Federal Register / Vol. 63, No. 149 /Tuesday, August 4, 1998 / Notices 41609

1 15 U.S.C. 78s(b)(1) (1994).

2 17 CFR 240.19b–4 (1997).

outstanding voting securities, as defined

in the Act, or, in the case of a new Fund

whose public shareholders purchased

shares on the basis of a prospectus

containing the disclosure contemplated

by condition 4 below, by the sole initial

shareholder(s) before offering shares of

such Fund to the public.

3. Within 90 days of the hiring of any

Subadviser, the Manager will furnish

shareholders of the affected Fund with

all information about the Subadviser

that would be included in a proxy

statement. The Manager will meet this

condition by providing shareholders

with an information statement meeting

the requirements of Regulation 14C,

Schedule 14C, and item 22 of Schedule

14A under the Securities Exchange Act

of 1934.

4. The Trust will disclose in its

prospectus the existence, substance and

effect of any order granted pursuant to

the application. In addition, each Fund

will hold itself out to the public as

employing the ‘‘manager of managers’’

approach described in the application.

The prospectus will prominently

disclose that the Manager has the

ultimate responsibility for the

investment performance of the Fund

due to its responsibility to oversee

Subadvisers and recommend their

hiring, termination and replacement.

5. No director, trustee, or officer of the

Trust or the Manager will own, directly

or indirectly (other than through a

pooled investment vehicle that is not

controlled by any such director, trustee,

or officer), any interest in a Subadviser

except for: (a) ownership of interests in

the Manager or any entity that controls,

is controlled by, or under common

control with the Manager, or (b) or

ownership of less than 1% of the

outstanding securities of any class of

equity or debt securities of any publicly

traded company that is either a

Subadviser or controls, is controlled by,

or is under common control with a

Subadviser.

6. The Manager will not enter into

Subadvisory Agreements on behalf of a

Fund with any Affiliated Subadviser

without such agreement, including the

compensation to be paid thereunder,

being approved by the shareholders of

the applicable Fund.

7. At all times, a majority of the Board

will be Independent Trustees, and the

nomination of new or additional

Independent Trustees will be placed

within the discretion of the thenexisting Independent Trustees.

8. When a change of Subadviser is

proposed for a Fund with an Affiliated

Subadviser, the Board, including a

majority of the Independent Trustees,

will make a separate finding, reflected

in the minutes of meetings of the Board,

that the change of Subadvisers is in the

best interest of the Fund and its

shareholders and does not involve a

conflict of interest from which the

Manager or Affiliated Subadviser

derives an inappropriate advantage.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20750 Filed 8–3–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Sunshine Act Meeting

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [63 FR 39916, July 24,

1998]

STATUS: Closed Meeting.

PLACE: 450 Fifth Street, N.W.,

Washington, D.C.

DATE PREVIOUSLY ANNOUNCED: July 24,

1998.

CHANGE IN THE MEETING: Cancellation of

Meeting.

The closed meeting scheduled for

Friday, July 31, 1998, at 10:00 a.m., has

been cancelled.

At times, changes in Commission

priorities require alterations in the

scheduling of meeting items. For further

information and to ascertain what, if

any, matters have been added, deleted

or postponed, please contact: The Office

of the Secretary (202) 942–7070.

Dated: July 31, 1998.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20947 Filed 7–31–98; 3:47 pm]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40271; File No. SR–CHX–

98–18]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Stock Exchange, Inc.

Relating to the Exchange’s Withdrawal

of Capital Provisions

July 28, 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 26,

1998, the Chicago Stock Exchange, Inc.

(‘‘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 CHX. 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 II, Rule 6(b) of the Exchange’s

rules relating to the Exchange’s

Withdrawal of Capital provisions.

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

CHX 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 CHX 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 proposes to amend

Article II, Rule 6(b) of the Exchange’s

rules in order to limit the applicability

of the Exchange’s Withdrawal of Capital

provisions to member firms for which

the Exchange is the Designated

Examining Authority (‘‘DEA’’). The

Exchange’s Withdrawal of Capital

provisions limit the ability of a partner

in a member firm to withdraw capital

from the firm. Currently, this

requirement applies to both member

firms for which the Exchange is the DEA

as well as firms subject to examination

by a self-regulatory organization

(‘‘SRO’’) other than the Exchange if the

member’s DEA does not have a

comparable rule. The proposed rule

change would eliminate this

requirement for all firms for which the

Exchange is not the DEA.

The Exchange does not believe that,

given the current regulatory scheme, it

is necessary to review and analyze the

rules of other SROs to determine

whether such rules are comparable to

the Exchange’s rule on this particular

issue. All other SROs have rules that

have been approved by the SEC and that
41610 Federal Register / Vol. 63, No. 149 /Tuesday, August 4, 1998 / Notices

3The New York Stock Exchange and the

American Stock Exchange have rules regarding

withdrawal of capital. The other exchanges do not.

Telephone conversations between Patricia L. Levy,

General Counsel, CHX, and Katherine A. England,

Assistant Director, Division of Market Regulation,

Commission (July 17, 1998).

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

5 15 U.S.C. 78f(b)(5). 6 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1) (1994).

2 17 CFR 240.19b–4 (1997).

are deemed to promote just and

equitable principles of trade, to remove

impediments and to perfect the

mechanisms of a free and open market

and a national market system and, in

general, to protect investors and the

public interest. As a result, the CHX

believes imposing the Withdrawal of

Capital Rule on member firms for which

the Exchange is not the DEA, if the

member’s DEA does not have a

comparable rule, only fosters

unnecessary and duplicative

regulation.3 The text of the proposed

rule change is as follows:

Deletions are [bracketed].

ARTICLE II

Member Firms

Subordination of Claims

Rule 6. (a) No change in text.

(b) Withdrawal of Capital—The

partnership articles of each member

firm for which this Exchange is the

Designated Examining Authority [or of a

member firm subject to examination by

another self-regulatory organization not

having a comparable rule] shall contain

provisions that without prior written

approval of the Exchange the capital

contribution of any partner may not be

withdrawn on less than six months’

written notice of withdrawal given no

sooner than six months after such

contribution was first made. Each

member firm shall promptly notify the

Exchange of the receipt of any notice of

withdrawal of any part of a partner’s

capital contribution or if any

withdrawal is not made because

prohibited under the provisions of

Securities and Exchange Commission

Rule 15c3–1 (see 15c3–1(e)).

2. Statutory Basis

The proposed rule change is

consistent with Section 6 of the Act,4 in

general, and furthers the objectives of

Section 6(b)(5) of the Act,5 in particular,

in that it is designed to perfect the

mechanisms of a free and open market

and a national market system, and 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 rule 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,

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, SEC, 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 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–98–18 and should be

submitted by August 25, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–20691 Filed 8–3–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40270; File No. SR–CHX–

98–19]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

The Chicago Stock Exchange, Inc.

Relating to the Qualification by Market

Makers for Exempt Credit

July 28, 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 July 2,

1998, the Chicago Stock Exchange, Inc.

(‘‘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 CHX. 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 an

interpretation to Article XXXIV, Rule 16

of the CHX Rules relating to registered

market makers’ eligibility to receive

exempt credit.

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

CHX 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 CHX 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 purpose of the proposed rule

change is to modify an interpretation

regarding the use of exempt credit by

market makers. Interpretation .01 to

Article XXXIV, Rule 16 sets forth certain

requirements that must be met for

market makers to be eligible to receive

exempt credit for financing their market

maker transactions. One requirement for