24842 Federal Register / Vol. 61, No. 96 / Thursday, May 16, 1996 / Notices

1Securities Exchange Act Release No. 36725

(January 17, 1996), 61 FR 2321.

2The Commission declared the CTA Plan

effective as of May 17, 1974. See Securities

Exchange Act Release No. 10787 (May 10, 1974), 39

FR 17799. The Participants filed a restatement and

amendment of that Plan (the ‘‘Restated CTA Plan’’)

with the Commission on May 12, 1980. The

Commission approved the Restated CTA Plan on

July 16, 1980. See Securities Exchange Act Release

No. 16983 (July 16, 1980) 45 FR 49414.

3A description of the amendments and a listing

of the attachments were included in the Notice of

Filing of Amendment (see, note 1 supra), and are

incorporated by reference herein.

4The Participants submitted the version of the

Consolidated Vendor Form currently in use to the

Commission on October 12, 1989. The Commission

published a notice of the effectiveness of the

Consolidated Vendor Form on September 6, 1990.

See Securities Exchange Act Release No. 28407

(September 6, 1990) 55 FR 37276.

5AMEX and NYSE submitted the version of the

CQ Plan currently in effect to the Commission on

July 25, 1978. The Commission granted permanent

approval of that plan effective as of January 22,

1980. See Securities Exchange Act Release No.

16518 (January 22, 1980), 45 FR 6521.

6A description of the amendments and a listing

of the attachments were included in the Notice of

Filing of Amendment (see, note 1, supra), and are

incorporated by reference herein.

assumed and the costs incurred by CG

Life.

6. Applicants assert that the 1.25%

mortality and expense risk charge to be

assessed under the Existing Contracts

and Future Contracts is/will be within

the range of industry practice with

respect to comparable annuity products.

Applicants represent that this

determination is based upon

Applicants’ analysis of publicly

available information about similar

industry products, taking into

consideration such factors as: current

charge levels; benefits provided; charge

level guarantees; and guaranteed

annuity rates. Applicants represent that

CG Life will maintain at its home office,

and make available to the Commission

upon request, a memorandum detailing

the methodology used in, and the

results of, the Applicants’ comparative

survey.

7. Applicants acknowledge that the

CDSC will likely be insufficient to cover

all costs relating to the distribution of

the Existing Contracts. To the extent

distribution costs are not covered by the

CDSC, CG Life will recover its

distribution costs from the assets of the

general account. Those assets may

include that portion of the mortality and

expense risk charge which is profit to

CG Life. Applicants represent that CG

Life has concluded that there is a

reasonable likelihood that the

distribution financing arrangement

proposed under the Existing Contracts

and Future Contracts will benefit the

Variable Account, the Future Accounts,

Contract owners, and Future Contract

owners. The basis for this conclusion is

set forth in a memorandum which will

be maintained by CG Life at its home

office and will be made available to the

Commission upon request.

8. CG Life represents that the Variable

Account and any Future Account will

invest only in open-end management

investment companies which undertake,

in the event such companies should

adopt a plan for financing distribution

expenses pursuant to Rule 12b–1 of the

1940 Act, to have such plan formulated

and approved by the company’s board

of directors/trustees, a majority of whom

are not interested persons of any such

company.

Conclusion

Applicants assert that for the reasons

and upon the facts set forth above, the

requested exemptions from Sections

26(a)(2)(C) and 27(c)(2) of the 1940 Act

are necessary and appropriate in the

public interest and consistent with the

protection of investors and the purposes

fairly intended by the policy and

provisions of the 1940 Act.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12238 Filed 5–15–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37191; File No. SR–CTA/

CQ–96–1]

Consolidated Tape Association; Order

Granting Approval of Proposed

Restatements and Amendments to the

Restated Consolidated Tape

Association Plan and the Consolidated

Quotation Plan

May 9, 1996.

I. Introduction

On December 26, 1995, the

Consolidated Tape Association (‘‘CTA’’)

and Consolidated Quotation (‘‘CQ’’)

Plan Participants filed with the

Securities and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) amendments

to the Restated CTA Plan and CQ Plan

pursuant to Rule 11Aa3–2 of the

Securities Exchange Act of 1934

(‘‘Act’’). Notice of the filing appeared in

the Federal Register on January 25,

1996.1 No comment letters were

received in response to the Notice. For

the reasons stated below, the

Commission has determined to approve

the filing.

II. Description

A. Overview of the Changes

The changes to the CQ and CTA Plans

broaden ‘‘concurrent uses’’ of the CTA

and CQ facilities, incorporate a number

of housekeeping changes, and

consolidate and reorganize the

‘‘Financial Matters’’ provisions of both

plans. In an attempt to make the plans

less legalistic, and therefore easier to

read, the filing expands the use of

definitions used throughout the plans,

and deletes certain language that is

almost two decades old and outdated.

Furthermore, the amendments provide

the Participants with greater flexibility

in prescribing contract and other

requirements for vendor and subscriber

services, including the use of the

Subscriber Addendum or such alternate

requirements as the Participants may

prescribe.

B. Second Restatement of the CTA Plan

The filing restates and amends the

Restated CTA Plan.2 The restatement

(the ‘‘Second Restatement of the CTA

Plan’’) incorporates into the Restated

CTA Plan the 17 substantive

amendments, and 16 charges

amendments, to the Restated CTA Plan

that the Commission has previously

approved and incorporates the

additional amendments submitted to the

Commission.3

The amendments (1) revise the form

of agreement 4 into which the

Participants require vendors and certain

end users to enter (the ‘‘Consolidated

Vendor Form’’) and (2) introduce a form

of addendum (the ‘‘Subscriber

Addendum’’) that the Participants,

under appropriate circumstances, will

allow vendors to attach to, or to

incorporate into, agreements with

certain subscribers as a surrogate for the

form of agreement that the participants

currently require subscribers to execute.

C. Restated CQ Plan

The filing restates and amends the CQ

Plan.5 The restatement (the ‘‘Restated

CQ Plan’’) incorporates into the CQ Plan

the 21 substantive amendments, and 6

changes amendments, to the CQ Plan

that the Commission has previously

approved and incorporates the

additional amendments submitted to the

Commission.6

The Participants are also proposing to

use the revised Consolidated Vendor

Form and the Subscriber Addendum in

connection with the Restated CQ Plan,

in the same manner as in the proposed

Second Restatement of the CTA Plan.

III. Discussion

The Commission has determined that

the Second Restatement of the CTA Plan

and the Restated CQ Plan are consistent

with the Act. Rule 11Aa3–2(c)(2) under
Federal Register / Vol. 61, No. 96 / Thursday, May 16, 1996 / Notices 24843

7The Commission notes that Section 11A of the

Act establishes special fairness conditions for the

dissemination of market information by exclusive

securities information processors (‘‘SIPs’’) such as

CTA and CQ. Limitations on access to services of

exclusive SIPs must be consistent with the Act,

must not discriminate unfairly, and must not place

an inappropriate burden on competition. Section

11A requires any SIP that directly or indirectly

prohibits or limits access to services offered by the

SIP to immediately file notice thereof with the

Commission. Such prohibition or limitation on

access is subject to review by the Commission. 8 17 CFR 200.30–3(a)(27).

the Act provides, inter alia, that the

Commission approve an amendment to

an effective National Market System

plan if it finds that the amendment is

necessary or appropriate in the public

interest, for the protection of investors

and maintenance of fair and orderly

markets, to remove impediments to and

perfect the mechanisms of a National

Market System, or otherwise in

furtherance of the purposes of the Act.

In making such a determination, the

Commission must examine Section 11A

of the Act and rules promulgated

thereunder. Rule 11Aa3–2(b) lists the

requirements for filing or amending a

national market system plan. The

Commission has determined that the

detailed description of the amendments,

the rationale for the amendments, and

plans for operation meet the

requirements of Rule 11Aa3–2(b).

Furthermore, the amendments will

remove impediments to and perfect the

mechanisms of a National Market

System by affording greater flexibility

that changing technology is likely to

require. Participants will retain greater

flexibility in determining which

vendors and subscribers need to enter

into contracts to receive and use

information and which terms and

conditions apply.7 The Commission

expects that vendors and users of

information will benefit from a more

flexible agreement with the Participants,

and in some instances will be relieved

of additional contractual documents

that today’s practice requires.

The public’s interest in availability of

information will be met by the

broadening of the scope of concurrent

use information to include virtually all

Participant securities (including bonds)

and index information. Amending the

language and format of the two plans to

make them more closely comport with

each other will result in drafting

economies, and a more easily readable

document.

IV. Conclusion

For the reasons discussed above, the

Commission finds that the proposed

amendments to the CTA and CQ Plans

are consistent with the Act, and the

Rules thereunder.

It is therefore ordered, pursuant to

Section 11A of the Act, that the

amendments to the CTA and CQ Plans

be, and hereby are, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12237 Filed 5–15–96; 8:45 am]

BILLING CODE 8010–01–M

[File No. 500–1]

Comparator Systems Corp; Order of

Suspension of Trading

It appears to the Securities and

Exchange Commission that questions

that have been raised about the

adequacy and accuracy of publiclydisseminated information about

Comparator Systems Corp. concerning,

among other things, the assets recorded

on its financial statements.

The Commission is of the opinion that

the public interest and the protection of

investors require a suspension of trading

in the securities of the above listed

company.

Therefore, it is ordered, pursuant to

Section 12(k) of the Securities Exchange

Act of 1934, that trading in the above

listed company is suspended for the

period from 9:30 a.m. EDT, May 14,

1996 through 11:59 p.m. EDT, on May

28, 1996.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–12468 Filed 5–14–96; 2:46 pm]

BILLING CODE 8010–01–M

[Release No. 34–37187; File No. SR–CBOE–

96–25]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Inc.; Notice of Filing and Order

Granting Accelerated Approval of

Proposed Rule Change Relating to

Members’ Use of Blanket or Standing

Assurances as to Stock Availability To

Satisfy Their Affirmative Determination

Requirements Under the Prompt

Receipt and Delivery of Securities

Interpretation When Effecting Short

Sales

May 9, 1996.

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 April 17, 1996, the

Chicago Board Options Exchange, Inc.

(‘‘CBOE’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I and

II below, which Items have been

prepared by the CBOE. This Order

approves the proposed rule change on

an accelerated basis and also solicits

comments from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to make

certain changes to its rules relating to

the requirement to make prior

arrangements to borrow stock or to

obtain other assurances that delivery

can be made on settlement date before

a member or person associated with a

member may sell short. The text of the

proposed rule change is available at the

Office of the Secretary of the CBOE 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

CBOE included statements concerning

the purpose of the 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. CBOE 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 this rule proposal is

to amend an interpretation regarding the

need to make prior arrangements to

borrow stock, warrants, or other

securities that trade subject to Chapter

30 of the Exchange’s rules, or to

otherwise ensure availability of the

subject securities before engaging in

short sales. Specifically, the Exchange

proposes to amend the interpretation to

provide that under certain

circumstances members may rely on

‘‘blanket’’ or standing assurances (e.g.,

daily fax sheets) as to stock availability

to satisfy their affirmative determination

requirements under the Interpretation.

On November 27, 1995, the

Commission published a notice of filing

an immediate effectiveness of a

proposed rule change by the Exchange

which adopted Interpretation .04 to

Rule 30.20 (‘‘Interpretation’’), ‘‘Long’’