23820 Federal Register / Vol. 63, No. 83 /Thursday, April 30, 1998 / Notices

7 15 U.S.C. 78s(b)(3)(A)(i).

8 17 CFR 240.19b–4(e)(6).

9 17 CFR 200.30–3(a)(12).

1See, letter from Timothy H. Thompson, Director,

Regulatory Affairs, Legal Department, Chicago

Board Options Exchange to Victoria BerberiDoumar, Division of Market Regulation, SEC, dated

April 15, 1998.

2OEX stands for options on the Standard & Poor’s

100 Index.

3 DJX stands for options on the Dow Jones

Industrial Average.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

This proposed rule filing has been

filed by the Exchange as a ‘‘noncontroversial’’ rule change pursuant to

Section 19(b)(3)(A)(i) of the Act 7 and

subparagraph (e)(6) of Rule 19b–4

thereunder.8 Consequently, 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; and

(3) does not become operative until May

17, 1998, more than 30 days from April

16, 1998, the date on which it was filed,

and the Exchange provided the

Commission with written notice of its

intent to file the proposed rule change

at least five days prior to the filing date,

it has become effective pursuant to

Section 19(b)(3)(A) of the Act and Rule

19b–4(e)(6 ) thereunder.

At any time within 60 days of the

filing of the 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;

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 at

the Commission’s Public Reference

Room. Copies of such filing also will be

available for inspection and copying at

the principal office of the CBOE. All

submissions should refer to File No.

SR–CBOE–98–14 and should be

submitted by May 21, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–11449 Filed 4–29–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39911; File No. SR–CBOE–

98–07]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Board Options Exchange,

Incorporated Relating to the

Committee Responsible for Governing

RAES Participant in SPX

April 24, 1998.

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

Securities Exchange Act of 1934, U.S.C.

78s(b)(1), notice is hereby given that on

February 20, 1998, the Chicago Board

Options Exchange, Incorporated

(‘‘CBOE’’ or the ‘‘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 CBOE. CBOE

filed an amendment on April 15, 1998,

requesting that the filing be handled as

a regular way filing under Section

19(b)(2) of the Act.1 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 CBOE proposes to change the

Committee responsible for governing

RAES eligibility in options on the

Standard & Poor’s 500 Index (‘‘SPX’’)

from the appropriate Floor Procedure

Committee to the appropriate Market

Performance Committee. The text of the

proposed rule change is available at the

Office of the Secretary, CBOE 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,

CBOE 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 CBOE 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, Proposed Rule

Change

1. Purpose

The Exchange has decided to change

the body governing eligibility for RAES

in SPX from the appropriate Floor

Procedure Committee to the appropriate

Market Performance Committee.

Currently, SPX is the only options class

in which the issues concerning the

eligibility of market-makers to

participate in RAES is governed by a

Floor Procedure Committee instead of

by a Market Performance Committee.

Rule 8.16 (in the case of option classes

other than OEX 2, SPX, and DJX 3) and

Rule 24.17 (in the case of OEX and DJX

option classes) provide that the

appropriate Market Performance

Committee will govern the RAES

market-maker eligibility issues. This

change, therefore, will make the

regulation of SPX RAES eligibility

consistent with that of the other option

classes traded on the Exchange. The

governance of eligibility issues for SPX

RAES will initially be delegated to the

newly formed Index Market

Performance Committee.

As with the other options classes, the

Index Market Performance Committee

will have authority to exempt marketmarkers from: the requirement that the

market-maker be present in the crowd to

log onto or remain on RAES (Rule

24.16(a)(iii)), the requirement that the

market-maker must log onto RAES at

any time during an expiration month

when he is present in the crowd and

when he has logged on previously

during that expiration month (Rule

24.16(b)), certain requirements

concerning the participation of joint

accounts (Rule 24.16(c)), and certain

requirements concerning the

participation of member organizations

with multiple nominees (Rule 24.16(d)).

The Index Market Performance

Committee will also take over the

broader authority of the SPX Floor

Procedure Committee to set the

maximum number of RAES participants

in RAES groups, to disallow the

participation of certain RAES groups
Federal Register / Vol. 63, No. 83 /Thursday, April 30, 1998 / Notices 23821

4 17 CFR 200.30–3(a)(12).

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

(Rule 24.16(e)), to require marketmakers of the trading crowd to log onto

RAES if there is inadequate

participation (Rule 24.16(f)), and to take

other remedial action as appropriate

(Rule 24.16(g)).

2. Statutory Basis

By moving the authority for the

governance of RAES eligibility issues in

SPX from a Floor Procedure Committee

to a Market Performance Committee,

thus, making SPX RAES consistent with

RAES for the other option classes traded

on the Exchange, the proposed rule

change is consistent with Section 6 of

the Act in general and Section 6(b)(5) in

particular in that it is designed to

promote just and equitable principles of

trade and to protect investors and the

public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

CBOE 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

Within 35 days of the date of

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

organization consents, the Commission

will:

(A) by order approve such 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,

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

Room, 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 the CBOE. All submissions

should refer to File No. SR–CBOE–98–

07 and should be submitted by May 21,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–11515 Filed 4–29–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39906; File No. SR–CHX–

98–7]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Stock Exchange, Inc.

Regarding Maintenance Standards and

Listing Requirements

April 23, 1998.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

March 18, 1998, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

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

rule change, as described in Items I, II,

and III below, which Items have been

prepared by the self-regulatory

organization. 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 Exchange proposes to amend

Rules 14, 15, 16, 17 and 22 of Article

XXVIII and the interpretation and policy

.01 of Rule 2 of Article XXVIII. The

Exchange further proposes to add

interpretation and policy .03 to Rule 2

of Article XXVIII. The proposed rule

amendments would clarify the

requirements for listing and/or

maintenance on the CHX a security that

is also listed on another primary market

and modify the maintenance and

delisting standards regarding securities

listed on Tier II of the Exchange.

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 IV 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

The proposed rule change relates to

four listing issues: (i) Tier II listing

standards for stock warrants, (ii) listing

application requirements for securities

that are listed or approved for listing on

certain other markets, (iii) delisting of a

security for lack of sufficient trading

volume, and (iv) the elimination of

certain maintenance listing standards

for securities currently listed on certain

other markets.

Tier II Stock Warrants. The exchange

does not currently have maintenance

standards for stock warrants listed on

Tier II of the Exchange. The proposed

rule change would require that, in the

case of Tier II stock warrants, the

common stock of the company or other

security underlying the stock warrants

meet the applicable Tier II maintenance

requirements. The proposed rule change

would allow the Exchange to delist

stock warrants that did not have

adequate ‘‘backing’’ of an underlying

security.

Listing Application Requirements For

Certain Securities Listed on Other

Markets. Currently, the Exchange may

list a security of an issuer that is listed

or has been approved for listing on

another primary market. The proposed

rule change would clarify that if the

Exchange chooses to list, under either

Tier I or Tier II, a security listed or

approved for listing, within the past

twelve months, on the New York Stock

Exchange (‘‘NYSE’’), the American

Stock Exchange (‘‘Amex’’), except for

Emerging Company Marketplace