2618 Federal Register / Vol. 60, No. 6 / Tuesday, January 10, 1995 / Notices

20 In evaluating the manipulative potential of a

proposed index derivative product, as it relates to

the securities that comprise the index and the index

product itself, the Commission has considered

several factors, including (1) the number of

securities comprising the index or group; (2) the

capitalizations of those securities; (3) the depth and

liquidity of the group or index; (4) the

diversification of the group or index; (5) the manner

in which the index or group is weighted; and (6)

the ability to conduct surveillance on the product.

See Securities Exchange Act Release No. 31016

(August 11, 1992), 57 FR 37012 (August 17, 1992).

21See Memorandum of United States Securities

and Exchange Commission and the Securities

Bureau of the Japanese Ministry of Finance on the

Sharing of Information, dated May 23, 1986.

22 It is the Commission’s expectation that this

information would include transaction, clearing,

and customer information necessary to conduct an

investigation.

23 15 U.S.C. 78s(b)(2) (1988).

24 17 CFR 200.30–3(a)(12) (1993).

large. Specifically, the total

capitalization of the Index, as of

December 8, 1994, was US$2.24 trillion,

with the market capitalizations of the

individual stocks in the Index ranging

from a high of US$76.99 billion to a low

of US$0.69 billion, with a median value

of US$3.36 billion and a mean of

US$7.46 billion. Third, no one

particular stock or group of stocks

dominates the Index. Specifically, no

single stock comprises more than 3.438

percent of the Index’s total value, and

the percentage weighting of the five

largest issues in the Index accounts for

14.495 percent of the Index’s value.

Accordingly, the Commission believes it

is appropriate to classify the Index as

broad-based.

C. Surveillance

As a general matter, the Commission

believes that comprehensive

surveillance sharing agreements

between the relevant foreign and

domestic exchanges are important

where an index product comprised of

foreign securities is to be traded in the

United States. In most cases, in the

absence of such a comprehensive

surveillance sharing agreement, the

Commission believes that it would not

be possible to conclude that a derivative

product, such as a Nikkei 300 Index

warrant, was not readily susceptible to

manipulation.

Although the CBOE and the TSE do

not yet have a written comprehensive

surveillance sharing agreement that

covers the trading of Nikkei 300 Index

warrants, a number of factors support

approval of the proposal at this time.

First, while the size of an underlying

market is not determinative of whether

a particular derivative product based on

that market is readily susceptible to

manipulation, the size of the market for

the securities underlying the Nikkei 300

Index makes it less likely that the

proposed Index warrants are readily

susceptible to manipulation.20 In

addition, the Commission notes that the

TSE is under the regulatory oversight of

the Japanese Ministry of Finance

(‘‘MOF’’). The MOF has responsibility

for both the Japanese securities and

derivatives markets. Accordingly, the

Commission believes that the ongoing

oversight of the trading activities on the

TSE by the MOF will help to ensure that

the trading of Nikkei 300 Index warrants

will be carefully monitored with a view

toward preventing unnecessary market

disruptions.

Finally, the Commission and the MOF

have concluded a Memorandum of

Understanding (‘‘MOU’’) that provides a

framework for mutual assistance in

investigatory and regulatory matters.21

Moreover, the Commission also has a

longstanding working relationship with

the MOF on these matters. Based on the

longstanding relationship between the

Commission and the MOF and the

existence of the MOU, the Commission

is confident that it and the MOF could

acquire information from one another

similar to that which would be available

in the event that a comprehensive

surveillance sharing agreement were

executed between the CBOE and the

TSE with respect to transactions in TSEtraded stocks related to Nikkei 300

Index warrant transactions on the

CBOE.22

Nevertheless, the Commission

continues to believe strongly that a

comprehensive surveillance sharing

agreement between the TSE and the

CBOE covering Nikkei 300 Index

warrants would be an important

measure to deter and detect potential

manipulations or other improper or

illegal trading involving Nikkei 300

Index warrants. Accordingly, the

Commission believes it is critical that

the TSE and the CBOE continue to work

together to consummate a formal

comprehensive surveillance sharing

agreement to cover Nikkei 300 Index

warrants and the component securities

as soon as practicable.

D. Market Impact

The Commission believes that the

listing and trading of Nikkei 300 Index

warrants on the CBOE will not

adversely impact the securities markets

in the United States or in Japan. First,

the existing index warrant surveillance

procedures of the CBOE will apply to

warrants on the Index. In addition, the

Commission notes that the Index is

broad-based and diversified and

includes highly capitalized securities

that are actively traded on the TSE.

IV. Accelerated Approval of

Amendments No. 1

The Commission finds good cause for

approving Amendment No. 1 to the

proposed rule change prior to the

thirtieth day after the date of

publication on notice of filing thereof in

the Federal Register. Amendment No. 1

is consistent with Section 6(b)(5), in that

it contains representations by the

Exchange, concerning margin, options

approved accounts, and surveillance,

which serve to protect investors and the

public interest, promote just and

equitable principles of trade, and

prevent fraudulent and manipulative

acts and practices. Therefore, the

Commission finds that no new

regulatory issues are raised by

Amendment No. 1. Accordingly, the

Commission believes it is consistent

with Sections 19(b(2) and 6(b)(5) of the

Act to approve Amendment No. 1 on an

accelerated basis.

V. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning Amendment No.

1 to the proposed rule change. 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 foregoing

that are filed with Commission, and all

written communications relating to the

foregoing 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 Section, 450 Fifth Street,

N.W. Washington, D.C. Copies of such

filings also will be available for

inspection and copying at the principal

office of the above-mentioned selfregulatory organization. All submissions

should refer to File No. SR–CBOE–94–

32, and should be submitted by January

31, 1995.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,23 that the

proposed rule change (SR–CBOE–94–

32), as amended, is hereby approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.24

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–484 Filed 1–9–95; 8:45 am]

BILLING CODE 8010–01–M
Federal Register / Vol. 60, No. 6 / Tuesday, January 10, 1995 / Notices 2619

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2756;

amendment #2]

Florida; Declaration of Disaster Loan

Area

The above-numbered Declaration is

hereby amended, effective December 28,

1994, to include Brevard County in the

State of Florida as a primary disaster

area as a result of damages caused by

Tropical Storm Gordon beginning on

November 14, 1994 and continuing

through November 28, 1994.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Indian River, Orange, and Osceola in the

State of Florida may be filed until the

specified date at the previously

designated location.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is

January 26, 1995 and for economic

injury the deadline is August 28, 1995.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)

Dated: December 29, 1994.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 95–470 Filed 1–9–95; 8:45 am]

BILLING CODE 8025–01–M

[Declaration of Disaster Loan Area #2758]

South Carolina; Declaration of Disaster

Loan Area

Florence County and the contiguous

counties of Clarendon, Darlington,

Dillon, Lee, Marion, Marlboro, Sumter,

and Williamsburg in the State of South

Carolina constitute a disaster area as a

result of damages caused by heavy rains

and flooding which occurred on

December 21–23, 1994. Applications for

loans for physical damage may be filed

until the close of business on March 3,

1995 and for economic injury until the

close of business on October 2, 1995 at

the address listed below:

U.S. Small Business Administration,

Disaster Area 2 Office, One Baltimore

Place, Suite 300, Atlanta, GA 30308 or

other locally announced locations.

The interest rates are:

For Physical Damage

Homeowners with credit available

elsewhere—8.000%.

Homeowners without credit available

elsewhere—4.000%.

Businesses with credit available

elsewhere—8.000%.

Businesses and non-profit organizations

without credit available elsewhere—

4.000%.

Others (including non-profit

organizations) with credit available

elsewhere—7.125%.

For Economic Injury

Businesses and small agricultural

cooperatives without credit available

elsewhere—4.000%.

The number assigned to this disaster

for physical damage is 275806 and for

economic injury the number is

84220000.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008).

Dated: December 30, 1994.

Philip Lader,

Administrator.

[FR Doc. 95–490 Filed 1–9–95; 8:45 am]

BILLING CODE 8025–01–M

Interest Rates

The interest rate on Section 7(a) Small

Business Administration direct loans (as

amended by PL 97–35) and the SBA

share of immediate participation loans

is 9 percent for the fiscal quarter

beginning January 1, 1995.

On a quarterly basis, the Small

Business Administration also publishes

an interest rate called the optional

‘‘peg’’ rate (13 CFR 122.8–4(d)). This

rate is a weighted average cost of money

to the government for maturities similar

to the average SBA loan. This rate may

be used as a base rate for guaranteed

fluctuating interest rate SBA loans. For

the January–March quarter of FY95, this

rate will be 77⁄8 percent.

Jane Palsgrove Butler,

Deputy Associate Administrator for Financial

Assistance.

[FR Doc. 95–471 Filed 1–9–95; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF STATE

[Public Notice 2146]

United States International

Telecommunications Advisory

Committee Radiocommunication

Sector Study Group 9; Meeting

The Department of State announces

that the United States International

Telecommunications Advisory

Committee (ITAC),

Radiocommunication Sector Study

Group 9, will meet on January 26, 1995

at 9:30 a.m. in Room 535 at the Federal

Communication Commission, 1919 M

Street, N.W., Washington, D.C. 20554.

This meeting is being convened for

the purpose of updating the members on

the status of the current activities of

other groups (i.e., TG 2/2, TG4/5, CPM

and WRC–95) that may affect the

interests of the Fixed Service; and, to

start preparations for the upcoming

International meeting of Study Group 9

in May 1995.

Members of the General Public may

attend the meetings and join in the

discussions, subject to the instructions

of the Chairman. Those planning to

attend the meeting should contact Mr.

Alex Latker by phone at (202) 418–1488

or by fax at (202) 418–2824.

Dated: December 28, 1994.

Warren G. Richards,

Chairman, U.S. ITAC for ITU—

Radiocommunication Sector.

[FR Doc. 95–475 Filed 1–9–95; 8:45 am]

BILLING CODE 4710–45–M

DEPARTMENT OF TRANSPORTATION

Coast Guard

[CGD 95–001]

Chemical Transportation Advisory

Committee (CTAC) Subcommittee on

Marine Occupational Safety and Health

(MOSH) Meeting

AGENCY: Coast Guard, DOT.

ACTION: Notice of meeting.

SUMMARY: The MOSH Subcommittee

will meet to determine how to protect

the marine worker from exposure to

hazardous cargo vapors. This may

include the development of additional

comprehensive exposure standards for

marine workers. The meeting will be

open to the public.

DATES: The meeting will be held

February 2–3, 1995, from 9 am to 4 pm

daily. Written material should be

submitted no later than January 25,

1995.

ADDRESSES: The meeting will be held at

the offices of Chevron Shipping, 555

Market Street, San Francisco, CA 94105,

telephone (415) 894–2489. Written

material should be submitted to Mr. Guy

R. Colonna, National Fire Protection

Association, 1 Batterymarch Park,

Quincy, MA 02269.

FOR FURTHER INFORMATION CONTACT:

Mr. Guy R. Colonna, National Fire

Protection Association, 1 Batterymarch

Park, Quincy, MA 02269, telephone

(617) 984–7435, or Dr. Alan L.

Schneider, Commandant (G–MTH–1),

U.S. Coast Guard, 2100 Second Street,

SW, Washington, DC 20593–0001,

telephone (202) 267–1217.