Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Notices 18159

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

2Securities Exchange Act Release No. 35137

(December 22, 1994), 59 FR 67355.

3On October 6, 1993, the Commission adopted

Rule 15c6–1 under the Act, which establishes T+3

instead of T+5 as the standard settlement time

frame for most broker-dealer transactions. Securities

Exchange Act Release No. 33023 (October 6, 1993),

58 FR 52891. The rule becomes effective June 7,

1995. Securities Exchange Act Release No. 34952

(November 9, 1994), 59 FR 59137.

4The transition from five day settlement to three

day settlement will occur over a four day period.

Friday, June 2, will be the last trading day with five

business day settlement. Monday, June 5, and

Tuesday, June 6, will be trading days with four

business day settlement. Wednesday, June 7, will be

the first trading day with three business day

settlement. As a result, trades from June 2 and June

5 will settle on Friday, June 9. Trades from June 6

and June 7 will settle on Monday, June 12.

5 12 CFR 200.1–200.19 (1994), as amended, 59 FR

53565 (October 25, 1994).

agencies, as appropriate, during the

development of the EIS.

(f) Indicate the Relationship Between

the Timing of the Preparation of

Environmental Analysis and the

Commission’s Tentative Planning and

Decision Making Schedule

NRC intends to prepare and issue for

public comment a draft EIS in early

1996. The comment period would be for

90 days. The final EIS is scheduled for

publication in the late 1996. This

schedule may be impacted by the

availability and adequacy of information

about the site. Subsequent to

completion of the final EIS, the NRC

would review and act on a license

amendment from the licensee requesting

authorization for decommissioning the

site. This could include review of the

decommissioning plan as required in 10

CFR 40.42(c)(2), depending upon the

outcome of the EIS.

(g) Describe the Means by Which the EIS

Will Be Prepared

NRC will prepare the draft EIS

according to the requirements in 10 CFR

Part 51. Specifically, in accordance with

10 CFR 51.71, the draft EIS will

consider comments submitted to NRC as

part of the scoping process and will

include a preliminary analysis which

considers and balances the

environmental and other effects of the

proposed action and the alternatives

available for reducing or avoiding

adverse environmental and other effects,

as well as any benefits of the proposed

action, including the environmental,

economic, technical, and other benefits.

The EIS will be prepared by the NRC

staff. NRC may rely, to some extent, on

the other NEPA documents prepared by

the Army in support of the transfer of

the JPG mission and the intended reuse

of JPG after closure. NRC may also seek

some technical assistance from one or

more contractors (e.g., a national

laboratory), if there is a need for such

support. In addition, NRC anticipates

requesting specific information from the

licensee to support preparation of the

EIS (e.g., available environmental

monitoring data, risk assessment for the

DU contamination, and UXO risks and

costs for remediation). Any information

received from the licensee related to the

EIS will be available for public review,

unless the information is protected from

public disclosure in accordance with

NRC requirements in 10 CFR 2.790.

In the scoping process, participants

are invited to speak or submit written

comments, as noted above, on any or all

of the areas described above. In

accordance with 10 CFR 51.29, at the

conclusion of the scoping process, NRC

will prepare a concise summary of the

determinations and conclusions

reached, including the significant issues

identified, and will send a copy to each

participant in the scoping process as

well as place this information in the

NRC’s Public Document Room.

Dated at Rockville, Maryland, this 3rd day

of April 1995.

For the U.S. Nuclear Regulatory

Commission,

Michael F. Weber,

Chief, Low-Level Waste and Decommissioning

Projects Branch, Division of Waste

Management, Office of Nuclear Material

Safety and Safeguards.

[FR Doc. 95–8704 Filed 4–7–95; 8:45 am]

BILLING CODE 7590–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35558; File No. SR–CBOE–

94–40]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Inc.; Order Approving Proposed Rule

Change Relating to the Three Business

Day Settlement of Securities

Transactions

March 31, 1995.

On November 7, 1994, the Chicago

Board Options Exchange, Incorporated

(‘‘CBOE’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

a proposed rule change pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’).1 The

proposed rule change will amend

CBOE’s rules to provide for three

business day settlement of securities

transactions. The Commission

published notice of the proposed rule

change in the Federal Register on

December 29, 1994 to solicit comment

from interested persons.2 No comments

were received. This order approves the

proposal.

I. Description

On June 7, 1995, the standard

settlement time frame for most

securities transactions will be shortened

from five business days after the trade

date (‘‘T+5’’) to three business days after

the trade date (‘‘T+3’’).3 The proposal

amends certain provisions of CBOE’s

rules consistent with a T+3 settlement

cycle. These amendments will become

effective on the same date as Rule 15c6–

1.4

The proposed rule change will amend

Chapter XXX (Stocks, Warrants and

Other Securities) and Chapter XXXI

(Approval of Securities for Original

Listing) to reflect a three business day

settlement cycle. The settlement time

frame for regular way transactions for

stocks and warrants contained in Rules

30.12 (a)(3), 30.31(a), and 31.40 will be

amended to refer to the three business

day settlement standard. Rules

30.12(a)(4) and 30.31(a)(iii) will be

amended to provide that seller’s option

trades may not settle in less than four

business days. Rule 30.31(b), concerning

bids and offers in rights to subscribe,

will be amended to eliminate the

reference to the fourth and fifth business

day preceding the final day for

subscription. Rule 30.34(b) and (c) will

be amended to change references to the

five final business days for trading in

warrants and the fifth business day

preceding the expiration of a class of

warrants to the three final business days

and the third business day. Rule

12.3(b)(1)(C)(1)(iv), concerning the

margin requirements for a call option

contract, also will be amended to refer

to the third business day prior the date

on which a right to exchange or convert

expires.

Rules 30.32(a), 31.22(f), and 31.42

contain provisions setting forth ex-rights

or ex-dividend dates (i.e., the dates

when stocks trade without rights or

dividends). All references to

transactions in stocks being ex-dividend

or ex-rights on the fourth business day

preceding the record date will be

changed to the second business day

preceding the record date. For

transactions when the record date

occurs on a day other than a business

day, the stock will be traded ex-divided

on ex-rights on the third preceding

business day rather than on the fifth

preceding business day.

Four rules dealing with customer

margin requirements also will be

amended. Consistent with Regulation

T,5 Rules 21.25(a), 23.13(a), 24.11(a),
18160 Federal Register / Vol. 60, No. 68 / Monday, April 10, 1995 / Notices

6See Federal Reserve System Release, Docket No.

R–0840 (October 18, 1994), 59 FR 53565.

7 15 U.S.C. 78f(b)(5) (1988).

8See supra note 7.

9The adopting release stated, ‘‘the value of

securities positions can change suddenly causing a

market participant to default on unsettled positions.

Because the markets are interwoven through

common members, default at one clearing

corporation or by a major market participant or enduser could trigger additional failures, resulting in

risk to the national clearance and settlement

system.’’ Id.

10 17 CFR 200.30–3(a)(12) (1994).

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

2 17 CFR 240.19b–4 (1994).

3See Exchange Act Release No. 35287 (January

27, 1995), 60 FR 6743 (February 3, 1995).

and 30.51(a) currently require that

initial margin deposits be made within

seven full business days after the date

on which a transaction giving rise to a

margin requirement is effected. Rule

21.25(a) also requires that all long

options must be paid in full within

seven business days after the purchase

date. Rule 21.25(e) provides that no

margin is required in respect of

government security options carried in

a short position if the customer provides

a custodial or Treasury security escrow

receipt or letter of guarantee within

seven business days. Regulation T was

recently amended to revise the time

limit within which a customer margin

call must be satisfied to ‘‘the number of

business days in the standard settlement

cycle in the United States * * * plus

two business days.’’ 6 Accordingly, all

the time frames discussed above will be

shortened to five business days.

II. Discussion

The Commission believes the

proposed rule change is consistent with

Section 6 of the Act and, therefore, is

approving the proposal. Specifically, the

Commission believes the proposal is

consistent with Section 6(b)(5) 7 of the

Act which requires that the rules of an

exchange be designed 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.

Currently, the rules of CBOE and

other self-regulatory organizations

control the time frame for settlement of

securities transactions. On June 7, 1995,

the new settlement cycle of T+3 will be

established, as mandated by the

Commission’s Rule 15c6–1. As a result,

CBOE’s current rules establishing a T+5

settlement cycle will be inconsistent

with Commission rules. This proposal

will amend CBOE’s rules to harmonize

them with a T+3 settlement cycle.

The Commission believes that the

benefits of a three day settlement cycle,

as outlined in the release adopting Rule

15c6–1, apply equally to CBOE’s

proposed rule change.8 With a T+3

settlement cycle, fewer unsettled trades

will be subject to credit and market risk,

and there will be less time between

trade execution and settlement for the

value of those trades to deteriorate.9 By

reducing risk to the system, the

proposed rule change furthers

protection of investors and the public

interest. CBOE’s rules will assist the

transition to a T+3 cycle by providing

guidelines for related matters such as

ex-dates. Thus, the proposed rule

change is consistent with fostering

cooperation and coordination with

persons engaged in regulating, clearing,

and settling transactions in securities

and of perfecting the mechanism of a

free and open market.

III. Conclusion

For the reasons stated above, the

Commission finds that the proposed

rule change is consistent with Section 6

of the Act.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

CBOE–94–40) be and hereby is

approved, effective June 7, 1995.

For the Commission by the Division of

Market Regulation pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8665 Filed 4–7–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35551; File No. SR–PSE–

95–08]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Pacific Stock

Exchange, Inc., Relating to Its Rules on

Short Interest Reporting

March 30, 1995.

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’), 1 and

Rule 19b–4 thereunder, 2 notice is

hereby given that on February 22, 1995,

the Pacific Stock Exchange, Inc. (‘‘PSE’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘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 Exchange is proposing to make a

technical amendment to its rules on

short interest reporting to allow

members and member organizations for

which the Exchange is the designated

examining authority (‘‘DEA’’) to report

their ‘‘short’’ positions to self-regulatory

organizations other than the Exchange.

The text of the proposed rule change is

as follows, wherein additions are

italicized:

Rule 2.6(f)—No change.

Commentary

.01 No Change.

.02 Members and member

organizations for which the Exchange is

the DEA need not report ‘‘short’’

positions to the Exchange as provided in

Commentary .01 if such member or

member organization has made

arrangements, satisfactory to the

Exchange, to report such positions to

another self-regulatory organization.

The Exchange requests the

Commission to find good cause,

pursuant to Section 19(b)(2) of the Act,

for approving the proposed rule change

prior to the thirtieth day after

publication in the Federal Register.

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 III 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

On January 27, 1995, the Commission

approved a rule change proposal of the

Exchange that requires members and

member organizations for which the

Exchange is the DEA to report certain

‘‘short’’ positions to the Exchange. 3 The

Exchange is proposing an amendment to