25782 Federal Register / Vol. 65, No. 86 / Wednesday, May 3, 2000 / Notices

22 January 18, 2000, telephone conversation

among Michael Pierson, Director, Regulatory Policy,

PCX, and Christine Richardson, Attorney, and

Marla Chidsey, Attorney, Division of Market

Regulation, Commission.

23 In approving this proposed rule change, the

Commission has considered the proposal’s impact

on efficiency, competition, and capital formation.

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

24 15 U.S.C. 78s(b)(2).

25 17 CFR 200.30.3(a)(12).

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

2 17 CFR 240.19b–4.

3For the purposes of this filing, an ‘‘owner’’ shall

mean any person or entity who or which is a holder

of equitable title to a membership in the Exchange.

4Although the term ‘‘seat owner’’ is not defined

in Phlx’s By-laws or Certificate of Incorporation, the

term ‘‘seat-owner’’ is the equivalent of an owner of

a ‘‘membership’’ as referenced in Phlx’s By-laws

and Certificate of Incorporation.

5The Commission approved the original pilot

program on January 5, 2000. See Securities

Exchange Act Release No. 42318 (January 5, 2000),

65 FR 2216 (January 13, 2000) (SR–Phlx–99–49). On

November 24, 1999, the Exchange filed a proposal

seeking permanent approval of the $1,500 capital

funding fee. See Securities Exchange Act Release

No. 42405 (February 8, 2000), 65 FR 8226 (February

17, 2000) (SR–Phlx–99–51). The proposal is

pending.

6For example, a seat owner on September 30th

will be billed $1,500 for the month of October.

7This fee is distinguished from the Exchange’s

technology fee in that the technology fee was

intended to cover system software modifications,

Year 2000 modifications, specific system

development (maintenance) costs, SIAC and OPRA

communication charges, and ongoing system

maintenance charges. See Securities Exchange Act

Release No. 38394 (March 12, 1997), 62 FR 13204

(March 19, 1997) (SR–Phlx–97–09).

8 15 U.S.C. 78f(b).

9 15 U.S.C. 78f(b)(4).

not be affected by the proposed rule

change.22

The PCX asserts that currently the ITS

Coordinator can accept commitments on

behalf of other specialists without

creating reasonable disputes among PCX

specialists. However, the PCX is waiting

for Commission approval of the

proposed rule change prior to providing

the ITS Coordinator with the express

authority to accept inbound ITS

commitments on behalf of other

specialists. The Commission believes

that codification of practices and

procedures in written form is

appropriate. The new PCX Rule

provides the ITS Coordinator with the

express authority to accept ITS

commitments on behalf of other

specialists without verbal consent. The

Commission therefore finds it is

appropriate for the Exchange to adopt

new PCX Rule 5.20, Commentary .04.23

IV. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,24 that the

proposed rule change (SR–PCX–99–37)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.25

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–11008 Filed 5–2–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42714; File No. SR–Phlx–

00–29]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Extending Pilot Program Assessing a

Monthly Capital Funding Fee

April 24, 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 April 7,

2000, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with

the Securities and Exchange

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

the proposed rule change as described

in Items I, II, and III, below, which Items

have been prepared by the Exchange.

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 Phlx proposes to extend its threemonth pilot program, which imposed on

each of the 505 Exchange seat owners 3

a monthly capital funding fee of $1,500

per seat owned.4 The Exchange is

requesting that the current pilot

program, which expired on April 5,

2000, be extended for an additional

three-month period.5

II. Self-Regulatory Organization’s

Statement for 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 III 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 for the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The purpose of the proposed rule

change is to extend the applicability of

the Exchange’s current monthly capital

funding fee of $1,500 for a three-month

period, until July 6, 2000. As it did

during the initial phase of the pilot

program, the Exchange intends to charge

each seat owner a monthly capital

funding fee of $1,500 per Exchange set.

The $1,500 capital funding fee will be

imposed on each of the 505 Exchange

seat owners at the beginning of each

month. In order to be charged the fee,

a seat owner must own a seat on the last

business day of the month preceding the

month that is being billed. Thus, at the

beginning of each month, the seat owner

will be billed for that entire month.6

The Exchange intends to segregate the

funds generated from the $1,500 fee

from Phlx’s general funds.

The monthly $1,500 fee is part of the

Exchange’s long-term financing plan.

This monthly fee is intended to provide

funding for technological improvements

and other capital needs.7 Specifically, it

is intended to fund capital purchases,

including hardware for capacity

upgrades, development efforts for

decimalization and trading floor

expansion. The revenue generated from

the fee will assist the Exchange in

remaining competitive in the capital

markets environment.

2. Statutory Basis

For these reasons, the Exchange

believes that the proposed rule change

is consistent with Section 6 of the Act,8

in general, and with Section 6(b)(4),9 in

particular, in that it provides for the

equitable allocation of reasonable dues,

fees and other charges among its

members, issuers, and other persons

using its facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposed rule change will not impose

any burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange received 22 written

comments on the proposal, which it

forwarded to the Commission on

December 23, 1999.

Federal Register / Vol. 65, No. 86 / Wednesday, May 3, 2000 / Notices 25783

10 15 U.S.C. 78s(b)(3)(A).

11 17 CFR 240.19b–4(f)(6).

12 17 CFR 240.19b–4(f)(6)(iii). For purposes only

of accelerating the operative date of this proposal,

the Commission has considered the proposed rule’s

impact on efficiency, competition, and capital

formation. 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12)

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change has been

filed by the Exchange pursuant to

Section 19(b)(3)(A) of the Act 10 and

Rule 19b–4(f)(6) thereunder.11 The

Exchange represents that the proposed

rule change:

(i) Does not significantly affect the

protection of investors or the public interest;

(ii) Does not impose any significant burden

on competition; and

(iii) Does not become operative for 30 days

after the date of the filing, or such shorter

time as the Commission may designate if

consistent with the protection of investors

and the public interest; provided that the

Exchange has given the Commission written

notice of its intent to file the proposed rule

change at least five business days prior to the

date of filing of the proposed rule change, or

such shorter time as designated by the

Commission.

The Exchange has requested that the

Commission accelerate the operative

date of the proposal. In addition, the

Exchange provided the Commission

with written notice of its intent to file

the proposed rule change, along with a

brief description of the proposed rule

change, more than five business days

prior to the date of filing the proposed

rule change.

The Commission finds that it is

appropriate to designate this proposal to

become operative today because such

designation is consistent with the

protection of investors and the public

interest.12 Specifically, the proposal is

an across-the-board assessment on all

seat owners intended to raise revenues

to provide capital improvements to the

Exchange. The Phlx represent that the

fee is necessary to help the Phlx remain

competitive with other markets by

enabling it to make technological and

capital improvements. The Exchange

represents that the revenue raised from

this fee is necessary to fund capital

purchases, including hardware for

capacity upgrades, development efforts

for decimalization, trading floor

expansion, and communication

enhancements. Moreover, absent

acceleration of the operative date, the

Phlx’s ability to collect these fees will

lapse, because the initial phase of the

pilot program has expired. Accordingly,

based on the representations of the

Exchange, the Commission deems it

appropriate to approve the proposed

rule change on an accelerated basis until

July 6, 2000.

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, 450 Fifth Street, NW,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of the Phlx. All submissions

should refer to File No. SR–Phlx–00–29

and should be submitted by May 24,

2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–11006 Filed 5–2–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

[Social Security Acquiescence Ruling 00–

2(7)]

Hickman v. Apfel; Evidentiary

Requirements for Determining Medical

Equivalence to a Listed Impairment—

Titles II and XVI of the Social Security

Act.

AGENCY: Social Security Administration.

ACTION: Notice of Social Security

Acquiescence Ruling.

SUMMARY: In accordance with 20 CFR

402.35(b)(2), the Commissioner of Social

Security gives notice of Social Security

Acquiescence Ruling 00-2 (7).

EFFECTIVE DATE: May 3, 2000.

FOR FURTHER INFORMATION CONTACT:

Wanda D. Mason, Litigation Staff, Social

Security Administration, 6401 Security

Boulevard, Baltimore, MD 21235-6401,

(410) 966-5044.

SUPPLEMENTARY INFORMATION: Although

not required to do so pursuant to 5

U.S.C. 552(a)(1) and (a)(2), we are

publishing this Social Security

Acquiescence Ruling in accordance

with 20 CFR 402.35(b)(2).

A Social Security Acquiescence

Ruling explains how we will apply a

holding in a decision of a United States

Court of Appeals that we determine

conflicts with our interpretation of a

provision of the Social Security Act (the

Act) or regulations when the

Government has decided not to seek

further review of that decision or is

unsuccessful on further review.

We will apply the holding of the

Court of Appeals’ decision as explained

in this Social Security Acquiescence

Ruling to claims at all levels of

administrative review within the

Seventh Circuit. This Social Security

Acquiescence Ruling will apply to all

determinations or decisions made on or

after May 3, 2000. If we made a

determination or decision on your

application for benefits between August

6, 1999, the date of the Court of

Appeals’ decision, and May 3, 2000, the

effective date of this Social Security

Acquiescence Ruling, you may request

application of the Social Security

Acquiescence Ruling to the prior

determination or decision. You must

demonstrate, pursuant to 20 CFR

404.985(b)(2) or 416.1485(b)(2), that

application of the Ruling could change

our prior determination or decision in

your case.

Additionally, when we received this

precedential Court of Appeals’ decision

and determined that a Social Security

Acquiescence Ruling might be required,

we began to identify those claims that

were pending before us within the

circuit and that might be subject to

readjudication if an Acquiescence

Ruling were subsequently issued.

Because we determined that an

Acquiescence Ruling is required and are

publishing this Social Security

Acquiescence Ruling, we will send a

notice to those individuals whose

claims we have identified which may be

affected by this Social Security

Acquiescence Ruling. The notice will

provide information about the

Acquiescence Ruling and the right to

request readjudication under the Ruling.

It is not necessary for an individual to

receive a notice in order to request

application of this Social Security

Acquiescence Ruling to the prior

determination or decision on his or her

claim as provided in 20 CFR