Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 / Notices 27779

1A member who wishes to act as a market maker

and as a floor broker on the same business day is

subject to the restrictions of CBOE Rule 8.8,

‘‘Restrictions on Acting as a Market-Maker and a

Floor Broker.’’

which the Plan’s modified funding

objectives are not met, the special

withdrawal liability rules will be void.

The comment raised concerns relating

to the potential for increased risk to the

insurance system if the proposed

Amendment is approved. According to

the comment, ‘‘[b]y eliminating the

requirement that contributions for each

Plan Year be at least equal to benefits

and administrative costs, the proposed

Plan Amendment would slow the Plan’s

progress towards a fully funded status

while increasing the insurance risk on

the (PBGC).’’ The comment states that

the Plan’s actuarial projections show

that the Plan’s full funding limit will

not be reached for at least another two

years and possibly longer, and that the

projections show a gradual decline in

contributions, not a sudden drop.

In addressing the comment PBGC has

considered the actuarial information

provided with the request and the

response to the comment. The evidence

indicates that the west coast shipping

industry covered by the Plan has shown

steady growth over the past decades,

and the growth is projected to continue.

The evidence also indicates that as a

result of the steady growth in the

industry, the Plan’s contribution base

has been stable and secure. Due to the

nature of the industry, departures of

individual employers would not pose a

risk to the Plan or the PBGC insurance

system. In approving the Plan’s special

withdrawal liability rules in 1984, PBGC

found that meeting the associated

funding objectives would place the Plan

on a ‘‘sound long-term financial basis.’’

Those objectives have been met earlier

than projected. The proposed

modification to the Plan’s special

withdrawal liability rules is conditioned

on the Plan meeting at least the same

funding objectives. Therefore, PBGC has

concluded that the proposed

modification will not pose a significant

risk to the insurance system.

Based on the facts of this case and the

representations and statements made in

connection with the request for

approval, PBGC has determined that the

Plan Amendment modifying special

withdrawal liability rules (1) will apply

only to an industry that has

characteristics that would make the use

of special withdrawal liability rules

appropriate, and (2) will not pose a

significant risk to the insurance system.

Therefore, PBGC hereby grants the

Plan’s request for approval of a plan

amendment modifying special

withdrawal liability rules, as set forth

herein. PBGC grants approval under the

condition that such approval will

expire, and the Plan’s special

withdrawal liability rules will be void

as of the first day of the Plan Year

following a Plan Year for which the Plan

is not at least eighty-five percent (85%)

funded, and during said following Plan

Year the Contributions are less than the

least of (a) total administrative cost and

benefits for said following Plan Year or

(b) the amount required to increase the

Funding Percentage to eighty-five

percent (85%) for said following Plan

Year or (c) the maximum tax-deductible

contribution to the Plan. The Plan has

agreed to certify to these conditions

annually. Should the Plan wish to again

amend these rules at any time, PBGC

approval of the amendment will be

required.

Issued at Washington, DC, on this 14th day

of May 1998.

David Strauss,

Executive Director.

[FR Doc. 98–13435 Filed 5–19–98; 8:45 am]

BILLING CODE 7708–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39987]; File No. SR–CBOE–

98–19]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Inc., Relating to Nominees of Member

Organizations

May 12, 1998.

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

Securities Exchange Act of 1934

(‘‘ACT’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on May 5, 1998, the

Chicago Board Options Exchange, Inc.

(‘‘CBOE’’ or ‘‘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 CBOE. 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 revise CBOE

Rule 3.8, ‘‘Nominees,’’ to clarify that a

nominee trading for his/her own

account pursuant to CBOE Rule

3.8(a)(4)(C) may trade as an independent

market maker and/or an independent

floor broker.1 The CBOE also proposes

to replace a reference in CBOE Rule

3.8(a)(4)(C) to the CBOE’s Market

Surveillance Department with a

reference to the Exchange.

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, 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

CBOE Rule 3.8(a)(4)(B) provides that

a nominee of a member organization

may perform floor functions only on

behalf of the member organization for

which he or she is authorized. However,

CBOE Rule 3.8(a)(4)(C) sets forth an

exception to this requirement.

Specifically, CBOE 3.8(a)(4)(C) provides

that, notwithstanding the provisions of

CBOE Rule 3.8(a)(4)(B), a nominee may

trade for his/her own account provided

that the following three requirements

are satisfied: (i) the nominee is a

registered broker-dealer; (ii) the

nominee has the prior written approval

of the nominee’s member organization

to trade for his/her own account; and

(iii) the nominee has the prior written

approval of the Exchange’s Market

Surveillance Department to trade for

his/her own account. CBOE Rule

3.8(a)(4)(C) also provides that the

approval of the nominee’s member

organization and of the CBOE’s Market

Surveillance Department must be filed

with the CBOE’s Membership

Department.

In addition, CBOE Rule 3.8(a)(2)

requires a nominee’s member

organization to guaranty all obligations

arising out of the nominee’s

representation of the member

organization, including transactions for

the nominee’s own account as

authorized pursuant to CBOE Rule

3.8(a)(4)(C).

The purpose of the proposal is to

clarify that authorization of a nominee
27780 Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 / Notices

2As noted above, a member who wishes to act as

a market maker and as a floor broker on the same

business day is subject to the restrictions of CBOE

Rule 8.8. See note 1, supra.

3A member (or the Exchange) providing

authorization under CBOE Rule 3.8(a)(4)(C) may

specify the capacity in which the nominee may act

(ie., the nominee may be authorized to act solely as

a floor broker, solely as market maker, or in both

capacities), Telephone conversation between Arthur

B. Reinstein, Assistant General Counsel, CBOE, and

Yvonne Fraticelli, Attorney, Division of Market

Regulation, Commission, on May 8, 1998.

4 15 U.S.C. 78s(b)(3)(A).

5 17 CFR 240.19b–4(e)(1).

6 In reviewing this proposal, the Commission has

considered the proposal’s impact on efficiency,

competition, and capital formation. 15 U.S.C. 78c(f). 7 17 CFR 200.30–3(a)(12).

to trade for his/her own account

pursuant to CBOE Rule 3.8(a)(4)(C)

means authorization of the nominee to

trade as an independent market maker

and/or as an independent floor broker.2

Accordingly, the proposal amends

CBOE Rule 3.8 by replacing the

references to trading by a nominee for

his/her own account with references to

trading by a nominee as an independent

market maker and/or as an independent

floor broker.

According to the CBOE, this

clarification is consistent with the

manner in which the CBOE departments

that have administered CBOE Rule

3.8(a)(4)(C) have interpreted the rule

and is intended to eliminate any

potential ambiguity as to whether CBOE

Rule 3.8(a)(4)(C) only authorizes a

nominee to act as an independent

market maker.3 Additionally, the CBOE

believes that, as a matter or regulatory

policy, there is no reason to distinguish

between a nominee acting as an

independent market maker and a

nominee acting as an independent floor

broker given that, in either instance, the

nominee must have prior written

authorization to do so from both the

nominee’s member organization and

from the Exchange, the nominee must

be a registered broker-dealer, and the

nominee’s transactions will be

guaranteed by the nominee’s member

organization.

The proposed rule change also

replaces the references in CBOE Rule

3.8(a)(4)(C) to the CBOE’s Market

Surveillance Department with a

reference to the Exchange. The reason

for this change is twofold. First, the

CBOE’s Market Surveillance Department

recently was combined into the CBOE’s

Department of Market Regulation.

Second, the Exchange body or bodies

that grant approvals under CBOE Rule

3.8(a)(4)(C) may change over time.

Currently, Exchange approval under

CBOE Rule 3.8(a)(4)(C) is required from

both the CBOE’s Department of Market

Regulation and the CBOE’s Membership

Committee.

Finally, the CBOE notes that all of the

provisions in paragraphs (a)(2), (a)(3),

and (a)(4) of CBOE Rule 3.8 which are

applicable to nominees are also

applicable to a person who has

registered his or her membership for a

member organization because, under

Section 2.4 of the CBOE Constitution

(‘‘Registration of Individual

Memberships for Member

Organizations’’) such a person

represents a member organization is lieu

of a nominee. Therefore, the

requirements of CBOE Rule 3.8(a)(4)(C)

also are applicable to a person who has

registered his or her membership for a

member organization and desires to also

act as an independent market maker

and/or as an independent floor broker.

The Exchange believes that the

proposed rule change is consistent with

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

furthers the objectives of Section 6(b)(5),

in particular, in that the proposed

change will clarify the Exchange’s rules

and is thus designed to remove

impediments to and perfect the

mechanism of a free and open market.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The 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

Because the foregoing rule change

constitutes a stated policy, practice, or

interpretation with respect to the

meaning, administration, or

enforcement of an existing rule of the

Exchange, it has become effective

pursuant to Section 19(b)(3)(A) of the

Act 4 and subparagraph (e)(1) of Rule

19b–4 thereunder.5 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 furtherance of

the purposes of the Act.6

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether it 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 that

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

Section, 450 Fifth Street, N.W.,

Washington, D.C. 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–98–19 and should be

submitted by June 10, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–13383 Filed 5–19–98; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Data Collection Available for Public

Comments and Recommendations

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995, this

notice announces the Small Business

Administration’s intentions to request

approval on a new, and/or currently

approved information collection.

DATES: Comments should be submitted

on or before July 20, 1998.

FOR FURTHER INFORMATION CONTACT:

Curtis B. Rich, Management Analyst,

Small Business Administration, 409 3rd

Street, S.W., Suite 5000, Washington,

D.C. 20416. Phone Number: 202–205–

6629.

SUPPLEMENTARY INFORMATION:

Title: ‘‘Servicing Agent Agreement’’.

Type of Request: New Request.

Form No: 1506.

Description of Respondents: Persons

filling out Servicing Agent Agreement

and Certified Development Companies.

Annual Responses: 4,800.

Annual Burden: 800.