Federal Register / Vol. 65, No. 205 / Monday, October 23, 2000 / Notices 63281

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

8 17 CFR 240.19b–4(f)(1).

9 17 CFR 200.30–2(a)(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 43177

(Aug. 18, 2000), 65 FR 51889 (Aug. 25, 2000).

4The Phlx has imposed a payment for order flow

fee on certain designated transactions of Phlx

specialists and registered options traders. The funds

are made available to Phlx specialists, who may use

the funds to pay order flow providers for their

options order flow. In publishing the Phlx’s

proposed rule change, the Commission stated its

concerns that brokers who are paid to send their

customers’ orders to one exchange have a conflict

of interest that may reduce their commitment to the

duty they owe the customers to obtain the best

execution available. See Securities Exchange Act

Release No. 43177 (Aug. 18, 2000), 65 FR 51889

(Aug. 25, 2000).

5AUTOM is the Phlx’s electronic order routing,

delivery, execution, and reporting system for equity

and index options. See Phlx Rule 1080.

6AUTO-X, the automatic execution feature of

AUTOM, automatically executes public customer

market and marketable limit orders for certain strike

prices and expiration months in equity and index

options. See Phlx Rule 1080.

7The X.Station is an electronic order book on the

Phlx options floor. See Securities Exchange Act

Release No. 42006 (Oct. 13, 1999), 64 FR 57180

(Oct. 22, 1999).

8The Phlx expects that this report may be revised

to accommodate any suggested revisions of

specialist units, order flow providers, Phlx staff, or

others in order to enhance the report’s effectiveness.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to section

19(b)(3)(A)(i) of the Act 7 and Rule 19b–

4(f)(1) thereunder because the proposed

rule change constitutes a stated policy,

practice, or interpretation with respect

to the meaning, administration, or

enforcement of an existing rule.8 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 NYSE. All

submissions should refer to File No.

SR–NYSE–00–40 and should be

submitted by November 13, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27136 Filed 10–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43436; File No. SR–PHLX–

00–83]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc. To

Distribute Quality of Execution Reports

to Specialists and Order Flow

Providers

October 11, 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 5, 2000, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ 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 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 provide reports

regarding the quality of execution of

option orders in connection with its

new payment for order flow fee.3 The

text of the proposed rule change is

available at the principal offices of the

Phlx.

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

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 the statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In view of recent developments in

options trading, including the Phlx’s

new payment for order flow fee, the

Phlx has determined to provide Phlx

specialists and order flow providers

with sufficient information for them to

determine whether order flow providers

are receiving the best execution of their

customers’ orders at the Phlx.4

Specifically, the Exchange intends to

distribute detailed daily and summary

monthly Quality of Execution Reports to

order flow providers and specialist units

with respect to all orders delivered

through the Phlx’s Automated Options

Market (‘‘AUTOM’’) System.5 The Phlx

represents that Quality of Execution

Reports will reflect all orders that are

entered electronically through AUTOM

and are executed either by AUTO–X 6 or

by a specialist with the assistance of

X.Station.7 Quality of Execution Reports

are designed to provide statistical data

so that firms may analyze whether the

orders they directed to the Phlx received

the best execution. The Exchange

initially intends for the Quality of

Execution Reports to list the national

best bid or offer (‘‘NBBO’’) that

prevailed at the time AUTOM received

each order and to identify the execution

price, the execution volume, and the

speed of execution for each order.8

Initially, the report will also identify

trades that may have been executed

outside of the NBBO and will show

what action, if any, was taken to adjust

the price. For trades that were not

executed at the NBBO, the information

will be reported on an intraday basis to

the Exchange’s Surveillance Department

staff, who will assist members involved

in the trade in deciding whether a price

63282 Federal Register / Vol. 65, No. 205 / Monday, October 23, 2000 / Notices

9According to the Phlx, reasons for executions at

a price other than the NBBO may include crossed

or locked markets, ‘‘fast market’’ conditions where

AUTO-X is disengaged, and other unusual market

conditions.

10On August 29, 2000, the Exchange submitted a

proposed rule change relating to a proposed

enhancement to AUTO-X that would provide

AUTO-X eligible orders, as described in Phlx Rule

1080(c), to be automatically executed at the NBBO.

See SR–Phlx–00–82.

11 15 U.S.C. 78f(b)(5)

12 15 U.S.C. 78s(b)(A)(i).

13 17 CFR 240.19b–4(f)(1).

14 17 CFR 200.30–3(a)(12).

adjustment is called for under the

circumstances.9

The Exchange intends to provide a

system enhancement to its AUTOM

system that should allow AUTO-X

eligible orders to be automatically

executed at the NBBO.10 Orders

executed at the NBBO through this new

program will also be incorporated into

the daily and monthly reports described

above.

In the light of recent developments in

options trading, the Phlx believes that it

has become imperative to provide best

execution data to its specialist units and

order flow providers in order to show

that Phlx members are providing their

customers the best execution of their

orders. The Phlx represents that the

Quality of Execution Reports should

provide members with greater assurance

that they have acted in a manner

consistent with the fulfillment of their

fiduciary obligations of best execution.

Moreover, the Phlx believes that once

members and order flow providers have

access to the information, the Phlx may

be able to garner additional order flow

because customers will see that they are

receiving the best price for the orders

that they send to the Phlx. Accordingly,

the Exchange believes that the proposed

rule change is consistent with the Act,

specifically section 6(b)(5) thereof,11 in

that it is designed to promote just and

equitable principles of trade, as well as

to protect investors and the public

interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Phlx 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 either

solicited or received with respect to the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The Phlx represents that the Quality

of Execution Reports will reflect all

market orders and marketable limit

orders that are entered through

AUTOM, as described in Phlx Rule

1080. Because the Phlx has designated

this proposed rule change as

constituting a stated policy, practice, or

interpretation with respect to the

meaning, administration, or

enforcement of existing Exchange rules

and procedures, it has become effective

pursuant to section 19(b)(3)(A)(i) of the

Act 12 and Rule 19b–4(f)(1)

thereunder.13 At any time within 60

days of the filing of this proposed rule

change, the Commission may summarily

abrogate the 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 the furtherance of the

purposes 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 the 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–00–83 and should be

submitted by November 13, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27134 Filed 10–20–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Agency Information Collection

Activities: Proposed Request and

Comment Request

In compliance with Public Law 104–

13, the Paperwork Reduction Act of

1995, SSA is providing notice of its

information collections that require

submission to the Office of Management

and Budget (OMB). SSA is soliciting

comments on the accuracy of the

agency’s burden estimate; the need for

the information; its practical utility;

ways to enhance its quality, utility and

clarity; and on ways to minimize burden

on respondents, including the use of

automated collection techniques or

other forms of information technology.

I. The information collections listed

below will be submitted to OMB within

60 days from the date of this notice.

Therefore, comments and

recommendations regarding the

information collections would be most

useful if received by the Agency within

60 days from the date of this

publication. Comments should be

directed to the SSA Reports Clearance

Officer at the address listed at the end

of this publication. You can obtain a

copy of the collection instruments by

calling the SSA Reports Clearance

Officer on (410) 965–4145, or by writing

to him at the address listed at the end

of this publication.

1. Blood Donor Locator Service—0960–

0501

Regulation 20 CFR 401.200 requires

that participating State agencies provide

the Social Security Administration

(SSA) Blood Donor Locator Service

(BDLS) specific information on blood

donors who have tested positive for

Human Immunodeficiency Virus (HIV).

SSA uses the information to identify the

donor, and locate the donor’s address in

SSA records for the purpose of notifying

the states and to assure that states meet

regulatory requirements to qualify for

using the BDLS. SSA will retain no

record of the request or the information

after processing has been completed.

The respondents are participating State

agencies acting on behalf of authorized

blood donor facilities.

Number of Respondents: 10.

Frequency of Response: 5.

Average Burden Per Response: 15

minutes.

Estimated Annual Burden: 12.5 hours.

2. Affective Disorder Treatment

Demonstration Project—0960–NEW

Background

There is substantial research evidence

that affective disorders (i.e., mental