30666 Federal Register / Vol. 65, No. 93 / Friday, May 12, 2000 / Notices

94 15 U.S.C. 78f(b)(1) through (b)(8).

95 15 U.S.C. 78f(b)(1).

96 15 U.S.C. 78f(b)(8).

97The Commission notes that this Section 6(b)(8)

finding does not extend to all of the Rules proposed

to be PCX Equities Rules. As described above, the

majority of the Rules intended to become the Rules

of PCX Equities were incorporated from the PCX

Rules in their entirety without substantive change

and were previously subject to Commission review.

Thus, the current finding is limited only to those

PCX Equities Rules that have been specifically

amended to reflect the restructuring.

98 15 U.S.C. 78s(b)(2).

99 17 CFR 200.30–3(a)(12).

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

2The PACE quote consists of the best bid/offer

among the American, Boston, Cincinnati, Chicago,

new York, Pacific and Philadelphia Stock

Exchanges. See Phlx Rule 229.

3See Phlx Rule 229, Commentary .07(c)(i).

6(b)(1), 6(b)(2), 6(b)(3), 6(b)(4), 6(b)(5),

6(b)(6), 6(b)(7), and 6(b)(8).94

In addition, the Commission finds

that the proposal is consistent with the

requirements of Section 6(b)(1) of the

Act.95 Section 6(b)(1) requires that an

exchange be so organized and have

capacity to carry out the purposes of the

Act. According to the PCX, all revenue

generated by the equities business,

including ETP and Equity ASAP fees,

specialist fees, tape fees, and transaction

fees will accrue to PCX Equities.

Further, the PCX has committed to

provide PCX Equities with the resources

necessary for it to carry out its delegated

responsibilities. The Commission

expects that the PCX, as the registered

exchange ultimately responsible for

compliance with the provisions of the

Act, will continue to properly fund its

subsidiary for such purposes. In

addition, the PCX has committed to

provide certain services and facilities to

help support PCX Equities’ trading

operations. These services and facilities

and their costs will be specifically

defined in an agreement between PCX

and PCX Equities. The Commission

finds that these provisions should

enable PCX Equities to fulfill the

requirements imposed by the Act,

consistent with the PCX’s self-regulatory

requirements.

Finally, the Commission finds that the

proposal is consistent with Section

6(b)(8) of the Act,96 which requires that

the rules of an exchange not impose any

burden on competition not necessary or

appropriate in furtherance with the Act.

The Commission does not believe that

the proposed structure will impose any

inappropriate burdens on

competition.97

V. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning Amendment Nos.

3–7, including whether the proposed

amendments are 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

amendment that are filed with the

Commission, and all written

communications relating to the

amendment 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 at the

Commission’s Public Reference Room.

Copies of such filing also will be

available for inspection and copying at

the principal office of the PCX. All

submissions should refer to File No.

SR–PCX–99–39 and should be

submitted by June 2, 2000.

VI. Conclusion

For the reasons discussed above, the

Commission finds that the proposal is

consistent with the Act and the rules

and regulations thereunder applicable to

a national securities exchange.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act, 98 that the

proposed rule change (SR–PCX–99–39),

as amended, be and hereby is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.99

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–11920 Filed 5–11–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42762; File No. SR–PHLX–

00–37]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Relating to Starting the Automatic

Price Improvement Feature and the

Mandatory Manual Double-up Doubledown Price Protection Feature at (9:30

A.M.)

May 5, 2000.

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

Securities Exchange Act of 1934

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

April 20, 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 begin the

Automatic Price Improvement feature

(‘‘API’’) of the Philadelphia Stock

Exchange, Inc. Automatic

Communication and Execution

(‘‘PACE’’) System at 9:30 A.M. instead

of 9:45 A.M. In addition, the Exchange

also proposes to begin the Mandatory

Manual Double-up Double-down price

protection at 9:30 A.M. instead of 9:45

A.M. The Text of the proposed rule

change is available at the Office of the

Secretary, the Phlx and at the

Commission.

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

PACE is the Exchange’s automated

order routing and execution system on

the equity trading floor. The PACE

System accepts orders for automatic or

manual execution in accordance with

the provisions of Phlx Rule 229, which

governs the PACE System and defines

its parameters. The API feature of the

PACE System allows the specialist to

voluntarily provide automatic price

improvement to market and marketable

limit orders to all customers in a

security for orders which are 599 shares

or less, and when the PACE quote 2 is 3⁄16 or 1⁄8 for greater.3

The specialist must provide

Mandatory Manual Double-up Doubledown price protection where the

specialist does not agree to use the API

Federal Register / Vol. 65, No. 93 / Friday, May 12, 2000 / Notices 30667

4See Securities Exchange Act Release No. 39548

(January 13, 1998), 63 FR 3596 (January 23, 1998)

(order approving API feature and Mandatory

Manual Double-up Double-down price protection).

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

6 15 U.S.C. 78f(b)(5).

7 15 U.S.C. 78s(b)(3)(A).

8 17 CFR 240.19b–4.

9For 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).

10See supra, note 4.

11 Id. 12 17 CFR 200.30–3(a)(12).

feature. Specifically, Mandatory Manual

Double-up Double-down price

protection is used to provide price

improvement for those securities that

the specialist has determined are not

appropriate for the API feature because

the security is less liquid or less

volatile.4

Currently, both the API feature and

the Mandatory Manual Double-up

Double-down price protection begin at

9:45 A.M. The Exchange proposes to

begin both features at 9:30 A.M., when

the market generally opens. The PACE

timer will be reset to start the API

feature fifteen minutes earlier, which

should in turn permit those orders that

were excluded due to time constraint to

receive the benefits of the price

improvement through the API feature.

The time change for the Mandatory

Manual Double-up Double-down price

protection will require the specialist to

begin the same obligations fifteen

minutes earlier. This will allow those

stocks which are not subject to

automatic price improvement to receive

the benefits of Mandatory Manual

Double-up Double-down price

protection fifteen minutes earlier.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b) 5 of the Act, in general, and furthers

the objectives of Section 6(b)(5),6 in

particular, in that it is designed to

remove impediments to and perfect the

mechanism of a free and open market

and a national market system, as well as

to protect investors and the public

interest by enhancing efficiency through

automation and providing automatic

price improvement to more equity

orders.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change would impose

any inappropriate burden on

competition.

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.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Pursuant to Section 19(b)(3)(A) 7 of

the Act and Rule 19b–4(e)(6) 8

thereunder, the proposed rule change

has become effective upon filing as it

effects a change that: (1) Does not

significantly affect the protection of

investors or the public interest; (2) does

not impose any significant burden on

competition; and (3) by its terms, does

not become operative for 30 days from

the date of filing, or such shorter time

that the Commission may designate if

consistent with the protection of

investors and the public interest. The

Exchange has requested that the

Commission accelerate the operative

date of the proposal in order for the new

9:30 start time for both the API Feature

and the Mandatory Manual Double-up

Double-down price protection provision

to become operative promptly.

The Commission finds good cause for

accelerating the operative date of the

proposal as of the date of this notice.9

The Commission has previously found

that both the API Feature and the

Mandatory Manual Double-up Doubledown price protection provision may

enhance intermarket competition and

order execution quality on the

Exchange.10 In addition, the

Commission previously found that both

features should contribute to the

maintenance of orderly markets by Phlx

specialists because they help to reduce

the price variations occurring from trade

to trade on low volume.11 With the

current proposal, investors could

receive all of these potential benefits at

9:30 when the market opens. The

Commission also notes that the original

proposal was published for the full

comment period, and the Commission

received no comments.

At any time within 60 days of the

filing of the 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.

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, N.W.,

Washington, D.C. 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 Phlx. All

submissions should refer to File No.

SR–PHLX–00–37 and should be

submitted by June 2, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–11919 Filed 5–11–00; 8:45 am]

BILLING CODE 8010–01–M

TENNESSEE VALLEY AUTHORITY

Paperwork Reduction Act of 1995, as

amended by Pub. L. 104–13;

Submission for Office of Management

and Budget (OMB) Review; Comment

Request

AGENCY: Tennessee Valley Authority.

ACTION: Submission for Office of

Management and Budget (OMB) Review;

comment request.

SUMMARY: The proposed information

collection described below will be

submitted to the Office of Management

and Budget (OMB) for review, as

required by the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35, as

amended). The Tennessee Valley

Authority is soliciting public comments

on this proposed collection as provided

by 5 CFR Section 1320.8(d)(1). Requests

for information, including copies of the

information collection proposed and

supporting documentation, should be

directed to the Agency Clearance

Officer: Wilma H. McCauley, Tennessee

Valley Authority, 1101 Market Street

(EB 5B),