convert to the ‘‘Euro’’ at

that time.5 In order to provide a trading

opportunity for investors, the Exchange

proposes to list for trading European 6

and relist American 7 style options on

the ECU.8

With respect to the ECU option

proposed at this time, the contract size

for the ECU will be 62,500 ECUs.9 The

premium will be $.0044 per unit or $275

for an option contract having a unit of

trading of 62,500, pursuant to Rule

1033. Pursuant to Rule 1014, the bid-ask

differential for the ECU options will be

.$0005 between the bid and the offer for

each option contract for which the bid

is $.0050 or less; no more than $.0010

where the bid is more than $.0050 but

does not exceed $.0200; and no more

than $.0015 where the bid is more than

$.0200. The initial margin for the ECU

would be 4%,10 as it was prior to

delisting and is currently in the

customized environment.

2. Statutory Basis

The Exchange believes that re-listing

the ECU option allows investors to take

advantage of the planned conversion to

the Euro at a time when the European

markets are the most volatile. In

addition, the advent of the Euro should

promote trading and investment in the

global currency markets. For the reasons

above, the Exchange believes that the

proposed rule change is consistent with

Section 6 of the Act 11 in general, and

in particular with Section 6(b)(5),12 in

that it is designed to promote just and

equitable principles of trade, prevent

fraudulent and manipulative acts and

practices, and facilitate transactions in

securities and 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 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 at the time of the filing.

III. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule

change, as amended, 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, DC 20549.

Copies of the submissions, 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

Room, 450 Fifth Street, N.W.,

Washington, DC 20549. 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–98–

17, and should be submitted by May 28,

1998.
25260 Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices

13 In approving this rule, the Commission notes

that it has considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

14 15 U.S.C. 78f(b)(5).

15See Amendment No. 1, supra note 3.

16 15 U.S.C. 78s(b)(2).

17 Id.

18 17 CFR 200.30–3(a)(12).

IV. Commission’s Findings and Order

Granting Accelerated Approval of the

Proposed Rule Change

The Commission finds the proposed

rule change is consistent with the

requirements of the Act and the rules

and regulations thereunder applicable to

a national securities exchange.13

Specifically, the Commission believes

the proposal is consistent with Section

6(b)(5) of the Act,14 which requires that

the rules of an exchange be designed to

promote just and equitable principles of

trade, to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system, and in general, to protect

investors and the public interest.

The Commission believes that

relisting and trading non-customized

ECU options should benefit investors, as

it will provide investors with greater

opportunity to take advantage of the

planned conversion to the Euro at a time

interest in the ECU may be high. The

Commission believes that trading

options on the ECU should provide

investors with an efficient and effective

means of hedging the risks associated

with the ECU. In addition, in approving

the reintroduction of the noncustomized ECU options, we note that

they will be trading under the same

terms and conditions and the previously

traded ECU options. Thus, the

reintroduction of ECU options has not

raised any new regulatory issues.

The Commission notes, however, that

this approval order does not grant the

Exchange approval to trade options on

the Euro. Instead, the PHLX has agreed

that before trading in options on the

Euro, it will consult with the

Commission to determine whether a

Rule 19b–4 filing under Section 19(b) of

the Act is necessary.15 In addition, the

Commission notes that, assuming the

terms and conditions of the Euro remain

the same as those of the ECU, the

Exchange still would need to address

the manner in which the ECU would be

converted to the Euro.

The Commission finds good cause for

approving the proposed rule change

prior to the 30th day after its

publication in the Federal Register. The

Commission notes that accelerated

approval will enable the Exchange to

trade in non-customized ECU options

prior to the European Summit

scheduled for May 2 and 3, 1998. As

noted above, relisting options on the

ECU under the same terms, conditions,

and subject to the same trading rules as

the previous ECU options contracts

raises no new issues of regulatory

concern. For the foregoing reasons, the

Commission believes that good cause

exists pursuant to Section 19(b)(2) of the

Act 16 to approve the proposed rule

change, as amended, on an accelerated

basis.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,17 that the

amended proposed rule change (SR–

PHLX–98–17) is hereby approved on an

accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.18

Jonathan G. Katz,

Secretary.

[FR Doc. 98–12146 Filed 5–6–98; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3076, Amdt. 1]

State of Alabama

In accordance with notices from the

Federal Emergency Management Agency

dated April 17, 18, and 20, 1998, the

above-numbered Declaration is hereby

amended to include Covington and

Cullman Counties in the State of

Alabama as a disaster area due to

damages caused by severe storms and

tornadoes, and to establish the incident

period for this disaster as beginning on

April 8, 1998 and continuing through

April 20, 1998.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Butler, Coffee, Conecuh, Crenshaw,

Ecambia, Geneva, Lawrence, Marshall,

Morgan, and Winston in Alabama, and

Okaloosa and Walton Counties in

Florida may be filed until the specified

date at the previously designated

location. Any counties contiguous to the

above-named primary counties and not

listed herein have been previously

declared.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is June

8, 1998 and for economic injury the

termination date is January 11, 1999.

The economic injury number for

Florida is 985200.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: April 28, 1998.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 98–12077 Filed 5–6–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3045, Amdt. 8]

State of Florida

In accordance with notices from the

Federal Emergency Management Agency

dated April 17 and April 24, 1998, the

above-numbered Declaration is hereby

amended to include Bay County, Florida

as a disaster area due to damages caused

by severe storms, high winds, tornadoes,

and flooding. This Declaration is further

amended to establish the incident

period for this disaster as beginning on

December 25, 1997 and continuing

through April 24, 1998.

All counties contiguous to the abovename county have been previously

declared.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is May

6, 1998 and for economic injury the

termination date is October 6, 1998.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: April 29, 1998.

James E. Rivera,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 98–12079 Filed 5–6–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3069, Amdt. 6]

State of Georgia

In accordance with notices from the

Federal Emergency Management Agency

dated April 24, 1998, the abovenumbered Declaration is hereby

amended to include the following

counties in the State of Georgia as a

disaster area due to damages caused by

severe storms and flooding beginning on

February 14, 1998 and continuing:

Barrow, Bartow, Cherokee, Dade,

Lumpkin, Murray, Paulding, Pickens,

Walker, and Wayne.

In addition, applications for economic

injury loans from small businesses

located in the following contiguous

counties may be filed until the specified

date at the previously designated

location: Catoosa, Clarke, and Oconee

Counties in Georgia; Jackson and De

Kalb Counties in Alabama; and Bradley,