Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 / Notices 31823

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Amendment 1 clarifies the purpose section of

the filing by noting that fines over $2,500 are

subject to higher reporting requirements than fines

of $2,500 or less. See Letter from Michael D.

Pierson, Senior Attorney, Regulatory Policy, PCX, to

Lisa Henderson, Attorney, SEC, dated May 26,

1998.

4Rule 19d–1(c)(2) under the Act authorizes

national securities exchanges to adopt minor rule

violation plans for the summary discipline and

abbreviated reporting of minor rule violations by

exchange members and member organizations. See

Securities Exchange Act Release No. 21013 (June 1,

1984), 49 FR 23828 (June 8, 1984) (order approving

amendments to paragraph (c)(2) of Rule 19d–1

under the Act). Pursuant to PCX Rule 10.13, the

Exchange may impose a fine on any member or

member organization for any violation of an

Exchange rule that has been deemed to be minor in

nature and approved by the Commission for

inclusion in the MRP. PCX Rule 10.13(h)–(j) sets

forth the specific Exchange rules deemed to be

minor in nature.

5As noted in PCX Rule 10.13(e), pursuant to

Securities Exchange Act Release No. 30958, any

person or organization found in violation of a minor

rule under the MRP is not required to report such

violation on SEC Form BD, provided that the

sanction imposed consists of a fine not exceeding

$2,500 and the sanctioned person or organization

has not sought an adjudication, including a hearing,

or otherwise exhausted the administrative remedies

available with respect to the matter. Accordingly,

any fine imposed in excess of $2,500 will be subject

to reporting on SEC Form BD in addition to the

immediate, rather than periodic, reporting

requirement of Section 19(d)(1) of the Act. See

Securities Exchange Act Release No. 32080 (January

22, 1992), 57 FR 3452 (noting that fines in excess

of $2,500, assessed under New York Stock

Exchange, Inc. (‘‘NYSE’’) Rule 476A, are not

considered pursuant to the NYSE’s minor rule

violation plan and are thus subject to the current

reporting requirements of Section 19(d)(1) of the

Act).

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW,

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 in

the Commission’s Public Reference

Room, 450 Fifth Street, NW,

Washington, DC. Copies of such filing

also will be available for inspection and

copying at the NASD. All submissions

should refer to File No. SR–NASD–98–

38 and should be submitted by July 1,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–15419 Filed 6–9–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40063; File No. SR–PCX–

98–21]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change and

Amendment 1 Thereto by the Pacific

Exchange, Inc., Relating to Fines for

Disruptive Action on the Options Floor

June 3, 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 16,

1998, the Pacific Exchange, Inc. (‘‘PCX’’

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 Exchange. On May 28,

1998, the Exchange filed Amendment 1

to the proposal with the Commission.3

The Commission is publishing this

notice to solicit comments on the

proposed rule change, as amended, from

interested persons.

I. Self-Regulatory Organization’s

Statement of the Term of Substance of

the Proposed Rule Change

PCX is proposing to increase its

recommended fines under the Minor

Rule Plan (‘‘MRP’’) for disruptive action

involving physical contact between

members while on the options trading

floor. Proposed new language is in

italics; proposed deleted language is in

brackets.

6133 Minor Rule Plan

Rule 10.13(a)–(j)—No change.

(k) Minor Rule Plan: Recommended

Fine Schedule.

(i) Options Floor Decorum and Minor Trading Rule Violations

Fines

1st

violation

2nd

violation

3rd

violation

1.–16. No change

17. Disruptive action involving physician contact while on the trading floor. (Rule 6.2) ......................... [$500.00]

1,500.00

[$1,000.00]

3,000.00

[$2,500.00]

5,000.00

18.–34. No change.

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

The Exchange is proposing to increase

the recommended fines under the MRP 4

for disruptive action involving physical

contact between members while on

PCX’s Options Trading Floor. These

fines are currently set at $500, $1,000

and $2,500 for first, second and third

violations, respectively, during a

running two-year period. The Exchange

is proposing to increase these fines at

$1,500, $3,000, and $5,000, respective.5

The purpose of the rule change is to

deter future incidents of disruptive

conduct involving physical contact. The

Exchange notes that there has been a

moderate increase recently in the

number of such cases, and the Exchange

intends that the proposed rule change

will serve to reverse that trend.
31824 Federal Register / Vol. 63, No. 111 /Wednesday, June 10, 1998 / Notices

6 15 U.S.C. 78f(b).

7 15 U.S.C. 78f(b)(5). 8 17 CFR 200.30–3(a)(12).

2. Basis

The Exchange believes the proposed

rule change is consistent with Section

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

the objectives of Section 6(b)(5),7 in

particular, in that it is designed to

promote just and equitable principles of

trade. In addition, the Exchange believes

that the proposal will serve to promote

fair and orderly markets on the Options

Floor and thereby will serve to protect

investors and the public interest.

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 that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments on the proposed

rule change were neither solicited nor

received.

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 PCX 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, NW.,

Washington, DC 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, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the PCX. All submissions

should refer to File No. SR–PCX–98–21

and should be submitted by July 1,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–15416 Filed 6–9–98; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[License No. 08/78–0153]

Bluestem Capital Partners II, L.P.;

Notice of Issuance of a Small Business

Investment Company License

On February 18, 1997, an application

was filed by Bluestem Capital Partners

II, L.P. at 122 South Phillips Avenue,

Suite 300, Sioux Falls, South Dakota

57104, with the Small Business

Administration (SBA) pursuant to

Section 107.300 of the Regulations

governing small business investment

companies (13 CFR 107.300 (1997)) for

a license to operate as a small business

investment company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 08/78–0153 on May

22, 1998, to Bluestem Capital Partners

II, L.P., to operate as a small business

investment company.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)

Dated: May 22, 1998.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 98–15353 Filed 6–9–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[License No. 09/09–0414]

Critical Capital Growth Fund, L.P.;

Notice of Issuance of a Small Business

Investment Company License

On December 29, 1997, an application

was filed by Critical Capital Growth

Fund, L.P. at 17 East St. Francis Drake,

Suite 230, Larkspur, California 94939,

with the Small Business Administration

(SBA) pursuant to Section 107.300 of

the Regulations governing small

business investment companies (13 CFR

107.300 (1997)) for a license to operate

as a small business investment

company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 09/09–0414 on May

4, 1998, to Critical Capital Growth

Fund, L.P. to operate as a small business

investment company.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)

Dated: May 8, 1998.

Harry E. Haskins,

Acting Associate Administrator for

Investment.

[FR Doc. 98–15356 Filed 6–9–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[License No. 06/06–0315]

First United Venture Capital

Corporation; Notice of Issuance of a

Small Business Investment Company

License

On August 27, 1997, an application

was filed by First United Venture

Capital Corporation, at 1400 West Main

Street, Durant, Oklahoma 74701, with

the Small Business Administration

(SBA) pursuant to Section 107.300 of

the Regulations governing small

business investment companies (13 CFR

107.300 (1997)) for a license to operate

as a small business investment

company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 06/06–0315 on May

22, 1998, First United Venture Capital

Corporation to operate as a small

business investment company.