Federal Register / Vol. 63, No. 92 /Wednesday, May 13, 1998 / Notices 26667

2 15 U.S.C. 78s(b)(3)(A).

3 17 CFR 240.19b–4(e)(5).

4 In reviewing this rule, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

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

5 17 CFR 200.30–3(a)(12).

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

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 proposed rule change has become

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

of the Act 2 and Rule 19b–4(e)(5) 3

thereunder. The proposal effects a

change in an existing order-entry or

trading system of a self-regulatory

organization that: (i) does not

significantly affect the protection of

investors or the public interest; (ii) does

not impose any significant burden on

competition; and (iii) does not have the

effect of limiting the access to or

availability of the system.4

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 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 the File No.

SR–PHLX–98–20 and should be

submitted by June 3, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–12704 Filed 5–12–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39964; File No. SR–Phlx–

98–09]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

To Revise Exchange Rule 1101A

Relating To Index Options Strike Price

Intervals

May 6, 1998.

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

Securities Exchange Act of 1934

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

February 5, 1998, the Philadelphia

Stock Exchange, Inc. (‘‘Exchange’’ or

‘‘Phlx’’) 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 Exchange seeks to amend

Exchange rule 1101A(a), ‘‘Terms of

Option Contracts,’’ to revise the strike

(exercise) price intervals for index

options. The proposal would change the

intervals between index option strike

prices to facilitate the prompt

dissemination of quote information and

to more accurately reflect the strike

prices currently being listed.

Currently, Rule 1101A(a) establishes

the strike price interval at $5, except: (i)

where the strike price exceeds $500, the

strike price interval may be $10; and (ii)

where the strike price exceeds $1,000,

the interval may be $20. The Exchange

may also determine to list strike prices

at wider intervals in ‘‘out-of-the-money’’

or far term series, generally $25, except:

(i) where the strike price exceeds $500,

the interval may be $50; and (ii) where

the strike price exceeds $1,000, the

interval may be $100. Also, where strike

price intervals would be greater than $5,

the Exchange may list alternative strike

prices at $5 intervals in response to

demonstrated customer interest or

specialist request.

At this time, the Exchange is

proposing an index option strike price

interval of $5 for the three consecutive

near-term months, $10 for the fourth

month, and $30 for the fifth month.

However, the Exchange will retain the

ability to list alternative strike prices at

$5 intervals in response to demonstrated

customer interest or specialist request.

The text of the proposed rule change

is available at the Office of the

Secretary, the Exchange, 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

Exchange 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

Exchange 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

During recent years, the number of

new option products and total series

listed by the national securities

exchanges has increased dramatically,

thereby increasing the number of

continuous quote changes disseminated

by the exchanges to the Options Price

Reporting Authority (‘‘OPRA’’), and by

OPRA to securities information vendors.

In an effort to curb the growth of strike

price dissemination and to more

accurately reflect the strike prices

currently being listed, the Exchange

proposes to amend Exchange rule

1101A(a) to change the intervals

between index option strike prices.

Currently, Exchange Rule 1101A(a)

establishes a formula for strike price

intervals which takes into consideration

the index value and time remaining

until expiration. The Rule establishes a

strike price interval at $5, except: (i)

where the strike price exceeds $500, the

strike price interval may be $10; and (ii)

where the strike price exceeds $1,000,

the interval may be $20. The Exchange

may also determine to list strike prices

at wider intervals in ‘‘out-of-the-money’’
26668 Federal Register / Vol. 63, No. 92 /Wednesday, May 13, 1998 / Notices

2See Securities Exchange Act Release No. 37003

(Mar. 21, 1996), 61 FR 13913 (Mar. 28, 1996).

3 15 U.S.C. 78f.

4 15 U.S.C. 7f(b)(5). 5 17 CFR 200.30–3(a)(12).

or far term series, generally $25, except:

(i) where the strike price exceeds $500,

the interval may be $50; and (ii) where

the strike price exceeds $1,000, the

interval may be $100. Also, where strike

price intervals would be greater than $5,

the Exchange may list alternative strike

prices at $5 intervals in response to

demonstrated customer interest or

specialist request.

The Exchange’s proposed rule change

would establish new strike price

intervals of: (i) $5 for the three

consecutive near-term months; (ii) $10

for the fourth month; and (iii) $30 for

the fifth month. However, the Exchange

would retain the ability to list

alternative strike prices at $5 intervals

in response to demonstrated customer

interest or specialist request, as well as

to list strike prices at wider intervals.

The Exchange believes the continued

ability to add strike prices at alternative

$5 intervals in response to customer

interest will maintain flexibility in the

marketplace and will preserve specific

trading opportunities.

The current version of Exchange Rule

1101A(a) was adopted in 1996,2 and

was likewise intended to improve the

Exchange’s strike price dissemination

policy. Based on its experience

implementing Rule 1101A(a), the

Exchange has determined to revise and

simplify the Rule for easier

administration. The Exchange believes

the revised Rule will more accurately

reflect the needs of the marketplace.

Specifically, basing the strike price

interval on an option’s value (in the case

of option greater than $500 or $1000)

has not proven useful. The Exchange

believes that widening the interval in

far-term series should continue to

reduce the number of outstanding series

listed.

The Exchange also believes that

listing far-term series and long-term

options at wider strike price intervals

should improve the efficiency of

quotation dissemination and facilitate

speedy pricing by reducing the number

of listed strike prices. The Exchange

believes the immediate effect should be

a reduction in the number of index

option strike prices. Furthermore, the

Exchange believes it will experience a

reduction in its systems capacity and

usage as well as its operational burdens.

For instance, strike prices currently

occupy trading floor screen space and

consume transmission line traffic to

OPRA and outside vendors that

disseminate Exchange trading

information. Further, the role of the

specialist in monitoring multitudes of

strike prices should be enhanced.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section 6

of the Act,3 in general, and with Section

6(b)(5),4 in particular, in that it is

designed to promote just and equitable

principles of trade; foster cooperation

and coordination with persons engaged

in regulating, clearing, settling,

processing information with respect to,

and facilitating transactions in

securities; and remove impediments to

and perfect the mechanism of a free and

open market and a national market

system. The Exchange further believes

that the proposed rule change will

protect investors and the public interest

by eliminating excess strike prices,

thereby improving quotation

dissemination capabilities, while

maintaining investors’ flexibility to

better trailer index option trading to

meet their investment objectives.

According to the Exchange, the

proposed rule change strikes a

reasonable balance between reducing

option series and accommodating the

needs of investors.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe the

proposed rule change will impose any

inappropriate burden on completion.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange did not solicit or

receive written comments with respect

to the proposed rule change.

III. Date of Effectiveness of 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 Exchange 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 date, 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

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 persons, 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 the Exchange. All submissions

should refer to File No. SR-Phlx–98–09

and should be submitted by June 3,

1998.

For the Commission by the Division of

Market Regulations, pursuant to delegated

authority.5

Margaret H. McFarland

Deputy Secretary.

[FR Doc. 98–12705 Filed 5–12–98; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice No. 2819]

Bureau of Oceans and International

Environmental and Scientific Affairs;

Public Meeting on Preparations for an

International Agreement Through the

United Nations Environment Program

on Persistent Organic Pollutants

SUMMARY: The United States

government, through an interagency

working group chaired by the U.S.

Department of State, is preparing for

negotiations through the United Nations

Environment Program (UNEP) on a

global agreement to address certain

persistent organic pollutants that result

in risks of a transboundary nature. The

first negotiating session is scheduled to

take place in Montreal, Canada, on June

29–July 3 this year. The Department of

State will host a public meeting in

advance of this session to outline issues

likely to arise in the context of the

negotiations. The meeting will take

place on Wednesday, June 3 from

10:30–12:30 in Room 1912 of the U.S.