3612 Federal Register / Vol. 63, No. 15 / Friday, January 23, 1998 / Notices

6Exchange Rule 1014(h), ‘‘Options on Foreign

Currencies,’’ Section (i), states that ‘‘all bids/offers

of customer accounts for under 100 contracts have

time priority over all other bids/offers’’ on the FCO

floor. In that instance, the FCO specialist cannot be

on parity with such customer so the enhanced

parity split will not apply. However, because

Exchange Rule 1014(h)(i) does not confer time

priority on customer orders for 100 or more

contracts, FCO specialists may avail themselves of

the enhanced parity split when interacting with

customer orders involving 100 or more FCO

contracts.

7Telephone conversation between Michele R.

Weisbaum, Vice President and Associate General

Counsel, Exchange, and Michael L. Loftus,

Attorney, Division of Market Regulations,

Commission (December 15, 1997).

8 15 U.S.C. 78f.

9 15 U.S.C. 78f(b)(5). 10 17 CFR 200.30–3(a)(12).

FCO specialist will be counted as two

crowd participants when determining

the allocation of the FCO contracts

among the trading crowd participants

on parity, except in the following

circumstances: (i) when there is one

other trading crowd participant on

parity, the FCO specialist will receive

60% of the FCO contracts making up the

order; or (ii) when there are two other

trading crowd participants on parity, the

FCO specialist will receive 40% of the

FCO contracts making up the order.

Because a customer bid/offer for

under 100 FCO contracts is deemed to

have time priority over all other bids/

offers, such an order will not be subject

to the enhanced parity split.6 This

provision will help ensure that small

customer orders are not disadvantaged

by the application of the enhanced

parity split. If a FCO transaction

involves more than 500 contracts, those

contracts exceeding the 500 contract

threshold will be allocated on a pro rata

basis among the crowd participants on

parity.

It should be noted that the application

of this enhanced parity split will be

mandatory. Therefore, with respect to

any FCO transaction that implicates the

enhanced parity split, the FCO

specialist will be required to accept the

preferential allocation and may not

decline the enhancement.7

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6 of the Act,8 in general, and

with Section 6(b)(5),9 in particular, in

that it is designed to promote just and

equitable principles of trade; to prevent

fraudulent and manipulative acts and

practices; to foster cooperation and

coordination with persons engaged in

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities; to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system; and to

protect investors and the public interest.

The Exchange further believes that the

proposed rule change balances the

competing interests of specialists and

market makers while assisting

specialists in making tight and liquid

markets and protecting customer

interests.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate burden on

competition.

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 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 Exchange 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.

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 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, NW.,

Washington, DC 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–97–55

and should be submitted by February

13, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Jonathan G. Katz,

Secretary.

[FR Doc. 98–1553 Filed 1–22–98; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3047]

State of California

Orange County and the contiguous

Counties of Los Angeles, Riverside, San

Bernardino, and San Diego in the State

of California constitute a disaster area as

a result of damages caused by flooding

and mudslides which occurred on

December 6, 1997. Applications for

loans for physical damages may be filed

until the close of business on March 13,

1998 and for economic injury until the

close of business on October 12, 1998 at

the address listed below or other locally

announced locations: Small Business

Administration, Disaster Area 4 Office,

P.O. Box 13795, Sacramento, CA 95853–

4795.

The interest rates are:

Percent

For physical damage:

Homeowners with credit available elsewhere ........................ 7.625

Homeowners without credit available elsewhere ........................ 3.812

Businesses with credit available

elsewhere ................................ 8.000

Businesses and non-profit organizations without credit available elsewhere ........................ 4.000

Others (including non-profit organizations) with credit available

elsewhere ................................ 7.125

For economic injury:

Businesses and small agricultural

cooperatives without credit

available elsewhere ................. 4.000

The number assigned to this disaster

for physical damage is 304706 and for

economic injury the number is 971400.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: January 12, 1998.

Aida Alvarez,

Administrator.

[FR Doc. 98–1614 Filed 1–22–98; 8:45 am]

BILLING CODE 8025–01–P