58584 Federal Register / Vol. 65, No. 190 / Friday, September 29, 2000 / Notices

8 15 U.S.C. 78k–1.

9 15 U.S.C. 78k–1.

10 17 CFR 240.11Aa3–2.

11 17 CFR 200–30–3(a)(29).

1 15 U.S.C. 78k–1(a)(3).

2 17 CFR 240.11Aa3–2.

3On July 28, 2000, the Commission approved a

national market system plan for the purpose of

creating and operating an intermarket options

market linkage proposed by the American Stock

Exchange LLC (‘‘Amed’’), the Chicago Board

Options Exchange, Inc. (‘‘CBOE’’), and the

International Securities Exchange LLC (‘‘ISE’’). See

Securities Exchange Act Release No. 43086 (July 28,

2000), 65 FR 48023 (August 4, 2000).

4The Plan defines an ‘‘eligible exchange’’ as a

national securities exchange registered with the

Commission pursuant to Section 6(a) of the Act, 15

U.S.C. 78f(a), that is a participant in the Options

Clearing Corporation and a party to the Options

Price Reporting Authority Plan.

5 In approving this proposed Linkage Plan

amendment, the Commission has considered the

proposal’s impact on efficiency, competition, and

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

6 15 U.S.C. 78k–1(a)(1)(D).

7 17 CFR 240.11Aa3–2.

8 15 U.S.C. 78k–1.

9 15 U.S.C. 78k–1.

10 17 CFR 240.11Aa3–2.

by allowing the linked markets to more

easily access better prices available on

the participant exchanges.

The Commission finds good cause to

grant temporary effectiveness to the

proposed Linkage Plan amendment, for

120 days, until January 18, 2001. The

Commission believes that it is necessary

and appropriate in the public interest,

for the maintenance of fair and orderly

markets, to remove impediments to, and

perfect mechanisms of, a national

market system to allow the PCX to

become a participant in the Linkage

Plan. The commission finds, therefore,

that granting temporary effectiveness of

the proposed Linkage Plan amendment

is appropriate and consistent with

Section 11A of the Act.8

IV. Conclusion

It Is Therefore Ordered, pursuant to

Section 11A of the Act 9 and Rule

11Aa3–2 thereunder,10 that the

proposed Linkage Plan amendment is

approved for 120 days, through January

18, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–25024 Filed 9–28–00; 8:45 am]

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[Release No. 34–43311, File No. 4–429]

Joint Industry Plan; Notice of Filing

and Order Granting Temporary

Effectiveness of Amendment to the

Options Intermarket Linkage Plan

September 20, 2000.

Pursuant to section 11A(a)(3) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 11Aa3–2

thereunder,2 notice is hereby given that

on September 20, 2000, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ or

‘‘Exchange’’) submitted to the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) an amendment to the

Options Intermarket Linkage Plan

(‘‘Linkage Plan’’).3 The amendment

proposes to add the Phlx as a

participant to the Linkage Plan. The

Commission is publishing this notice

and order to solicit comments from

interested persons on the proposed

Linkage Plan amendment, and to grant

temporary effectiveness to the proposed

Linkage Plan amendment through

January 18, 2001.

I. Description and Purpose of the

Amendment

The current participants to the

Linkage Plan are Amex, CBOE, and ISE.

The proposed amendment to the

Linkage Plan would add the Phlx as a

participant to the Linkage Plan. The

Phlx has submitted a signed copy of the

Linkage Plan to the Commission in

accordance with the procedures set

forth in the Linkage Plan regarding new

participants. Section 4(c) and 5(c)(ii) of

the Linkage Plan provide for the

admission of new participants, in which

eligible exchanges 4 may become a party

to the plan by: (i) executing a copy of

the plan, as then in effect; (ii) effecting

an amendment to the plan reflecting the

addition of the new participant’s name

and obtaining the Commission’s

approval of the plan as amended to

reflect the new participant; and (iii)

paying the applicable fee.

II. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed Linkage

Plan amendment 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, and all written

statements with respect to the proposed

Linkage Plan amendment that are filed

with the Commission, and all written

communications relating to the

proposed Linkage Plan amendment

between the Commission and any

person, other than those 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 also will be

available at the principal offices of the

Phlx. All submissions should refer to

File No. 4–429 and should be submitted

by October 30, 2000.

III. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Plan Amendment

After careful review, the Commission

finds that the proposed Linkage Plan

amendment is consistent with the

requirements of the Act and the rules

and regulations thereunder.5

Specifically, the Commission believes

that the proposed amendment, which

permits Phlx to become a participant to

the Linkage Plan, is consistent with

Section 11A(a)(1)(D) of the Act,6 in

which Congress found that the linking

of all markets for qualified securities

through communication and data

processing facilities will foster

efficiency, enhance competition,

increase the information available to

brokers, and investors, facilitate the

offsetting of investors’ orders, and

contribute to best execution of such

orders. The Commission believes the

proposed amendment to include Phlx as

a participant in the Linkage Plan is also

consistent with Rule 11Aa3–2 7 in that

it will contribute to the maintenance of

fair and orderly markets and remove

impediments to and perfect the

mechanisms of a national market system

by allowing the linked markets to more

easily access better prices available on

the participant exchanges.

The Commission finds good cause to

grant temporary effectiveness to the

proposed Linkage Plan amendment, for

120 days, until January 18, 2001. The

Commission believes that it is necessary

and appropriate in the public interest,

for the maintenance of fair and orderly

markets, to remove impediments to, and

perfect mechanisms of, a national

market system to allow the Phlx to

become a participant in the Linkage

Plan. The Commission finds, therefore,

that granting temporary effectiveness of

the proposed Linkage Plan amendment

is appropriate and consistent with

Section 11A of the Act.8

IV. Conclusion

It Is Therefore Ordered, pursuant to

Section 11A of the Act 9 and Rule

11Aa3–2 thereunder,10 that the

proposed Linkage Plan amendment is

Federal Register / Vol. 65, No. 190 / Friday, September 29, 2000 / Notices 58585

11 17 CFR 200.30–3(a)(29).

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

2 17 CFR 240.19b–4.

3See September 1, 2000 letter from Alden S.

Adkins, Senior Vice President and General Counsel,

NASD Regulation to Joseph P. Morra, Special

Counsel, Division of Market Regulation, SEC

(‘‘Amendment No. 1’’). In Amendment No. 1, NASD

Regulation made technical, non-substantive

changes to the original proposal. In addition, NASD

Regulation provided clarifying language to assist in

describing the requirements under Rule 1120.

4See September 19, 2000 letter from Gregory J.

Dean, Jr., Assistant General Counsel, NASD

Regulation to Joseph P. Morra, Special Counsel,

Division of Market Regulation, SEC (‘‘Amendment

No. 2’’). In Amendment No. 2, NASD Regulation

corrected the reference to SEC Rule 19d–1(c)(2) in

the title to IM–9216.

5 17 CFR 240.19d–1.

approved for 120 days, through January

18, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretay.

[FR Doc. 00–25023 Filed 9–28–00; 8:45 am]

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Sunshine Act Meeting

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: [to be published]

STATUS: Closed meeting.

PLACE: 450 Fifth Street NW.,

Washington, DC.

DATE PREVIOUSLY ANNOUNCED: September

20, 2000.

CHANGE IN THE MEETING: Cancellation of

meeting.

The closed meeting scheduled for

Wednesday, September 27, 2000 at

11:00 a.m. has been cancelled.

Dated: September 26, 2000.

Jonathan G. Katz,

Secretary.

[FR Doc. 00–25095 Filed 9–26–00; 4:11 pm]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43330; File No. SR–NASD–

00–39]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change and

Amendment Nos. 1 and 2 by the

National Association of Securities

Dealers, Inc. Relating to an

Amendment to Schedule A of the

NASD By-Laws for the Timely Filing of

Reports, and Amendments to IM–9216,

Minor Rule Violation Plan

September 22, 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 20,

2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its wholly

owned subsidiary, NASD Regulation,

Inc. (‘‘NASD Regulation’’), filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by NASD Regulation. NASD

Regulation amended the proposal on

September 5, 2000.3 On September 21,

2000, NASD Regulation again amended

the proposal.4 The Commission is

publishing this notice to solicit

comments on the proposed rule change,

as amended, from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

NASD Regulation proposes to amend

Schedule A of the NASD By-Laws for

the Timely Filing of Reports, and to

amend IM–9216, Minor Rule Violation

Plan of the Association, to permit the

Association to set late fees to encourage

the timely filing of reports and to

expand the Association’s Minor Rule

Violation Plan pursuant to SEC Rule

19d–1.5 Below is the text of the

proposed rule change. Proposed new

language is in italics.

* * * * *

Schedule A to the NASD By-Laws

Assessments and fees pursuant to the

provisions of Article VI of the By-Laws

of the NASD shall be determined on the

following basis:

* * * * *

Section 2—Fees

(a) through (k) No Change.

(l)(1) Unless a specific temporary

extension of time has been granted,

there shall be imposed upon each

member required to file reports, as

designated by this paragraph, a fee of

$100 for each day that such report is not

timely filed. The fee will be assessed for

a period not to exceed 10 business days.

Requests for such extension of time

must be submitted to the Association at

least three business days prior to the

due date; and

(2) Any report filed pursuant to this

Rule containing material inaccuracies

or filed incompletely shall be deemed

not to have been filed until a corrected

copy of the report has been resubmitted.

(3) List of Designated Reports:

(A) SEC Rule 17a–5—Monthly and

quarterly FOCUS reports and annual

audit reports.

* * * * *

IM–9216. Violations Appropriate for

Disposition Under Plan Pursuant to SEC

Rule 19d–1(c)(2)

• Rule 2210(b) and (c) and Rule 2220(b)

and (c)—Failure to have advertisement and

sales literature approved by a principal prior

to use; failure to maintain separate files of

advertisements and sales literature

containing required information; and failure

to file advertisements with the Association

within the required time limits.

• Rule 3360—Failure to timely file reports

of short positions on Form NS–1.

• Rule 3110—Failure to keep and preserve

books, accounts, records, memoranda, and

correspondence in conformance with

applicable laws, rules, regulations and

statements of policy promulgated thereunder,

and with the Rules of the Association.

• Rule 8211, Rule 8212, and Rule 8213—

Failure to submit trading data as requested.

• Article IV of the NASD By-Laws—Failure

to timely submit amendments to Form BD.

• Article V of the NASD By-Laws—Failure

to timely submit amendments to Form U–4.

• Rule 1120—Failure to comply with

continuing education requirements.

• Rule 3010(b)—Failure to timely file

reports pursuant to the Taping Rule.

• Rule 3070—Failure to timely file reports.

• Rule 4619(d)—Failure to timely file

notifications pursuant to SEC Regulation M.

• Rules 4632, 4642, 4652, 6240, 6420,

6550, 6620, And 6720—Transaction

reporting in equity, convertible debt, and

high yield securities.

• Rules 6130 and 6170—Transaction

reporting to the Automated Confirmation

Transaction Service (‘‘ACT’’).

• Rule 6953—Synchronization of member

business clocks.

• Rules 6954 and 6955—Failure to submit

data in accordance with the Order Audit

Trail System (‘‘OATS’’).

• Rule 11870—Failure to abide by

Customer Account Transfer Contracts.

• SEC Exchange Act Rule 11Ac1–4—

Failure to properly display limit orders.

• SEC Exchange Act Rule 11Ac1–1(c)(5)—

Failure to properly update published

quotations in certain Electronic

Communication Networks (‘‘ECN’s’’).

• SEC Exchange Act Rule 17a–5—Failure

to timely file FOCUS reports.

• SEC Exchange Act Rule 17a–11—Failure

to timely file net capital reports.

• MSRB Rule A–14—Failure to pay annual

fee.

• MSRB Rule G–12—Failure to abide by

uniform practice rules.

• MSRB Rule G–14—Failure to submit

reports.

• MSRB Rule G–36—Failure to timely

submit reports.

• MSRB Rule G–37—Failure to timely

submit reports for political contributions.

• MSRB Rule G–38—Failure to timely

submit reports detailing consultant activities.

* * * * *