Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices 36209

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

2 17 CFR 240.19b–4.

3Proposed new Rule 757 does not impose an

obligation on Exchange members and organizations

to report the securities positions in their accounts

on an ongoing basis. Telephone conversation

between Jurij Trypupenko, Counsel, Phlx, and Ira

Brandriss, Attorney, Division of Market Regulation

(‘‘Division’’), Commission, February 22, 2000.

4The ISG is an organization formed by

representatives of exchanges in the United States

(and certain international exchanges) to address

surveillance issues.

5Telephone conversation between Jurij

Trypupenko, Counsel, Phlx, and Ira Brandriss,

Attorney, Division, Commission, and Joshua Kans,

Special Counsel, Division, Commission, March 9,

2000.

6The term ‘‘institution’’ includes a non-member

brokerage firm, investment adviser firm, bank, or

other financial institution. Telephone conversation

between Jurij Trypupenko, Counsel, Phlx, and Ira

Brandriss, Attorney, Division, Commission,

February 22, 2000.

SECURITIES AND EXCHANGE

COMMISSION

[(Release No. 34–42860; File No. SR–Phlx–

00–07)]

Self Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Relating to Disclosure of Securities

Accounts

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 January

31, 2000, the Philadelphia Stock

Exchange, Inc. ‘‘Phlx’’ 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

The Exchange proposes to adopt new

Rule 757 (‘‘Disclosure of Securities

Accounts’’), which would require

Exchange members, member

organizations, foreign currency options

participants, and foreign currency

options participant organizations

(‘‘Exchange members and

organizations’’) to report to the

Exchange all securities accounts in

which they have any financial interest

or power to make investment decisions.

In addition, the rule would require that

Exchange members and organizations

notify the institution that services the

accounts, or at which the accounts are

located, that the Exchange members and

organizations are members of the

Exchange. Below is the text of the

proposed rule change, which is entirely

new.

* * * * *

Rule 757—Disclosure of Securities

Accounts

(a) Every member, member

organization, participant, and

participant organization shall promptly

report to the Exchange any securities

account, including any error account, in

the name of the member, member

organization, participant, or participant

organization or in which the member,

member organization, participant, or

participant organization has, directly or

indirectly, any financial interest or

power to make investment decisions.

(b) Every report shall, at a minimum,

include the name of the account, the

account number, the type of account,

the current securities position(s) in the

account, and the name, address, and

telephone number of the institution that

services the account or at which the

account is maintained. A report shall

contain such additional information as

the Exchange may from time to time

require.

(c) Every member, member

organization, participant, or participant

organization having a reportable

account for purposes of this rule shall

notify each institution that services an

account or at which an account is

maintained that the member, member

organization, participant, or participant

organization is a member of the

Exchange.

Commentary:

.01 Purchases of a security of a

publicly traded registered investment

company directly from the issuer or the

principal underwriter shall not be

deemed a reportable security for the

purposes of this section. Interest in a

non-publicly traded investment vehicle,

including a hedge fund, is a reportable

security for purposes of this section.

* * * * *

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 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

Proposed new Rule 757 would require

Exchange members and organizations to

report to the Exchange information

about all securities accounts in which

they have any financial interest or

power to make investment decisions.3

The Phlx states that this proposed rule

change would aid the investigative

efforts of the other exchanges, as well as

its own efforts, by assisting the

Intermarket Surveillance Group (‘‘ISG’’)

in creating a floor member securities

account database.4 The Phlx would

transmit information it receives about

accounts of Exchange members and

organizations to the Securities Industry

Automation Corporation, which would

maintain the information on behalf of

the ISG.5

Under the proposed rule, each report

would include, at a minimum, the name

of the account, the account number, the

type of account, the current securities

position(s) in the account, and the

name, address, and telephone number of

the institution that services the account

or at which the account is maintained.6

In addition, the rule requires every

Exchange member and organization that

has a reportable account to inform each

institution that services the account, or

at which the account is maintained, that

the Exchange member or organization is

a member of the Exchange. Also, a

report shall contain such additional

information as the Exchange may from

time to time require. The proposed

commentary to new Rule 757 states that

purchases of a security of a publicly

traded registered investment company

directly from the issuer or the principal

underwriter shall not be deemed a

reportable security for the purposes of

the rule. Interest in a non-publicly

traded investment vehicle, including a

hedge fund, would be a reportable

security.

The Exchange represents that

proposed new Rule 757 would also

enhance Exchange surveillance and

regulatory efforts by expanding current

account reporting requirements. Phlx

Rule 751 presently requires employees

of Exchange members and organizations

to report certain account information to

the Exchange members and

organizations that employ them, but

there is no corresponding obligation on

Exchange member and organization

employers to report their account

information to the Exchange. The

36210 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

7 15 U.S.C. 78f(b).

8 15 U.S.C. 78f(b)(5). 9 17 CFR 200.30–3(a)(12).

Exchange believes that proposed new

Rule 757’s requirement that Exchange

members and organizations report

securities accounts to the Exchange

should provide the Exchange with the

capability to monitor and investigate

quickly the trading of securities by

personnel that trade on the equity,

options, and foreign currency floors of

the Exchange.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

section 6 of the Act 7 in general, and

furthers the objectives of section

6(b)(5) 8 in particular, in that it is

designed to prevent fraudulent and

manipulative acts and practices, and to

protect investors and the public interest

by requiring disclosure of securities

accounts in which Exchange members

have a financial interest or power to

make investment decisions.

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 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

The Exchange did not solicit or

receive written comments on the

proposed rule change.

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 the Exchange 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, 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 at

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–Phlx–00–07 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. 00–14261 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3256]

State of Oklahoma

Creek County and the contiguous

counties of Lincoln, Okfuskee,

Okmulgee, Osage, Pawnee, Payne, and

Tulsa in the State of Oklahoma

constitute a disaster area as a result of

damages caused by severe

thunderstorms, rain, and flooding that

occurred May 5–8, 2000. Applications

for loans for physical damage as a result

of this disaster may be filed until the

close of business on July 24, 2000 and

for economic injury until the close of

business on February 26, 2001 at the

address listed below or other locally

announced locations: U.S. Small

Business Administration, Disaster Area

3 Office, 4400 Amon Carter Blvd., Suite

102, Ft. Worth, TX 76155.

The interest rates are:

(Percent)

For Physical Damage:

Homeowners with credit available elsewhere .................... 7.375

Homeowners without credit

available elsewhere ............. 3.687

Businesses with credit available elsewhere .................... 8.000

(Percent)

Businesses and non-profit organizations without credit

available elsewhere ............. 4.000

Others (including non-profit organizations) with credit

available elsewhere ............. 6.750

For Economic Injury:

Businesses and small agricultural cooperatives without

credit available elsewhere ... 4.000

The numbers assigned to this disaster

are 325606 for physical damage and

9H4300 for economic injury.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008).

Dated: May 25, 2000.

Aida Alvarez,

Administrator.

[FR Doc. 00–14224 Filed 6–6–00; 8:45 am]

BILLING CODE 8025–01–P

SOCIAL SECURITY ADMINISTRATION

Administrative Review Process, Test of

the Elimination of the Fourth Step of

Administrative Review in the Disability

Claim Process (Request for Review by

the Appeals Council) in Conjunction

With Testing of Modifications to the

Disability Determination Procedures;

Disability Claims Process Redesign

Prototype

AGENCY: Social Security Administration.

ACTION: Notice of a test.

SUMMARY: The Social Security

Administration (SSA) is announcing a

test of the elimination of the fourth step

of administrative review in the

disability claim process (Request for

Review by the Appeals Council) in

conjunction with the present disability

prototype test. Before making any

decisions on the merits of the

elimination of the request for review,

SSA must obtain valid and reliable data

on the effects of such elimination—

including the impact it may have on

agency operations, notices and other

procedures, rates of filing to Federal

District Courts, and quality and

timeliness of service to the public.

DATES: Cases to be included in the test

of the elimination of the Request for

Review will be selected from those

prototype case requests for hearing

which are received in servicing hearing

offices on or after June 1, 2000, or the

date of this notice—whichever is later;

and in which an initial application for

Social Security Disability Insurance or

Supplemental Security Income

Disability Benefits was filed effective