26258 Federal Register / Vol. 65, No. 88 / Friday, May 5, 2000 / Notices

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3The Commission notes that it approved these

two amendments to Exchange Rule 123B on a pilot

basis on November 30, 1999. See Exchange Act

Release No. 42184 (November 30, 1999), 64 FR

68710 (December 8, 1999), File No. SR–NYSE–99–

40. A third amendment to Exchange Rule 123B

relating to execution reports of stopped orders was

also proposed and approved by the Commission.

However, the Exchange decided not to implement

this third amendment due to capacity and resource

limitations. See letter from James E. Buck, Senior

Vice President and Secretary. Exchange, to Richard

Stasser, Assistant Director, Division of Market

Regulation, Commission, dated February 25, 2000.

In this proposed rule change, the Commission

provided notice of the modified pilot program

instituting only two out of the three amendments

originally proposed in SR–NYSE–99–40.

4On March 22, 2000, the Commission also

approved on an accelerated basis the Exchange’s

request to extend the pilot program relating to

commission-free executions and cancelled/replaced

orders until April 26, 2000. See Exchange Act

Release No. 42694 (April 17, 2000), 65 FR 24245

(April 25, 2000), File No. SR–NYSE–00–13.

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

6 15 U.S.C. 78k–1(a)(1)(C).

7 In approving this rule change, the Commission

has considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12).

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 NASD. All

submissions should refer to File No.

SR–NASD–00–25 and should be

submitted by May 26, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Jonathan G. Katz,

Secretary.

[FR Doc. 00–11255 Filed 5–04–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42727; File No. SR–NYSE–

00–09]

Self-Regulatory Organizations; Order

Granting Accelerated Approval of

Proposed Rule Change by the New

York Stock Exchange, Inc. Amending

Exchange Rule 123B

April 27, 2000.

I. Introduction

On February 28, 2000, the New York

Stock Exchange, Inc. (‘‘NYSE’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’, pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (the ‘‘Act’’),1 and Rule 19b–4

thereunder,2 a proposed rule change to

amend Exchange Rule 123B. The

proposed rule change was published for

comment in the Federal Register on

March 31, 2000. The Commission has

received no comments on the proposal.

This order grants accelerated approval

to the proposed rule change.

II. Description of the Proposal

The Exchange seeks permanent

approval of a pilot program that two

amendments to Exchange Rule 123B.

The first amendment to Rule 123B

provides for the commission-free

execution of all orders received by

Exchange specialists through the

SuperDOT system if such orders are

executed within five minutes. The

Exchange instituted the pricing

initiative of commission-free executions

beginning with trades executed on

December 29, 1999.

A second amendment added language

to Rule 123B to clarify that if an order

that had been placed with the specialist

is canceled and replaced, the

replacement order is considered a new

order for purposes of the Rule. Since the

implementation of the pilot program,

the Exchange is not aware of any

problems associated with the program.

The Exchange is now proposing to

make the pilot program with respect to

commission-free executions and

cancelled/replaced orders permanent.3

The Exchange believes that the pilot

program is operating successfully and

requests permanent approval of the

proposed rule change.4

III. Discussion

The Commission finds that the

proposed rule change relating to

commission-free executions and

cancelled/replaced orders is consistent

with the requirements of the Act. In

particular, the Commission finds the

proposal is consistent with Section

6(b)(5) 5 which requires, among other

things, that the rules of an exchange be

designed 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. The proposed rule

change is also consistent with Section

11A(a)(1)(C) 6 of the Act which states

that it is in the public interest and

appropriate for the protection of

investors and the maintenance of fair

and orderly markets to assure, among

other things, economically efficient

execution of securities transactions, and

fair competition among brokers and

dealers, among exchange markets, and

between exchange markets and markets

other than exchanges.

The proposed rule change eliminating

commissions on orders received through

the SuperDOT system that are executed

within a timely fashion furthers the

Exchange’s ability to compete

effectively for order flow from other

marketplaces. Competition between and

among markets drives market

intermediaries to provide more efficient

services which, in turn, promotes a free

and open market and benefits investors

and the public interest. Investors and

the public interest may also benefit from

the accompanying reduction in

transaction costs.7

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice of filing in the

Federal Register. In addition to the

reasons noted above, the Exchange has

stated that the program is operating

without problems. Because the pilot

approval expires on April 26, 2000,

accelerated approval of this filing will

permit the Exchange to continue its

program for commission-free execution

of orders received through SuperDOT

permanently and without interruption,

and will resolve the treatment of

cancelled and replaced orders.

IV. Conclusion

It Is Therefore Ordered, pursuant to

19(b)(2) of the Act,8 that the proposed

rule change (SR–NYSE–00–09) is

approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Jonathan G. Katz,

Secretary.

[FR Doc. 00–11228 Filed 5–04–00; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice Number 3280]

International Telecommunication

Advisory Committee

Radiocommunications (ITAC–R);

Notice of Meeting

The International

Telecommunications Advisory

Committee—Radiocommunications

provides policy and technical advice to

the department on matters concerning

radiocommnuication in preparation for

United States participation in

international meetings and conferences.