18866 Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices

8 17 CFR 200.30–3(a)(12) (1994).

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

2PTC Rules, Article III, Rule 2, Section 1,

‘‘Principal and Interest Payments.’’ For a complete

description of PTC’s amendments, refer to

Securities Exchange Act Release Nos. 33132

(November 9, 1993), 58 FR 59501 [File No. SR–

PTC–93–02] (order approving proposed rule

change) and 33856 (April 12, 1994), 59 FR 59501

[File No. SR–PTC–93–05] (order approving

proposed rule change).

3 In November 1994, the intraday distribution

program was extended to permit early distribution

of one hundred percent of collected and available

GNMA II P&I. Securities Exchange Act Release No.

34988 (November 18, 1994), 59 FR 61016 [File No.

SR–PTC–94–05] (order approving proposed rule

change).

4PTC disbursed a total of $103.9 billion in GNMA

I P&I payments to its participants in 1994, of which

$51.1 billion was distributed intraday. As of

February 1, 1995, fifty participants elected to

receive the intraday distribution.

5 During 1994, an average of 72.5% of funds to be

distributed were available by 12 noon on the

distribution date.

6 15 U.S.C. 78q–1(b)(3)(F) (1988).

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with 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 NYSE. All

submissions should refer to File No.

SR–NYSE–95–03 and should be

submitted by May 4, 1995.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9078 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35574; File No. SR–PTC–

95–02]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing and Order Granting Accelerated

Approval of Proposed Rule Change

Modifying PTC’s Program for the Early

Distribution of Principal and Interest

on Government National Mortgage

Association I Securities

April 6, 1995.

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

Securities Exchange Act of 1934

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

March 7, 1995, the Participants Trust

Company (‘‘PTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PTC–95–02) as

described in Items I and II below, which

Items have been prepared primarily by

PTC. 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 modifies

PTC’s program for the early distribution

of principal and interest (‘‘P&I’’) on

Government National Mortgage

Association (‘‘GNMA’’) I securities.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, PTC

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. PTC 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

Background

Before November 1993, PTC’s rules

and procedures provided that PTC

disburse P&I by means of a credit to

participants’ cash balances. This

resulted in participants receiving at the

end of the day as part of the settlement

process the amount of the P&I net of any

account debits and/or credits. In

November 1993, PTC’s rules were

amended to eliminate the requirement

that P&I be disbursed by means of a

credit to participants’ cash balances and

to permit PTC to make intraday Fedwire

distributions of collected and available

GNMA I P&I.2

PTC’s present program for the early

distribution of GNMA I P&I permits the

distribution of up to fifty percent of

collected and available P&I on GNMA I

securities by intraday Fedwire transfer

of funds on the distribution date,

generally the sixteenth day of the

month, with the balance distributed by

credit to participant’s cash balances

payable at the end of the day

settlement.3 Participants are permitted

to elect to receive the intraday

distribution or they may choose to

receive the entire distribution at the end

of the day settlement.4

Unlike the GNMA II program, there is

no central paying agent for GNMA I

securities and issuers make payment to

PTC directly, sometimes by means of a

check. Because of these inefficiencies in

collecting and disbursing GNMA I P&I,

PTC funds the total GNMA I P&I

disbursement from several sources: (1)

collected and available P&I payments

that are timely received; (2) PTC’s own

funds; (3) the cash portion of the

participants fund; and (4) borrowed

funds secured by the P&I receivables or

the securities portion of the participants

fund.

GNMA I P&I Proposal

PTC proposes to increase the

percentage of collected and available

GNMA I P&I that may be distributed

intraday, from the current maximum of

fifty percent to a maximum of sixty-five

percent of the total distribution,

commencing with the April 1995

GNMA I distribution. PTC believes that

based on PTC’s experience with the

GNMA I collection process, an amount

in excess of sixty-five percent may

reasonably be anticipated to be available

by noon on the distribution date for

disbursement intraday.5 The balance

would be distributed by means of a

credit to the participants’ credit

balances payable at the end of the day

settlement, as is currently the practice.

In the event the amount of collected and

available funds is insufficient to make

the scheduled intraday distribution

amount, whether it be the current fifty

percent maximum or the proposed

sixty-five percent maximum, the

shortfall is allocated ratably among

participants scheduled to receive

intraday distribution according to the

relative amounts of their scheduled

distributions.

PTC believes that the proposed rule

change is consistent with Section

17A(b)(3)(F) of the Act 6 and the rules

and regulations thereunder in that it

facilitates the prompt and accurate

clearance and settlement of securities

transactions and provides for the

safeguarding of securities and funds in

PTC’s custody or control or for which

PTC is responsible.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

PTC does not believe that the

proposed rule change will impose any

burden on competition not necessary or
Federal Register / Vol. 60, No. 71 / Thursday, April 13, 1995 / Notices 18867

7 15 U.S.C. 78q–1(b)(3)(F) (1988).

8Telephone conversation between William R.

Stanley, Board of Governors, and Ari Burstein,

Division of Market Regulation, Commission (April

5, 1995).

9 17 CFR 100.30–3(a)(12) (1994).

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

2 17 CFR 240.19b–4 (1991).

3 In Amendment No. 1, the CBOE states that the

reference to Rule 24.17 in the original filing (see

infra note 4 and accompanying text) was intended

to be a reference to Rule 24.16, and amends the

proposal accordingly. In addition, Amendment No.

1 defines the term ‘‘brief interval,’’ as used to

describe the allowable period during which RAES

participants can leave the trading floor. See infra

note 7 and accompanying text. See also Letter from

Timothy Thompson, Attorney, CBOE, to John

Ayanian, Attorney, Office of Market Supervision

(‘‘OMS’’), Division of Market Regulation

(‘‘Division’’), Commission, dated March 31, 1995.

(‘‘Amendment No. 1’’).

4See CBOE Rule 24.17 (‘‘RAES Eligibility in

OEX’’).

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

PTC has not solicited comments with

respect 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) of the Act 7

requires that the rules of a clearing

agency be designed to promote the

prompt and accurate clearance and

settlement of securities transactions.

The Commission believes that PTC’s

proposal to increase the percentage of

collected and available GNMA I P&I that

may be distributed to participants by

intraday fedwire transfer should help

promote prompt and accurate clearing

and settlement. The proposal enables

participants to have access to such

funds earlier in the day, allowing them

the use of the funds elsewhere, as

needed, which increases liquidity in

other markets.

PTC 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. In

order to assure that PTC can implement

the proposal commencing with the

April 1995 distribution, it is necessary

that PTC receive the appropriate

approval in advance of that date. The

Commission, therefore, finds sufficient

cause to accelerate approval of this

proposal. In addition, the staff of the

Board of Governors of the Federal

Reserve System (‘‘Board of Governors’’)

agrees with the accelerated approval.8

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 also will be available for

inspection and copying at the principal

office of PTC. All submissions should

refer to file number SR–PTC–95–02 and

should be submitted by May 4, 1995.

It is therefore ordered, pursuant to

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

proposed rule change (File No. SR–

PTC–95–02) be and hereby is approved

on an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 95–9076 Filed 4–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35579; File No. SR–CBOE–

95–17]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated Relating to its Retail

Automatic Execution System for

Transactions in SPX Options

April 7, 1995.

Pursuant to 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 March 30,

1995, the Chicago Board Options

Exchange, Incorporated (‘‘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 Exchange. The

Exchange subsequently filed

Amendment No. 1 to the proposed rule

change on April 3, 1995.3 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 proposes to amend its

rules respecting use of the CBOE’s Retail

Automatic Execution System (‘‘RAES’’)

for transactions in Standard & Poor’s

500 Index (‘‘SPX’’) options by

individual members, joint account

participants and nominees of member

organizations having multiple

nominees. The text of the proposed rule

change is available at the Office of the

Secretary, the Exchange, 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

Exchange included statements

concerning the purpose of and basis for

the proposed rule change. The text of

these statements may be examined at

the places specified in Item IV below.

The Exchange has prepared summaries,

set forth in Section (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

The purpose of the proposed rule

change is to amend Rule 24.16 (‘‘RAES

Eligibility in SPX’’) in respect of use of

RAES by individual members, joint

account participants, and market-maker/

nominees associated with member

organizations. The amendments would

incorporate into Rule 24.16, provisions

respecting individual member use of

RAES and provisions respecting joint

account and member organization use of

RAES (the ‘‘group account’’ provisions)

presently contained in its rules

respecting use of RAES for transactions

in Standard & Poor’s 100 Index (‘‘OEX’’)

options.4 Currently, Rule 24.16 contains

fewer provisions regulating individual

members’ eligibility to use RAES for

SPX options than is the case under rule

24.17 for use of RAES for OEX options.

Similarly, Rule 24.16 contains only one

provision addressing RAES eligibility

for member organizations having

multiple market-maker/nominees, while

Rule 24.17 contains numerous

provisions respecting use of RAES by

participants in both types of group