38620 Federal Register / Vol. 65, No. 120 / Wednesday, June 21, 2000 / Notices

11 15 U.S.C. 78f(b)(5).

12 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

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

4On October 13, 1999, the Commission approved,

on a pilot basis, the CHX’s proposed rule change

that allowed the CHX to implement an extended

hours trading session. See Securities Exchange Act

Release No. 42004 (October 13, 1999), 64 FR 56548

(October 20, 1999) (SR–CHX–99–16). The E-Session

takes place from 3:30 p.m. to 5:30 p.m. Central

quote and may thus become the basis for

a quote at which an order may be

executed. The Exchange will conduct

further review to determine whether to

include broad-based index option

classes under the proposed change in

the future.

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 amount of orders subject to

manual processing. In support of its

proposal to increase the RAES eligibility

maximum, CBOE represents that its

system capacity is sufficient to

accommodate the increased number of

automatic executions anticipated to

result from the implementation of this

proposal.

2. Statutory Basis

The proposed rule change will

enhance the ability of the Exchange to

provide instantaneous, automatic

execution of public customers’ orders at

the best available prices, which furthers

the objectives of Section 6(b)(5) 11 of the

Act to promote just and equitable

principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market,

and to protect investors and the public

interest.

B. Self-Regulatory Organizatin’s

Statement on Burden on Competition

CBOE 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 approved 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 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 CBOE. All

submission should refer to File No. SR–

CBOE–99–51 and should be submitted

by July 12, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–15616 Filed 6–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42929; File No. SR–CHX–

00–18]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange, Incorporated

Relating to Fees for the E-Session

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 June 1,

2000, the Chicago Stock Exchange,

Incorporated (‘‘CHX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by the Exchange.

The Exchange has designated this

proposal as one establishing or changing

a due, fee, or other charge imposed by

the CHX under section 19(b)(3)(A)(ii) of

the Act,3 which renders the proposal

effective upon filing with the

Commission. 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 its

membership dues and fees schedule (the

‘‘Schedule’’) to continue, through

October 1, 2000, the waiver of all

transaction, order processing and floor

broker fees for transactions that occur

during the CHX’s after-hours trading

session (‘‘E-Session’’). The text of the

proposed rule change is available upon

request from the Commission or the

CHX.

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

Exchange 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

The proposed rule change amends the

Schedule to eliminate, through October

1, 2000, order processing, transaction

and floor broker fees for transactions

that occur during the CHX’s E-Session.4

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