2800 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Notices

1Position limits impose a ceiling on the aggregate

number of options contracts on the same side of the

market that can be held or written by an investor

or group of investors acting in concert.

2See Securities Exchange Act Release No. 27786

(March 8, 1990), 55 FR 9523 (March 14, 1990)

(order approving File No. SR–NYSE–89–09).

3See Securities Exchange Act Release No. 29436

(July 12, 1991), 56 FR 33317 (July 19, 1991) (order

approving File No. SR–NYSE–91–19).

4See Securities Exchange Act Release No. 32901

(September 14, 1993), 58 FR 49073 (September 21,

1993) (order approving File No. SR–NYSE–92–23).

5See Securities Exchange Act Release No. 33212

(November 17, 1993), 58 FR 62173 (November 24,

1993) (order approving File Nos. SR–Amex–93–38,

SR–CBOE–93–52, SR–NYSE–93–42, SR–PSE–93–

30, and SR–PHLX–93–46). 6 15 U.S.C. 78f(b)(5) (1982).

For the Nuclear Regulatory Commission.

Eric S. Beckjord,

Director, Office of Nuclear Regulatory

Research.

[FR Doc. 95–639 Filed 1–10–95; 8:45 am]

BILLING CODE 7590–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35194; File No. SR–NYSE–

94–47]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the New York Stock

Exchange, Inc., Relating to an

Extension of the Hedge Exemption

Pilot Program

January 5, 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 9, 1994,

the New York Stock Exchange, Inc.

(‘‘NYSE’’ 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

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 NYSE proposes to amend NYSE

Rule 704, ‘‘Position Limits,’’ to extend

until May 17, 1995, the Exchange’s pilot

program for position limit exemptions

for certain hedged (1) equity option

positions; and (2) broad-based index

option positions.1

The text of the proposals are available

at the Office of the Secretary, NYSE, 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

(a) Purpose

On March 14, 1990, the Commission

approved, on a pilot basis, amendments

to NYSE Rule 704 providing (1) an

exemption from equity option position

limits for certain equity option positions

that are fully hedged and (2) an

exemption from the broad-based index

option position limits for certain hedged

broad-based index option positions.2

On July 12, 1991, the Commission

approved both (1) an expansion of the

scope of the exemptions to include short

positions in the underlying hedged

portfolio and to allow the underlying

hedged portfolio to include securities

that are readily convertible into

common stock, and (2) an extension of

the termination date of the pilot

program.3

On September 14, 1993, the

Commission approved both (1) an

expansion of the equity option position

limit hedge exemption to include

‘‘securities readily converted into or

economically equivalent to that number

of shares of such stock’’ as the basis for

the exemption and (2) an extension of

the termination date of the pilot

program.4

On November 17, 1993, the

Commission approved an extension of

the termination date of the pilot

program until November 17, 1994.5 The

Exchange now proposes to extend the

pilot program for six months to May 17,

1995.

Early in 1995, the Exchange plans to

submit to the Commission a report on

the pilot program covering the period

ending December 31, 1994. In addition,

for the duration of the pilot program, the

NYSE will continue to monitor on a

daily basis (1) the use of the exemptions

to determine if the positions are being

maintained in accordance with all

conditions and requirements and (2) the

effects of the exemptions on the market.

(b) Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act, in general, and

furthers the objectives of Section 6(b)(5),

in particular, in that it is designed to

promote just and equitable principles of

trade, to remove impediments to and

perfect the mechanism of a free and

open market and a national system, and,

in general, to protect investors and the

public interest.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change imposes any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

(C) Self-Regulatory Organization’s

Statements on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has not solicited, and

does not intend to solicit, comments on

the proposed rule change. The Exchange

has nor received any unsolicited written

comments from members or other

interested parties.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

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 to extend the pilot

program until May 17, 1995, 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 Section 6(b)(5)

thereunder.6 The Commission

concludes, as it did when originally

approving the pilot program, that

providing for increased position and

exercise limits for equity options and

stock index options in circumstances

where those excess positions are fully

hedged with offsetting stock positions

will provide greater depth and liquidity

to the market and allow investors to

hedge their stock portfolios more

effectively, without significantly

increasing concerns regarding

intermarket manipulations or

disruptions of either the options market

or the underlying stock market.
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Notices 2801

7 15 U.S.C. 78s(b)(2) (1982).

8 17 CFR 200.30–3(a)(12) (1993).

The Commission also notes that

before the NYSE’s pilot program can be

extended or approved on a permanent

basis, the Exchange must provide the

Commission with a report on the

operation of its pilot program since its

inception by January 31, 1995.

Specifically, the Exchange must provide

the Commission details on (1) the

frequency with which the exemptions

have been used; (2) the types of

investors using the exemptions; (3) the

size of the positions established

pursuant to the pilot program; (4) what

types of convertible securities are being

used to hedge positions and how

frequently the convertible securities

have been used to hedge; (5) whether

the Exchange has received any

compliants on the operation of the pilot

program; (6) whether the Exchange has

taken any disciplinary action against, or

commenced any violation of any term or

condition of the pilot program; (7) the

market impact, if any of the pilot

program; and (8) how the Exchange has

implemented surveillance procedures to

ensure compliance with the terms and

conditions of the pilot program. In

addition, the Commission expects the

Exchange to inform the Commission of

the results of any surveillance

investigations undertaken for apparent

violations of the provisions of its

position limit hedge exemption rules.

The Commission finds good cause for

approving the extension of the pilot

programs prior to the thirtieth day after

the date of publication of notice of filing

thereof in the Federal Register in order

to permit the continuation of the pilot

program. The Commission notes that the

Exchange has not experienced any

significant problems with the pilot

program since its inception and that the

Exchange will continue to monitor the

pilot program to ensure that no

problems arise. Finally, no adverse

comments have been received by the

Exchange or the Commission

concerning the pilot program. Based on

the above, the Commission believes

good cause exists to approve the

extension of the pilot program through

May 17, 1995, on an accelerated basis.

Therefore, the Commission believes that

granting accelerated approval of the

proposal is appropriate and consistent

with Sections 6 and 19(b)(2) 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. 522, 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

February 1, 1995.

It Is Therefore Ordered, pursuant to

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

proposed rule change (SR–NYSE–94–

47) relating to an extension of the hedge

exemption pilot program until May 17,

1995, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–658 Filed 1–10–95; 8:45 am]

BILLING CODE 8010–01–M

[File No. 1–9453]

Issuer Delisting; Notice of Application

to Withdraw From Listing and

Registration; (Ark Restaurants Corp.,

Common Stock, $.01 Par Value)

January 5, 1995.

Ark Restaurants Corp. (‘‘company’’)

has filed an application with the

Securities and Exchange Commission

(‘‘Commission’’), pursuant to Section

12(d) of the Securities Exchange Act of

1934 (‘‘Act’’) and Rule 12d2–2(d)

promulgated thereunder, to withdraw

the above specified security (‘‘Security’’)

from listing and registration on the

American Stock Exchange, Inc.

(‘‘Amex’’).

The reasons alleged in the application

for withdrawing the Security from

listing and registration include the

following:

According to the Company, the

Security commenced trading on the

National Association of Securities

Dealers Automated Quotations/National

Market Systems (‘‘NASDAQ/NMS’’) at

the opening of business on December 1,

1994 and concurrently therewith such

stock was suspended from trading on

the Amex.

The Company believes that the

NASDAQ/NMS multiple market maker

approach will provide the Company

with higher visability within the

financial community, thereby enhancing

investor awareness of the Company’s

activities;

In addition, the Company believes

NASDAQ/NMS will provide brokers

and others with immediate access to the

bid and ask prices, plus other

information about the Security

throughout the trading day, will result

in increased visibility and sponsorship

of the Security, and will offer

shareholders greater liquidity than

presently offered on the Amex.

Any interested person may, on or

before January 27, 1995 submit by letter

to the Secretary of the Securities and

Exchange Commission, 450 Fifth Street,

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

bearing upon whether the application

has been made in accordance with the

rules of the exchange and what terms,

if any, should be imposed by the

Commission for the protection of

investors. The Commission, based on

the information submitted to it, will

issue an order granting the application

after the date mentioned above, unless

the Commission determines to order a

hearing on the matter.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 95–659 Filed 1–10–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC—20817; 812–9016]

AVESTA Trust, et al.; Notice of

Application

January 4, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for

Exemption Under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANTS: AVESTA Trust

(‘‘AVESTA’’), including all existing and

future series thereof, and any future

management investment companies and

series thereof that are advised by Texas

Commerce Bank, N.A. (‘‘TCB’’) or any

entity controlling, controlled by, or

under common control (as defined in

section 2(a)(9) of the Act) with TCB (the

‘‘Portfolios’’); and TCB and any entity

controlling, controlled by, or under

common control (as defined in section