10620 Federal Register / Vol. 60, No. 38 / Monday, February 27, 1995 / Notices

1Amendment No. 1 made non-substantive,

clarifying changes to the proposal. See Letter from

Jay O. Wright, Esq., Foley & Lardner, to Elisa

Metzger, Senior Counsel, SEC, dated February 14,

1995.

Borrowings from Southern will have

maturities not to exceed ten years and

will accrue interest at a rate equal to the

average effective interest cost of

Southern’s outstanding obligations for

borrowed money on the first day of each

month, or if no obligations are

outstanding at the time, at a rate equal

to the weekly average of the thirty-day

certificate of deposit rate (secondary

market) as reported in the Federal

Reserve statistical release H.15 (519) for

the next to the last complete business

week of the preceding calendar month.

However, this rate will not exceed the

prime rate in effect at a nationally

recognized bank to be designated by

Southern. Loans obtained from lenders

other than Southern will have

maturities not to exceed ten years and

will accrue interest at a rate not to

exceed the prime rate plus 2% for

variable rate loans and the prime rate at

the time of borrowing plus 3% for fixed

rate loans. Such loans may be secured

or unsecured and may be guaranteed by

Southern.

Southern proposes through March 31,

1998, to make up to $5 million in open

account advances to Southern Nuclear

from time to time, which, at the option

of Southern, may be converted into

capital contributions or additional

shares of common stock of Southern

Nuclear. To the extent any such

advances are converted to equity, the

borrowing authority sought herein shall

be reduced by the amount of the

advances so converted, so that the total

capitalization of Southern Nuclear does

not exceed $11.6 million (including its

present common equity of $1.6 million).

The rate of return on Southern Nuclear’s

common equity capital will not exceed

the average of the most recent rates of

return allowed by the Alabama Public

Service Commission and the Georgia

Public Service Commission.

Southern Nuclear states that the funds

will be used by Southern Nuclear in

connection with its working capital

needs, including the purchase of

equipment and office furniture,

leasehold improvements and loans to

employees for purposes such as

residential energy programs, purchases

of computers and employee transfer

expenses.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4650 Filed 2–24–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35394; File No. SR–CHX–

95–03]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change and

Amendment No. 1 to Proposed Rule

Change by Chicago Stock Exchange,

Incorporated Relating to Reporting and

Disclosure Requirements

February 17, 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 February 8, 1995,

the Chicago Stock Exchange, Inc.

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

Securities and Exchange Commission

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

rule change, and on February 16, 1995,

filed Amendment No. 1 to the proposed

rule change,1 as described in Items I, II

and III below, which Items have been

prepared by the self-regulatory

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 CHX, pursuant to Rule 19b–4 of

the Securities Exchange Act of 1934

(‘‘Act’’), proposes to (1) amend Article

VI, Rule 5 and add an interpretation

thereto to require that members and

member organizations maintain written

procedures to ensure compliance with

the securities laws (and SEC regulations

promulgated thereunder) and the Rules

of Exchange; (2) amend Article XI Rule

4 to provide the Exchange with the

authority to require that a member or

member organization have an

accounting firm audit its books and to

clarify that all members and member

organizations are required to comply

with the disclosure requirements of

Rule 17a–5; and (3) add Article XI, Rule

9 to require that floor brokers who do

not clear their own trades procure a

letter of guarantee prior to trading.

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 placed 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

1. Purpose

The CHX has two purposes for

amending Article VI, Rule 5 to require

that members and member organizations

maintain written supervisory

procedures: (1) Requiring written

procedures allows the CHX to more

easily verify the existence of

procedures; and (2) such a requirement

facilitates the CHX’s verification of the

content of the procedures. The visibility

of such written procedures will remind

members and member organizations of

their obligations to comply with the

securities laws, SEC rules, and the

Exchange’s rules, thus enhancing

compliance.

The CHX’s purpose for adding Article

XI, Rule 4(c) thereto is to clarify that all

CHX members and member

organizations are required to file

monthly and quarterly Focus Reports

with the CHX in accordance with SEC

Rule 17a–5 unless the member or

member organization is exempt.

The CHX’s purpose for adding Article

XI, Rule 9 is to enhance the safety and

soundness of the clearing system by

ensuring that Floor Brokers have

sufficient financial resources to stand

behind their trades. As a result, fewer

disruptions due to the financial distress

of a floor broker are likely to occur. The

reliability of the clearing system is thus

augmented.

2. Statutory Basis

The proposed rule changes are

consistent with Sections 6(b)(1) and

6(b)(5) of the Act in that the proposed

rule changes will aid the Exchange in

enforcing compliance by its members

and member organizations with the

securities laws and the Exchange’s rules

as well as aiding in preventing

fraudulent or manipulative acts in the

clearing of trades.

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 that is not

necessary or appropriate in furtherance

of the purposes of the Act.
Federal Register / Vol. 60, No. 38 / Monday, February 27, 1995 / Notices 10621

1A ‘‘trading rotation’’ is a series of very brief time

periods during each of which bids, offers, and

transactions in only a single, specified option

contract can be made. See CBOE Rule 6.2.

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 publication of

this notice in the Federal Register or

within such other 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 self-regulatory organization

consents, the Commission will:

(A) By order approve the 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.

Persons making written submissions

should file six copies thereof with the

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 5 U.S.C. 552, will be

available for inspection and copying at

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 CHX. All submissions

should refer to File No. SR–CHX–95–03

and should be submitted by March 20,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4648 Filed 2–24–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35397; File No. SR–CBOE–

95–05]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Changes by

the Chicago Board Options Exchange,

Incorporated, Related to Certain

Procedures Regarding Trading Halts,

Trading Suspensions, the Reopening

of Trading After a Trading Halt or

Suspension, and the Shut Down of

RAES

February 21, 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 January 18, 1995,

the Chicago Board Options Exchange,

Inc. (‘‘CBOE’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule changes as described in

Items I, II and III below, which Items

have been prepared by the CBOE. The

Commission is publishing this notice to

solicit comments on the proposed rule

changes from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Changes

The CBOE proposes to amend its rules

and Regulatory Circulars RG94–17 and

RG93–58 (formerly RG92–40) to

conform to existing practice regarding

(1) the factors the Exchange considers in

deciding whether to halt or suspend

trading and (2) the circumstances under

which trading is generally halted or

suspended by the Exchange. The CBOE

also proposes to establish procedures for

the resumption of trading after a halt or

suspension is lifted, and to grant the

Control Room the authority to turn off

the Retail Automatic Execution System

(‘‘RAES’’) with respect to a stock option

if the Control Room receives a credible

indication that trading in the underlying

stock has been halted.

The text of the proposed rule changes

is available at the Office of the

Secretary, CBOE and at the Commission.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

In its filing with the Commission,

CBOE included statements concerning

the purpose of and the basis for the

proposed rule changes and discussed

any comments it received on the

proposed rule changes. 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 parts of such

statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Changes

The purpose of the proposed rule

changes is to conform the rules to

existing practice both regarding the

factors considered in a decision to halt

or suspend trading and regarding the

circumstances under which trading

generally will be halted or suspended,

to establish procedures for the

resumption of trading after a halt or

suspension is lifted, and to grant the

Control Room the authority to turn off

RAES if the Control Room receives a

credible indication that trading has

stopped in the underlying stock.

Status of Rotation as Factor Considered

in Halt or Suspension

Specifically, the proposal would

amend Rules 6.3(a), 6.4(a) and 24.7(a) to

include the status of the trading

rotation 1 as a factor that may be

considered in a decision whether to halt

or suspend trading. Although it is not

presently explicit in the rules, it is

current practice to consider the rotation

status in deciding whether to halt or

suspend trading. For example, if the

rotation is near completion, Floor

Officials or the Exchange may decide it

is in the interest of a fair and orderly

market to complete the rotation before

calling a halt or suspension in trading.

The proposed amendment to the rules

would notify members and the public

that, when deciding whether to halt

trading, Floor Officials may consider the

extent to which the rotation has been

completed and other factors regarding

the status of the rotation. When

deciding whether to suspend trading,

the Board of Directors similarly would

be able to consider the extent to which

the rotation is completed or other

factors regarding the status of the

rotation.

Regulatory Halt

The proposal would add

Interpretation .04 to Rule 6.3 and

Interpretation .01 to Rule 6.4 to state the

current practice that, in general, trading

in a stock option will be halted when a

regulatory halt in the underlying stock

has occurred in the primary market for

that stock. Any two Floor Officials may

halt trading in any security in the

interests of a fair and orderly market for

a period not in excess of two

consecutive business days.