FOR IMMEDIATE RELEASE 98-08 Chairman Levitt Announces Winner of Gobbledygook Contest Washington, D.C., January 21, 1998 -- Securities and Exchange Commission Chairman Arthur Levitt announced today that Dorothy Heyl of the Commission's Northeast Regional Office has won first place in the "Chairman's Plain English Challenge." Ms. Heyl, who has been with the Commission for more than 10 years, will receive a $250 U.S. Savings Bond for submitting the winning entry, a re- write of a Federal Register submission. Barbara Katz and Richard Strasser took second and third place. There were more than 70 entries from throughout the Commission. On July 16, 1997, Chairman Levitt challenged Commission employees to find a piece of `gobbledygook' and transform it into plain English. A panel of three independent judges selected the winners. Dr. William D. Lutz is a lawyer and Professor of English at Rutgers University, and the author or co-author of fourteen books about communication. Professor Joseph Kimble teaches legal writing and legal drafting at the Thomas Cooley Law School in Lansing, Michigan and, among other activities, writes the "Plain Language" column in the Michigan Bar Journal. Dr. Annetta Cheek is currently at the National Performance Review, Vice President Gore's task force on reinventing government, and helps government agencies draft documents for the public. Chairman Levitt said, "As the Commission considers a rule to require that prospectuses be written in plain English, it's important that we practice what we preach by communicating clearly. This contest has helped raise awareness within the Commission of the turgid legalese that surrounds us everyday -- produced both within and outside the Commission. Also, I've instructed the staff to see whether we can incorporate the plain English rewrites into existing SEC documents. My congratulations to first place winner Dorothy Heyl and all the participants for creatively saving us from the curse of the 450 word sentence. Thanks also to the judges for their time and expertise." An excerpt of the winning entry and the entire second and third place entries are attached. # # # Before #1 After #1 -- Dorothy Heyl IV. Solicitation of Comments 2. How to Submit Comments: Interested persons are invited You may submit written data, to submit written data, views views or arguments concerning and arguments concerning the the proposed rule change by foregoing. Persons making delivering six copies of your written submissions should file submission to: six copies thereof with the Secretary, Securities and Office of the Secretary Exchange Commission, 450 Fifth Securities and Exchange Street, N.W., Washington, D.C. Commission 20549. Copies of the 450 Fifth St., N.W. submission, all subsequent Washington, D.C. 20549 amendments, all written statements with respect to the Please note on the first page of proposed rule change that are your comment that it relates to filed with the Commission, and File No. SR-CBOE-97-24. The all written communications deadline for comments on the relating to the proposed rule proposed rule is July 7, 1997. change between the Commission and any person, other than 3. Public Files Available: those that may be withheld from the public in accordance with The CBOE's application contains the provisions of 5 U.S.C. 552, the text of the proposed rule, will be available for as well as a fuller treatment of inspection and copying in the the summary description of the Commission's Public Reference proposed rule contained in this Section, 450 Fifth Street, notice. You can obtain copies N.W., Washington, D.C. 20549. of the application, filed on May Copies of such filing will also 21, 1997, and an amended be available for inspection and application, filed on June 4, copying at the principal office 1997, from Jonathan G. Katz, the of the CBOE. All submissions Commission's Secretary (see should refer to File No. SR- address above) or the CBOE's CBOE-97-24 and should be office in Chicago. submitted by July 7, 1997. You can inspect and copy all For the Commission, by the comments submitted on the Division of Market Regulation, proposed rule, and all of the pursuant to delegated Commission's correspondence authority.[7] relating to the proposed rule (unless the Commission withholds the correspondence, as permitted [7] 17 CFR 200.30-3(a)(12) by 5 U.S.C. 552) in the Commission's Public Reference Room (also at the address shown above). You can also find these public documents at the CBOE's office in Chicago. * * * * * * * * * * * * * * * * * * * * * * * Before #2 SEC Office of Administrative and Personnel Management; SECR 5-9, Administrative Practices -- Public Transportation Subsidy Program 8. Distributing Subsidy. Generally, subsidy will be issued in a form that is not readily transferable into cash. a. In the headquarters, subsidy is distributed on a bimonthly basis and in two allotments, one for the current month in which receipt was acknowledged, and one for the following month. Therefore, subsidy should be used only in the month for which it was intended. Using the subsidy in any other manner could have the following implications: (1) If an employee receives subsidy bimonthly, and all of it is used during the first month of issue, and a sufficient part of the second month is consumed with leave or travel, the employee is required to reimburse the Government for the month in which leave or travel occurred. (2) If an employee takes leave or travel for most of a month in which a subsidy is disbursed, and subsidy is requested sometime during the last two weeks of the month, the employee may not qualify for the subsidy for that month. However, the employee could qualify for the subsidy if the expense of public transportation used, would allow the entire subsidy to be consumed before the end of the month. An employee would also qualify for a subsidy for the next month provided the employee was planning to be in the office for a sufficient amount of time to use the subsidy. After #2 -- Barbara Katz THE SEC'S PUBLIC TRANSPORTATION SUBSIDY PROGRAM 8. How We Distribute the Subsidy If you work at SEC Headquarters, here's what you need to know about how we distribute the public transportation subsidy: * We will give you the subsidy every month. * We will give you two months' worth of the subsidy at a time, usually in a form you can't redeem for cash -- farecards, for example. * The main rule you must follow when we give you the two farecards every other month is that you must use one farecard the first month and the other farecard the second month. If you don't follow this rule, here's what might happen: If you use both farecards in the first month and then are traveling or on leave for more than half of the second month, you'll have to reimburse us for the second farecard. On the other hand, if you are traveling or on leave for most of the first month and don't ask us for your subsidy until the last two weeks of that month, you might not qualify for a farecard for the first month. The only way you could receive a farecard that month is to spend enough on public transportation in the last two weeks to use a full farecard. You could still receive a farecard for the second month, though, if you plan to be in the office long enough that month to use a full farecard. * * * * * * * * * * * * * * * * * * * * * * * Before #3 Net Capital Requirements for Brokers or Dealers (a) Every broker or dealer shall at all times have and maintain net capital no less than the greater of the highest minimum requirement applicable to its ratio requirement under paragraph (a) (1) of this section, or to any of its activities under paragraph (a) (2) of this section. Each broker or dealer also shall comply with the supplemental requirements of paragraphs (a) (4) and (a) (9) of this section, to the extent either paragraph is applicable to its activities. In addition, a broker or dealer shall maintain net capital of not less than its own net capital requirement plus the sum of each broker's or dealer's subsidiary or affiliate minimum net capital requirements, which is consolidated pursuant to Appendix C, 240.15c3-1c. After #3 -- Richard Strasser The Net Capital Rule in Plain English All brokers and dealers must keep on hand a certain amount of cash or other assets that they can exchange for cash very quickly. This figure is called net capital. A broker or dealer may calculate the amount of net capital it needs in one of two ways. The first way is explained in paragraph (a) (1) below. The second is explained in paragraph (a) (2). In calculating how much capital they must keep on hand, brokers and dealers must include not only their own capital requirement but also the capital required by each of their subsidiaries or affiliates. In addition to keeping minimum net capital, some brokers and dealers also must meet other requirements. These are explained in paragraphs (a) (4) and (a) (9) of the rule.