Federal Register / Vol. 60, No. 32 / Thursday, February 16, 1995 / Notices 9069

7See note 5, supra.

8 15 U.S.C. 78s(b)(2) (1988).

9 17 CFR 200.30–3(a)(12) (1994). 1 15 U.S.C. 78s(b)(1) (1988).

Exchange proposes to amend CBOE

Rule 17.8, Interpretation and Policy .01

to deduct from the 120-day settlement

period the number of days over 30 days

which a subject spends in the expedited

process unsuccessfully attempting to

reach an agreement with the Exchange

staff.

The Commission believes that the

proposed amendments to CBOE Rule

17.8 should allow the Exchange’s

disciplinary proceedings to progress

promptly without compromising

members’ rights to ‘‘fair procedures’’ in

CBOE disciplinary proceedings.

Specifically, by deducting from the 120-

day settlement period the number of

days over 30 spent in unsuccessful

negotiations under the expedited

process, the proposal will prevent the

subject of an Exchange investigation

from using the expedited process to

delay the resolution of a case while

continuing to ensure that the subject has

adequate time to resolve the matter

through a letter of consent or settlement.

In this context, the proposal will deduct

only the portion of days above 30 spent

in unsuccessful negotiations under the

expedited process from the 120-day

settlement period, thereby limiting the

total amount of time a subject may

spend in attempts to resolve a case

through either a letter of consent under

CBOE Rule 17.3 or a settlement offer

under CBOE Rule 17.8.

The Commission also believes that it

is reasonable to allow the CBOE staff, as

well as the subject, to terminate

negotiations for a letter of consent at any

time during the negotiations. As noted

above,7 the CBOE has stated that it will

terminate the letter of consent

negotiations if, among other things, it

appears to the Exchange that a subject

is not negotiating in good faith. The

Commission believes that this provision

will help to ensure that disciplinary

matters are resolved quickly by

preventing subjects who do not

negotiate in good faith from using the

letter of consent negotiations to delay

the resolution of the matter.

At the same time, the Commission

believes that the proposal should

preserve the rights of respondents to

submit settlement offers under CBOE

Rule 17.8. By providing that

respondents will have no less than 14

days following the date of service of the

statement of charges to submit offers of

settlement to the BCC, regardless of the

amount of time spent in the expedited

process, the proposal should provide

respondents with sufficient time to

submit settlement offers under CBOE

Rule 17.8. Thus, the Commission

believes that the proposed amendments

to CBOE Rule 17.8 will help to

safeguard the procedural rights of

members while preserving the

Exchange’s ability to administer its

disciplinary proceedings in a timely and

efficient manner.

The Commission also believes that the

proposed amendments to CBOE Rule

17.3 are consistent with the Act.

Specifically, the Commission believes

that the proposed amendments will

streamline the Exchange’s expedited

proceedings by providing that a subject

of an Exchange investigation who

wishes to dispose of a matter through a

letter of consent must notify the

Exchange staff of his intent within 15

days of the receipt of notice under

CBOE Rule 17.2(d). In addition, the

proposal clarifies the requirements for

expedited proceedings by specifying

that the subject and the Exchange staff

must agree upon the terms of a letter of

consent and the letter must be signed by

the subject. The proposal also allows

either party to deliver a written notice

declaring an end to the negotiations,

thereby limiting the amount of time that

may be spent in unsuccessful

negotiations.

In summary, the Commission believes

that the proposed amendments to CBOE

Rules 17.3 and 17.8 should allow cases

to be resolved more quickly and

efficiently, while continuing to ensure

adequate due process for subjects of

disciplinary matters, consistent with

Section 6(b)(7) of the Act. Accordingly,

the changes should permit Exchange

resources to be allocated more

effectively in pursuing violations of the

Exchange’s rules and the federal

securities laws and help to ensure that

appropriate and fair discipline is

imposed for violations. This should

further the Exchange’s mandate to

protect investors and the public interest.

Finally, the Commission believes that

it is reasonable for the Exchange to

clarify its rules by making editorial

changes to CBOE Rules 17.3 and 17.8

which do not affect the substance of

those rules.

It is therefore ordered, pursuant to

section 19(b)(2) of the Act,8 that the

proposed rule change (SR–CBOE–94–

35) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–3844 Filed 2–15–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35354; International Series

Release No. 783; File No. SR–ISCC–94–01]

Self-Regulatory Organizations;

International Securities Clearing

Corporation; Notice of Filing add

Immediate Effectiveness of a Proposed

Rule Change Regarding the Global

Clearing Network Service

February 10, 1995.

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

Securities Exchange Act of 1934

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

January 6, 1995, the International

Securities Clearing Corporation

(‘‘ISCC’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

ISCC–95–01) as described in Items I, II,

and III below, which items have been

prepared primarily by ISCC. 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 proposed rule change consists of

amendments to ISCC’s Rule 50 to

expand the categories of entities with

which ISCC may establish relationships

for its foreign clearance and settlement

service.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

ISCC included statements concerning

the purpose of and basis for the

proposed rule change and discussed any

comments that it received on the

proposed rule change. The text of these

statements may be examined at the

places specified in Item IV below. ISCC

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

(a) ISCC Rule 50 currently provides

that ISCC may establish a foreign

clearing, settlement, and custody service

in conjunction with banks and trust

companies to be known as the Global

Clearance Network (‘‘GCN’’) Service.

The proposed rule change expands the

categories of entities with whom ISCC

may enter into agreements in order to

provide the GCN Service to include any

type of entity. This change will permit
9070 Federal Register / Vol. 60, No. 32 / Thursday, February 16, 1995 / Notices

2 17 CFR 200.30–3(a)(12) (1994).

ISCC to enter into a relationship with

entities such as INDEVAL, the Mexican

securities clearing and depository

company. However, ISCC will still be

required to file a proposed rule change

pursuant to Section 19(b) of the Act

before entering into a clearing,

settlement, or custody service

relationship with any entity.

(b) The proposed change will

facilitate the prompt and accurate

clearance and settlement of securities

transactions, and therefore, the

proposed rule change is consistent with

the requirements of the Act, specifically

Section 17A of the Act, and the rules

and regulations thereunder.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

ISCC does not believe that the

proposed rule change will have an

impact on or impose a 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 have been

solicited or received. ISCC will notify

the Commission of any written

comments received by ISCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

the Commission Action

The foregoing rule change has become

effective pursuant to Section 19(b)(3)(A)

of the Act and Rule 19b–4(e)(4)

thereunder in that the proposal effects a

change in an existing service that does

not adversely affect the safeguarding of

securities or funds and does not

significantly affect the respective rights

of the clearing agency or persons using

the service. At any time within sixty

days of the filing of such 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

purposes of the 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 NW.,

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

Room, 450 Fifth Street NW.,

Washington, D.C. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the above-mentioned selfregulatory organization. All submissions

should refer to the file number SR–

ISCC–95–01 and should be submitted by

March 9, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–3882 Filed 2–15–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC–20895; File No. 812–9244]

First SunAmerica Life Insurance

Company, et al.; Notice of Application

February 10, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

ACTION: Notice of application for

exemption under the Investment

Company Act of 1940 (the ‘‘Act’’ or

‘‘1940 Act’’).

APPLICANTS: First SunAmerica Life

Insurance Company (‘‘First

SunAmerica’’), FS Variable Separate

Account (‘‘Separate Account’’), and

SunAmerica Capital Services, Inc.

RELEVANT ACT SECTIONS: Order requested

under Section 6(c) for exemptions from

Sections 26(a)(2) and 27(c)(2).

SUMMARY OF APPLICATION: Applicants

request exemptions from Sections

26(a)(2) and 27(c)(2) of the Act to the

extent necessary to allow first

SunAmerica to deduct from the

Separate Account the mortality and

expense risk charges and the

distribution expense charge imposed

under the individual flexible payment

deferred annuity contracts (‘‘Contracts’’)

to be funded in the Separate Account.

FILING DATE: The application was filed

on September 16, 1994 and amended on

February 3, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary and serving Applicants with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

March 7, 1995, and should be

accompanied by proof of service on

Applicants, in the form of an affidavit

or, for lawyers, a certificate of service.

Hearing requests should state the nature

of the writer’s interest, the reason for the

request, and the issues contested.

Persons who wish to be notified of a

hearing may request notification by

writing to the SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street NW., Washington, D.C. 20549.

Applicants, c/o Routier, Mackey and

Johnson, P.C., 1700 K Street NW., Suite

1003, Washington, D.C. 20006.

FOR FURTHER INFORMATION CONTACT:

Edward P. Macdonald, Staff Attorney, or

Wendy Friedlander, Deputy Chief, at

(202) 942–0670, Office of Insurance

Products, Division of Investment

Management.

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application

may be obtained for a fee from the SEC’s

Public Reference Branch.

Applicants’ Representations

1. First SunAmerica is a stock life

insurance company organized under the

laws of the State of New York and is

admitted to conduct a life insurance and

annuity business in that state.

SunAmerica Capital Services, Inc., the

distributor for the Contracts, is a brokerdealer registered under the Securities

Exchange Act of 1934 and is a member

of the National Association of Securities

Dealers, Inc.

2. The Separate Account was

established by First SunAmerica to fund

variable annuity contracts. The

Contracts that are the subject of the

application provide for accumulation of

contract values and payment of annuity

benefits on a fixed and variable basis.

The Contracts will be initially funded

through eighteen portfolios of the

Separate Account; each portfolio will

invest its assets in the shares of one of

four available series of the Anchor

Series Trust or one of fourteen available

series of the SunAmerica Series Trust.

Both the Anchor Series Trust and the

SunAmerica Series Trust are registered

under the 1940 Act as diversified, openend, management investment

companies and the securities they issue

are registered under the Securities Act

of 1933 (the ‘‘1933 Act’’). Additional

underlying funds may become available

in the future. Prior to the issuance of

any Contracts, the Separate Account