Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices 38621

Time, Monday through Friday. The E-Session is

currently approved to continue through October 1,

2000. See Securities Exchange Act Release No.

42463 (February 28, 2000), 65 FR 11817 (March 6,

2000) (SR–CHX–00–02). 5E-Session fees have been waived since the

beginning of the E-Session. See Securities Exchange

Act Release Nos. 42089 (November 2, 1999), 64 FR

60864 (November 8, 1999) (SR–CHX–99–23)

(waiving fees from October 13, 1999 through

December 31, 1999; 42329 (January 11, 2000), 65 FR

3000 (January 19, 2000) (SR–CHX–99–29) (waiving

fees from January 1, 2000 through March 1, 2000;

and 42486 (March 2, 2000) 65 FR 12601 (March 9,

2000) (SR–CHX–00–05) (waiving fees from March 2,

2000 through June 30, 2000). This proposal simply

extends the waiver of the same fees through October

1, 2000. See June 12, 2000 telephone conversation

between Paul O’Kelly, Executive Vice President,

Market Regulation and Legal, CHX, and Joseph P.

Morra, Special Counsel, Division of Market

Regulation, SEC. 6 15 U.S.C. 78f(b)(4).

7 15 U.S.C. 78s(b)(3)(A)(ii).

8 17 CFR 240.19b–4(f)(2).

9 17 CFR 200.03–3(a)(12).

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

2 17 CFR 240.19b–4.

3 In Amendment No. 1, the Exchange designated

the proposal as filed pursuant to Section 19(b)(2) of

the Act. See Letter from Edith Hallahan, Deputy

General Counsel, Phlx, to Nancy Sanow, Senior

Special Counsel, Division of Market Regulation,

Commission, dated September 23, 1999

(‘‘Amendment No. 1’’). In Amendment No. 2, the

Exchange deleted a provision in the original

proposal that restricted the increase in maximum

order size eligibility to 100 options. See Letter from

Nandita Yagnik, Phlx, to Nancy Sanow, Senior

Special Counsel, Division of Market Regulation,

Commission dated January 20, 2000 (‘‘Amendment

No. 2’’).

The proposal is designed to allow CHX

members to continue to participate in

the E-Session without incurring the fees

normally associated with their CHX

transactions.5 According to the CHX, the

vast majority of the securities that trade

during the E-Session are already subject

to order processing and transaction fee

waivers under the current fee schedule

because they are either NASDAQ/NMS

issues or issues within the S&P 500. The

CHX believes that waiving fees on the

few remaining securities and on floor

broker transactions in all securities will

simplify the Exchange’s fee-related

communications with its members.

2. Statutory Basis

The CHX believes the proposed rule

change is consistent with Section 6(b)(4)

of the Act 6 in that it provides for the

equitable allocation of reasonable dues,

fees and other charges among its

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 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.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change has become

effective pursuant to section

19(b)(3)(A)(ii) of the Act 7 and

subparagraph (f)(2) of Rule 19b–4

thereunder,8 because it involves a due,

fee, or other charge. 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 proposal 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

ruled 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 number

SR–CHX–00–18, and should be

submitted by June 12, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–15618 Filed 6–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42932; File No. SR–Phlx99–32]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.,

to Increase the Maximum Order Size

Eligibility 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 August

23, 1999, 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 Phlx. On

September 27, 1999 and January 23,

2000 the Phlx submitted Amendments

Nos. 1 and 2 to the proposed rule

change, respectively.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 Phlx, pursuant to Rule 19b–4

under the Act, proposes to amend Phlx

Rule 1080(c) to increase its maximum

order size eligibility for the AUTO–X

feature of the Phlx Automated Options

Market (‘‘AUTOM’’). AUTOM is the

Exchange’s electronic order routing and

delivery system for equity and index

options. Currently, AUTO–X

automatically executes customer market

and marketable limit orders up to fifty

contracts. The Exchange now proposes

to permit AUTO–X to execute orders of

up to seventy-five contracts.

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 the proposed rule

change is to increase the maximum

order size eligibility for AUTO–X from

fifty to seventy-five contracts. Under the

38622 Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices

4See Phlx Rule 1080(c).

5See Securities Exchange Act Release No. 36248

(September 19, 1995), 60 FR 49653 (September 26,

1995) (approving a proposed rule change to increase

the maximum automatic execution order size

eligibility for public customer market and

marketable limit orders for all equity and index

options from twenty-five to fifty contracts.)

6Unlike ROTs (see discussion supra), specialists

are required to participate on the Wheel. See Phlx

Rule 1080(g).

7See Phlx Rule 1080(e) and Advice A–13.

8See Phlx Rule 703.

9 15 U.S.C. 78f.

10 15 U.S.C. 78f(b)(5).

rules of the Exchange, customer market

and marketable limit orders are routed

to AUTO–X as follows. Through

AUTOM, orders are routed from

member firms directly to the

appropriate specialist on the trading

floor. Certain orders are eligible for

AUTOM’s automatic execution feature,

AUTO–X. These orders are

automatically executed at the

disseminated quotation price on the

Exchange and reported back to the

originating firm.4

The Exchange represents that AUTO–

X affords prompt and efficient

automatic executions at the displayed

price. Therefore, the Exchange believes

that increasing automatic execution

levels should provide the benefits of

automatic execution to a larger number

of customer orders. Further, the

Exchanges notes that this increase from

fifty to seventy-five contracts is in line

with prior changes to AUTO–X levels.5

The Exchange notes that there are

many safeguards incorporated into

Exchanges rules to ensure the

appropriate handling of AUTO–X

orders. For example, Phlx Rule

1080(f)(iii) states that the specialist is

responsible for the remainder of an

AUTOM order where a partial execution

has occurred. Phlx Rule 1015 governs

quotation guarantees and requires the

trading crowd to ensure that public

customer orders are filled at the best

market, at least to the extent of 10

contracts (‘‘10-contract guarantee’’). In

addition, Options Floor Procedure

Advice F–7 states that the volume

guarantees (including AUTO–X levels)

are deemed to be the stated size in any

bid or offer voiced or displayed on the

Options Floor. Therefore, quoted

markets are guaranteed up to that size.

Violations of any of these provisions

could be referred to the Business

Conduct Committee for disciplinary

action.

The Wheel is a mechanism that

allocates AUTO–X trades among

specialists and Registered Options

Traders (‘‘ROTs’’). An ROT has

discretion to participate on the Wheel to

trade any option class to which he is

assigned. An increase in the maximum

AUTO–X order size does not prevent an

ROT from declining to participate on

the Wheel. Because the Wheel rotates in

2-lot to 10-lot increments depending

upon the size of the order, no single

ROT will be allocated the entire

seventy-five contracts.6

The Exchange also has procedures

that permit a specialist to suspend

AUTO–X in extraordinary

circumstances.7 AUTOM users are

notified of such situations. For example,

in extraordinary (fast market)

conditions, quotations are disseminated

with an ‘‘F’’ once the ten-contract

guarantee on the screen markets is

suspended pursuant to Options Floor

Procedure Advice F–10.

With respect to financial

responsibility issues, the Exchange

notes that it has a minimum net capital

requirement respecting ROTs.8

Furthermore, an ROT’s clearing firm

performs risk management functions to

ensure that the ROT has sufficient

financial resources to cover positions

throughout the day. In this regard, the

function includes real-time monitoring

of positions. The Exchange believes that

clearing firm procedures address the

issue of whether an ROT has the

financial capability to support trading of

options orders as large as 75 contracts.

The Exchange believes that the

increase should provide customers with

quicker executions for a larger number

of orders, by providing automatic rather

than manual executions, thereby

reducing the number of orders subject to

manual processing. Increasing the

AUTO–X maximum order size should

not impose a significant burden on

operation or capacity of the AUTOM

System.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6 9 of the Act in general, and in

particular, with Section 6(b)(5).10

Specifically, the Exchange believes that

the proposal is designed to foster

cooperation and coordination with

persons engaged in regulating, clearing,

settling, processing information with

respect to, and facilitating transactions

in securities; remove impediments to

and perfect the mechanism of a free and

open market; and protect investors and

the public interest. Further, the

Exchange believes that the proposal

should enhance efficiency by providing

automatic executions to a larger number

of options orders.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Phlx 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. Solicitation 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 2054–0609. 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 maybe 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 Phlx. All

submissions should refer to File No.

Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices 38623

11 17 CFR 200.30–3(a)(12)

SR–Phlx–99–32 and should be

submitted by July 12, 2000.

For the Commission, by the Division of

Market regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–15615 Filed 6–20–00; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice 3338]

Passport Services, Office of Field

Operations, Field Coordination

Division; Proposed Information

Collection

AGENCY: Department of State

ACTION: 60-Day Notice of Proposed

Information Collection; Statement of

Nonreceipt of Passport, DSP–86.

SUMMARY: The Department of State is

seeking Office of Management and

Budget (OMB) approval for the

information collection described below.

The purpose of this notice is to allow 60

days for public comment in the Federal

Register preceding submission to OMB.

This process is conducted in accordance

with the Paperwork Reduction Act of

1995.

The following summarizes the

information collection proposal

submitted to OMB:

Type of Request: Reinstatement.

Originating Office: Bureau of Consular

Affairs, CA/PPT/FO/FC.

Title of Information Collection:

Statement of Nonreceipt of Passport.

Frequency: On occasion.

Form Number: DSP–86.

Respondents: Customers who have

not received the passports for which

they originally applied.

Estimated Number of Respondents:

18,000/year.

Average Hours Per Response: 5

minutes (1⁄12hr).

Total Estimated Burden: 1,500 hours/

year.

Public comments are being solicited

to permit the agency to:

• Evaluate whether the proposed

information collection is necessary for

the proper performance of the functions

of the agency.

• Evaluate the accuracy of the

agency’s estimate of the burden of the

proposed collection, including the

validity of the methodology and

assumptions used.

• Enhance the quality, utility, and

clarity of the information to be

collected.

• Minimize the reporting burden on

those who are to respond, including

through the use of automated collection

techniques or other forms of technology.

FOR ADDITIONAL INFORMATION: Public

comments, or requests for additional

information, regarding the collection

listed in this notice should be directed

to R. Michael Holly, U.S. Department Of

State, Bureau of Consular Affairs, SA–1,

Room H904, 2401 E. Street, NW

Washington, DC. 20522–0111. 202–663–

2460.

Dated: May 18, 2000.

George C. Lannon,

Deputy Assistant Secretary for Passport

Services, U.S. Department of State.

[FR Doc. 00–15650 Filed 6–20–00; 8:45 am]

BILLING CODE 4710–06–P

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. OST–96–1960]

Requirement That Air Carriers Amend

Plans To Address the Needs of

Families of Passengers Involved in

Aircraft Accidents

AGENCY: Office of the Secretary, DOT.

ACTION: Notice.

SUMMARY: This is to advise certificated

air carriers that the Wendell H. Ford

Aviation Investment and Reform Act for

the 21st Century (AIR–21) (Pub. L. 106–

181; 114 Stat. 61; April 5, 2000) amends

49 U.S.C. 41113(b) to require, among

other things, that certificated air carriers

submit to the Department and the

National Transportation Safety Board

additional assurances for their

respective plans to address the needs of

families of passengers involved in

aircraft accidents. The content and filing

requirements for the update to the plans

applicable to certificated air carriers are

set forth in Title IV, section 402, of AIR–

21.

The additional assurances required to

be submitted are described in

Paragraphs (a)(1), (2), and (3) of section

402 of AIR–21. Under the section,

certificated air carriers must submit

their updated plans to the Department

and the NTSB within 180 days of the

statute’s enactment. Since AIR–21 was

signed into law on April 5, 2000,

updated plans are due to be filed not

later than Monday, October 2, 2000.

Each certificated carrier should

submit its plan in its entirety, that is, the

plan as it exists with the new assurances

as set forth in AIR–21. We expect each

certificated carrier to give a high priority

to the timely preparation and

submission of its plan and meet the 180-

day deadline for filing updated plans

required by AIR–21. We note that the

requirements of section 41113 apply to

all certificated air carriers, including

those holding cargo-only authority and

those operating small aircraft. We

remind all certificated carriers that

while a carrier may, if it chooses,

contract with an outside source to act as

a point of contact and provide services

covered in the submitted assurances in

the event of an accident, in such a

situation full responsibility for

complying with the provisions of the

law remains with the carrier.

We would also like to take this

opportunity to request, on behalf of the

NTSB, that each carrier provide the

NTSB an updated 24-hour telephone

number for its operations center for use

in the event of an emergency, and that

the number be updated with the NTSB

in the future as necessary.

DATES: Updated plans are due to be filed

not later than Monday, October 2, 2000.

ADDRESSES: Plans should be submitted

to the Department and the NTSB at the

following addresses:

Dockets—Docket OST–96–1960, U.S.

Department of Transportation, 400

Seventh Street SW., Room PL 401,

Washington, DC 20590;

Erik Grosof, Office of Family Affairs,

National Transportation Safety Board,

490 L’Enfant Plaza East, SW.,

Washington, DC 20594.

FOR FURTHER INFORMATION CONTACT:

Questions concerning the contents of

the plans may be addressed to Erik

Grosof, Office of Family Affairs, NTSB,

at (202) 314–6189. Questions

concerning the applicability of the

requirements of section 41113 to a

particular air carrier should be

addressed to Dayton Lehman, Deputy

Assistant General Counsel for Aviation

Enforcement and Proceedings, DOT, at

(202) 366–9342.

Thank you for your cooperation on

this important issue.

Issued in Washington, DC, on June 8, 2000.

Samuel Podberesky,

Assistant General Counsel for Aviation

Enforcement and Proceedings.

[FR Doc. 00–15654 Filed 6–20–00; 8:45 am]

BILLING CODE 4910–62–P