Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / Notices 60705

10 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

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 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–AMEX–00–54 and should be

submitted by November 2, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–26110 Filed 10–11–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43394; File No. SR–BSE–

00–13]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Boston Stock Exchange, Inc.

Relating to Electronic Trading Permits

for BEACON Remote Units

September 29, 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 21, 2000, the Boston Stock

Exchange, Inc. (‘‘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 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 seeks to add a

paragraph to its rules regarding

BEACON Remote specialists relating to

Electronic Trading Permits (‘‘ETP’’)

which will provide remote access to the

BEACON trading system from remote

locations using authorized terminals

and related equipment. The text of the

proposed rule change follows.

Chapter XXXIII

Boston Exchange Automated

Communication Order-routing Network

(BEACON)

BEACON Remote

Sec. 9. * * *

Electronic Trading Permits (‘‘ETP’’)

(o) Each remote BEACON terminal

assigned and registered by the Exchange

will require an ETP, and will be subject

to the following:

(1) Each approved Specialist unit may

be authorized to trade up to 200 issues.

(2) Each Specialist unit must have at

least one registered Exchange seat

assigned to the approved specialist.

a. A specialist may be authorized to

obtain additional ETP’s for qualified

registered clerks to access BEACON in

support of the Specialist unit.

b. All specialists and registered clerk

ETP holders must be approved by the

Market Performance Committee and

must meet the following:

i. file an ETP application form with

the BSE Surveillance Department;

ii. completion of the required floor

training program*;

iii. successful completion of the BSE

floor examination with 90 days of

application (unless waived by the

Exchange);

iv. successful completion of the Series

63 (NASAA Uniform State Law Exam),

and registration with the

Commonwealth of Massachusetts, and;

v. submission of fingerprint records to

the BSE.

(3) Each Specialist unit identified by

the member firm will be assigned an

account (‘‘give up’’) and will be

evaluated under the Exchange’s

Specialist Performance Evaluation

Program (‘‘SPEP’’) which currently

measures performance in several

separate categories comprising a

relative overall performance ranking.

*Training: On-site floor training for at

least two weeks unless other

arrangements are made with and

approved by the Exchange, and will

include, among other things:

(1) Questioned trade procedures

(2) Communication procedures with

Floor Brokers, Front Desk Operations,

Surveillance, Systems Support, and ITS

coordination with the Floor.

(3) Competing Specialist Initiative

(‘‘CSI’’) and Unlisted Trading Privilege

(‘‘UTP’’) applications and procedures

(4) Stock allocation procedures

(5) Book or symbol change procedures

(6) Trading Halt procedures

(7) Floor official rulings

(8) Authorizations required for billing,

withdrawals, and payment of fines

where applicable

(9) Minor Rule Plan Violations

policies and application

(10) Books and records/reports

available

(11) Explanation of the SPEP

categories and procedures

(12) Certain other rules and policies

deemed appropriate by the Exchange

(e.g. Limit Order Display Rule, autoexecutions, Price Improvement, etc.)

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 III below. The

Exchange has prepared summaries, set

forth in Section A, B, and C below, of

the most significant aspects of such

statments.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange proposes to add

paragraph (o) to Chapter XXXIII, Section

9, BEACON Remote, to require and

establish guidelines for Electronic

Trading Permits (‘‘ETP’’) for remote

specialist operations. Each BEACON

Remote terminal will be individually

identified and associated with (an)

authorized and qualified specialist(s)

and/or registered clerk(s). The Exchange

will specifically authorize and approve

each ETP based on certain

qualifications. Each ETP will provide

remote access to the BEACON system

from remote locations using authorized

terminals and related equipment.

The Exchange states that remote

specialists and associated registered

clerks with ETP’s, like current BSE floor

specialist units, will receive orders,

commitments over the Intermarket

Trading system (‘‘ITS’’) and

administrative messages through the

BEACON system. The existing Exchange

systems and rules will support remote

specialists as they currently support the

physical trading floor. All executions

occurring within BEACON, whether

60706 Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / Notices

3 15 U.S.C. 78f(b)(5).

4 15 U.S.C. 78k(a)(1)(B).

5 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 In Amendment No. 1, CBOE acknowledged that

prior to permanent approval of the proposed rule

change, the Exchange is required to submit to the

Commission a workable plan for electronic

incorporation of non-bookable orders on the

Exchange’s Rapid Opening System (‘‘ROS’’), and a

description of the methods the Exchange will

employ to surveil market-maker activities on ROS.

The Exchange also clarified that the current ROS

pilot program would be extended until the earlier

of September 30, 2001 or such time as the

Commission has approved ROS on a permanent

basis. Letter from Jaime Galvan, Attorney, CBOE, to

Terri Evans, Special Counsel, Division of Market

Regulation (‘‘Division’’), Commission, dated

September 26, 2000 (‘‘Amendment No. 1’’).

4See Amendment No. 1 effectively clarifying that

the Pilot will not be further extended beyond

September 30, 2001 without separate Commission

approval.

5Securities Exchange Act Release No. 41033

(February 9, 1999), 64 FR 8156 (February 18, 1999).

6Securities Exchange Act Release No. 42596

(March 30, 2000), 65 FR 18397 (April 7, 2000).

conducted on the floor or electronically

from remote locations, will be

considered to be executions occurring

on the Exchange.

2. Statutory Basis

The statutory basis for the proposed

rule change is Section 6(b)(5) of the

Act,3 in that it is designed to promote

just and equitable principles of trade, to

foster cooperation and coordination

with persons engaged in regulating

securities transactions, to remove

impediments, to perfect the mechanism

of a free and open market and a national

market system and, in general, to protect

investors and the public interest. In

addition, the Exchange believes that the

proposed rule change is consistent with

the provisions of Section 11A(a)(1)(B) of

the Act,4 in that it pertains to new data

processing and communications

techniques which create the opportunity

for more efficient and effective market

operations.

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 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

No written comments were either

solicited or received.

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 if it finds such longer period to

be appropriate and publishes it reasons

for so finding or (ii) as to which the selfregulatory organization consents, the

Commission will:

(1) by order approve such proposed

rule change, or

(2) 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.

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 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 abovementioned self-regulatory organization.

All submissions should refer to file

number SR–BSE–00–13 and should be

submitted by November 2, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–26114 Filed 10–11–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43395; File No. SR–CBOE–

00–46]

Self-Regulatory Organizations; Notice

of Filing and Order Granting Partial

Accelerated Approval of Proposed

Rule Change and Amendment No. 1

thereto by the Chicago Board Options

Exchange, Inc. Relating to its Rapid

Opening System Pilot Program

September 29, 2000.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,1

notice is hereby given that on

September 7, 2000, the Chicago Board

Options Exchange (‘‘CBOE’’ 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. On

September 27, 2000, the Exchange

submitted Amendment No. 1 to the

proposed rule change.3 The Commission

is publishing this notice and order to

solicit comments on the proposed rule

change from interested persons and to

grant partial accelerated approval to the

portion of the proposal extending the

Exchange’s ROS pilot program (‘‘Pilot’’)

until the earlier of September 30, 2001

or such time as the Commission has

approved ROS on a permanent basis.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to adopt ROS

on a permanent basis, as well as extend

the Pilot until the earlier of September

30, 2001 or such time as the

Commission has approved ROS on a

permanent basis.4 The text of the

proposed rule change is available at the

Exchange 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

On February 9, 1999, the Commission

approved the implementation of the

Pilot.5 The Pilot was extended once and

is scheduled to expire on September 30,

2000.6 ROS is a system developed by

the Exchange to open an entire options

class, all series, as a single event, based

on a single underlying value.