35152 Federal Register / Vol. 65, No. 106 / Thursday, June 1, 2000 / Notices

14 15 U.S.C. 78s(b)(3)(A).

15 17 CFR 240.19b–4(f)(1).

16See Securities Exchange Act Release No. 38780

(June 26, 1997), 62 FR 36087 (July 3, 1997)(SR–

PCX–97–15).

17 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 17 CFR 240.19b–4(f)(6).

4The index is comprised of the following stocks

(primary markets in parentheses): Apple Computer,

Inc. (Nasdaq); Compaq Corp. (NYSE); Dell

Computer Corp. (Nasdaq); Gateway 2000, Inc.

(NYSE); Hewlitt Packard Co. (NYSE); International

Business Machines (NYSE); Micron Technology,

Inc. (NYSE); Sun Microsystems, Inc. (Nasdaq); and

Unisys Corp. (NYSE).

5See Securities Exchange Act Release No. 39895

(April 21, 1998), 63 FR 23327 (April 28, 1998).

6For instance, the holder of a BMX 800 call will

receive two BMX 400 calls.

7The Exchange represents that this procedure is

similar to the type used for equity options, where

the underlying security is subject to a two-for-one

stock split.

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

The foregoing rule change constitutes

a stated policy, practice or

interpretation of Exchange Rule 5.3(b)

and therefore, has become immediately

effective pursuant to Section 19(b)(3)(A)

of the Act 14 and subparagraph (f)(1) of

Rule 19b–4 thereunder.15 The

Commission further notes that

Commentary .01 of the Exchange’s rules

states that the Exchange may change the

trading differentials for securities traded

on the Exchange by filing a proposed

rule change with the Commission

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

Act.16 This proposed rule change would

change the trading differentials for the

PCX Application, which constitutes

trading on the Exchange. The language

changes to Rule 5.3(b) and Rule 15

merely effectuate this change in trading

differentials for Profile sin the PCX

Application.

At any time within 60 days of the

filing of a rule change pursuant to

Section 19(b)(3)(A) of the Act, the

Commission may summarily abrogate

the 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 Exchange. All

submissions should refer to File No.

SR–PCX–00–10 and should be

submitted by June 22, 2000.17

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary

[FR Doc. 00–13673 Filed 5–31–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42814; File No. SR–Phlx–

00–11]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc. To

Reduce the Value of Its Computer Box

Maker Index Option (‘‘BMX’’)

May 23, 2000.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 Rule 19b–4 thereunder,2

notice is hereby given that on March 31,

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 proposed rule change has been filed

by the Phlx as a ‘‘non-controversial’’

rule change under Rule 19b-4(f)(6)

under the Act.3 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 Exchange proposes to reduce the

value of its Computer Box Maker Index

(‘‘Index’’) option (‘‘BMX’’) to one-half its

present value by doubling the base

market divisor used to calculate the

index. Additionally, the Exchange

proposes to double the position and

exercise limits applicable to BMX until

the last expiration then trading. The

index is a price weighted, narrow-based,

A.M. settled index comprised of nine

stocks issued by companies that

manufacture, market, and support

desktop and notebook personal

computers and fault tolerant systems.4

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

Phlx 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 Phlx 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 purpose of this proposed rule

change is to attract additional liquidity

to BMX. The Exchange began trading

BMX in 1998.5 On March 31, 2000, the

index value was 451.24 and the nearmonth in-the-money call premium was

$35.125 per contract. The Exchange

proposes to conduct a ‘‘two-for-one

split’’ of the index, to reduce the value

of index to one-half its current value.

The split would double the number of

BMX contracts so that for each BMX

contract held at the time of the split, a

contract holder would receive two

contracts at the reduced value, with a

strike price one-half of the original

strike price.6 Additionally, the

Exchange proposes to double the

position and exercise limits applicable

to BMX, from 25,0000 contracts to

50,000 contracts, until the last

expiration then trading. The Exchange

represents that the proposed changes

would result in an index value of 225.50

and a near-month in-the-money call

premium of $17.56.7

Federal Register / Vol. 65, No. 106 / Thursday, June 1, 2000 / Notices 35153

8 15 U.S.C. 78f.

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

10 78s(b)(3)(A).

11 17 CFR 240.19b–4(f)(6).

12The Exchange provided the Commission with

the five business day notice required by Rule 19b–

4(f)(6) of the Act on March 3, 2000.

13 15 U.S.C. 78s(b)(3)(A).

14 17 CFR 240.19b–4(f)(6).

15 17 CFR 240.19b–4(f)(6)(iii)

16 Id.

17For 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). 18 17 CFR 200.30–3(a)(12).

In conjunction with the split, the

Exchange will list strike prices

surrounding the new, lower index

value, pursuant to Phlx Rule 1101A.

The trading symbol will remain as BMX.

The Exchange will announce the

effective date, the strike price, and the

position limit changes by way of an

Exchange memorandum to the

membership.

The Exchange is proposing this rule

change to attract additional liquidity to

BMX. The Phlx believes a two-for-one

split will reduce the value of the index

and will have a positive effect on overall

transaction volumes by making the

option premiums more attractive for

retail investors. Additionally, the

Exchange believes that a reduced index

value will encourage additional investor

interest because investors will be able to

utilize this trading vehicle with a

smaller amount of capital. The

Exchange believes that attracting

additional investors will create a more

active and liquid trading 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 in particular, with

Section 6(b)(5),9 in that it is designed to

promote just and equitable principles of

trade, as well as to protect investors and

the public interest, by establishing a

lower index value, which should, in

turn, facilitate trading in BMX options.

The Exchange believes that reducing the

value of the index should not raise

manipulation concerns or adversely

impact the market, because the

Exchange will continue to employ its

surveillance procedures and has

proposed an orderly procedure to

achieve the index split, including

adequate notice of the split to market

participants.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition 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 neither solicited nor

received written comments with respect

to the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

This proposed rule change has been

filed by the Exchange as a ‘‘noncontroversial’’ rule change pursuant to

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

subparagraph (f)(6) of Rule 19b–4

thereunder.11 Because the foregoing

proposed rule change: (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 after

the date of filing, or such shorter time

as the Commission may designate,12 it

has become effective pursuant to

Section 19(b)(3)(A) of the Act 13 and

Rule 19b–4(f)(6) thereunder.14

The Exchange has requested that the

Commission accelerate the operative

date of the rule change to permit the

Exchange to implement it immediately.

The Commission has determined,

consistent with the protection of

investors and the public interest, to

make the proposed rule change

operative upon filing, pursuant to

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

19b–4(f)(6)(iii).15 Under Rule 19b–

4(f)(6)(iii), a proposed ‘‘noncontroversial’’ rule change does not

become operative for 30 days after the

date of filing, unless the Commission

designates a shorter time.16 The

Commission believes that it is

consistent with the protection of

investors and the public interest to

make the proposed rule change

operative upon filing because reducing

the value of the Index should enable

more investors to participate in the

market, thereby promoting liquidity in

the market place.17 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, 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 also will be

available for inspection and copying at

the principal office of the Phlx. All

submissions should refer to File No.

SR–Phlx–00–11 and should be

submitted by June 22, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.18

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–13672 Filed 5–31–00; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[License No. 01/01–0285]

Capital Resource Company of

Connecticut; Notice of Surrender of

License

Notice is hereby given that Capital

Resource Company of Connecticut

(‘‘CRC’’), Two Bridgewater Road,

Farmington, Connecticut 06032–2256,

has surrendered its license to operate as

a small business investment company

under the Small Business Investment

Act of 1958, as amended (the ‘‘Act’’).

CRC was licensed by the U.S. Small

Business Administration on March 23,

1977.

Under the authority vested by the Act

and pursuant to the regulations

promulgated thereunder, the surrender

of the license was accepted on April 5,

2000, and accordingly, all rights,

privileges, and franchises derived

therefrom have been terminated.