33568 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices

21 15 U.S.C. 78s(b)(2).

22 17 CFR 200.30–3(a)(12).

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

2Amendment No. 1 adds a provision to proposed

PSE Rule 6.82, Commentary .05 stating that no

Market Maker Cooperatives may participate as

LMMs in the pilot program. Amendment No. 1 also

replaces a PSE Rule 6.82, Commentary .05 reference

to ‘‘April l, 1997’’ as the proposed expiration date

for the pilot program, with a reference to ‘‘[Date]’’.

Letter from Michael D. Pierson, Senior Attorney,

Market Regulation, PSE, to Michael Walinskas,

Special Counsel, Office of Market Supervision

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

(‘‘Division’’), Commission, dated June 4, 1996

(‘‘Amendment No. 1’’).

thirtieth day after the date of

publication of notice thereof in the

Federal Register. Specifically,

Amendment No. 1 proposes a minimum

guaranteed right of participation of at

least 25% of the trade to Exchange

members who initiate Request for

Quotes in respect of FLEX Equity

Options, as described above. The

Commission believes that the

amendment is similar to existing

provisions in the Exchange rules

regarding FLEX Index Options and

raises no new regulatory issues.

Furthermore, Amendment No. 1

proposes to conform the PSE’s rules

concerning the selection of underlying

securities for FLEX Equity Option

trading, as described above, to the

proposed rules of other exchanges on

the same subject, and raises no new

regulatory issues. Additionally, the

Amex and Phlx proposals were subject

to a full notice and comment period,

and no comments were received.

Accordingly, the Commission believes,

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

Act, that good cause exists, to approve

Amendment No. 1 to the proposed rule

change, on an accelerated basis.

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 thereof in the

Federal Register. Specifically,

Amendment No. 2 proposes certain nonsubstantive amendments to PSE Rule

8.103(e)(3) to clearly distinguish which

particular guaranteed minimum right of

participation is available to a FLEX

Equity Option and which is available to

FLEX Index Option. The Commission

believes that Amendment No. 2 is a

non-substantive amendment and raises

no new regulatory issues. Moreover, the

Commission believes that the

amendment clarifies and strengthens the

proposed rule change and the

Exchange’s FLEX Option rules,

generally.

Accordingly, the Commission

believes, consistent with Section 6(b)(5)

of the Act, that good cause exists, to

approve Amendment No. 2 to the

proposed rule change, on an accelerated

basis.

The Commission finds good cause for

approving Amendment No. 3 to the

proposed rule change prior to the

thirtieth day after the date of

publication of notice thereof in the

Federal Register. Specifically, the

Exchange proposes to amend PSE Rule

8.101(a) to allow FLEX transactions

during normal Exchange options trading

hours on any business day; provided

however, that the Board of Governors, in

its discretion at any time, may, with

normal trading hours, determine to

narrow or otherwise restrict the time set

for FLEX options trading. The

Commission believes that the

Exchange’s proposal to allow FLEX

transactions during normal Exchange

options trading hours on any business

day, as described above, is similar to

that provided under other options

exchanges’ rules regarding FLEX trading

hours and raises no new regulatory

issues.

Accordingly, the Commission

believes, consistent with Section 6(b)(5)

of the Act, that good cause exists, to

approve Amendment No. 3 to the

proposed rule change, on an accelerated

basis.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning Amendment Nos.

1, 2, and 3 to the proposed rule change.

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 will also be available for

inspection and copying at the principal

office of PSE. All submissions should

refer to File No. SR–PSE–96–11 and

should be submitted by July 18, 1996.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,21 that the

proposed rule change (File No. SR–PSE–

96–11), as amended, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.2

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16366 Filed 6–26–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37335; File No. SR–PSE–

96–09]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Pacific Stock Exchange

Incorporated Relating to the Options

Book Pilot Program

June 19, 1996.

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

Securities Exchange Act of 1934

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

April 1, 1996, the Pacific Stock

Exchange Incorporated (‘‘PSE’’ 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 Exchange filed

Amendment No. 1 to the proposed rule

change on June 4, 1996.2 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 PSE proposes to establish a pilot

program under which its Lead Market

Makers (‘‘LMMs’’) would be able to

assume operational responsibility for

the options public limit order book

(‘‘Book’’) in certain issues.

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 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.
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices 33569

3Telephone conversation between Michael D.

Pierson, Senior Attorney, PSE, and Michael

Walinskas, Special Counsel, OMS, Division,

Commission, on June 4, 1996.

Each option issue typically has only one symbol

associated with it, unless LEAPs are traded on that

issue, in which case there usually would be two

additional symbols related to the issue, or unless a

contract adjustment is necessary due, for example,

to a merger or stock split, in which case one

additional symbol usually would be added.

4Amendment No. 1, supra note 2. 5 17 CFR 240.15c3–1.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The Exchange proposes to amend its

rules governing LMMs to allow some

LMMs to manage the Book function in

certain designated issues. The program

would be implemented on a limited

basis, involving no more than three

LMMs and no more than forty option

symbols in total,3 during a one-year

pilot phase. No Market Maker

Cooperatives would be permitted to

participate in the pilot.4 The Exchange

would evaluate the program, and, six

months prior to its expiration, would

determine whether to modify it and

whether to seek permanent approval

from the Commission. Under the pilot,

the designated LMMs would manage the

Book function, take responsibility for

trading disputes and errors, set rates for

Book execution, and pay the Exchange

a fee for systems and services.

The LMMs who participate during the

pilot phase would be selected by the

Options Floor Trading Committee based

on some or all of the following factors:

experience with trading an option issue

as a Market Maker or LMM and

willingness to assume LMM

responsibilities; trading volume of the

issue(s); adequacy of capital;

willingness to promote the Exchange as

a marketplace; history of adherence to

Exchange rules and securities laws;

trading crowd/LMM evaluations

conducted pursuant to Options Floor

Procedure Advice B–13; and ability to

manage the Book operation. Only dually

or multiply traded option issues would

be eligible during the pilot phase.

The Exchange proposes to amend its

Rule 6.82 to provide that, subject to the

approval of the Exchange, LMMs would

be eligible to perform all functions of

the Order Book Official (‘‘OBO’’) in

designated option issues pursuant to

Rules 6.51 through 6.59. In that regard,

the Exchange would allow the LMM to

use Exchange personnel to assist the

LMM in performing the OBO function,

and the Exchange would charge the

LMM a reasonable fee for such use of

Exchange personnel. If the program is

made permanent, LMMs would be

responsible for hiring and maintaining

their own employees, but the Exchange

would provide employees to assist

LMMs when necessary due to market

conditions. In all cases, however,

employees working in the Book

operation would be subject to all

policies and procedures established by

the Exchange. In addition, the LMM

would resolve trading disputes, subject

to the review of two Floor Officials

upon the request of any party to such

dispute. The LMM also would be

required to disclose Book information to

Members upon request, pursuant to PSE

Rule 6.57.

With regard to their duties as market

makers, LMMs would be required to

perform all obligations provided in

Rules 6.35 through 6.40 and 6.82. In

addition, in executing transactions for

their own ‘‘Market Maker’’ accounts,

LMMs would have a right to participate

pro rata with the trading crowd in trades

that take place at the LMM’s principal

bid or offer.

The proposal further provides that if

the Options Allocation Committee

decides to reallocate an issue to the

market maker system pursuant to PSE

Rule 6.82(f)(2), the terminated LMM

may receive a proportionate share of the

net Book revenues, not to exceed onehalf, for any period specified by the

Options Appointment Committee up to

a maximum of five years. Such award

would take into account various factors,

including: the length of the time of

LMM service; the LMM’s capital

commitment; efforts expended as LMM;

activity level of the issue when the

LMM assumed responsibility for the

Book function; and other relevant

factors. The Exchange intends to

develop a procedure for determining

‘‘net Book revenues’’ and specific

guidelines for the Options Appointment

Committee to follow in determining the

amount of net Book revenues, if any, to

be awarded.

Finally, the proposal specifies that

LMMs who perform the function of an

Order Book Official pursuant to PSE

Rule 6.82(h) shall maintain ‘‘minimum

net capital,’’ as provided in Rule 15c3–

1 under the Act,5 and also shall

maintain a cash or liquid asset position

of at least $500,000, plus $25,000 for

each issue over five issues for which

they perform the function of an OBO.

The Exchange believes that the

proposal is consistent with Section 6(b)

of the Act, in general, and Section

6(b)(5), in particular, in that it is

designed to facilitate transactions in

securities, to promote just and equitable

principles of trade, and to protect

investors and the public interest.

(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 that is not

necessary or 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

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, 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 in

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC. 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–PSE–96–09 and

should be submitted by July 8, 1996.
33570 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Notices

6 17 CFR 200.30–3(a)(12).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–16370 Filed 6–26–96; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Supplementary Agreement on Social

Security Between the United States

and Germany; Entry Into Force

The Commissioner of Social Security

gives notice that a supplementary

agreement entered into force on May 1,

1996, which amends the Social Security

agreement between the United States

(U.S.) and Germany that has been in

effect since December 1, 1979. The

supplementary agreement, which was

signed on March 6, 1995, was

concluded pursuant to section 233 of

the Social Security Act.

The supplementary agreement

updates and clarifies several provisions

in the original U.S.-German Social

Security agreement. Its primary

purpose, however, is to permit the

payment of German benefits to certain

ethnic German Jews who migrated to the

U.S. from parts of Eastern Europe that

were overrun by the Nazis. People who

qualify will receive monthly Social

Security benefits from Germany based

on the time they spent working in their

former homelands, even though they

may never have worked in Germany.

Individuals who wish to obtain copies

of the supplementary agreement or want

general information about its provisions

may write to the Social Security

Administration, Office of International

Policy, Post Office Box 17741,

Baltimore, Maryland 21235. Individuals

who wish to obtain information about

the provisions affecting ethnic German

Jews from Eastern Europe should

contact the nearest German consulate.

Dated: June 10, 1996.

Shirley S. Chater,

Commissioner of Social Security.

[FR Doc. 96–16403 Filed 6–26–96; 8:45 am]

BILLING CODE 4190–29–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2852]

Illinois; Declaration of Disaster Loan

Area (Amendment #4)

In accordance with a notice from the

Federal Emergency Management Agency

dated June 14, 1996, the abovenumbered Declaration is hereby

amended to include Champaign County

in the State of Illinois as a disaster area

due to damages caused by severe storms

and flooding beginning on April 28,

1996 and continuing through May 17,

1996.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Ford and McLean in the State of Illinois

may be filed until the specified date at

the previously designated location.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is July

5, 1996, and for loans for economic

injury the deadline is February 6, 1997.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)

Dated: June 19, 1996.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 96–16428 Filed 6–26–96; 8:45 am]

BILLING CODE 8025–01–P

Declaration of Disaster Loan Area

#2859, (Amendment #1); West Virginia

In accordance with a notice from the

Federal Emergency Management

Agency, effective June 5, 1996, the

above-numbered Declaration is hereby

amended to expand the type of incident

for this disaster to include damages

resulting from wind driven rain and

mudslides, and to expand the incident

period to May 15, 1996 and continuing.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is July

22, 1996, and for loans for economic

injury the deadline is February 24, 1997.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: June 19, 1996.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 96–16422 Filed 6–26–96; 8:45 am]

BILLING CODE 8025–01–P

Revocation of License; Small Business

Investment Company

Pursuant to the authority granted to

the United States Small Business

Administration by the Order of the

United States District Court for the

Northern District of Oklahoma, dated

June 12, 1986, the United States Small

Business Administration hereby revokes

the license of Bartlesville Investment

Corporation, a Oklahoma Corporation,

to function as a small business

investment company under the Small

Business Investment Company License

No. 06/10–0139 issued to Bartlesville

Investment Corporation on February 28,

1964 and said license is hereby declared

null and void as of February 26,1996.

United States Small Business

Administration.

Dated: June 20, 1996.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 96–16426 Filed 6–26–96; 8:45 am]

BILLING CODE 8025–01–P

Revocation of License of Small

Business Investment Company

Pursuant to the authority granted to

the United States Small Business

Administration by the Order of the

United States District Court of New

Mexico, dated March 21, 1988, the

United States Small Business

Administration hereby revokes the

license of Fluid Capital Corporation, a

New Mexico Corporation, to function as

a small business investment company

under the Small Business Investment

Company License No. 06/06–0224

issued to Fluid Capital Corporation on

November 2, 1979 and said license is

hereby declared null and void as of

January 16, 1996.

United States Small Business

Administration.

Dated: June 20, 1996.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 96–16427 Filed 6–26–96; 8:45 am]

BILLING CODE 8025–01–P

Revocation of License of Specialized

Small Business Investment Company

Pursuant to the authority granted to

the United States Small Business

Administration by the Order of the

United States District Court of New

Mexico, dated March 21, 1988, the

United States Small Business

Administration hereby revokes the

license of Fluid Financial Corporation,

a New Mexico Corporation, to function

as a specialized small business

investment company under the Small

Business Investment Company License

No. 06/06–5249 issued to Fluid

Financial Corporation on December 10,

1982 and said license is hereby declared

null and void as of January 16, 1996.

United States Small Business

Administration.