63662 Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices

12The Commission expects the Exchange to keep

records of instances when specialists are permitted

to switch to a manual execution mode so that the

Exchange and the Commission can monitor the use

of this option.

13 15 U.S.C. 78f(b)(2).

14 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by NSCC.

3Securities Exchange Act Release No. 31937

(March 1, 1993), 58 FR 12609 [SR–NSCC–92–14]

(order approving post settlement correction

initiated by Settling Members and TPA Members).

4NSCC will issue an ‘‘Important Notice’’ at least

30 days prior to implementing changes in the time

frames required for rejections of extended

corrections. Telephone conversation with Richard J.

Paley, Associate Counsel, NSCC (October 16, 2000).

5Pursuant to Section 21 of Rule 52A, a Fund

Member or Mutual Fund Processor (‘‘Receiving

Fund Member’’) may initiate a request for the

transfer of a customer’s mutual fund shares,

investment fund, or UIT units from another Fund

Member or Mutual Fund Processor (‘‘Delivering

Fund Member’’). The Delivering Fund Member

must acknowledge or reject the transfer request

within two business days. Once the transfer is

acknowledged, the Delivering Fund Member must

also confirm the value of the shares to be

transferred within the time frame specified under

Section 21. Under the proposed rule change, a

Delivering Fund Member must submit the

confirmation no earlier than one business day and

no later than ten business days after acknowledging

the transfer.

her automatic execution threshold, he or

she may do so using this function.

Next, the Commission believes that

the Exchange’s proposal to allow

Nasdaq/NM specialists to switch from

automatic execution mode to a manual

execution mode in the event of unusual

trading situations if they comply with

certain requirements will also provide

specialists with adequate protection in

the event of large order imbalances and/

or significant price volatility, or other

unusual trading situations.12 The

proposed rule requires that upon

switching to manual execution mode

based on the existence of unusual

trading conditions, a specialist must: (1)

document the basis for election of

manual execution mode; (2) disclose to

its customers the differences in

procedures from normal market

conditions and the circumstances under

which the specialist generally may

activate manual execution mode; and (3)

seek permission to switch to manual

execution mode from two floor officials.

The Commission believes the proposed

rule adequately balances the concern

that specialists not be required to offer

automatic executions under truly

unusual circumstances with the concern

that investors who reasonably except to

receive an automatic execution pursuant

to Exchange rules and policies actually

receive an automatic execution. The

Commission believes that with the

aforementioned requirements prior to

switching from automatic to manual

executions, both specialists and

investors will be protected in the event

of unusual market conditions.

IV. Conclusion

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,13 that the

proposed rule change (SR–CHX–00–20)

is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27240 Filed 10–23–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43457; File No. SR–NSCC–

00–12]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing of

Proposed Rule Change Relating the

Submission of Extended Corrections

in Fund/Serv

October 17, 2000.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

August 28, 2000, the National Securities

Clearing Corporation (‘‘NSCC’’) filed

with the Securities and Exchange

Commission (‘‘Commission’’) and on

October 16, 2000, amended the

proposed rule change as described in

Items I, II, and II below, which items

have been prepared primarily by NSCC.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will modify

NSCC’s rules to allow Fund Members

and Mutual Fund Processors to submit

extended (post settlement) corrections

in NSCC’s Fund/Serv.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

NSCC 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. NSCC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of these statements.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

Pursuant to NSCC’s Rule 52A, Section

12, only a Settling Member or TPA

Member may currently submit extended

(post settlement) correction instructions.

These types of instructions are

submitted when a Settling Member or

TPA Member determines that data

previously transmitted to a Fund

Member or Mutual Fund Processor with

respect to a settled order is in need of

correction.3

Under the proposed rule change,

Section 12 will be amended to also

permit Fund Members and Mutual Fund

Processors to submit extended (post

settlement) corrections to Settling

Members or TPA Members. No action

will be required by a Settling Member

or TPA Member if it determines to

accept the extended correction of a

Fund Member or Mutual Fund

Processor. A Settling Member or TPA

Member will be able to reject the

extended correction instruction within

the time frame established by NSCC.4 In

addition, Section 12 will be revised to

permit extended corrections for

exchange orders.

The rule change also proposes to

make two additional changes to Rule

52A. Sections 4 and 8 of Rule 52A will

be amended to allow NSCC to delete

certain orders, corrections, and

extended corrections that have not been

confirmed or rejected, respectively,

within a time frame established by

NSCC. Section 21 will permit NSCC to

reduce the maximum time frame within

which a Delivering Fund Member must

confirm the value of Fund/Serv eligible

mutual fund shares, investment funds,

or UIT units from sixty days to ten

days.5

NSCC intends to implement these

changes, subject to SEC approval, on

November 20, 2000.

NSCC believes the proposed rule

change is consistent with Section

17A(b)(3)(F) of the Act and the rules

thereunder because it will facilitate the

prompt and accurate clearance and

settlement of securities transactions.

Federal Register / Vol. 65, No. 206 / Tuesday, October 24, 2000 / Notices 63663

6 17 CFR 200.30–3(a)(12).

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

NSCC does not believe that the

proposed rule change will have an

impact or impose a burden on

competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Investment Company Institute’s

Enhancement Subcommittee of its

Broker/Dealer Committee was advised

of and concurs in the modifications to

NSCC’s rules. No written comments

relating to the proposed rule change

have been solicited or received. NSCC

will notify the Commission of any

written comments received by NSCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five 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

ninety 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 self-regulatory

organization consents, the Commission

will:

(A) by order approve such 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, 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

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to File No. SR–NSCC–00–12 and

should be submitted by November 14,

2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27237 Filed 10–23–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Office of the Commissioner

Cost-of-Living Increase and Other

Determinations for the Year 2001

AGENCY: Social Security Administration.

ACTION: Notice.

SUMMARY: The Commissioner has

determined—

(1) A 3.5 percent cost-of-living

increase in Social Security benefits

under title II of the Social Security Act

(the Act), effective for December 2000;

(2) An increase in the Federal

Supplemental Security Income (SSI)

monthly benefit amounts under title

XVI of the Act for 2001 to $530 for an

eligible individual, $796 for an eligible

individual with an eligible spouse, and

$266 for an essential person;

(3) The national average wage index

for 1999 to be $30,469.84;

(4) The Old-Age, Survivors, and

Disability Insurance (OASDI)

contribution and benefit base to be

$80,400 for remuneration paid in 2001

and self-employment income earned in

taxable years beginning in 2001;

(5) For beneficiaries under age 65, the

monthly exempt amount under the

Social Security retirement earnings test

for taxable years ending in calendar year

2001 to be $890;

(6) The dollar amounts (‘‘bend

points’’) used in the benefit formula for

workers who become eligible for

benefits in 2001 to be $561 and $3,381;

(7) The dollar amounts (‘‘bend

points’’) used in the formula for

computing maximum family benefits for

workers who become eligible for

benefits in 2001 to be $717, $1,034, and

$1,349;

(8) The amount of earnings a person

must have to be credited with a quarter

of coverage in 2001 to be $830;

(9) The ‘‘old-law’’ contribution and

benefit base to be $59,700 for 2001;

(10) The monthly amount of

substantial gainful activity applicable to

statutorily blind individuals in 2001 to

be $1,240;

(11) Coverage thresholds for 2001 to

be $1,300 for domestic workers and

$1,100 for election workers; and

(12) The OASDI fund ratio to be 215.4

percent for 2000.

FOR FURTHER INFORMATION CONTACT:

Jeffrey L. Kunkel, Office of the Chief

Actuary, Social Security

Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410)

965–3013. For information on eligibility

or claiming benefits, call 1–800–772–

1213. Information relating to this

announcement is available on the

Internet at

http://www.ssa.gov/OACT/COLA/

index.html.

SUPPLEMENTARY INFORMATION: In

accordance with the Act, the

Commissioner must publish within 45

days after the close of the third calendar

quarter of 2000 the benefit increase

percentage and the revised table of

‘‘special minimum’’ benefits (section

215(i)(2)(D)). Also, the Commissioner

must publish on or before November 1

the national average wage index for

1999 (section 215(a)(1)(D)), the OASDI

fund ratio for 2000 (section

215(i)(2)(C)(ii)), the OASDI contribution

and benefit base for 2001 (section

230(a)), the amount of earnings required

to be credited with a quarter of coverage

in 2001 (section 213(d)(2)), the monthly

exempt amounts under the Social

Security retirement earnings test for

2001 (section 203(f)(8)(A)), the formula

for computing a primary insurance

amount for workers who first become

eligible for benefits or die in 2001

(section 215(a)(1)(D)), and the formula

for computing the maximum amount of

benefits payable to the family of a

worker who first becomes eligible for

old-age benefits or dies in 2001 (section

203(a)(2)(C)).

Cost-of-Living Increases

General. The cost-of-living increase is

3.5 percent for benefits under titles II

and XVI of the Act. Under title II,

OASDI benefits will increase by 3.5

percent beginning with December 2000

benefits, payable in January 2001. This

increase is based on the authority

contained in section 215(i) of the Act

(42 U.S.C. 415(i)).

Under title XVI, Federal SSI payment

levels will also increase by 3.5 percent

effective for payments made for the

month of January 2001 but paid on

December 29, 2000. This is based on the

authority contained in section 1617 of

the Act (42 U.S.C. 1382f).

Automatic Benefit Increase

Computation. Under section 215(i) of

the Act, the third calendar quarter of

2000 is a cost-of-living computation