Federal Register / Vol. 60, No. 5 / Monday, January 9, 1995 / Notices 2415

8 17 CFR 200.30–3(a)(12)(1993).

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

2Securities Exchange Act Release No. 35097,

(December 13, 1994) [File No. SR–PHLX–94–54]

(order granting accelerated approval of proposed

rule change filed by the Philadelphia Stock

Exchange, Inc., relating to the holiday expiration

date for cash/spot foreign currency options).

3For example, Monday, December 26, 1994 is a

PHLX holiday (Christmas); therefore, under the

proposed change, expiration will occur on Tuesday.

However, Tuesday, December 27, 1994, is a

designated bank holiday (Boxing Day), so expiration

will occur on Wednesday, December 28, 1994.

of conventional equity options by

investors seeking to satisfy their

legitimate hedging needs, without

compromising the integrity of the

underlying securities markets. In

addition, to the extent that investors

have greater assurance that they can

hedge larger stock positions through the

use of conventional options, liquidity in

the underlying cash market may be

enhanced by the proposal.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The NASD believes that the proposed

rule change will not result in 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 date of

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 NASD consents, the

Commission will:

A. By order approve such 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 in

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File

Number SR–NASD–94–54 and should

be submitted by January 30, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–430 Filed 1–6–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35185; File No. SR–OCC–

94–12]

Self-Regulatory Organizations; The

Options Clearing Corporation; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change Amending By-Laws

Relating to the Holiday Expiration Date

for Cash-Settled Foreign Currency

Options

December 30, 1994.

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

Securities Exchange Act of 1934

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

December 12, 1994, The Options

Clearing Corporation (‘‘OCC’’) 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 primarily by OCC.

The Commission is publishing this

notice and order to solicit comments on

the proposed rule change from

interested persons and to grant

accelerated approval of the proposed

rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will amend

OCC’s by-laws to change the holiday

expiration date for cash-settled foreign

currency options.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

OCC 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. OCC 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

OCC proposes to amend its by-laws to

change the holiday expiration date for

cash-settled foreign currency options.

On December 13, 1994, the Commission

approved a Philadelphia Stock

Exchange (‘‘PHLX’’) rule change

proposing to change the holiday

expiration date for cash-settled foreign

currency options.2 Currently, cashsettled foreign currency options expire

on Mondays. However, if Monday is a

PHLX holiday or a designated bank

holiday, the expiration date reverts to

the preceding business day, which is

usually Friday, but on some occasions

may be Thursday.

Under PHLX’s rule change, if the

regular Monday expiration occurs on a

PHLX holiday or a designated bank

holiday, the cash-settled foreign

currency options expire on the

following business day rather than the

preceding business day. Accordingly,

when the regular Monday expiration

occurs on a holiday, the expiration will

usually occur on Tuesday, but on some

occasions will occur on Wednesday.3

The proposed change will allow cashsettled foreign currency option users to

capture weekend risk.

To accommodate the change proposed

by PHLX, OCC is proposing to modify

the definition of ‘‘Expiration Date’’

contained in OCC by-laws, Article XXII,

Section 1E. Under OCC’s proposed

change, if the regular Monday

expiration occurs on an exchange

designated bank holiday or a day that is

not a business day, expiration will occur

on the following business day rather

than the preceding business day.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

OCC does not believe that the

proposed rule change will impose any

burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Written comments were not and are

not intended to be solicited with respect
2416 Federal Register / Vol. 60, No. 5 / Monday, January 9, 1995 / Notices

4 15 U.S.C. 78q–1(b)(3)(F) (1988).

5 17 CFR 200.30–3(a)(12) (1994).

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

to the proposed rule change, and none

have been received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F)4 of the Act

requires the rules of a clearing agency be

designed to foster cooperation and

coordination with persons engaged in

the clearance and settlement of

securities transactions. The Commission

believes that OCC’s proposed change is

consistent with Section 17A(b)(3)(F) of

the Act because it works in conjunction

with the PHLX rule change to better

coordinate and to promote cooperation

in the issuance, clearance, and

settlement of these options.

OCC has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of the filing. The

Commission finds good cause for so

approving the proposed rule change

because accelerated approval will allow

OCC to coordinate its holiday expiration

dates for cash-settled foreign currency

options with the holiday expiration

dates for cash-settled foreign currency

options with the holiday expiration

dates set by the PHLX.

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 in

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 OCC. All submissions should

refer to the file No. SR–OCC–94–12 and

should be submitted within January 30,

1995.

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act, particularly with Section

17A(b)(3)(F) of the Act, and the rules

and regulations thereunder.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

OCC–94–12) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–382 Filed 1–6–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 35182; File No. SR–PTC–94–

07]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing of Proposed Rule Change

Establishing a Daily Penalty Fee

Applicable to Late Funding of

Shortfalls in Participants Mandatory

Deposits to the Participants Fund

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

Securities Exchange Act of 1934

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

December 14, 1994, the Participants

Trust Company (‘‘PTC‘‘) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PTC–94–070 as

described in Items I, II, and III below,

which Items have been prepared

primarily by the self-regulatory

organization. The Commission is

publishing this notice to solicit

comments on the purposed 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 will

establish a daily penalty fee applicable

to a participant’s failure to fund on a

timely basis a shortfall in its mandatory

deposit to the participants fund.

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 the

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to establish a daily penalty fee

applicable to a participant’s failure to

fund on a timely basis a shortfall in its

mandatory deposit to the participants

fund. Pursuant to Rule 2 of Article V of

PTC’s rules, PTC maintains a

participants fund to secure obligations

of participants and limited purpose

participants to PTC and to provide PTC

with an additional source of cash

collateral to meet its temporary

financing needs. Each participant is

required to maintain a mandatory

deposit in the participants fund which

is calculated as a percentage of its

average gross debits over the previous

month’s three major settlement days,

subjects to a minimum of $1 million and

a maximum of $10 million. A limited

purpose participant is required to

maintain a lower mandatory deposit

because of the limited nature of its

activity in the depository. At least $150

thousand of the mandatory deposit must

be made in cash. The remainder may be

made in cash or United States Treasury

obligations with a remaining maturity of

one year or less.

The adequacy of each participant’s

mandatory deposit is evaluated monthly

based on the prior month’s activity.

Participants are notified of any shortfall

and required to fund the deficiency

within five business days. The securities

portion of the mandatory deposit is

marked-to-market weekly, and

participants are required to fund any

deficiency in this portion within two

business days.

The proposed rule change establishes

a daily penalty fee for a participant’s

failure to fund a shortfall in its

mandatory deposit to the participants

fund by the required date in the amount

of the greater of (i) $200 or (ii) an

amount, calculated at an annual rate,

equal to the daily average Fed Funds

rate plus 250 basis points (2.5%) on the

outstanding balance of the shortfall in

the mandatory deposit to the

participants fund.

PTC believes that because the

proposed rule change provides for the

equitable allocation of reasonable dues,

fees, and other charges among

participants, it is consistent with

Section 17A of the Act and the rules and

regulations thereunder applicable to

PTC.