Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Notices 60233

26 15 U.S.C. 78s(b)(2).

27 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)(ii).

4On October 13, 1999, the Commission approved,

on a pilot basis, the CHX’s proposed rule change

that allowed the CHX to implement an extended

hours trading session. See Securities Exchange Act

Release No. 42004 (October 13, 1999), 64 FR 56548

(October 20, 1999)(SR–CHX–99–16). The

Commission recently approved the CHX’s proposal

to make the E-Session a permanent part of the

CHX’s operations. See Securities Exchange Act

Release No. 43304 (September 19, 2000), 65 FR

57850 (SR–CHX–00–26). The E-Session takes place

from 3:30 p.m. to 5:30 p.m., Central Time, Monday

through Friday.

5See Securities Exchange Act Release No. 42784

(May 15, 2000), 65 FR 33383 (May 23, 2000 (SR–

CHX–00–12).

6 15 U.S.C. 78f(b)(4).

7 15 U.S.C. 78s(b)(3)(A)(ii).

8 17 CFR 240.19b–4(f)(2).

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 Exchange. All

submissions should refer to File No.

SR–CHX–00–16 or SR–Amex–00–10

and should be submitted by October 31,

2000.

V. Conclusion

For the foregoing reasons, the

Commission finds that Amex and CHX’s

proposals relating to the listing and

trading of trust issued receipts pursuant

to Rule 19–4(e) are consistent with the

requirements of the Act and rules and

regulations thereunder.

It is therefore ordered, pursuant to

section19(b)(2) of the Act,26 that the

proposed rule change (SR–CHX–00–16),

as amended, and the proposed rule

change (SR–Amex–00–10), as amended,

are approved.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.27

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–25866 Filed 10–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43402; File No. SR–CHX–

00–29]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange, Incorporated

Relating to Fees for the E-Session

October 2, 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 22, 2000, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) 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 the Exchange. The

Exchange had designated this proposal

as one establishing or changing a due,

fee, or other charge imposed by the CHX

under section 19(b)(3)(A)(ii) of the Act,3

which renders the proposal effective

upon filing with the Commission. 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 Exchange proposes to amend its

membership dues and fees schedule (the

‘‘Schedule’’) to provide Exchange

specialists and floor brokers with a

credit of $.25 per trade executed during

the Exchange’s extended hours trading

session (‘‘E-Session’’) 4 through

December 31, 2000. The text of the

proposed rule change is below.

Additions are in italics. Deletions are in

brackets.

Membership Dues and Fees

* * * * *

M. Credits

1. Specialists Credits

Total monthly fees owed by a specialist to

the Exchange will be reduced (but to no less

than zero) by the application of the following

[transaction] credits:

a. No change to text.

b. No change to text.

c. E-Session Credits. A credit of $.25 per

trade executed during the E-Session. This

credit shall be available through December

31, 2000 [October 1, 2000].

2. Floor Broker Credits

a. No change to text.

b. No change to text.

c. E-Session Credits. Total monthly fees

owed by a floor broker to the Exchange will

also be reduced (but to no less than zero) by

the application of an E-Session Credit. ‘‘ESession Credit’’ means a credit of $.25 per

trade executed during the E-Session. This

credit shall be available through December

31, 2000 [October 1, 2000].

* * * * *

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

Exchange 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

Exchange has prepared summaries, set

forth in Section 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

On October 29, 1999, the Exchange

implemented the E-Session, which

permits investors to submit limit orders

for execution until 5:30 p.m., Central

Time. To encourage members to seek

additional order flow during the ESession, the Exchange developed an ESession credit program that provides

Exchange specialists and floor brokers

with a credit of $.25 per trade executed

during the E-Session. The credit

program was effective on filing with the

Commission in May 2000,5 and is

scheduled to expire on October 1, 2000.

This proposal extends the E-Session

credit program through December 31,

2000.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b)(4) of the Act 6 in that it provides for

the equitable allocation of reasonable

dues, fees and other charges among its

members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate 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.

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)(ii) of the Act 7 and

subparagraph (f)(2) of Rule 19b–4

thereunder,8 because it involves a due,

fee, or other charge. At any time within

60 days of the filing of the proposed rule

change, the Commission may summarily

60234 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Notices

9The Commission notes that the proposal may

raise questions concerning payment for order flow.

To the extent that it does raise such issues,

exchange members should consider best execution

and disclosure obligations they may have under the

federal securities laws in general, and particularly

under Rules 10b–10 and 11Ac1–3 under the Act. 17

CFR 240.10b–10 and 17 CFR 240.11Ac1–3,

respectively.

10 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)(ii).

4On October 13, 1999, the Commission approved,

on a pilot basis, the CHX’s proposed rule change

that allowed the CHX to implement an extended

hours trading session. See Securities Exchange Act

Release No. 42004 (October 13, 1999), 64 FR 56548

(October 20, 1999) (SR–CHX–99–16). The

Commission recently approved the CHX’s proposal

to make the E-Session a permanent part of the

CHX’s operations. See Securities Exchange Act

Release No. 43304 (September 19, 2000), 65 FR

57850 (SR–CHX–00–26). The E-Session takes place

from 3:30 p.m. to 5:30 p.m., Central Time, Monday

through Friday.

5E-Session fees have been waived since the

beginning of the E-Session. See Securities Exchange

Act Release Nos. 42089 (November 2, 1999), 64 FR

60864 (November 8, 1999) (SR–CHX–99–23)

(waiving fees from October 13, 1999 through

December 31, 1999); 42329 (January 11, 2000), 65

FR 3000 (January 19, 2000) (SR–CHX–99–29)

(waiving fees from January 1, 2000 through March

1, 2000); 42486 (March 2, 2000), 65 FR 12601

(March 9, 2000) (SR–CHX–005) (waiving fees from

March 2, 2000 through June 30, 2000); and 42929

(June 13,2000), 65 FR 38620 (June 21, 2000) (SR–

CHX–00–18) (waiving fees from July 1, 2000

through October 1, 2000). This proposal simply

extends the waiver of the same fees through

December 31, 2000. See October 2, 2000 telephone

conversation between Ellen J. Neely, Vice President

and General Counsel, CHX, and Joseph P. Morra,

Special Counsel, Division of Market Regulation,

SEC.

6 15 U.S.C. 78f(b)(4).

abrogate such rule change if it appears

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.9

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, DC

20549–0609. Copies of the submission,

an 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 Exchange. All

submissions should refer to file number

SR–CHX–00–29, and should be

submitted by October 31, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–25867 Filed 10–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43403; File No. SR–CHX–

00–30]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Stock Exchange, Incorporated

Relating to Membership Dues and Fees

During the E-Session

October 2, 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 22, 2000, the Chicago Stock

Exchange, Incorporated (‘‘CHX’’ or

‘‘Exchange’’) 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 the Exchange. The

Exchange has designated this proposal

as one establishing or changing a due,

fee, or other charge imposed by the CHX

under Section 19(b)(3)(A)(ii) of the Act,3

which renders the proposal effective

upon filing with the Commission. 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 Exchange proposes to amend its

membership dues and fees schedule (the

‘‘Schedule’’) to continue, through

December 31, 2000, the waiver of all

transaction, order processing and floor

broker fees for transactions that occur

during the CHX’s E-Session extended

hours trading session. The text of the

proposed rule change is available upon

request from the CHX and 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, the

Exchange 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

Exchange 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 proposed rule change amends the

Schedule to eliminate, through

December 31, 2000, order processing,

transaction and floor broker fees for

transactions that occur during the CHX’s

E-Session.4 This proposal is designed to

allow CHX members to continue to

participate in the E-Session without

incurring the fees normally associated

with their CHX transactions.5 According

to the Exchange, the vast majority of the

securities that trade during the ESession are already subject to order

processing and transaction fee waivers

under the current fee schedule because

they are either Nasdaq/NMS issues or

issues within the S&P 500. Waiving fees

on the few remaining securities and on

floor broker transactions in all securities

simplifies the Exchange’s fee-related

communications with its members.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b)(4) of the Act 6 in that it provides for

the equitable allocation of reasonable

dues, fees and other charges among its

members.