Federal Register / Vol. 65, No. 193 / Wednesday, October 4, 2000 / Notices 59243

4See PCX Rules 6.35, 6.37, 6.82, 11.10(c).

5See PCX Rules 6.35 and 6.82.

6 15 U.S.C. 78f(b).

7 15 U.S.C. 78f(b)(5).

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

Current PCX rules state that the duty

of the Options Appointment Committee

is to recommend to the Board of

Governors the appointment, assignment,

retention, reassignment, transfer, and

taking leave of the privileges to deal in

and trade options to, by, and among

members on the Options Trading Floor.4

The Options Appointment Committee is

also responsible for appointing Market

Makers and appointing and approving

Lead Market Makers (‘‘LMMs’’).5 The

Options Appointment Committee may

relieve LMMs of their appointments,

designate interim LMMs, and make

determinations pertaining to LMMrelated issues not within the jurisdiction

of any other standing committee. The

Exchange proposes to eliminate the

Options Appointment Committee and to

transfer all of its authority and duties to

the Options Allocation Committee, in

order to centralize the PCX rules

relating to the approval, evaluation,

allocation to, and appointment of

LMMs.

Specifically, the Exchange proposes to

change all references to the ‘‘Options

Appointment Committee’’ in PCX Rule

11.10(a), to the ‘‘Options Allocation

Committee’’ and to transfer the language

of PCX Rule 11.10(a), relating to the

current duties of the Options

Appointment Committee, to the Options

Allocation Committee under new

proposed PCX Rule 11.10(b)(2). The

Exchange also proposes to renumber

PCX Rule 11.10(b) as 11.10(a) and PCX

Rule 11.10(c) as 11.10(b)(1). The

Exchange believes that these changes

will make the application of the transfer

of all authority and duties from the

Options Appointment Committee to the

Options Allocation Committee

consistent throughout the text of PCX

Rule 11.

The Exchange also proposes to change

the references to the ‘‘Options

Appointment Committee’’ in PCX Rules

6.35; 6.37; Commentary .08; 6.82(a)(1)

and (3); 6.82(b)(1) and (2); 6.82(f)(3);

6.82(g)(1); and 6.82(h)(1) to the

‘‘Options Allocation Committee.’’ The

Exchange believes that these changes

will make all rules referencing or

relating to the Options Appointment

Committee consistent with that

committee’s elimination and the

delegation of its duties and powers to

the Options Allocation Committee.

2. Statutory Purpose

The Exchange believes that the

proposed rule changes are consistent

with Section 6(b) of the Act,6 in general,

and further the objectives of Section

6(b)(5),7 in particular, in that they are

designed to promote just and equitable

principles of trade, to enhance

competition and to protect investors and

the public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition 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

The Exchange neither solicited nor

received written comments 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 Amex consents, the

Commission will:

A. by order approve the 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, N.W.,

Washington, D.C. 20549–0609. Copies of

the submissions, 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 persons, 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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the PCX. All

submissions should refer to File No.

SR–PCX–00–08 and should be

submitted by October 25, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–25439 Filed 10–3–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43343; File No. SR–Phlx–

00–80]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc. To

Waive Transaction and Comparison

Fees on Customer Equity Option

Orders.

September 26, 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 1, 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 Phlx. 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 amend its

schedule of dues, fees and charges to

waive all comparison and transaction

charges for customers trading equity

options. The proposed fee is effective on

September 1, 2000.

The text of the proposed rule change

is available at the Phlx and the

Commission.

59244 Federal Register / Vol. 65, No. 193 / Wednesday, October 4, 2000 / Notices

3See Phlx Options Rule 1051.

4See Securities Exchange Act Release No. 42675

(April 13, 2000), 65 FR 21223 (April 20, 2000)

(eliminating all transaction, clearance and floor

brokerage fees for all customer equity option

orders).

5See Securities Exchange Act Release No. 42850

(May 30, 2000), 65 FR 36187 (June 7, 2000)

(rescinding transaction and trade match fees for

customer equity option orders routed through its

electronic order routing system).

6See Securities Exchange Act Release No. 43115

(August 3, 2000), 65 FR 49280 (August 11, 2000)

(eliminating both the fee for all manual executions

of customer option orders and the ticket data entry

fee applicable to all customer option orders). See

also Securities Exchange Act Release No. 43020

(July 10, 2000), 65 FR 44558 (July 18, 2000)

(eliminating of all transaction charges for all forms

of electronic executions of customer orders and all

on-line comparison charges for all customer

executions).

7 15 U.S.C. 78f(b).

8 15 U.S.C. 78f(b)(4).

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

10 17 CFR 240.19b–4(f)(2).

11 17 CFR 240.30–2(a)(12).

1The Phlx had originally submitted the filing on

December 10, 1997; however, at that time, the filing

was incomplete. At the Commission’s request the

Phlx made a complete filing on February 11, 1998.

2 15 U.S.C. 78s(b)(1).

3 17 CFR 240.19b–4.

II. Self-Regulatory Organization’s

Statements Regarding the Purpose of,

and the 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 amend the Phlx fee

schedule to waive and eliminate all

comparison and transaction charges to

customers connected with the trading of

equity options. 3

Currently, the Phlx imposes both

comparison and transaction fees on all

equity option trades, which vary in

amount depending on whether a

transaction involves a Registered

Options Trader (‘‘ROT’’), a firm, a

specialist or a customer. Customer

orders electronically executed through

the Phlx’s Automated Options Market

(AUTOM) system are entirely exempt

from both comparison and transaction

fees. Customer block orders (in certain

size categories) are entitled to

transaction fee discounts up to 25% of

the normal charge. Under the proposed

rule change all charges to ROTs, firms

and specialists will remain unchanged.

The Phlx estimates that annual cost

savings for customers will approximate

$4.5 million based upon year-to-date

results through July, 2000. These

proposed fee adjustments are necessary

in order to make the Phlx’s fees more

competitive with equivalent fees

charged by other exchanges and to

either maintain or enhance the volume

of equity option orders placed with the

Phlx. These downward adjustments in

fee levels will also encourage the use of

options by the investing public and

promote competition and efficiencies

among exchanges.

Recently, the American Stock

Exchange,4 Chicago Board Options

Exchange 5 and the Pacific Exchange 6

have all changed their respective rules

to eliminate similar equity option fees.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b) of the Act 7 in general and furthers

the objectives of Section 6(b)(4) of the

Act,8 in particular, because it provides

for the equitable allocation of reasonable

dues, fees and other charges among its

Members and others utilizing the Phlx.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The 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

The Phlx 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 foregoing rule change establishes

or changes a due, fee or charge imposed

by the Phlx and, therefore, has become

effective upon filing pursuant to Rule

19(b)(3)(A) of the Act 9 and Rule 19b–

4(f)(2) thereunder.10 At any time within

60 days of the filing of such 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 purpose 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–00–80 and should be

submitted by October 25, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–25425 Filed 10–3–00; 8:45 am]

BILLING CODE 8010–10–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43339; File No. SR–PHLX–

97–46]

Self-Regulatory Organizations;

Philadelphia Stock Exchange, Inc.;

Order Approving Proposed Rule

Change and Notice of Filing and Order

Granting Accelerated Approval to

Amendment No. 2 to the Proposed

Rule Change Amending Article V,

Section 5–5 and Article XXII, Section

22–1 of the Exchange’s By-Laws

September 25, 2000.

I. Introduction

On February 11, 1998,1 the

Philadelphia Stock Exchange, Inc.

(‘‘Phlx’’ or ‘‘Exchange’’) submitted to the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’), pursuant to

Section 19(b)(1) of the Securities

Exchange Act of 1934 (‘‘Act’’) 2 and Rule

19b–4 thereunder,3 a proposed rule

change to amend the Exchange’s ByVerDate 11<MAY>2000 20:35 Oct 03, 2000 Jkt 194001 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM pfrm08 PsN: 04OCN1