24528 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Notices

18 27 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See April 12, 2000 letter from Nandita Yagnik,

Exchange, to Rebekah Liu, Special Counsel,

Division of Market Regulation, SEC (‘‘Amendment

No. 1’’). In Amendment No. 1, the Exchange

requested that the proposed rule change be filed

under Section 19(b)(3)(A) of the Act and Rule 19b–

4(f)(6) thereunder. 15 U.S.C. 78s(b)(3)(A) and 17

CFR 240.19b–4(f)(6). The Exchange also requested

that the Commission waive the 5-day notice of its

intent to file the proposal by treating the original

proposed rule change as the prefiling notice

required under Rule 19b–4(f)(6); and requested that

the Commission waive the 30-day period before the

proposal becomes effective to permit the proposed

rule change to become immediately effective.

4 15 U.S.C. 78s(b)(3)(A).

5 17 CFR 240.19b–4(f)(6).

6See Securities Exchange Act Release No. 41210

(March 24, 1999), 64 FR 15857 (April 1, 1999) (SR–

Phlx–96–14).

7 15 U.S.C. 78f(b)(5).

8 15 U.S.C. 78s(b)(3)(A).

9 17 CFR 240.19b–4(f)(6).

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW,

Washington, DC 20549–0609. 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 relation to the

proposed rule change between the

Commission and any persons, 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

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of NASD Regulation.

All submission should refer to File No.

SR–NASD–00–13 and should be

submitted by May 17, 2000.

For the Commission , by the Division of

Market Regulation, pursuant to delegated

authority.18

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–10257 Filed 4–25–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42702, File No. SR–Phlx–

00–19]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Changing the Name of the VWAP

System to ‘‘eVWAP’’

April 19, 2000.

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 3,

2000, the Philadelphia Stock Exchange,

Inc. (‘‘PHLX’’ or ‘‘Exchange’’), filed a

proposed rule change with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’). The

proposed rule change is described in

Items I, II, and III below, which Items

have been prepared by Exchange. On

April 12, 2000, the Exchange filed

Amendment No. 1 to the proposed rule

change.3 The Exchange filed the

proposed rule change, as amended,

pursuant to section 19(b)(3)A) of the

Act,4 and Rule 19b–4(f)(6) thereunder,5

which renders the proposed rule change

effective upon filing with the

Commission. The Commission is

publishing this notice to solicit

comments on the proposed rule change,

as amended, from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to amend

Phlx Rule 237 so that the name of an

electronic trading system, and the name

of the calculation component of this

system, currently referred to as

‘‘Universal Trading System,’’ ‘‘UTS,’’

‘‘Volume Weighted Average Price

Trading System,’’ ‘‘VTS,’’ ‘‘Volume

Weighted Average Price’’ and

‘‘VWAPTM,’’ would be changed to

‘‘eVWAPTM.’’ eVWAP would denote

both the name of the system and the

name of the calculation component,

depending upon the context in which

the term is used.

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 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

Exchange 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

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange proposes to change the

name of this electronic trading system

and the terminology for its pricing

calculation to ‘‘eVWAP.’’ The system,

which was developed by Universal

Trading Technologies Corporation

(‘‘UTTC’’), is operated as a facility of the

Exchange under Section 3(a)(2) of the

Act. The Commission approved the

Exchange’s operation of the system on

March 24, 1999.6

UTTC has informed the Exchange that

the proposed name and reference

changes will be consistent with and

facilitate the registration of a certain

trademark by UTTC in ‘‘eVWAP’’. The

‘‘e’’ will promote UTTC’s branding

strategy regarding the system and more

clearly reflect the electronic character of

the system and its calculation

component. The proposed rule change

does not change the substance or

operation of the system or the

calculations.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b)(5) of the Act 7 in that it is

designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system, and, in general, 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, as amended,

will result in 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

The Exchange has neither solicited

nor received written comments on the

proposed rule change, as amended.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective upon filing pursuant to section

19(b)(3)(A)(iii) of the Act 8 and Rule

19b–4(f)(6) 9 thereunder because the

proposed rule change does not (i)

significantly affect the protection of

investors or the public interest; (ii)

impose any significant burden on

competition; and (iii) become operative

for 30 days from the date on which the

proposed rule change was filed, or such

shorter time as the Commission may

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Notices 24529

10 In reviewing this proposal, the Commission has

considered its impact on efficiency, competition,

and capital formation. 15 U.S.C. 78c(f).

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See April 12, 2000 letter from Nandita Yagnik,

Exchange, to Rebekah Liu, Special Counsel,

Division of Market Regulation, SEC (‘‘Amendment

No. 1’’). In Amendment No. 1, the Exchange

requested that the proposed rule change be filed

under Section 19(b)(3)(A) of the Act and Rule 19b–

4(f)(6) thereunder. 15 U.S.C. 78s(b)(3)(A) and 17

CFR 240.19b–4(f)(6). The Exchange also requested

that the Commission waive the 5-day notice of its

intent to file the proposal by treating the original

proposed rule change as the prefiling notice

required under Rule 19b–4(f)(6); and requested that

the Commission waive the 30-day period before the

proposal becomes effective to permit the proposed

rule change to become immediately effective.

4 15 U.S.C. 78s(b)(3)(A).

5 17 CFR 240.19B–4(F)(6).

6The Exchange has filed a proposed rule change

to change the name of VTS to ‘‘eVWAP.’’ See SR–

Phlx–00–19.

7See Securities Exchange Act Release No. 41210

(March 24, 1999), 64 FR 15857 (April 1, 1999)(SR–

Phlx–96–14).

8The Commission requested that the Exchange

provide a report that: (i) Addresses the overall

reliability of the System and identifies any System

outages or other technical problems; (ii) provides a

summary of the Exchange’s surveillance efforts; (iii)

discusses the strategies employed by the users and

committers and evaluates whether the system is

useful to market participants; (iv) provides feedback

from Exchange members and non-members

regarding their experience with the system; and (v)

measures the system’s impact and effect on the

primary market of eligible securities. The Exchange

proposes to submit its report by September 1, 2000.

9 15 U.S.C. 78f(b)(5).

designate. At any time within 60 days

of the filing of such proposed rule

change, the Commission may summarily

abrogate such rule change if it appears

to the Commission that such action is

necessary or appropriate in the public

interest, for the protection of investors,

or otherwise in furtherance of the

purposes of the Act. The Commission

finds that the proposed rule change does

not affect the substantive operation of

the Volume Weighted Average Price

Trading System. In addition, the

Commission finds that the Exchange

provided the required prefiling written

notice of its intent to file this proposed

rule change when it filed the original

proposed rule change.10

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing

including whether the proposed rule

change is consistent with the Act.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. 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

Room. 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–00–19 and should be

submitted by May 17, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–10369 Filed 4–25–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42701; File No. SR–Phlx–

00–26]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Amending PHLX Rule 237 To Extend

the Pilot Program for VTS Until

November 1, 2000

April 19, 2000.

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 24,

2000, the Philadelphia Stock Exchange,

Inc. (‘‘PHLX’’ or ‘‘Exchange’’), filed a

proposed rule change with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’). The

proposed rule change is described in

Items I, II, and III below, which Items

have been prepared by Exchange. On

April 12, 2000, the Exchange filed

Amendment No. 1 to the proposed rule

change.3 The Exchange filed the

proposed rule change, as amended,

pursuant to section 19(b)(3)(A) of the

Act,4 and Rule 19b–4(f)(6) thereunder,5

which renders the proposed rule change

effective upon filing with the

Commission. The Commission is

publishing this notice to solicit

comment son the proposed rule change,

as amended, from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to extend the

pilot program for the Volume Weighted

Average Price (‘‘VWAP’’) Trading

System (‘‘VTS’’ or ‘‘System’’) 6 under

November 1, 2000.

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 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

Exchange 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

Statutory Basis for, the Proposed Rule

Change

1. Purpose

VTS is a pre-opening order matching

session for the electronic execution of

large-sized stock orders at the volume

weighted average price (‘‘VWAP’’). The

Exchange received Commission

approval to operate VTS as a one year

pilot on March 24, 1999.7 The VTS

became operational on August 27, 1999.

As a condition to the pilot program, the

Commission requested that the

Exchange prepare a comprehensive

report pertaining to the operation and

effectiveness of the VTS.8

The Exchange now proposes to extend

the current pilot program until

November 1, 2000 in order to have a

complete year of trading information

through the VTS. This will allow the

Exchange to issue the required report

based on a full year of trading which

should provide a more comprehensive

assessment of the VTS.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

section 6(b)(5) of the Act 9 in that it is

designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to remove impediments to and