36182 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

12See note 11 supra.

13 15 U.S.C. 78k–1.

14 17 CFR 240.11Aa3–2.

15 17 CFR 200.30–3(a)(29).

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

2 17 CFR 240.19b–4.

The Commission believes that the

proposed amendment to the OPRA Plan

is consistent with the Act and has

determined to substitute the provisions

of this proposal for the modifications

made by the Commission to OPRA’s

previous capacity allocation

amendment. 12 Therefore, OPRA

capacity should be allocated according

to the terms of the capacity allocation

set forth in this amendment.

The Commission finds good cause to

accelerate the proposed OPRA Plan

amendment prior to the date of

publication in the Federal Register. The

Commission notes that the proposed

OPRA Plan amendment is intended to

mitigate potential disruption to the

orderly dissemination of options market

information caused by the inability of

the OPRA system to handle the

anticipated quote message traffic. The

Commission believes that approving the

amendment will provide the options

exchanges and OPRA with an

immediate, short-term solution to a

pressing problem, while giving the

Commission and the options markets

additional time to evaluate, and

possibly implement, other quote

mitigation strategies. In addition, the

limited time frame of this capacity

allocation program provides the

Commission and the options exchanges

with greater flexibility to modify the

program, as necessary, to ensure the

fairness of the allocation process to all

of the options markets going forward.

The Commission finds, therefore, that

granting accelerated approval of the

proposed OPRA Plan amendment is

appropriate and consistent with Section

11A of the Act.13

V. Conclusion

It Is Therefore Ordered, pursuant to

Rule 11Aa3–2 of the Act,14 that the

proposed OPRA Plan amendment (SROPRA-00-05) is approved on an

accelerated basis until the earlier of the

date when OPRA implements a system

upgrade that will increase its maximum

message handling capacity to 8,000 mps

or August 24, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority. 15

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14262 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42853; File No. SR–AMEX–

00–19]

Self-Regulatory organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange LLC

Relating to the Establishment of an

Interim Seat Allocation Program

May 30, 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 14,

2000, the American Stock Exchange LLC

(‘‘Amex’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘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

Amex is filing with the Commission

a proposed rule change to establish an

Interim Seat Allocation Program that

would allow a member or member

organization designate one or more

iterim members. Thereafter, the member

or member organization would be

permitted to allocate temporarily its

membership, with certain restrictions,

to the interim member whenever the

member or member organization’s active

member or nominee is absent from the

trading floor. The text of the proposed

rule change is available for inspection at

the places specified in item IV below.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Amex 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. Amex has prepared

summaries, set forth in Sections A, B,

and C below, of the most significant

aspects of such statements.

A. Self-Regulatory Organizations’

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

Active Exchange seats are assigned to

a person not a firm. Consequently, when

a person to whom a seat is assigned is

absent from the trading floor, the seat

cannot be used to participate in trading

activities on the floor. In effect, at any

given time, some measurable percentage

of one of the Exchange’s most valuable

assets lies dormant and unavailable for

use. Therefore, the Exchange is

proposing an Interim Seat Allocation

Program which would allow an active

member (i.e. the person to whom the

seat has been assigned and who actively

participates in securities transactions on

the floor of the Exchange) temporarily to

allocate the membership to an interim

member when the active member is

absent from the trading floor. The active

member would pay an interim member

status annual fee of $1,500 and a flat fee

of $250 for each allocation. A temporary

allocation may be for a minimum of one

day to a maximum of one year.

The interim member would have to be

approved for membership in accordance

with the Constitution and Rules of the

Exchange. Once approved, and upon

payment of the flat allocation fee and

submission of the appropriate from to

the Exchange’s Membership Services

Department, an interim member could

be allocated the membership held by the

active member. Contracts made on the

trading floor of the Exchange by an

interim member would be considered

contracts made by the active member.

The active member would also be

responsible for all obligations to the

Exchange and all obligations to other

members resulting from Exchange

transactions or transactions in other

securities conducted by the interim

member. The Exchange would require

prior approval of the interim members

by lessor.

The owner of the membership, rather

than the interim member, would be

deemed to be the member of the

Exchange for purposes of participating

in any distribution of the assets and

funds of the Exchange in the event of

any voluntary or involuntary final

liquidation, dissolution, or winding up

of the Exchange’s affairs. The owner of

the membership or active member, as

the case may be, rather than the interim

member, would be the Participant in the

Exchange’s Gratuity Fund and entitled

to the benefits described in Article IX of

the Exchange Constitution. In addition,

an interim member will not be

permitted to vote the active member’s

Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices 36183

3Telephone conversation between Ivonne T.

Lugo, Assistant General Counsel, Legal and

Regulatory Division, Amex, and Michael Gaw,

Attorney, Division of Market Regulation,

Commission, on May 22, 2000.

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

5 15 U.S.C. 78f(b)(5). 6 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

seat or serve on an Exchange committee

in the place of the active member.3

If an interim member is not allocated

the membership held by the active

member within one year of approval by

the Exchange’s Membership Services

Department, the individual’s eligibility

for interim membership would be

terminated. To become eligible again for

interim member status, the individual

would have to requalify for membership

pursuant to Article IV of the Exchange

Constitution by repaying all fees,

passing the test, and updating the

application.

The Exchange believes that a

confluence of competitive factors, such

as the advent of the International

Securities Exchange and the multiple

listing of options, coupled with rising

seat prices, make it critical for Exchange

members to maximize their use of

personnel and capital resources. This

Interim Seat Allocation Program is an

effort by the Exchange to assist its

members in accomplishing that goal.

2. Statutory Basis

Amex believes that the proposed rule

change would be consistent with the

provisions of section 6(b) of the Act 4 in

general and would further the objectives

of section 6(b)(5) 5 in particular, because

it is designed to prevent fraudulent and

manipulative acts and practices, 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; and is

not designed to permit unfair

discrimination between customers,

issuers, brokers, and dealers.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change would result

in any burden on competition that is 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

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding, or

(ii) as to which Amex consents, the

Commission will:

(A) by order approve such proposed

rule change, or

(B) institute proceedings to determine

whether the proposed rule change

should be disapproved.

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–AMEX–00–19 and should be

submitted by June 28, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority. 6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14255 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42834; File No. SR–Amex–

00–07]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange LLC

Relating to the Amendment of Rule 126

on a Pilot Program Basis

May 26, 2000.

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

Securities Exchange Act of 1934,1 and

Rule 19b–4 thereunder,2 notice is

hereby given that on February 3, 2000,

the American Stock Exchange LLC

(‘‘Amex’’ or ‘‘Exchange’’) filed with the

Securities and Exchange 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 Exchange proposes to amend

Amex Rule 126 on a six month pilot

program basis by adding a new

Commentary .03 to implement a

program for processing electronically

transmitted orders for the common stock

of business corporations admitted to

dealings on the Exchange

(‘‘eQPrioritysm’’). Below is the text of the

proposed rule change, which is entirely

new.

* * * * *

.03. Orders Delivered Electronically to

the Specialist. At all times other than an

opening or a reopening (Rule 108) or a

block sold at a ‘‘clean-up’’ price (Rule

155), a round lot, regular way order for

the common stock of a business

corporation admitted to dealings on the

Exchange that is sent to the specialist

electronically and is executable

according to its terms in whole or in

part shall be handled in the following

manner. Upon receipt of the electronic

order by the specialist’s order book, the

specialist shall announce the order to

the crowd and the order shall establish

priority with respect to all other bids

and offers. Once the specialist has

announced the order, members who

have bids or offers incorporated in the

Amex Published quote (‘‘APQ’’ shall not

be permitted to withdraw or modify

their interest except to provide price

improvement (i.e., an execution between

the APQ) to the incoming order.