40574 Federal Register / Vol. 63, No. 145 /Wednesday, July 29, 1998 / Notices

10 15 U.S.C. 78s(b)(2).

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3The Exchange filed Amendment Nos. 1 and

Amendment No. 2 to the proposed rule change on

July 14, 1998, and July 15, 1998, respectively. See

Letter from Stephanie C. Mullins, Attorney, CBOE,

to Heather Seidel, Attorney, Division of Market

Regulation (‘‘Division’’), Commission, dated July

13, 1998 (‘‘Amendment No. 1’’); and Letter from

Stephanie C. Mullins, Attorney, CBOE to Kelly

McCormick, Attorney, Division, Commission, dated

July 14, 1998 (‘‘Amendment No. 2’’). Amendment

No. 1 amends the part of the filing relating to fees

charged to non-members to request the

Commission’s approval pursuant to Section 19(b)(2)

under the Act, and to ask for accelerated approval

for that portion of the filing. In Amendment No. 2,

the Exchange explained the procedure for informing

its membership and the affected non-members of

the proposed rule change.

4 15 U.S.C. 78f(b).

5 15 U.S.C. 78f(b)(4).

6The proposed rule change also amends fees

charged to non-members for delivery of the

Exchange Bulletin. The portion of this proposed

ruled change that affects non-members has been

filed pursuant to Section 19(b)(2) of the Act and the

Commission is granting partial accelerated approval

for that part of the filing.

7 15 U.S.C. 78s(b)(3)(A).

8 17 CFR 240.19b–4(e)(2).

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, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Amex. All submissions

should refer to the SR–Amex–98–16 and

should be submitted by August 19,

1998.

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,10 that the

proposed rule change (SR–Amex–98–

16) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20188 Filed 7–28–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40250; File No. SR–CBOE–

98–28]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change, and Notice

of Filing and Order Granting Partial

Accelerated Approval of Proposed

Rule Change by the Chicago Board

Options Exchange, Inc., Relating to

Exchange Fees

July 22, 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 June 24,

1998,3 the Chicago Board Options

Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I and II below, which Items have

been prepared by the Exchange. The

Commission is publishing this notice

and order to solicit comments on the

proposed rule change from interested

persons and to grant partial accelerated

approval of the fees relating to nonmembers.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CBOE is proposing to change the

subscription fee structure for the

Exchange Bulletin by adding a fee for a

new alternative of receiving the Bulletin

via e-mail.

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

CBOE 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 CBOE 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 the

Statutory Basis for, Proposed Rule

Change

1. Purpose

The Exchange proposes to change the

subscription fee structure for members

and non-members receiving the

Exchange Bulletin, and provide for the

option of obtaining the Bulletin via email. The proposed change would be

effective beginning July 1, 1998, for

members. For non-members the fees

would be effective upon the date the

Commission approves that portion of

the proposal. Currently, one hard copy

of the Bulletin is provided free of charge

to all effective members, and each

additional copy is $100.00. For nonmembers, the Bulletin subscription fee

is $100.00 for each hard copy. The

Exchange proposes to give the option of

subscribing to the Bulletin via e-mail

over the Internet to both members and

non-members. Under the proposed

changes a member’s first copy (whether

hard copy or via e-mail) will be free of

charge, and each additional copy via email delivery would be $50.00. The fee

to non-members for e-mail delivery will

be $50.00 for each copy.

2. Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b) of the Act,4 in general, and furthers

the objectives of Section 6(b)(4) of the

Act 5 in particular, in that it is designed

to provide for the equitable allocation of

reasonable dues, fees, and other charges

among CBOE members and others using

the Exchange’s facilities.

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

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

establishes or changes a due, fee, or

other charge, for members,6 imposed by

the Exchange, the change effecting

members has become effective as of July

1, 1998, pursuant to Section 19(b)(3)(A)

of the Act 7 and subparagraph (e)(2) of

Rule 19b–4 thereunder.8 At any time

within 60 days of the filing of the

proposed rule change, affecting

members, 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.

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
Federal Register / Vol. 63, No. 145 /Wednesday, July 29, 1998 / Notices 40575

9 15 U.S.C. 78f(b)(4).

10 15 U.S.C. 78s(b)(2).

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 In Amendment No. 1, the Exchange made

technical corrections to the proposed rule change

and clarified the purpose of the proposal. See Letter

from James E. Buck, Senior Vice President and

Secretary, Exchange, to Michael Walinskas, Deputy

Associate Director, Division of Market Regulation,

Commission, dated April 29, 1998. (‘‘Amendment

No. 1’’).

4Securities Exchange Act Release No. 39973 (May

7, 1998), 63 FR 26660.

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 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 CBOE. All submissions should

refer to the File No. SR–CBOE–98–28

and should be submitted by August 19,

1998.

V. Commission’s Findings and Order

Granting Partial Accelerated Approval

of the Proposed Rule Change

The Commission finds that the

Exchange’s proposal to provide the

option of obtaining the Exchange

Bulletin via e-mail to non-members at a

cost of $50.00 per copy is consistent

with the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

finds that the proposed rule change is

consistent with Section 6(b)(4) of the

Act 9 in that it provides for the equitable

allocation of reasonable dues, fees and

other charges among its members,

issuers and other persons using its

facilities.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of the filing in

the Federal Register. The Commission

believes that accelerated approval of the

proposal is appropriate because the

Exchange is merely adding an

alternative method for non-members to

receive the Exchange Bulletin that will

facilitate access to the Bulletin by both

members and non-members at a cost

less than the current fee for a hard copy

of the Exchange Bulletin.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act 10 that the

proposed rule change relating to nonmembers, is hereby partially approved

on an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20190 Filed 7–28–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40253; File No. SR–NYSE–

98–12]

Self-Regulatory Organizations; Order

Granting Approval of Proposed Rule

Change and Amendment No. 1 Thereto

by the New York Stock Exchange, Inc.,

Relating to Changes in Bond Listing

Procedures and Practices

July 23, 1998.

I. Introduction

On April 15, 1998, the New York

Stock Exchange, Inc. (‘‘NYSE’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’), pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 and Rule 19b–4

thereunder,2 a proposed rule change to

amend its bond listing procedure and

practices. On April 30, 1998, the NYSE

submitted to the Commission

Amendment No. 1 to the proposed rule

change.3 The proposed rule change, as

amended, was published for comment

in the Federal Register on May 13,

1998.4 No comments were received

regarding the proposal. This order

approves the proposed rule change, as

amended.

II. Description of the Proposal

The NYSE proposes to amend its

Listed Company Manual (‘‘Manual’’) to

alter certain provisions regarding listing

requirements for debt securities and

other debt security practices. Those

provisions in the Manual include:

(i) Interest Payments. Currently,

Paragraph 204.18 requires that an issuer

or its paying agent notify the Exchange

whenever the issuer makes an interest

payment, and the Exchange also

requires an issuer to notify the press and

the Exchange whenever the issuer does

not meet its interest obligations. The

proposal would delete the obligation to

inform the Exchange of interest

payments made, whether by

confirmation cards or otherwise. And,

the proposal also adds to the end of

Paragraph 204.18 a cross-reference to

202.00, which reminds issuers that they

are required to disclose material

information (including the inability to

meet payment obligations).

(ii) Multiple Facsimile Signatures.

Paragraph 501.06 presently requires

bonds to be executed, either manually

or by facsimile machine, by two of the

issuer’s officers. Whether the issuer uses

one facsimile signature (and one manual

signature) or two facsimile signatures,

the Exchange currently requires the

issuer to submit an opinion of counsel

that states that the use of each facsimile

signature (a) is specifically authorized

by (or at least is not inconsistent with)

the issuer’s charter or by-laws and the

issue’s indenture, and (b) is valid and

effective under the laws of the state of

the issuer’s incorporation. When a

single facsimile signature is used, the

opinion of counsel also must state that

the actual facsimile signature to be used

has been duly adopted. Where two

facsimile signatures are used, the issuer

must submit to the Exchange the board

resolution adopting the actual

signatures to be used.

Although the Exchange would

continue to require issuers to authorize

the use of facsimile signatures, to adopt

the specific facsimile signatures to be

used, to comply with charter, by-law

and indenture provisions, and to

comply with state laws, it proposes to

discontinue the practice of requiring

issuers to submit opinions of counsel

and board resolutions in respect of those

requirements.

(iii) Discharge of Obligation upon

Default of Funds. Paragraph 602.01 and

Subparagraph (D) of Paragraph 703.06

currently each require, in part, that a

debt security’s indenture may not

discharge the issuer’s payment

obligation if the funds representing

payment are deposited with the trustee,

depository or paying agent more than

ten days before the date on which the

funds become available to bond holders.

The Exchange would remove this

requirement from the Manual.

(iv) Clearance of Terms.

Subparagraph (B) of Paragraph 703.06

presently asks an issuer to submit the

indenture and registration terms to the

Exchange prior to applying to list a

bond and to receive the Exchange’s

clearance of the terms of those

documents before the company is

permitted to use a ‘‘listing intention