57852 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices

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

16For purposes only of accelerating the operative

date of this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

17 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).

4 17 CFR 240.19b–4(f)(6).

5The Commission agreed to waive the 5-day prefiling notice requirement. The Commission also

finds good cause to waive the 30-day pre-operative

waiting period. See Rule 19b–4(f)(6)(iii). 17 CFR

240.19b–4(f)(6)(iii).

6 17 CFR 240.19b–4(f)(6)(iii).

7See Securities Exchange Act Release No. 42003

(October 13, 1999), 64 FR 56554 (October 20, 1999)

(SR–NASD–99–57).

8 15 U.S.C. 78o–3(b)(6).

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.

The Exchange has requested that the

Commission accelerate the operative

date. The Commission finds good cause

to designate the proposal to become

operative immediately because such

designation is consistent with the

protection of investors and the public

interest. The Commission believes that

the E-Session provides retail investors

with an additional means to trade after

traditional trading hours, and that the

operation of the E-Session is consistent

with Section 6(b)(5) of the Act 15 in that

it is designed to remove impediments

to, and to perfect the mechanism of, a

free and open market. The Commission

believes the availability of the E-Session

may enhance competition in the afterhours market. Currently, electronic

trading systems provide retail investors

the opportunity to trade after-hours. The

continued presence of a national

securities exchange in the after-hours

market will provide retail investors with

an alternative forum through which to

conduct after-hours transactions. The

CHX has been operating the E-Session

on a pilot basis. The Commission

believes there is no particular benefit to

investors if the CHX is required to wait

30 days before its proposal to make the

E-Session a permanent part of its

operations becomes operative. For these

reasons, the Commission finds good

cause to designate that the proposal is

both effective and operative upon filing

with the Commission.16

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, D.C.

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 CHX. All

submissions should refer to file number

SR–CHX–00–26 and should be

submitted by October 17, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.17

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–24641 Filed 9–25–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43302; File No. SR–NASD–

00–56]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers, Inc. to Extend the Operation

of Certain Nasdaq Services and

Facilities Until 6:30 P.M. Eastern Time

September 19, 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

September 14, 2000, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’), through its

wholly owned subsidiary, The Nasdaq

Stock Market, Inc. (‘‘Nasdaq’’) 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 Nasdaq. Nasdaq

filed the proposal pursuant to Section

19(b)(3)(A) of the Act,3 and Rule 19b–

4(f)(6) thereunder, 4 which renders the

proposal effective upon filing with the

Commission.5 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

Nasdaq proposes to extend, through

March 1, 2001, its pilot program

extending the availability of several

Nasdaq services and facilities until 6:30

p.m. Eastern Time. Nasdaq has

designated this proposal as noncontroversial, and requests that the

Commission waive both the 5-day prefiling notice and the 30-day preoperative waiting period contained in

Rule 19b–4(f)(6)(iii) under the Act,6 to

allow the proposal to be both effective

and operative immediately upon filing

with 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,

Nasdaq included statements concerning

the purpose of and basis for its proposal

and discussed any comments it received

regarding the proposal. The text of these

statements may be examined at the

places specified in Item IV below.

Nasdaq 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

Nasdaq proposes to extend, through

March 1, 2001, its current pilot program

that makes available certain Nasdaq

systems and facilities until 6:30 p.m.

Eastern Time. The Commission

originally approved the pilot on October

13, 1999.7 The pilot will continue to

operate under its current terms and

conditions, including mandating 90-

second trade reporting until 6:30 p.m.

Eastern Time.

2. Statutory Basis

Nasdaq believes that the proposal is

consistent with the provisions of

Section 15A(b)(6) of the Act8 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

regulating, clearing, settling, processing

Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices 57853

9 15 U.S.C. 78s(b)(3)(A).

10 17 CFR 240.19b–4(f)(6).

11For purposes only of accelerating the operative

date of this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

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).

4 17 CFR 240.19b–4(f)(6).

5Nasdaq provided written notice to the

Commission on August 21, 2000, that it intended

to file this proposal. See Rule 19b–4(f)(6)(iii). 17

CFR 240.19b–4(f)(6)(iii).

6Nasdaq changed the name of its Third Market

to Nasdaq Intermarket, See Nasdaq Press Release,

June 13, 2000 at <http://www.nasdaqnews.com>.

information with respect to, and

facilitating transactions in securities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq does not believe that the

proposed rule change will result in 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

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change does not:

(i) Significantly affect the protection

of investors or the public interest;

(ii) Impose any significant burden on

competition; and

(iii) Become operative for 30 days

from the date on which it was filed, or

such shorter time as the Commission

may designate, it has become effective

pursuant to Section 19(b)(3)(A) of the

Act9 and Rule 19b–4(f)(6) thereunder.10

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.

Nasdaq has requested that the

Commission waive the 30-day preoperative waiting period. The

Commission finds good cause to

designate the proposal to become

immediately operative upon filing,

because such designation is consistent

with the protection of investors and the

public interest. Acceleration of the

operative date will allow the pilot to

continue without interruption through

March 1, 2001. The Commission

believes the pilot provides beneficial

information and services to investors,

and that acceleration of the operative

date will ensure that those benefits do

not lapse. For these reasons, the

Commission finds good cause to waive

the 30-day operative waiting period, and

to designate that the proposal become

operative immediately.11

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, N.W., Washington, D.C.

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 NASD. All

submissions should refer to file number

SR–NASD–00–56 and should be

submitted by October 17, 2000.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–24640 Filed 9–25–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43303; File No. SR–NASD–

00–52]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers, Inc. Relating to an Alternative

Method of Reporting Riskless Principal

Trades

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

30, 2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its wholly

owned subsidiary, The Nasdaq Stock

Market, Inc. (‘‘Nasdaq’’) 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 Nasdaq. Nasdaq filed the

proposal pursuant to Section 19(b)(3)(A)

of the Act,3 and Rule 19b–4(f)(6)

thereunder,4 which renders the proposal

effective upon filing with the

Commission.5 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

Nasdaq proposes to amend NASD

Rules 4632, 4642, 4652, 6130, 6420, and

6620, regarding Nasdaq, non-Nasdaq

over-the-counter (‘‘OTC’’) equity, and

Nasdaq InterMarket 6 riskless principal

trade-reporting, to provide members

with an alternative method for

complying with the riskless principal

trade reporting rules, to add a new

‘‘riskless principal’’ capacity indicator

symbol, and to make technical changes

to NASD Rule 6420. The text of the

proposed rule change is below.

Proposed new language is in italics.

* * * * *

Rule 4630. Reporting Transactions in

Nasdaq National Market Securities

Rule 4632. Transaction Reporting

(a) through (c) No Change.

(d) Procedures for Reporting Price and

Volume. Members which are required to

report pursuant to paragraph (b) above

shall transmit last sale reports for all

purchases and sales in designated

securities in the following manner:

(1) through (3)(A) No Change.

(3)(B) Exception. A ‘‘riskless’’

principal transaction in which a

member, after having received an order

to buy a security, purchases the security

as principal at the same price to satisfy

the order to buy or, after having

received an order to sell, sells the

security as principal at the same price

to satisfy the order to sell, shall be

reported as one transaction in the same

manner as an agency transaction,

excluding the mark-up or mark-down,

commission-equivalent, or other fee.

Alternatively, a member may report a

riskless principal transaction by

submitting the following report(s) to

ACT: