15948 Federal Register / Vol. 60, No. 59 / Tuesday, March 28, 1995 / Notices

7 17 CFR 200.30–3(a)(12) (1994). 1 15 U.S.C. 78s(b)(1) (1988).

2The other such condition is that the solicited

order can no longer reasonably be considered

imminent in view of the passage of time since the

solicitation.

III. Date of Effectiveness of the

Proposed Rule Changes 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 reason for so finding or (ii)

as to which the self-regulatory

organizations consent, the Commission

will:

(a) By order approve such proposed

rule changes, or

(b) Institute proceedings to determine

whether the proposed rule changes

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

changes that are filed with the

Commission, and all written

communications relating to the

proposed rule changes 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, D.C.

Copies of such filing will also be

available for inspection and copying at

the principal office of the abovementioned self-regulatory organizations.

All submissions should refer to the file

number in the caption above and should

be submitted by April 18, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–7576 Filed 3–27–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35519; File No. SR–CBOE–

95–07]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Chicago Board Options Exchange,

Inc., Relating to Solicited Transactions

March 21, 1995.

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

Securities Exchange Act of 1934

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

February 14, 1995, the Chicago Board

Options Exchange, Inc. (‘‘CBOE’’ 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 CBOE proposes to modify

paragraph (e) of Rule 6.9 concerning

solicited transactions so as to eliminate

the requirement that the terms of the

matching order be disclosed to the

trading crowd.

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 test 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

Paragraph (e) of Rule 6.9 restricts the

ability of a member to trade options,

securities underlying such options, and

related instruments while in possession

of knowledge of all the material terms

of an ‘‘original order’’ and a solicited

matching order unless either of two

conditions is met. One of the conditions

is that all the terms of both the original

order and the matching order be

disclosed to the trading crowd.2

The Exchange now proposes to amend

paragraph (e) to eliminate the

requirement that the terms of the

matching order be disclosed to the

trading crowd. Thus, a member will be

able to trade options, the securities

underlying such options, and any

related instruments once the terms of

the original order have been disclosed.

Under the Exchange’s proposal, when

there has been advance solicitation of

the other side of an original order, a

member (or associated person) with

knowledge of the original order and a

matching responsive order may not buy

or sell the option or the underlying

security until the terms of the original

order are disclosed to the trading crowd;

once those terms are disclosed,

however, the member may trade even if

the terms of the matching order are not

disclosed. As explained below, this

modification would place solicited

parties on an equal footing with

Exchange members who have

knowledge of the terms of the original

order only, and would conform the

trading restriction in paragraph (e) to

the various priority provisions of Rule

6.9 and Interpretation .02 thereunder,

which generally require disclosure only

of the terms of an original order, not the

terms of a matching solicited order.

The Exchange believes that this

amendment is appropriate to achieve

the primary purpose of Rule 6.9, which

is to facilitate and regulate solicitation

without imposing undue restrictions on

trading, particularly anticipatory hedge

transactions. As currently structured,

the trading restrictions in paragraph (e)

impose a special and substantial burden

on any solicited party who was

indicated, in response to a solicitation,

an intention to place a matching

responsive order. Under the present

rule, such a solicited party may not

trade based on knowledge of the

impending solicited transaction, even if

the original order has been fully

disclosed to the crowd, until the

solicited order is also disclosed.

In contrast to this treatment of

solicited parties, paragraph (e) does not

restrict trading by other CBOE members

who know the terms of the disclosed

order but who, if solicited, have not

indicated an intention to trade at the

original order’s limit and who are

otherwise unaware of any specific

matching solicited order. Such parties

may trade under the current rule even
Federal Register / Vol. 60, No. 59 / Tuesday, March 28, 1995 / Notices 15949

3 17 CFR 200.30–3(a)(12) (1994).

if they believe that an execution of the

original order is imminent based on

market circumstances.

The Exchange has concluded that this

disparity in treatment places undue

restrictions on solicited parties. Once an

original order is fully disclosed to the

trading crowd, those in the crowd have

essentially the same market information

as do solicited persons. Moreover, any

solicited person who has privately

indicated an intention to place a

responsive order, and anyone aware of

that intention, necessarily remains

subject to the risks of the market and the

auction process when entering a

responsive order or affecting

anticipatory trades. In such

circumstances, all Exchange members

should be able to effect trades on equal

terms, and the proposal would achieve

that equality of treatment.

Accordingly, the Exchange has

concluded that paragraph (e) should be

modified to require disclosure of the

terms of the original order only. The

Exchange believes that this narrower

disclosure requirement will provide the

trading crowd with a fair and full

opportunity to make informed trading

decisions without subjecting solicited

parties and the solicitation process to

overly burdensome restrictions.

The CBOE believes that its proposal is

consistent with Section 6(b) of the Act

in particular in that it is designed to

promote just and equitable principles of

trade and to protect investors and the

public interest. Specifically, the CBOE

believes that its proposal will enhance

the CBOE auction by restricting the

trading activities of all CBOE members

and associated persons equally.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

CBOE 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 on the proposed

rule change 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 self-regulatory

organization 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 NW.,

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 NW.,

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 File No. SR–CBOE–95–07 and

should be submitted by April 18, 1995.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.3

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–7577 Filed 3–27–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2766]

California; Declaration of Disaster

Loan Area

As a result of the President’s major

disaster declaration on March 12, 1995,

and amendments thereto on March 16

and 17, I find that the following

counties in the State of California

constitute a disaster area due to

damages resulting from severe winter

storms causing flooding, landslides, and

mud debris flows beginning on February

13, 1995 and continuing: Amador,

Butte, Colusa, El Dorado, Fresno, Glenn,

Humboldt, Imperial, Inyo, Kern, Kings,

Lake, Lassen, Los Angeles, Madera,

Marin, Mariposa, Mendocino, Modoc,

Mono, Monterey, Napa, Nevada, Orange,

Placer, Plumas, Riverside, Sacramento,

San Benito, San Bernardino, San Diego,

San Luis Obispo, Santa Barbara, Santa

Clara, Santa Cruz, Shasta, Sierra,

Siskiyou, Solano, Sonoma, Stanislaus,

Sutter, Tehama, Trinity, Tulare,

Tuolumne, Ventura, Yola, and Yuba.

Applications for loans for physical

damages may be filed until the close of

business on May 11, 1995, and for loans

for economic injury until the close of

business on December 12, 1995, at the

address listed below:

U.S. Small Business Administration,

Disaster Area 4 Office, P.O. Box

13795, Sacramento, CA 95853–4795

or other locally announced locations. In

addition, applications for economic

injury loans from small business located

in the following contiguous counties

may be filed until the specified date at

the above location: Alameda, Alpine,

Calaveras, Contra Costa, Del Norte,

Merced, San Francisco, San Joaquin,

and San Mateo Counties in California;

Clark, Douglas, Esmeralda, Mineral,

Nye, and Washoe Counties in Nevada;

LaPaz, Mohave, and Yuma Counties in

Arizona; and Jackson, Josephine,

Klamath, and Lake Counties in Oregon.

The interest rates are:

Percent

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 276606. For

economic injury the numbers are

849100 for California; 849200 for

Nevada; 849300 for Arizona; and

849400 for Oregon.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: March 17, 1995.

James E. Rivera,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 95–7510 Filed 3–27–95; 8:45 am]

BILLING CODE 8025–01–M