65364 Federal Register / Vol. 60, No. 243 / Tuesday, December 19, 1995 / Notices

1See Securities Exchange Act Release No. 35183

(December 30, 1994), 60 FR 2420 (January 9, 1995)

(order approving File No. SR-PHLX–94–41).

2See Securities Exchange Act Release No. 27599

(January 9, 1990), 55 FR 1751 (January 18, 1990)

(order approving File No. SR-PHLX–89–03).

3See Securities Exchange Act Release No. 25540

(March 31, 1988), 53 FR 11390 (April 6, 1988).

4See Securities Exchange Act Release No. 35183,

supra note 1. See also Securities Exchange Act

Release Nos. 25540 (March 31, 1988), 53 FR 11390

(April 6, 1988) (order approving AUTOM on a pilot

basis); 25868 (June 30, 1988), 53 FR 25563 (order

approving File No. SR-PHLX–88–22, extending

pilot through December 31, 1988); 26354 (December

13, 1988), 53 FR 51185 (order approving File No.

SR-PHLX–88–33, extending pilot program through

June 30, 1989); 26522 (February 3, 1989), 54 FR

6465 (order approving File No. SR–PHLX–89–1,

extending pilot through December 31, 1989); 27599

(January 9, 1990), 55 FR 1751 (order approving File

No. SR-PHLX–89–03, extending pilot through June

30, 1990); 28625 (July 26, 1990), 55 FR 31274 (order

approving File No. SR-PHLX–90–16, extending

pilot through December 31, 1990; 28978 (March 15,

1991), 56 FR 12050 (order approving File No. SRPHLX–90–34, extending pilot through December 31,

1991); 29837 (October 18, 1991), 56 FR 36496 (order

approving File No. SR-PHLX–90–03, extending

pilot through December 31, 1993); and 33405

(December 30, 1993), 59 FR 790 (order approving

File No. SR-PHLX–93–57, extending pilot through

December 31, 1994); 29662 (September 9, 1991), 56

FR 46816 (order approving File No. SR-PHLX–91–

31, permitting AUTO-X orders up to 20 contracts

in Duracell options only); 29782 (October 3, 1991),

56 FR 55146 (order approving File No. SR-PHLX–

91–33, permitting AUTO-X for all strike prices and

expiration months); 32906 (September 15, 1993), 58

FR 15168 (order approving File No. SR-PHLX–92–

38, permitting AUTO-X orders up to 25 contracts

in all options); and 33405 (December 30, 1993), 59

FR 790 (order approving File No. SR-PHLX–93–57,

extending pilot through December 31, 1994); 34920

(October 31, 1994), 59 FR 55510 (November 7, 1994)

(File No. SR-PHLX–94–40, codifying use of

AUTOM for index options); 35601 (April 13, 1995),

60 FR 19616 (File No. SR-PHLX–95–18, codifying

the use of AUTOM for certain order types); 35681

(May 30, 1995), 60 FR 30131 (June 7, 1995) (File

No. SR-PHLX–95–29, increasing AUTO-X for

USTOP 100 Index (‘‘TPX’’) options to 50 contracts);

35782 (May 30, 1995), 60 FR 30136 (June 7, 1995)

(File No. SR-PHLX–95–30, increasing the maximum

AUTOM order size from 100 to 500 contracts);

36429 (October 27, 1995), 60 FR 55874 (November

3, 1995) (File No. SR-PHLX–95–35, allowing brokerdealer TPX option orders to be routed through

AUTOM); and 36467 (November 8, 1995), 60 FR

57615 (November 16, 1995) (order approving File

No. SR-PHLX–95–33, limiting AUTO-X for National

Over-the-Counter Index options to series where the

bid is $10 or less).

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–CHX–95–25

and should be submitted by January 8,

1996.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–30761 Filed 12–18–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–36582; File No. SR–PHLX–

95–78]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval to a Proposed

Rule Change by the Philadelphia Stock

Exchange, Inc., Relating to an

Extension of the Automated Options

Market Pilot Program

December 13, 1995.

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 1, 1995,

the Philadelphia Stock Exchange, Inc.

(‘‘PHLX’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I and

II below, which Items have been

prepared by the self-regulatory

organization. The Commission is

approving this proposal on an

accelerated basis.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The PHLX proposes to extend the

Exchange’s Automated Options Market

(‘‘AUTOM’’) system for a one year

period ending December 31, 1996.

The text of the proposal is available

at the Office of the Secretary, the PHLX,

and at the Commission.

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

self-regulatory organization 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 self-regulatory organization 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

AUTOM, which as operated on a pilot

basis since 1988 and was most recently

extended through December 31, 1995,1

is the PHLX’s electronic order routing,

delivery, execution and reporting

system for equity and index options.

AUTOM is an online system that allows

electronic delivery of options orders

from member firms directly to the

appropriate specialist on the Exchange’s

trading floor.

Certain orders are eligible for

AUTOM’s automatic execution feature,

AUTO-X, which was approved as part of

the AUTOM pilot program in 1990.2

AUTO-X orders are executed

automatically at the disseminated

quotation price on the Exchange and

reported to the Options Price Reporting

Authority (‘‘OPRA’’) as well as the

originating firm. Orders that are not

eligible for AUTO-X are handled

manually by the specialist and, upon

execution of the order, are inputted into

exchange systems for reporting to OPRA

and the delivering firm.

Originally, the AUTOM pilot program

was approved by the Commission for

market orders of up to five contracts for

12 PHLX near-month equity options.3

Since that time, AUTOM has been

extended and amended several times.4

The purpose of the proposed rule

change is to extend the AUTOM pilot

program for a one-year period ending

December 31, 1996. The PHLX believes

that this extension of the pilot program

should provide the Exchange with

additional time to study the

effectiveness of AUTOM prior to

permanent approval. During this time,

the Exchange intends to monitor the

implementation of certain

enhancements to AUTOM and to draft

an Exchange rule codifying the entire

pilot program.

Generally, the Exchange believes that,

since the date of the last Commission

order extending the AUTOM pilot

program, AUTOM has functioned

properly and efficiently, without any

material problems reported by PHLX

members or AUTOM users, and without

significant malfunctions or operational

failures.

AUTOM provides small customer

option orders with the benefits of

electronic delivery and reporting, while

AUTO–X provides automatic executions

as well. Accordingly, the Exchange

believes that AUTOM increases the

speed and efficiency of order delivery,

execution and reporting. This, in turn,

promotes both liquidity and fair and

orderly markets. For these reasons, the

PHLX believes that extending the

AUTOM pilot program for a one-year

period is consistent with Section 6 of

the Act, in general, and, in particular,

with Section 6(b)(5), in that the proposal

is designed to promote just and

equitable principles of trade, and to

protect investors and the public interest.

In addition, the Exchange believes that

the proposed rule change is consistent

with Section 11A(a)(1)(B) of the Act in
Federal Register / Vol. 60, No. 243 / Tuesday, December 19, 1995 / Notices 65365

5 15 U.S.C. 78f and 78k–1 (1988).

6The PHLX will submit a request for permanent

approval of the program no later than November 1,

1996. This request will be accompanied by a report

covering the period between Janaury 1, 1996, and

June 30, 1996, that will include: (1) a description

of the benefits provided by AUTOM; (2) the degree

of AUTOM usage, including the number and size

of the orders routed through AUTOM and the

number and size of the orders executed

automatically through the AUTO–X system; (3) the

system capacity of AUTOM and AUTO–X; and (4)

any problems the Exchange has encountered with

the routing and execution features. 7 15 U.S.C. 78s(b)(2) (1982). 8 17 CFR 200.30–3(a)(12) (1994).

that AUTOM is intended to improve,

through the use of new data processing

and communications techniques, the

efficiency with which transactions in

PHLX equity and index options are

executed. Further, the Exchange

believes that AUTOM fosters

competition among options exchanges,

which have similar systems in place.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The PHLX 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

No written comments were either

solicited or received.

III. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Exchange has requested that the

proposed rule change be given

accelerated effectiveness pursuant to

Section 19(b)(2) of the Act.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange, and, in particular, the

requirements of Sections 6 and 11A.5

Specifically, the Commission continues

to believe that the development and

implementation of the AUTOM system

provides for more efficient handling and

reporting of orders in PHLX options

through the use of new data processing

and communications techniques,

thereby improving order processing and

turnaround time. The Commission does

not object to an extension of the pilot

program until December 31, 1996, in

response to the PHLX’s assertion that

continuation of the pilot will provide

the Exchange with a better opportunity

to study its operation and effectiveness

prior to permanent approval of the

program.6 The Commission notes

further that the Exchange has

represented that from January 1995 until

the present, AUTOM has functioned

properly and efficiently, that no

material problems have been reported

by PHLX members or AUTOM users,

and that AUTOM has not had

significant malfunctions or operational

failures.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing thereof

in the Federal Register in order to

permit the PHLX to continue the

AUTOM pilot program on an

uninterrupted basis. Specifically, the

Commission believes that the PHLX’s

proposal to extend the AUTOM pilot

program does not raise any new issues

since it merely extends the pilot

program as it is currently operating.

Further, the Commission believes that

the pilot is beneficial in maintaining the

quality and efficiency of the PHLX’s

market. In addition, the Commission

notes that there have been no adverse

comments concerning the pilot program

since its implemention. Accordingly,

the Commission believes that granting

accelerated approval of the proposed

rule change is appropriate and

consistent with Sections 6 and 11A 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, 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

Section, 450 Fifth Street, N.W.,

Washington, D.C. Copies of such filing

will also be available for inspection and

copying at the principal office of the

above-mentioned self-regulatory

organization. All submissions should

refer to the file number in the caption

above and should be submitted by

January 8, 1996.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,7 that the

proposed rule change (SR–PHLX–95–

78) is approved through December 31,

1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–30763 Filed 12–18–95; 8:45 am]

BILLING CODE 8010–01–M

[Investment Company Act Release No.

21593; International Series Release No. 901;

812–9816]

First National Bank of Southern Africa

Limited; Notice of Application

December 12, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Exemption under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANT: First National Bank of

Southern Africa Limited (‘‘First

National bank’’).

RELEVANT ACT SECTIONS: Order under

section 6(c) of the Act for an exemption

from section 17(f).

SUMMARY OF APPLICATION: First National

Bank requests an order that would

permit United States registered

investment companies (a ‘‘U.S.

Investment Company’’), other than

investment companies registered under

section 7(d), for which First National

Bank serves as custodian or

subcustodian, to maintain foreign

securities and other assets in the

custody of foreign affiliates located in

Botswana, Namibia, and Zimbabwe.

FILING DATE: The application was filed

on September 5, 1995 and amended on

December 12, 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 applicant with a

copy of the request, personally or by

mail. Hearing requests should be

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

January 8, 1996, and should be

accompanied by proof of service on the

applicant, 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 may request notification of a

hearing by writing to the SEC’s

Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, N.W., Washington, D.C. 20549.