32688 Federal Register / Vol. 63, No. 114 / Monday, June 15, 1998 / Notices

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

2 17 CFR 240.19b–4

3See, letter from Timothy H. Thompson, Director,

Regulatory Affairs, Legal Department, CBOE to

Victoria Berberi-Doumar, Special Counsel, Division

of Market Regulation, SEC, dated April 15, 1998.

4Securities Exchange Act Release No. 39911

(April 24, 1998), 63 FR 23820 (April 30, 1998).

5OEX stands for options on the Standard & Poor’s

100 Index.

6 DJX stands for options on the Dow Jones

Industrial Average.

7 15 U.S.C. 78f(b)(5).

8 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).

9 15 U.S.C. 78s(b)(2).

10 17 CFR 200.30–3(a)(12).

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

including overall supervisory

responsibility for the general

management and investment of each

Fund’s portfolio, and subject to review

and approval by the Board, will: (i) set

the Fund’s overall investment strategies;

(ii) select managers, (iii) when

appropriate, recommend to the Board

the allocation and reallocation of a

Fund’s assets among multiple Managers;

(iv) monitor and evaluate the

performance of Manager; and (v) ensure

that the Managers comply with the

Fund’s investment objectives, policies,

and restrictions.

8. No director or officer of the

Company or director or officer of the

Adviser will own directly or indirectly

(other than through a pooled investment

vehicle that is not controlled by that

director or officer) any interest in a

Manager except for (i) ownership of

interests in the Adviser or any entity

that controls, is controlled by, or is

under common control with the

Adviser; or (ii) ownership of less than

1% of the outstanding securities of any

class of debt or equity of a publiclytraded company that is either a Manager

or an entity that controls, is controlled

by, or is under common control with a

Manager.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–15826 Filed 6–12–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40075; File No. SR–CBOE–

98–07]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change by

the Chicago Board Options Exchange,

Incorporated Relating to the

Committee Responsible for Governing

RAES Participation in SPX

June 4, 1998.

On February 20, 1998, the Chicago

Board Options Exchange, Incorporated

(‘‘CBOE’’ of the ‘‘Exchange’’) filed with

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change pursuant to Section 19(b)(1) of

the Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

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. 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.3 The Commission

published notice of the proposed rule

change in the Federal Register on April

30, 1998.4 No comment letters were

received. This order approves the

proposed rule change.

I. Description of the Proposal

The Exchange proposes to change the

Committee responsible for governing

RAES eligibility in options on the 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 5, SPX, and DJC6) 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 marketmakers the requirement that the marketmaker 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(d)), 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

(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)).

II. Discussion

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange, and in particular, the

requirements of Sections 6(b)(5) 7 of the

Act in that it is designed to prevent

fraudulent and manipulative acts and

practices and to promote just and

equitable principles of trade, and to

remove impediments to and protect the

mechanism of a free and open market.8

Specifically, the Commission believes

that changing the Committee that

oversees the eligibility of market makers

to participate in RAES for the trading of

SPX will ensure that the regulation of

SPX RAES eligibility will be consistent

with that of the other options classes

traded on the Exchange.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act 9 that the

proposed rule change SR–CBOE–98–07)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

[FR Doc. 98–15780 Filed 6–12–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40071; File No. SR–DTC–

98–10]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Immediate Effectiveness of

Proposed Rule Change Relating to

Fees and Charges

June 4, 1998.

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

Securities Exchange Act of 1934

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