Federal Register / Vol. 61, No. 16 / Wednesday, January 24, 1996 / Notices 1963

13 Indeed, the Commission would question

whether regular or alternate specialists were

fulfilling their Section 11(b) obligations if they

refused to accept for execution certain orders (e.g.,

100 share agency orders).

14See supra note 9.

15See Securities Exchange Act Release No. 36457

(Nov. 3, 1995), 60 FR 57028 (Nov. 13, 1995).

16 15 U.S.C. 78s(b)(2).

17 17 CFR 200.30–3(a)(12).

Specialist’s share volume be in assigned

issues may be deleted because with only

60 securities in which a specialist may

serve as an Alternate Specialist and the

adoption of the new standards in the

rule, it is permissible for Phlx to decide

that an aggregate minimum level of

Alternate Specialist activity is no longer

necessary to ensure that Alternate

Specialists are acting as section 11(b)

specialists. Moreover, the 50%

requirement spread over potentially

2,300 securities did not guarantee

significant depth or liquidity in

individual stocks. The Commission

believes that new Rule 202A(c)(iv),

which places affirmative obligations on

the Alternate Specialist to maintain an

adequate presence in the Exchange’s

market with respect to assigned issues

and to execute at least 50% of the trades

placed in the Alternate Specialist

account each quarter on the Exchange,

in addition to the limitation in the

number of securities for which a

specialist may act as an Alternate

Specialist should ensure sufficient

Alternate Specialist participation on the

Exchange and liquidity in individual

stocks.

With respect to the 50% on-floor

requirement, the Exchange proposes to

calculate the percentage of quarterly

trade volume rather than ‘‘opening’’

share volume. The Commission believes

that with this amendment the Exchange

can monitor the frequency of Alternate

Specialist participation on the

Exchange, which would be as helpful as

the prior requirement in measuring

whether Alternate Specialists are

fulfilling their obligations to provide

liquidity on the Exchange. Moreover,

eliminating the ‘‘opening’’ distinction

will make it easier for the Exchange to

monitor compliance with the

requirement.

Moreover, the Commission believes

that amending the 50% on-floor

requirement to permit Alternate

Specialist to include in the calculation

ITS trades will not be inconsistent with

the purposes of the Act. The Exchange

specifically requires that the Alternate

Specialist clear the post before routing

an ITS commitment to another market.

Where one of the primary obligations of

Alternate Specialists is to provide

liquidity on demand, permitting

Alternate Specialists to count ITS trades

towards their 50% on-floor requirement

would encourage and recognize

Alternate Specialists activities that

contribute to the liquidity of the

National Markets. Moreover, the

Commission recognizes that an

Alternate Specialist who initiates an

order on the floor and clears the post

should not be penalized if there is no

interest in the crowd or on the limit

order book against which the Alternate

Specialist’s order can be executed and if

the specialist does not accept that order

for placement in the book. The

Commission finds that it is reasonable

for the Exchange to assume that an

Alternate Specialist who makes a good

faith effort to participate as dealer on

the Exchange floor is engaged in bona

fide specialist activity even though the

transaction ultimately can be

consummated only by exposing the

Alternate Specialist’s order to all

interest in the National Market System.

Moreover, the Commission finds that

the limit on the amount of ITS trades

that may be counted towards the 50%

on-floor requirement should ensure that

the Alternate Specialists are actually

engaging in bona fide equity specialist

activity on the Phlx floor entitled to

exempt credit.

Finally, the Commission finds that the

Exchange’s rules of priority and

precedence of orders adequately address

the concerns in Supplementary Material

.06 and .07. Moreover, the Commission

believes that the Exchange’s proposal to

delete Supplementary Material .09 is

not inconsistent with the purposes of

the Act. Although the affirmative

obligations upon Alternate Specialist in

the proposed rule change do not require

the Alternate Specialist to guarantee

execution of any specific number of

shares, Phlx rules require Alternate

Specialists to maintain an adequate

presence on the Exchange with respect

to assigned alternate issues and related

trade activities for the alternate account.

This standard will ensure that, when

needed, the Alternate Specialist will be

available to assist in executions as

required of all specialists under section

11(b) of the Act.13

Moreover, the Commission finds good

cause for approving Amendment No. 2

to the proposed rule change prior to the

thirtieth day after the date of

publication of notice of filing thereof.

Amendment No. 2 merely clarified a

requirement on the Alternate Specialist

to clear the post before routing an order

to another market through ITS 14 and

withdrew from consideration of the

proposed rule change an amendment to

permit Alternate Specialists to count

towards the 50% on-floor requirement

unexecuted orders of 500 or more shares

placed with the Specialist on the

Exchange. Both these changes to the

proposal strengthen the Phlx’s Alternate

Specialist rules. In addition, the

Exchange’s original proposal was

published in the Federal Register for

the full statutory period and no

comments were received.15 Based on the

above, the Commission finds that there

is good cause, consistent with Section

6(b)(5) of the Act, to accelerate approval

of Amendment No. 2.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning Amendment No.

2. Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statement 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 at

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Exchange. All submissions

should refer to File No. SR–Phlx–95–60

and should be submitted by February

14, 1996.

V. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,16 that the

proposed rule change (SR–Phlx–95–60),

as amended, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.17

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1034 Filed 1–23–96; 8:45 am]

BILLING CODE 8010–01–M
1964 Federal Register / Vol. 61, No. 16 / Wednesday, January 24, 1996 / Notices

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 23945

(December 30, 1986), 52 FR 633 (January 7, 1987)

(SR–Phlx–86–38).

4See e.g., Securities Exchange Act Release Nos.

35361 (April 20, 1995) 60 FR 20544 (April 26, 1995)

(British Pound from $.025 to $.01 strike price

intervals) (File No. SR–Phlx–95–06), 25685 (May

10, 1988), 53 FR 17534 (May 17, 1988) (French

franc from $.05 to $.025 strike price intervals) (File

No. SR–Phlx–86–14), and 24103 (February 13,

1987), 52 FR 5605 (February 25, 1987) (British

Pound from $.05 to $.025 strike price intervals)

(File No. SR–Phlx–86–14).

[Release No. 34–36729; International Series

Release No. 918; File No. SR–Phlx–95–80]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Relating to Strike Price Intervals for

Australian Dollar Options

January 17, 1996.

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 January 2,

1996, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’ 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 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 revise its

strike price policy, pursuant to Phlx

Rule 1012, Series of Options Open for

Trading, respecting foreign currency

options on the Australian dollar by

changing from a $.01 interval to a $.005

interval in the nearest three expiration

months. 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 Exchange’s strike price interval

policies are administered pursuant to

Rule 1012, Series of Options Open for

Trading. Currently, Australian dollar

options are listed at one cent intervals.3

Pursuant to Phlx Rule 1012, six

expiration months are currently listed in

regular foreign currency options, with

one, two, three, six, nine, and twelve

months until expiration.

The Exchange proposes to revise its

strike price policy respecting foreign

currency options on the Australian

dollar by changing from a $.01 interval

to a $.005 interval in the nearest three

expiration months. The mid-term

expiration months (listed with six, nine

and twelve months until expiration)

will continue to be listed at one cent

intervals.

The Phlx believes that lower volatility

respecting the Australian dollar (in

relation to the U.S. dollar) has created

a customer need for narrower strike

price intervals. Lower volatility signifies

less movement in the currency such that

it currently trades in a more narrow

range, perhaps without moving to the

next (one cent) strike price interval.

Strike price intervals for a non-volatile

foreign currency options, including the

Australian dollar, have previously been

decreased.4 The Exchange believes that

the proposed reduction in the strike

price internal should provide investors

and traders of Australian dollar options

with new trading strategies in between

existing strikes, which, should, in turn,

promote liquidity in Australian dollar

options.

The Exchange is aware that the

Commission seeks to balance an

exchange’s desire to accommodate

market participation by offering a wide

array of investment opportunities and

the need to avoid the proliferation of

illiquid options series. In this regard,

the Exchange notes that this proposed

rule change is limited to a foreign

currency options with low volatility.

Accordingly, the Exchange believes that

narrower strike prices are necessary to

serve the needs of the marketplace. The

Exchange further represents that it will

eliminate excessive strike prices where

appropriate.

The Exchange believes that the

proposed rule change is consistent with

section 6 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 by enabling more effective

management of foreign currency risk

respecting the Australian dollar.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange 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

No written comments were solicited

or received with respect to the proposed

rule change.

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, DC 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 at

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the PHLX. All submissions

should refer to File No. SR–Phlx–95–80

and should be submitted by February

14, 1996.
Federal Register / Vol. 61, No. 16 / Wednesday, January 24, 1996 / Notices 1965

5 17 CFR 200.30–3(a)(12) (1994).

1 Investment Company Act Release No. 11703

(Mar. 26, 1981).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1035 Filed 1–23–96; 8:45 am]

BILLING CODE 8010–01–M

[Investment Company Act Release No.

21681; 811–8940]

First Colonial Ventures, Ltd.; Notice of

Proposed Deregistration

January 17, 1996.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Proposed

Deregistration under the Investment

Company Act of 1940 (the ‘‘Act’’).

RELEVANT ACT SECTIONS: Sections 8(f)

and 54(a).

SUMMARY OF NOTICE: The SEC proposes

to declare by order on its own motion

that First Colonial Ventures, Ltd. (‘‘First

Colonial’’) ceased to be an investment

company when it elected on June 29,

1995 to be regulated as a business

development company (‘‘BDC’’)

pursuant to section 54(a) of the Act.

HEARING OR NOTIFICATION OF HEARING: An

order of deregistration will be issued

unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary. Hearing requests should be

received by the SEC by 5:30 p.m. on

February 12, 1996. Hearing requests

should state the nature of the writer’s

interest, the reason for the request, and

the issues contested. Persons may

request notification of a hearing by

writing to the SEC’s Secretary.

ADDRESS: Secretary, SEC, 450 Fifth

Street, NW., Washington, DC 20549.

FOR FURTHER INFORMATION CONTACT:

Marianne H. Khawly, Staff Attorney, at

(202) 942–0562, or Robert A. Robertson,

Branch Chief, at (202) 942–0564

(Division of Investment Management,

Office of Investment Company

Regulation).

Statement of Facts

1. First Colonial is a registered,

closed-end, diversified, management

investment company. On January 13,

1995, First Colonial filed a Notification

of Registration on Form N–8A pursuant

to section 8(a) of the Act and a

registration statement on Form N–1A

under section 8(b) of the Act. In 1985,

First Colonial first registered securities

under the Securities Act of 1933.

2. First Colonial is organized as a

corporation under the laws of the state

of Utah and has its principal place of

business in the state of California.

3. Section 54(a) of the Act provides

that any company that satisfies the

definition of a BDC under section 2(a)

(48) (A) and (B) may elect to be subject

to the provisions of sections 55 through

65 of the Act and be regulated as a BDC

by filing with the SEC a notification of

such election, if such company: (i) Has

a class of its equity securities registered

under section 12 of the Securities

Exchange Act of 1934 (the ‘‘Exchange

Act’’); or (ii) has filed a registration

statement pursuant to section 12 of the

Exchange Act for a class of its equity

securities.

4. On June 29, 1995, First Colonial

elected BDC status by filing a Form N–

54A.

5. Section 8(f) of the Act permits the

SEC to deregister a registered

investment company on its own motion

if it finds that the company has ceased

to be an investment company.

6. Section 8 of the Act, requiring

registration of investment companies,

does not apply to BDCs. After an

existing registered investment company

has filed an election to be regulated as

a BDC, the SEC on its own motion will

declare by order under section 8(f) that

the company’s registration under the

Act has ceased to be in effect. Such an

order will be made effective

retroactively, as of the time the SEC

received the company’s election.1

7. The SEC finds that First Colonial

ceased to be a registered investment

company on June 29, 1995.

For the SEC, by the Division of Investment

Management, under delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–1036 Filed 1–23–96; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC—21682; No. 812–9756]

Protective Life Insurance Company, et

al.

January 17, 1996.

AGENCY: Securities and Exchange

Commission (‘‘Commission’’).

ACTION: Notice of Application for an

Exemption pursuant to the Investment

Company Act of 1940 (the ‘‘1940 Act’’).

APPLICANTS: Protective Life Insurance

Company (the ‘‘Company’’), Protective

Variable Life Separate Account (the

‘‘Account’’), and Investment

Distributors, Inc. (the ‘‘Underwriter’’).

RELEVANT 1940 ACT SECTIONS: Order

requested pursuant to section 6(c) of the

1940 Act seeking exemptions from the

provision of section 27(c)(2) thereof and

from Rule 6e–3(T)(c)(4)(v) thereunder.

SUMMARY OF APPLICATION: Applicants

seek an order permitting them and any

other separate account established in

the future by the Company (the ‘‘Future

Accounts,’’ collectively, with the

Account, the ‘‘Accounts’’) to support

certain flexible premium variable life

insurance policies offered currently or

in the future by the Company

(collectively, the ‘‘Contracts’’) to deduct

from premiums received under the

Contracts a charge in an amount that is

reasonable in relation to the Company’s

increased federal income tax burden

related to the receipt of such premium

payments and that results from the

application of section 848 of the Internal

Revenue Code of 1986, as amended (the

‘‘Code’’).

FILING DATE: The application was filed

on September 8, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing by writing to the Secretary of

the Commission and serving Applicants

with a copy of the request, personally or

by mail. Hearing requests must be

received by the Commission by 5:30

p.m. on February 12, 1996, and must be

accompanied by proof of service on

Applicants in the form of an affidavit or,

for lawyers, a certificate of service.

Hearing requests should state the nature

of the writer’s interest, the reason for the

request, and the issues contested.

Persons may request notification of a

hearing by writing to the Secretary of

the Commission.

ADDRESSES: Secretary, Securities and

Exchange Commission, 450 5th Street,

NW., Washington, DC 20549.

Applicants, c/o Lizabeth R. Nichols,

Esq., Protective Life Insurance

Company, 2801 Highway 280 South,

Birmingham, Alabama 35223.

FOR FURTHER INFORMATION CONTACT:

Kevin M. Kirchoff, Senior Counsel, or

Patrice M. Pitts, Special Counsel, Office

of Insurance Products (Division of

Investment Management), at (202) 942–

0670.

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application; the complete application is

available for a fee from the Public

Branch of the Commission.

Applicants’ Representations

1. The Company, a stock life

insurance company organized pursuant

to the laws of the State of Alabama in

1907, and redomesticated under the

laws of the State of Tennessee in 1992,