38614 Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 42697

(April 18, 2000), 65 FR 24234.

4 In approving this proposal, the Commission has

considered its impact on efficiency, competition,

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

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

6 15 U.S.C. 78f(b)(7). 7 15 U.S.C. 78s(b)(2).

Mississippi 39201, have filed a

declaration under section 12(d) of the

Act and rules 44(b) and 54 under the

Act.

Entergy and the Entergy Operating

Companies request authorization

through December 31, 2004, to transfer,

without further Commission approval,

up to $40,000,000 per year of utility

assets in the aggregate, or no more than

$12,000,000 per individual Entergy

Operating Company per year. The assets

that Entergy and the Entergy Operating

Companies wish to transfer include

substations and transmission and

distribution lines or other utility assets

presently dedicated to serving

customers. The application states that

the consideration for any transfers will

be no less than the net book value of the

assets being sold. In the case of a lease

of utility assets, the lease payments will

be valued using a discount factor equal

to the selling company’s allowed rate of

return at the time of entering into the

lease and counted against the exemption

amount in the initial year of the lease.

For the Commission by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–15621 Filed 6–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42925; File No. SR–Amex–

00–11]

Self-Regulatory Organizations; Order

Approving a Proposed Rule Change by

the American Stock Exchange LLC

Relating to Floor Official Rulings

June 13, 2000.

I. Introduction

On February 22, 2000, the American

Stock Exchange LLC (‘‘Amex’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’), pursuant to section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 and Rule 19b–4

thereunder, 2 a proposed rule change to

require a written record of all floor

official rulings. The proposed rule

change was published in the Federal

Register on April 25, 2000. 3 The

Commission did not receive any

comments on the proposed rule change.

This order approves the proposed rule

change.

II. Description of the Proposed Rule

Change

The Amex proposes to revise its Rule

22 to require a written record of all floor

official rulings, including rulings

involving complaints of harassment,

intimidation or other activities in

violation of Exchange rules by either

specialists or traders. Currently, floor

officials are not required to make a

written record of their rulings unless

specifically requested by a member to

do so.

The Exchange proposes to develop a

form to be used by floor officials on

which they will be able to record their

rulings. Floor officials will be required

to prepare the completed rulings form as

soon as practicable after the decision is

made and to submit their rulings on the

Exchange form at the end of each

trading day. Floor officials who fail to

complete the written rulings form may

be removed from their position or may

become ineligible for reappointment.

III. Discussion

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. 4 In particular, the

Commission finds that the proposed

rule change is consistent with Section

6(b)(5) of the Act 5 because it is designed

to prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, to foster

cooperation and coordination with

persons engaged in facilitating

transactions in securities and to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system. Further,

the Commission finds that the proposal

is consistent with the requirements of

section 6(b)(7) of the Act 6 because it

provides a fair procedure for

disciplining members of the Exchange.

The Amex has proposed to modify its

procedures for rulings made by floor

officials. Rather than relying solely on

verbal rulings made on the floor, Amex

proposes to require floor officials to

reduce their rulings to writing and to

require floor officials to submit such

written rulings to the Exchange. The

Commission believes that requiring

written rulings will assist in fostering a

fair disciplinary procedure on the floor

of the Exchange. A written ruling

provides an official record of member

conduct and the events that led to the

floor official’s decision. Members will

be able to review the rulings and

therefore, should be better able to

conform their conduct to the

requirements of the Exchange’s rules.

Further, members will have the floor

official’s written findings regarding the

member’s conduct and the basis upon

which the floor official relied to make

his or her decision. Members will

continue to be able to appeal floor

official decisions as is currently

provided in Amex Rule 22. The

Commission believes that a written

record of the decision will enhance the

fairness and efficiency of the appeals

process.

Further, the Exchange will have a

written record of the alleged conduct,

upon which it may base investigations

or other inquiries. The proposal requires

floor officials to make their written

rulings as soon as practicable after the

decision is made. This should lead to a

more complete and full description of

the conduct and the floor official’s basis

for his or her ruling because floor

officials should complete their written

rulings while the details are fresh in

their memories. A written record should

provide the Exchange with an enhanced

mechanism by which to prevent

violations of its rules as well as the

violations of the Act. The Exchange will

review all floor official rulings and

determine if further investigation or

inquiry is warranted. This should

enable the Exchange to enforce its rules

in a more fair and efficient manner, and

provide the Exchange with a means to

prevent fraudulent and manipulative

acts on its floor.

Finally, the proposal provides that if

a floor official fails to submit his or her

written findings to the Exchange at the

end of each trading day, the floor

official may be subject to removal or

become ineligible for reappointment as

a floor official. The Commission

believes that this provision is

appropriate because it seeks to enforce

floor official compliance with the

proposed rule change.

IV. Conclusion

It is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act.7 that the

proposed rule change (SR–Amex–00–

11) is approved.

Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices 38615

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 42128

(November 10, 1999), 64 FR 63836 (November 22,

1999).

4See Securities Exchange Act Release No. 42094

(November 3, 1999), 64 FR 61675 (November 12,

1999). While the maximum permissible number of

contracts in an option order executable through

AUTO–EX is generally fifty contracts, there are

three exceptions: the Institutional, Japan and S&P

MidCap 400 Indexes allow ninety-nine contract

orders.

5Order size maximum levels for Institutional,

Japan, and S&P MidCap 400 Indexes (Id.) would

remain at ninety-nine contracts under this proposal.

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

7 15 U.S.C. 78f(b)(5).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–15613 Filed 6–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42931; File No. SR–AMEX–

99–45]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange LLC To

Increase the Maximum Order Size

Eligible for Automatic Execution

June 13, 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 October

25, 1999, the American Stock Exchange

LLC (‘‘Amex’’ 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 Amex. 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 Amex proposes to increase to

seventy-five, the maximum permissible

number of equity and index option

contracts in an order executable through

the AUTO–EX system. The text of the

proposed rule change is available at the

Office of the Secretary, Amex 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

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. The Amex 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

In 1985, the Exchange implemented

the AUTO–EX system, which

automatically executes public customer

market and marketable limit orders in

options at the best bid or offer displayed

at the time the order is entered into the

Amex Order File (‘‘AOF’’). There are,

however, limitations on the number of

option contracts that can be entered into

or executed by these systems. AOF,

which handles limit orders routed to the

specialist’s book as well as orders

routed to AUTO–EX, was recently

increased to allow for the entry of orders

up to 250 option contracts.3 Generally,

however, AUTO–EX is only permitted

to execute equity option orders and

index option orders of up to fifty

contracts.4 Thus, market and marketable

limit orders of more than fifty contracts

are generally routed by AOF to the

specialist’s book.

The Exchange now proposes to

increase to seventy-five, the maximum

permissible number of equity and index

option contracts in an order that can be

executed through the AUTO–EX

system.5 It is proposed that this increase

in permissible order size be

implemented on a case-be-case basis for

an individual option class or for all

option classes when two floor governors

or senior floor officials deem such an

increase appropriate. The Exchange

represents that it has sufficient systems

capacity necessary to accommodate

implementation of the proposed

increase.

The Exchange represents that AUTO–

EX has been extremely successful in

enhancing execution and operational

efficiencies during emergency situations

and during other, non-emergency

situations for certain option classes. The

Exchange believes that automatic

executions of orders for up to seventyfive contracts will allow for the quick,

efficient execution of public customer

orders.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b)6 of the Act

in general and furthers the objectives of

Section 6(b)(5)7 in particular in that it is

designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

facilitating transactions in securities,

and to remove impediments to and

perfect the mechanism of a free and

open market.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Amex does not believe that the

proposed rule change will impose any

burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments were solicited

or received with respect to 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 self-regulatory

organization 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. Solicitations of Comments

The Commission invites interested

persons to submit written data, views,

and arguments concerning the

foregoing, including whether the

proposed rule change is consistent with

the Act. In addition, the Commission

seeks comment concerning whether the

proposed rule change fosters quote

competition among options market

professionals and enhances investors’

interests in obtaining the best available

price.

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