57842 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Notices

12The amounts specified for each respondent do

not reflect any determination of a respondent’s

relative degree of culpability with respect to the

conduct alleged in the Order.

13 If, over the course of calendar 2000 or 2001, the

Board of Governors or Directors of a respondent

exchange believe that the specified expenditures are

not achievable or feasible, or are unwarranted in

light of changed circumstances, such respondent

exchange may, by application to the Commission,

seek modification of this undertaking.

enforcement processes and activities

with a view to preventing and

eliminating (aa) harassment,

intimidation, refusals to deal and

retaliation against market participants,

for acting competitively, or seeking to

act competitively, and (bb) other

anticompetitive conduct.

i. No later than one year after the date

of this Order, each respondent exchange

shall adopt rules establishing, or

modifying existing, sanctioning

guidelines such that they are reasonably

designed to effectively enforce

compliance with such exchange’s

options order handling rules, including,

the duty of best execution with respect

to the handling of orders after the

broker-dealer routes the order to such

respondent exchange, limit order

display, priority, firm quote, and trade

reporting rules. As part of its

compliance with this undertaking, each

respondent exchange shall provide to

the Commission staff, no later than nine

months after the date of the Order, draft

proposed rules or rule amendments that

comply with Section 19 of the Exchange

Act and Rule 19b–4 thereunder and that

would be, if approved by the

Commission, sufficient to effect the

changes required by this undertaking.

j. No later than twelve months after

the date of this Order, each respondent

exchange shall adopt new, or amend

existing, rules to include any practice or

procedure, not currently authorized by

rule, whereby market makers trading

any particular option class determine by

agreement the spreads or option prices

at which they will trade any option

class, or the allocation of orders in that

option class. As part of its compliance

with this undertaking, each respondent

exchange shall provide to the

Commission staff, no later than six

months after the date of the Order, draft

proposed rules or rule amendments that

comply with Section 19 of the Exchange

Act and Rule 19b–4 thereunder that

would be, if approved by the

commission, sufficient to effect the

changes required by this undertaking.

Each respondent exchange shall take all

reasonable steps within six months after

the date of this Order to promptly stop

any other such practice or procedure if

neither it nor a related practice or

procedure that would supersede the

existing practice or procedure, has been

submitted to the Commission for

approval or is not already authorized by

rule.

k. The rule changes adopted pursuant

to these undertakings shall not preclude

a respondent exchange from exercising

or enforcing an intellectual property

right in an option, or a license of an

intellectual property right in an option,

if another exchange proposes to list or

has listed the option and such

respondent exchange has a good faith

belief that the intellectual property right

or license thereof exists and the action

taken is consistent with the federal

securities laws and the Commission’s

rules, regulations and orders.

l. The respondent exchanges shall, for

each of calendar 2000 and 2001, expend

for options-related surveillance systems

and for staffing in the areas of optionsrelated surveillance, investigation and

enforcement, an annual amount that

equals or exceeds: (a) $11 million, in the

case of the AMEX; (b) $17 million, in

the case of the CBOE; (c) $6.5 million,

in the case of the PCX; and (d) $4

million in the case of the PHLX.12 This

undertaking shall be deemed fulfilled if

the average annual amount of a

respondent exchange’s expenditures in

calendar 2000 and 2001 required by this

undertaking equals or exceeds such

respondent exchange’s annual amount

specified earlier in this undertaking.

The fulfillment of this undertaking will

not necessarily be deemed sufficient to

satisfy any other undertakings in this

Order and the fulfillment of all other

undertakings shall be determined

independently of the fulfillment of this

undertaking.13

m. Each respondent exchange shall,

on the first three anniversaries after the

date of the Order, provide to the

Directors of the Divisions of

Enforcement and Market Regulation,

and of the Office of Compliance

Inspections and Examinations affidavits

or affirmations, detailing its progress in

implementing undertakings 3.f., 3.h.iii.,

and 3.1.

n. In evaluating a respondent

exchange’s compliance with these

undertakings, the Commission will

consider: (i) any rule proposals filed by

such respondent exchange since August

1, 1999, or any rules adopted by such

respondent exchange since August 1,

1999, which are relevant to the purposes

of any of the undertakings; and (ii) any

and all steps taken since August 1, 1999

by such respondent exchange to

enhance and improve its surveillance,

investigative and enforcement processes

and activities in any manner relevant to

the purposes of any of the undertakings.

The Order specifically notes any

instances in which the rules previously

proposed and adopted by a respondent

exchange, or the steps previously taken

by a respondent exchange to enhance

and improve its surveillance,

investigative and enforcement processes

and activities, shall be deemed to have

fulfilled a particular undertaking.

By The Commission.

Jonathan G. Katz,

Secretary.

[FR Doc. 00–24605 Filed 9–25–00; 8:45 am]

BILLING CODE 4410–11–M

DEPARTMENT OF JUSTICE

Antitrust Division

Notice Pursuant to the National

Cooperative Research and Production

Act of 1993—Cable Television

Laboratories, Inc.

Notice is hereby given that, on July

11, 2000, pursuant to Section 6(a) of the

National Cooperative Research and

Production Act of 1993, 15 U.S.C. 4301

et seq. (‘‘the Act’’), Cable Television

Laboratories, Inc. (‘‘CableLabs’’) has

filed written notifications

simultaneously with the Attorney

General and the Federal Trade

Commission disclosing changes in its

membership status. The notifications

were filed for the purpose of extending

the Act’s provisions limiting the

recovery of antitrust plaintiffs to actual

damages under specified circumstances.

Specifically, Buford Media Group,

Tyler, TX has been added as a party to

this venture.

No other changes have been made in

either the membership or planned

activity of the group research project.

Membership in this group research

project remains open, and CableLabs

intends to file additional written

notifications disclosing all changes in

membership.

On August 8, 1988, CableLabs filed its

original notification pursuant to Section

6(a) of the Act. The Department of

Justice published a notice in the Federal

Register pursuant to Section 6(b) of the

Act on September 7, 1988 (53 FR

34593).

The last notification was filed with

the Department on March 22, 2000. A

notice for this filing was published in

the Federal Register on August 9, 2000

(65 FR 48736 ).

Constance K. Robinson,

Director of Operations, Antitrust Division.

[FR Doc. 00–24608 Filed 9–25–00; 8:45 am]

BILLING CODE 4410–11–M