39974 Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices

13See Chicago Board Options Exchange Rule

8.80; Pacific Exchange Rule 6.82; and Philadelphia

Stock Exchange Rule 1014(g).

14 15 U.S.C. 78f(b).

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

16 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3The PACE quote means the best bid/ask quote

among the American, Boston, Cincinnati, Chicago,

Pacific, Philadelphia and New York Stock

Exchanges. See Phlx rule 229.

4See Phlx Rule 229, Commentary .07(c)(i)

5See Phlx Rule 229, Commentary .07(c)(i)(A) and

(B).

makers.13 The Exchange believes that

guaranteed participation would also

give specialists the ability to attract

order flow to the Exchange and provide

its customers with tighter, more

competitive markets. As a result, the

Exchange would be able to attract new

specialist units and retain the services

of existing units.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) 14 of the Act in general and

furthers the objectives of Section

6(b)(5) 15 of the Act 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 and a national market

system.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The 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 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 in

the Commission’s Public Reference

Room. Copies of the filing will also be

available for inspection and copying at

the principal offices of the Amex. All

submissions should refer to File No.

SR–Amex–00–30 and should be

submitted by July 19, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.16

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16305 Filed 6–27–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42973; File No. SR–Phlx–

00–43]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Adopting Enhancements to the PACE

Systems Automatic Price Improvement

Feature

June 21, 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 May 12,

2000, 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 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 Phlx proposes to adopt a system

change to the Exchange’s Automatic

Communication and Execution

(‘‘PACE’’) System Automatic Price

Improvement (‘‘API’’) feature and adopt

Rule 229, Commentary .07(c)(i)(E) to

provide specialists the ability to

implement automatic price

improvement to allow sell orders to

improve to the last sale on an uptick

and/or allow sell orders to improve to

a price higher than the last sale (‘‘Sell

Order Enahncement features’’).

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

PACE is the Exchange’s automated

order routing and execution system on

the equity trading floor. PACE accepts

orders for automatic or manual

execution in accordance with the

provisions of Rule 229, which governs

the PACE System and defines its

parameters. The API features of the

PACE System allows the specialist to

voluntarily provide automatic price

improvement to market and marketable

limit orders to all customers in a

security when the orders are 599 shares

or less and the PACE quote 3 is 3/16 or

1/8 or greater.4 When the API feature

was first introdced, there were certain

exceptions which prevented a sell order

from being executed on the last sale if

the last sale is an uptick and prevented

a sell order from being executed at a

price higher than the last sale.5 In those

situations, the order would be executed

at the PACE quote.

The Exchange proposes to enhance

the API feature to allow the specialist to

voluntarily provide automatic price

improvement to sell orders of a 100

shares or more, as determined by the

specialist, in a particular security even

when the sell order would be executed

on the last sale and the last sale is an

uptick (‘‘Sell Order Enhancement I’’). In

addition, the Exchange also proposes to

enhance the API feature to allow the

specialist to voluntarily provide

automatic price improvement to sell

orders of 100 shares or more, as

determined by the specialist, in a

particular security when the improved

Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices 39975

6See Phlx Rule 229, Commentary. 07(c)(iii)

7See Securities Exchange Act Release No. 39548

(January 13, 1998), 63 FR 3595 (January 23, 1998).

8 15 U.S.C. 78f(b).

9 15 U.S.C. 78f(b)(5).

10 15 U.S.C. 78s(b)(3)(A).

11 17 CFR 240.19b–4(f)(5).

12 17 CFR 200.30–3(a)(12).

price would be higher than the last sale

(‘‘Sell Order Enhancement II’’). The

specialist may choose to provide either

or both of the Sell Order Enhancement

features on a symbol-by-symbol basis to

all eligible orders for all customers.

The Sell Order Enhancement features

will be disengaged when the API feature

is disengaged in accordance with Rule

229, Commentary .07(c)(iii).6 As with

the API feature, specialists choosing to

activate or deactivate either one or both

Sell Order Enhancement features would

be required to notify the Exchange one

day prior to implementation. The

change would be effective the next day

in order to provide notice to the PACE

users of the activation and make the

necessary system changes.7 The

Exchange proposes Sell Order

Enhancement features in order to

provide automatic price improvement to

orders that were previously excluded

from price improvement.

2. Statutory Basis

The Exchange represents that the

proposed rule change is consistent with

Section 6(b) of the Act 8 in general, and

furthers the objectives of Section

6(b)(5) 9 in particular, in that it is

designed to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system, as well as to protect investors

and the public interest by providing

automatic price improvement to more

equity orders which should in turn

enhance the speed of execution for a

larger number of orders as well as

provide executions at better prices.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Phlx represents that it does not

believe that the proposed rule change

will impose any burden on competition

that is not necessary or appropriate in

furtherance of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

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)

of the Act 10 and Rule 19b–4(f)(5) 11

thereunder. The proposal effects a

change in an existing order-entry or

trading system of a self-regulatory

organization that (i) Does not

significantly affect the protection of

investors or the public interest; (ii) does

not impose any significant burden on

competition; and (iii) does not have the

effect of limiting the access to or

availability of the system pursuant to

Rule 229.

At any time within 60 days of the

filing of the proposed rule change, the

Commission may summarily abrogate

the proposed 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 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 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.

SR–Phlx–00–43 and should be

submitted by July 19, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–16304 Filed 6–27–00; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3255]

State of New Mexico; (Amendment #1)

In accordance with a notice from the

Federal Emergency Management

Agency, dated June 9, 2000, the abovenumbered Declaration is hereby

amended to establish the incident

period for this disaster as beginning on

May 5, 2000 and continuing through

June 9, 2000.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is July

12, 2000 and for economic injury the

deadline is February 13, 2001.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: June 14, 2000.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 00–16254 Filed 6–27–00; 8:45 am]

BILLING CODE 8025–01–U

DEPARTMENT OF STATE

Bureau of Economic and Business

Affairs Finding of No Significant

Impact: City of Sumas, WA

[Public Notice 3344]

AGENCY: Department of State.

ACTION: Notice of a finding of no

significant impact with regard to an

application to construct, operate and

maintain a pipeline to transport water

across the U.S.-Canada border.

SUMMARY: The Department of State has

conducted an environmental assessment

of the proposed construction by the City

of Sumas, Washington, of a pipeline for

the transport of water crossing the

international boundary near the City of

Sumas, Washington. This information

may be viewed upon request in the

Office of International Energy and

Commodity Policy at the Department of

State.

Based on this information, the

Department of State has concluded that

issuance of a Presidential Permit

authorizing construction of the pipeline

will not have a significant effect on the

existing vegetation and wildlife, water

resources, land use, air quality and

human population within the United

States. In reaching this conclusion, the

Department of State considered several

alternatives, including a no-action

alternative.