36188 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

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

5 15 U.S.C. 78f(b)(4).

6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 240.19b–4(f)(2).

8 In reviewing this proposal, the Commission has

considered its impact on efficiency, competition,

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

9 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by DTC.

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

CBOE 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 CBOE 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 is proposing to rescind

certain customer equity options fees.

The foregoing fee changes are being

implemented by the Exchange pursuant

to CBOE Rule 2.22 and will be in effect

as of March 1, 2000.

The Exchange proposes to rescind

transaction fees for public customer

equity option orders routed through

CBOE’s electronic Order Routing

System (‘‘ORS’’). The Exchange further

proposes to eliminate the trade match

fee for public customer equity option

orders routed through ORS. An

overwhelming majority of CBOE

customer orders are routed via ORS. The

Exchange, therefore, believes this fee

change will generate significant savings

for its customers.

Manually executed public customer

orders will retain the current $0.09

transaction fee and $0.05 trade match

fee. Orders entered into ORS via the

Exchange’s Booth Entry and Routing

System (BERS) after a manual execution

will also be subject to the current $0.09

transaction fee and $0.05 trade match

fee, and shall not be eligible for the fee

reduction proposed herein.

2. Statutory Basis

The Exchange represents that the

proposed rule change is consistent with

section 6(b) 4 of the Act in general and

furthers the objectives of section

6(b)(4) 5 in particular because it

provides for the equitable allocation of

reasonable dues, fees and other charges

among CBOE members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate or unnecessary

burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

Written comments were neither

solicited nor received with respect to

the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change establishes

or changes a due, fee or charged

imposed by the Exchange and, therefore,

has become effective upon filing

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

Act 6 and subparagraph (f)(2) of Rule

19b–4 7 thereunder.8

At any time within 60 days of the

filing of the proposed rule change, 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

purpose of the Act.7

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

Section, 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 CBOE.8

All submissions should refer to the

file number in the caption above and

should be submitted by June 28, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14260 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42865; International Series

Release No. 1225; File No. SR–DTC–00–07]

Self-Regulatory Organizations; The

Depository Trust Company; Notice of

Filing and Order Granting Accelerated,

Temporary Approval of a Proposed

Rule Change Relating to the

Admission of Non-U.S. Entities as

Direct Depository Participants

May 30, 2000.

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

Securities Exchange Act of 1934

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

May 18, 2000, The Depository Trust

Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I and II

below, which Items have been prepared

primarily by DTC. The Commission is

publishing this notice and order to

solicit comments from interested

persons and to grant accelerated,

temporary approval of the proposed rule

change through May 31, 2001.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The purpose of the proposed rule

change is to extend the Commission’s

temporary approval of DTC’s admission

criteria for entities that are organized in

a country other than the United States

(‘‘non-U.S. entities’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.2

Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices 36189

3For a complete discussion of the admission

criteria, refer to Securities Exchange Act Release

No. 38600 (May 9, 1997), 62 FR 27086 [File No. SR–

DTC–96–13].

4See Securities Exchange Act Release Nos. 40064

(June 3, 1998), 63 FR 31818 [File No. SR–DTC–98–

11] and 41466 (May 28, 1999), 64 FR 30077 [File

No. SR–DTC–99–12]. 5 15 U.S.C. 78q–1(b)(3)(F).

6 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b-4.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

The purpose of the proposed rule

change is to extend the Commission’s

temporary approval of DTC’s admission

criteria for non-U.S. entities as direct

DTC participants. On May 9, 1997, the

Commission originally granted

temporary approval through May 31,

1998.3 The admission criteria are

designed to permit well-qualified, nonU.S. entities to obtain direct access to

DTC’s services without requiring the

non-U.S. entities to obtain financial

guarantees from another DTC

participant. According to DTC, DTC

established the program for admission

of non-U.S. entities in response to

requests it received from certain

participants. These participants

requested that DTC consider changes in

its admissions policy that would allow

non-U.S. affiliates of U.S. participants to

become direct participants without

having to obtain financial guarantees

from their U.S. affiliates that are DTC

participants. The Commission has

subsequently extended its original

temporary approval through May 31,

2000.4

In November 1999, DTC admitted one

non-U.S. entity as a direct participant

under the standards for admission of

non-U.S. entities. DTC has received

several inquiries from other non-U.S.

entities and expects to admit several

non-U.S. entities under its standards for

the admission of non-U.S. entities. DTC

is seeking an extension of the temporary

approval so it can complete the

admission of these non-U.S. entities and

gain further experience with the

admission standards for non-U.S.

entities and with the unique risks posed

by the activities of non-U.S. entities as

direct DTC participants.

DTC believes that the proposed rule

change is consistent with the

requirements of section 17A(b)(3)(F) of

the Act and the rules and regulations

promulgated because the admission

criteria takes into account the unique

risks to DTC raised by the admission of

non-U.S. entities while not unfairly

discriminating against non-U.S. entities

seeking admission as participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

While DTC acknowledges that the

proposed additional admissions criteria

applicable to non-U.S. entities may

impose some additional burden, for the

reasons stated above, DTC believes that

any such burden necessary and

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

DTC has not sought or received

comments on the proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Section 17A(b)(3)(F) of the Act

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody or control of

the clearing agency or for which it is

responsible.5 The Commission finds

that the rule change is consistent with

this obligation because DTC’s admission

criteria for non-U.S. entities has been

designed in a manner that takes into

account jurisdiction differences in

regulatory structure and in business

operations of non-U.S. entities with

respect to DTC’s risk control and

management. Furthermore, DTC

admission criteria should bind non-U.S.

entities to DTC’s rules and procedures

in a manner similar to domestic

participants and should lesson or

eliminate the negative effects that

jurisdictional issues could have on

DTC’s exercise of its rights against nonU.S. entities. Therefore, the Commission

finds that the admissions criteria will

assist DTC in assuring the safeguarding

of securities and funds which are in its

custody, control, or for which it is

responsible.

DTC has requested that the

Commission find good cause for

approving the proposed rule change

prior to the thirtieth day after

publication of the notice of the filing.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after

publication of the notice of the filing

because accelerated approval will

permit DTC to continue to use and

study the effectiveness of its admission

criteria for non-U.S. entities without

interruption when the current

temporary approval of these criteria

expires on May 31, 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 DTC. All submissions

should refer to file number SR–DTC–

00–07 and should be submitted by June

28, 2000.

It is therefore ordered, pursuant to

section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

DTC–00–07) be, and hereby is,

temporarily approved on an accelerated

basis through May 31, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14254 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42830; File No. SR–MSRB–

00–7]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Municipal Securities Rulemaking

Board Consisting of Technical

Amendments to Rules A–3, G–15, G–

17, and G–18

May 25, 2000.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b-4 thereunder,2