10882 Federal Register / Vol. 60, No. 39 / Tuesday, February 28, 1995 / Notices

USTR currently seeks nominations

related to the list of non-governmental

individuals. The existing roster of nongovernmental individuals needs to be

expanded to encompass new subject

areas covered by the WTO, such as

intellectual property and services, and

to prepare for a potential increase in the

number of dispute settlement panels

established under the DSU. Members of

the WTO may periodically nominate

persons to be included on the roster,

subject to DSB approval. Inclusion of a

name on the roster, however, does not

necessarily mean that the individual

will be selected for service on a panel.

U.S. citizens, for example, are not

permitted to serve on panels in which

the United States is a party unless the

other party to the dispute agrees.

The Decision on Certain Dispute

Settlement Procedures for the GATS

requires that panels for GATS disputes

include specific expertise on individual

sectors. GATS disputes could involve

the following eleven sectors: (1)

Professional and related technical

services, including, for example, legal,

accounting, auditing and bookkeeping,

taxation, medical, dental and veterinary

services, engineering, architectural,

urban planning services, computer and

related services, research and

development services, real estate

services, rental and leasing services,

advertising and management services;

(2) communication services; (3)

construction and related engineering

services; (4) distribution services; (5)

educational services; (6) environmental

services; (7) financial services,

including insurance and insurancerelated services, banking and securities

services; (8) health-related and social

services; (9) tourism and travel-related

services; (10) recreational, cultural and

sporting services (other than

audiovisual services); and (11) transport

services.

Panels for GATS disputes are to be

composed of well-qualified

governmental and non-governmental

individuals who have experience in

issues related to GATS and/or trade in

services, including associated regulatory

matters. Dispute settlement panels

concerning sectoral matters under the

GATS must have expertise relevant to

the specific service sector to which the

dispute relates.

WTO dispute settlement panels

consist of three persons, unless the

parties agree to have five panelists,

whose function is to make an objective

assessment of the matter under dispute,

including an objective assessment of the

facts of the case, the applicability of the

relevant WTO agreements and the

conformity of the measure under

consideration with the obligations of

those agreements. In addition, panels

are to make such other findings as will

assist the DSB in making the

recommendations provided for in the

WTO agreements.

Panelists must act in strict conformity

with the provisions of the WTO

agreements, including application of the

appropriate standard of review. Panels

are responsible for providing a report to

the DSB, including recommendations if

necessary, on the conformity of the

matter under dispute with WTO

obligations. Panelists must also comply

with rules relating to conflicts of

interest and conduct as a panelist.

Procedures for Application

Non-governmental U.S. citizens (i.e.,

individuals not currently employed fulltime by the U.S. Federal government or

a state or local government) possessing

expertise in international trade,

services, intellectual property rights or

other matters covered by the WTO

agreements are invited to file an

application for nomination to the roster.

Applications must be typewritten and

submitted along with five copies to

Sybia Harrison, Room 223, Office of the

U.S. Trade Representative, 600 17th

Street, NW., Washington, DC 20506.

Applicants are to provide the following

information to the extent applicable:

1. Name of the applicant

2. Business address, telephone

number and, if available, fax number

3. Citizenship(s)

4. Current employment, including

title, description of responsibilities, and

name and address of employer

5. Relevant education and

professional training, including

particular service-sector expertise, if any

6. Post-education employment

history, including the dates and address

of each prior position and a summary of

responsibilities

7. Relevant professional affiliations

and certifications

8. List of publications and speeches,

including a copy of speeches and

publications relevant to the subject

matter of the WTO agreements or

service sector

9. List of international trade

proceedings or domestic proceedings

relating to international trade (WTO)

matters in which the person has

provided advice or otherwise

participated, including judicial or

administrative proceedings over which

that person has presided

10. A short statement of

qualifications, including information

relevant to the applicant’s familiarity

with international trade, services or

other issues covered by the WTO

agreements, and availability for service

11. Names, addresses, telephone and,

if available, fax numbers of three

individuals authorized to provide

information to USTR concerning the

applicant’s qualifications for service,

including the applicant’s familiarity

with international trade laws and other

areas of expertise, character, reliability

and judgment.

Information provided by applicants

will be used by USTR for the purpose

of selecting candidates for nomination

to the WTO roster. Further information

concerning potential conflicts may be

requested from individuals and the

possibility of significant conflicts will

be taken into consideration in

evaluating applicants.

USTR will contact applicants that

qualify for further consideration as

nominees regarding any additional

information that may be required.

Frederick L. Montgomery,

Chairman, Trade Policy Staff Committee.

[FR Doc. 95–4897 Filed 2–27–95; 8:45 am]

BILLING CODE 3190–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35404; File No. SR–BSE–

95–02]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

Boston Stock Exchange, Inc.

Requesting Permanent Approval of Its

Competing Specialist Initiative

February 22, 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 6, 1995,

the Boston Stock Exchange, Inc. (‘‘BSE’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) the proposed rule

change 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 BSE seeks permanent approval of

its Competing Specialist Initiative.

Specifically, the rules proposed for

adoption are: Additions are italicized

and deletions are [bracketed].

Chapter XV—Specialists

* * * * *
Federal Register / Vol. 60, No. 39 / Tuesday, February 28, 1995 / Notices 10883

1Only the regular specialist can object to

competition in his/her stocks.

2Unless the regular specialist is unavailable, in

which case within 48 hours of becoming available.

3Once an application is received by the

Exchange, a written notification will be issued to

the regular specialist(s) in whose stocks competition

is being sought.

4Once the stock has been reallocated to a regular

specialist, that specialist shall not be permitted to

object to competition in such stock.

Sec. 17.

* * * * *

Procedures for Competing Specialists

Sec. 18. Any specialist can apply to

the Exchange to function as a competing

specialist pursuant to these procedures:

1. Applications to compete must be

directed to the Market Performance

Committee in writing and must list in

order of preference the stock(s) in which

the applicant intends to compete. The

Market Performance Committee will use

the following guidelines in reviewing an

application:

• overall performance evaluation

results of the applicant

• financial capability

• adequacy of manpower on the floor

• objection by the regular specialist in

a stock, with or without cause

2. Any objection 1 by the regular

specialist to permit competition in one

or more of such specialist’s stocks must

be in writing and filed with the

Exchange within 48 hours 2 of notice 3 of

the competing specialist’s application.

The objection will be considered by the

Market Performance Committee in

reviewing the application, and its

decision may be appealed to the

Executive Committee.

3. All applicants must be registered

with the Exchange as specialists and

must meet the current minimum

requirements for specialists set forth in

Chapter XV, the minimum capital and

equity requirements as set forth in

Chapters VIII and XXII of the Rules of

the Exchange, and conform to all other

performance requirements and

standards set forth in the Rules of the

Exchange. A competing specialist will

be subject to all of the rules and policies

applicable to a regular specialist.

4. All applicant organizations,

existing or newly created, must satisfy

the Market Performance Committee that

they have sufficient manpower to fulfill

the functions of a specialist as set forth

in Chapter XV in all of the stocks in

which the applicant will be registered

either as a regular or a competing

specialist.

5. The regular specialist will receive

all orderflow not specifically directed to

a competitor.

6. The receiving specialist is

responsible for all orders directed to

him/her.

7. In any competitive situation, if

either the regular specialist to whom a

stock was originally assigned or the

specialist organization which

subsequently received approval to

compete with the regular specialist

desires to terminate the competition by

requesting that it be relieved of the stock

that is the subject of competition, it

should so notify the Market

Performance Committee at least 3

business days prior to the desired

effective date of such withdrawal. When

the regular specialist requests to be

relieved of a stock, the stock shall be

posted for reallocation by the Stock

Allocation Committee. In the interim, if

the Market Performance Committee is

satisfied that the competing specialist

can continue to maintain a fair and

orderly market in such stock, the

competing specialist shall serve as the

regular specialist until the stock has

been reallocated.4 Where there is more

than one competing specialist in the

stock, Exchange staff shall place the

stock with a caretaker until reallocation.

8. Any competing specialist who

withdraws his/her registration in a stock

will be barred from applying to compete

in that same stock for a period of ninety

(90) days following the effective date of

withdrawal.

9. Notwithstanding the existence of

competing specialist situations, there is

only one Exchange market in a security

subject to competition. Due to the ease

of communications on the Floor via the

Stentofon System, it will not be

necessary to locate competing

specialists adjacent to each other.

However, the regular specialist will be

responsible for updating quotations;

thus all competitors must communicate

their markets to the regular specialist

and be responsible for their portion of

the published bid and/or offer. Also,

competitors must cooperate with the

regular specialist regarding openings

and reopenings to ensure that they are

unitary.

10. Limit orders entrusted to each

competing specialist are to be

represented and executed strictly

according to time priority as to receipt

of the order in the BEACON System.

11. Competing specialists must keep

each other informed and communicate

to inquiring Floor brokers the full size of

any executable ‘‘all-or-none’’ orders in

their possession since all-or-none orders

cannot be represented in the published

quote. The competing specialists are

expected to represent such orders on a

‘‘best efforts’’ basis to ensure the

execution of the entire order at a single

price or prices, or not at all.

12. The registration of any competing

specialist may be suspended or

terminated by the Market Performance

Committee upon a determination of any

substantial or continued failure by such

competing specialist to engage in

dealings in accordance with the

Constitution and Rules of the Exchange.

13. Competing Specialists shall be

allowed to execute their customer

orderflow which is related to index

arbitrage only on plus or zero plus ticks

when the Dow Jones Industrial Average

(‘‘DJIA’’) declines by fifty points or more

from the previous day’s closing value.

Such requirement shall remain in effect

for the remainder of the trading day

once it has been activated, except that

the requirement shall no longer apply

where the DJIA moves back to a value

which is twenty-five points or less from

the previous day’s closing value. ‘‘Index

arbitrage’’ is defined as an arbitrage

trading strategy involving the purchase

or sale of a group of stocks in

conjunction with the purchase or sale,

or intended purchase or sale, of one or

more cash-settled options or futures

contracts on index stock groups or

options on any such futures contracts,

in an attempt to profit from the price

difference between the group of stocks

and the derivative index products.

The Specialist’s Book

Sec. 6. The Specialist’s book is the

book, file or record in which all orders

entrusted to the Specialist in a

particular issue must be kept. It shall be

closed at all times and the information

therein contained shall not be divulged

or permitted to come to the knowledge

of anyone except the Specialist or relief

Specialist for that book, or to the Board

of Governors, a committee of the

Exchange, or the Chairman or Officer

designated by him, except that a

Specialist may disclose information

contained in his/her book [;]:

(i) for the purpose of demonstrating

the methods of trading to visitors to the

Floor; [or]

(ii) to other market centers in order to

facilitate the operation of ITS or any

other Application of the System

provided, in either case, that at the same

time he makes the information disclosed

available to all members [.]; or

(iii) to competing specialists in his/her

stocks on a summary basis as provided

for in the ‘‘Procedures for Competing

Specialists’’.

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
10884 Federal Register / Vol. 60, No. 39 / Tuesday, February 28, 1995 / Notices

1 15 U.S.C. 78s(b)(1) (1988).

2 17 CFR 240.19b–4 (1994).

3CBOE Rule 15.9(a) allows the Exchange to

‘‘enter into agreements with domestic and foreign

self-regulatory organizations, associations and

contract markets and the regulators of such markets

which provide for the exchange of information and

other forms of mutual assistance for market

surveillance, investigative, enforcement and other

regulatory purposes.’’

4See Securities Exchange Act Release No. 35035

(December 1, 1994), 59 FR 63397 (December 8,

1994).

5On February 15, 1995, the CBOE amended its

proposal to clarify that when the Exchange requests

information from a member pursuant to CBOE Rule

15.9(b), the member has the same rights and

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

1. Purpose

The purpose of the proposed rule

change is to seek permanent approval of

the Exchange’s Competing Specialist

Initiative (‘‘CSI’’) pilot program which is

scheduled to expire on May 18, 1995.

CSI permits competing specialists on

the floor of the Exchange in the form of

one regular specialist and one or more

competing specialists. Orders are

directed to either specialist based on

each customer’s independent decision,

but all orders in a stock are executed in

accordance with strict time priority.

Once all limit orders at a price level are

depleted, each specialist is responsible

for the market orders directed to them.

The regular specialist is responsible

for updating quotations and

coordinating openings and reopenings

to ensure they are unitary. All ITS

activity must be cleared through the

regular specialist. To all other markets

in the National Market System, there is

only one Boston market. Trading halts

are coordinated through the regular

specialist and apply to all competitors

in a stock.

In addition, all competitors will be

evaluated on competing stocks in the

Exchange’s Specialist Performance

Evaluation Program.

2. Statutory Basis

The BSE believes that the statutory

basis for this proposal is Section 6(b)(5)

of the Act in that it furthers the

objectives to promote just and equitable

principles of trade, to foster cooperation

and coordination with persons engaged

in regulating, clearing, settling,

processing information with respect to,

and facilitating transactions in

securities, to remove impediments to

and perfect the mechanism of a free and

open market and a national market

system, and in general, to protect

investors and the public interest, and is

not designed to permit unfair

discrimination between customers,

issuers, brokers, or dealers.

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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Comments were neither solicited nor

received.

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 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 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, 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. 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the BSE. All submissions

should refer to File No. SR–BSE–95–02

and should be submitted by March 21,

1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–4857 Filed 2–27–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35403; File No. SR–CBOE–

94–39]

Self-Regulatory Organizations; Order

Approving Proposed Rule Change and

Notice of Filing and Order Granting

Accelerated Approval of Amendment

No. 1 to Proposed Rule Change by the

Chicago Board Options Exchange,

Inc., Relating to Obligations to Furnish

Information

February 22, 1995.

On November 7, 1994, the Chicago

Board Options Exchange, Inc. (‘‘CBOE’’

or ‘‘Exchange’’) filed with 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 proposal to amend CBOE

Rule 15.9, ‘‘Regulatory Cooperation,’’ 3

to delineate the obligation of CBOE

members and persons associated with

CBOE members to furnish information

in connection with inquiries arising

from regulatory agreements that the

Exchange has entered into with other

regulatory and market institutions even

in cases where the Exchange has not

otherwise initiated an investigation.

In addition, the CBOE proposes to

amend CBOE Rule 17.2, ‘‘Complaint and

Investigation,’’ to expand the set of

circumstances under which members or

persons associated with members are

obligated, upon request by the

Exchange, to appear and testify, respond

in writing to interrogatories and furnish

documentary materials and other

information.

The proposal was published for

comment in the Federal Register on

December 8, 1994.4 No comments were

received on the proposed rule change.5