3940 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices

5 17 CFR 200.30–3(a)(12).

1The Intermarket Surveillance Group (‘‘ISG’’) is

an organization of securities industry self-regulatory

organizations formed in 1983 to coordinate and

develop intermarket surveillance programs

designed to identify and combat fraudulent and

manipulative acts and practices. In order to

promote its purposes, members agree to exchange

such information as is necessary for ISG members

to perform their self-regulatory and market

surveillance functions.

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

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 CBOE. All submissions should

refer to the file number in the caption

above and should be submitted by

February 17, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–1855 Filed 1–26–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39557; File No. SR–CHX–

97–33]

Self-Regulatory Organizations;

Chicago Stock Exchange; Notice of

Filing of and Immediate Effectiveness

of Proposed Rule Change Regarding

Regulatory Cooperation

January 16, 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 December 11, 1997,

the Chicago Stock Exchange,

Incorporated (‘‘CHX’’ 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 selfregulatory organization. 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 proposes to amend

Article VIII, Rule 11 of its Rules to

clarify the existing Rule and to require

regulatory cooperation by members,

member organizations, and others over

whom the Exchange has jurisdiction in

connection with certain investigations

and proceedings that are initiated by

other exchanges or self-regulatory

organizations.

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

Currently, Article VIII, Rule 11

requires members (and certain others) to

submit books and papers, furnish

information, and appear and provide

testimony to the Exchange’s Board and

other committees or officers of the

Exchange, among other things. While

the Exchange believes that the current

rule provides adequate authority to

require members (and others specified

in the rule) to provide information to

other regulatory organizations, the

Exchange believes that clarifying this

provision to expressly provide for such

information is desirable, especially

because other self-regulatory

organizations have recently amended

their rules to clarify their informationsharing authority.

The proposed rule change would

expressly provide that no member,

member organization, or partner, officer,

director or other person associated with

a member or other person or entity

subject to the jurisdiction of the

Exchange shall refuse to appear and

testify before another exchange or selfregulatory organization in connection

with a regulatory investigation,

examination or disciplinary proceeding,

or refuse to furnish documentary

materials or other information, or

otherwise impede or delay such

investigation, examination or

disciplinary proceeding if the Exchange

requests such information or testimony

in connection with an inquiry resulting

from an agreement entered into by the

Exchange with other exchanges or selfregulatory organizations with whom the

Exchange has entered into agreements

for the sharing of information and other

forms of mutual assistance, including

but not limited to members and affiliate

members of the Intermarket

Surveillance Group.1 The proposed rule

change would explicitly provide that

the Exchange may enter into agreements

with domestic and foreign selfregulatory organizations providing for

the exchange of information and other

forms of mutual assistance for market

surveillance, investigative, enforcement

and regulatory purposes. The

requirements of the proposed rule

would apply regardless of whether the

Exchange had itself initiated a formal

investigation or disciplinary proceeding.

The proposed rule change would also

provide that any person or entity

required to furnish information or

testimony pursuant to the new rule

must be afforded the same rights and

procedural protections as that person or

entity would have if the Exchange had

initiated the request for information or

testimony.

While the Exchange believes that the

current rule provides adequate authority

to require members and specified others

to provide testimony, documentary

materials or other information to the

Exchange’s Board or to the Exchange (or

any committee, subcommittee or officer

thereof) and refrain from impeding or

delaying any examination, inquiry, or

investigation (whether formal or

informal) the Exchange believes that

changes are desirable to conform this

text to the new provisions added above.

Specifically, the proposed rule change

would provide that no member, member

organization, or partner, officer, director

or other person associated with a

member or other person or entity subject

to the jurisdiction of the Exchange shall

impede or delay an Exchange

examination, inquiry or investigation

(whether formal or informal) with

respect to possible violations within the

disciplinary jurisdiction of the

Exchange or with respect to possible

limitations on access to Exchange

services or otherwise with respect to the

discharge of its duties nor refuse to

furnish testimony, documentary

materials or other information requested

by the Board of Governors or by the

Exchange (or by any committee,

subcommittee, or officer thereof) during
Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices 3941

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

2The commission has modified the text of the

summaries prepared by DTC.

3For a complete description of CCS, refer to

Securities Exchange Act Release No. 35750 (January

22, 1996), 61 FR 2852 [File No. SR–DTC–95–18]

(order approving proposed rule change).

the course of such examination, inquiry

or investigation or otherwise in

furtherance of the discharge of its or his

duties. Failure to furnish such

testimony, documentary materials or

other information requested pursuant to

the proposed rule on the date or within

the time period requested would be

considered obstruction of an Exchange

inquiry or investigation and would not

be subject to formal disciplinary action.

2. Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b)(5) of the Act in that it is

designed to promote just and equitable

principles of trade, to foster cooperation

and coordination with persons

regulating securities transactions, to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system and, in

general, 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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the proposed rule change: (1)

does not significantly affect the

protection of investors or the public

interest; (2) does not impose any

significant burden on competition; and

(3) does not become operative for 30

days from December 11, 1997, the date

of which it was filed, and the Exchange

provided the Commission with written

notice of its intent to file the proposed

rule change at least five days prior to the

filing date, it has become effective

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

Act and Rule 19b–4(e)(6) thereunder.

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

purpose of this Act.

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, 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the CHX. All

submissions should refer to File No.

SR–CHX–97–33 and should be

submitted by February 17, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–1856 Filed 1–26–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39561; File No. SR–DTC–

97–17]

Self-Regulatory Organizations; the

Depository Trust Company; Notice of a

Proposed Rule Change Relating to a

Modification of the Coupon Collection

Service

January 20, 1998.

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

Securities Exchange Act of 1934

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

August 7, 1997. The Depository Trust

Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) and on December 22,

1997, amended the proposed rule

change as described in Items I, II, and

III below, which items have been

prepared primarily by DTC. The

Commission is publishing this notice to

solicit comments from interested

persons on the proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will

expand DTC’s coupon collection service

(‘‘CCS’’) to include the collection of

interest relating to coupons from

corporate bearer bonds.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

CCS currently provides DTC

participants with a method for the

collection of interest relating to coupons

from municipal bearer bonds.3

Participants using CCS are required to

deposit coupons in a standard sealed

envelop or ‘‘shell,’’ each of which may

contain no more than 200 coupons for

the same CUSIP number, series, and

payable date. DTC submits the contents

of the shells to the appropriate issuer or

paying agent and then credits the

interest to the participant’s account.

Under the proposed rule change, CCS

will be modified to process corporate

bearer bonds in addition to municipal

bearer bonds. With certain exceptions,

DTC will handle shells containing

corporate bearer bonds in the same

manner in which it currently handles

municipal bearer bonds.

First, DTC will contact the corporate

paying agent before submitting the

coupons for payment to determine

whether the coupon proceeds are

payable in U.S. dollars. To be eligible

for CCS, corporate bearer bonds must be

payable in either U.S. dollars or

Canadian funds. Where the corporate

bearer bonds are payable in Canadian

funds, DTC will request the paying

agent to convert the funds to U.S.

dollars in accordance with the