Federal Register / Vol. 65, No. 209 / Friday, October 27, 2000 / Notices 64469

15 Id.

16See footnote 9, supra.

17See letter to Belinda Blaine, Associate Director,

SEC, dated February 18, 2000 from Automated

Securities Clearance, Ltd. and the following NASD

member firms: Bernard L. Madoff Securities; CIBC

World Markets; Credit Suisse First Boston;

Deutsche Banc Alex. Brown; Donaldson, Lufkin &

Jenrette; Goldman Sachs & Co.; Jeffries & Company,

Inc.; Lehman Bros.; Merrill Lynch, Pierce, Fenner

& Smith, Inc.; Morgan Stanley Dean Witter; and

Salomon Smith Barney Inc.

18See footnotes 10 and 11, supra.

19 15 U.S.C. 78o–3(b)(6).

20 15 U.S.C. 78s(b)(3)(A)(i).

21 17 CFR 240.19b–4(f)(1).

22 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b-4.

excluded for purposes of the Riskless

Principal Trade Reporting Rules. SR–

NASD–99–39 15 and Notice to Members

99–65 were filed as an interpretation to

NASD Rules 4632, 4642, 4652, and

6620.

Notices to Members 99–65 (discussing

the trade reporting rules for riskless

principal transactions in Nasdaq and

OTC securities) and 99–66 (discussing,

among other things, the trading

reporting rules for the Nasdaq

InterMarket) were published in August

1999. The Notices announced that the

Riskless Principal Trade Reporting

Rules would go into effect on September

30, 1999.

Shortly after publication of Notices to

Members 99–65 and 99–66, a number of

firms represented that they were unable

to prepare their systems for compliance

with the new Riskless Principal Trade

Reporting Rules by the September 30,

1999 deadline, due (in large part) to

Year 2000 (‘‘Y2K’’) remediation and

testing requirements. In response,

Nasdaq filed a proposed interpretation

to NASD Rules 4632, 4642, 4652, and

6620, the purpose of which was to delay

the implementation date of the new

Riskless Principal Trade Reporting

Rules until March 1, 2000.16

Subsequently, a number of NASD

member firms requested a further

extension of the implementation date of

the Riskless Principal Trade Reporting

Rules.17 The firms stated that the

approach described in Notices to

Members 99–65 and 99–66 for riskless

principal trade reporting raised

significant issues that needed to be

addressed in greater detail through, for

example, interpretive guidance. The

firms requested an extension of the

implementation date until September 1,

2000 to provide time to resolve the

issues posed and to program systems.

On February 23, 2000, and then again

on July 28, 2000, Nasdaq filed a

proposed interpretation to NASD Rules

4632, 4642, 4652, and 6620 to delay the

implementation date of the new Riskless

Principal Trade Reporting Rules until

September 1, 2000 and November 1,

2000, respectively.18

Nasdaq is now requesting a further

extension of the implementation date

until February 1, 2001. Nasdaq believes

the extension is necessary to allow

Nasdaq and the firms the time to

complete the programming and testing

of systems that is necessary to

implement the new Rules and to devise

solutions to the interpretive questions

that have arisen recently with respect to

the implementation of the Rules.

Nasdaq believes that a delay in the

implementation of the Riskless

Principal Trade Reporting Rules is

reasonable in light of the efforts

required to implement the programming

changes required by the rule change and

the complex issues that have been

raised.

Nasdaq believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(6) of the

Act,19 in that it is designed to prevent

fraudulent and manipulative acts and

practices, to promote just and equitable

principles of trade, to remove

impediments to, and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq believes that the proposed

rule change will not result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing proposal has become

effective pursuant to section

19(b)(3)(A)(i) of the Act,20 and rule 19b–

4(f)(1) 21 thereunder, in that it

constitutes a stated policy and

interpretation with respect to the

enforcement of an existing rule.

At any time within 60 days of the

filing of the 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

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 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,

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 NASD. All

submissions should refer to file number

SR–NASD–00–60 and should be

submitted by November 17, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.22

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27615 Filed 10–26–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43467; File No. SR–Phlx–

00–32]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Amending Rule 748, Supervision

October 20, 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 July 31,

2000, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with

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 October

11, 2000, the Exchange submitted

Amendment No. 1 to the proposed rule

64470 Federal Register / Vol. 65, No. 209 / Friday, October 27, 2000 / Notices

3See Letter from Jurij Trypupenko, Director of

Litigation and Operations, Phlx, to Nancy Sanow,

Assistant Director, Division of Market Regulation

(‘‘Division’’), Commission (October 11, 2000).

Amendment No. 1 corrected structural errors that

appeared in the proposed rule language.

4Exchange Rule 748, which is generally based on

NYSE Rule 342, was originally filed in 1993 and

amended once in 1994. See Securities Exchange Act

Release Nos. 33303 (Dec. 8, 1993), 58 FR 65609

(Dec. 15, 1993) and 34842 (Oct. 14, 1994), 59 FR

53002 (Oct. 20, 1994).

5The standard for supervision and standard for

written supervisory procedures found in the

proposed rule change are based generally on

Section 15(b)(4)(E)(i) of the Act. 15 U.S.C.

78o(b)(4)(E)(i).

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

7 15 U.S.C. 78f(b)(5).

8The Exchange notes that, although options

activity and personnel (including foreign currency

options) are subject to Rule 748, additional

supervisory requirements apply to the trading of

options. See Phlx Rule 1024 (regarding Conduct of

Accounts For Options Trading); see also Phlx Rule

1025 (regarding Supervision of Accounts).

change. 3 The Commission is publishing

this notice to solicit comments on the

proposed rule change, as amended, from

interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange proposes to amend

Rule 748, Supervision, in several

respects. 4 First, the proposed

amendment to Rule 748 would expand

the definition of who must be

supervised to include employees and

associated persons of members, member

organizations, participants, or

participant organizations. The proposed

amendment to Rule 748 would also

require that all officers, locations,

departments, and business activities of

members, member organizations,

participants, and participant

organizations (‘‘members and related

organizations’’) be supervised.

Second, the proposed amendment to

Rule 748 would add an additional

requirement for periodic compliance

reviews and office inspections.

Members and related organizations for

which the Exchange is the Designated

Examining Authority (‘‘DEA’’) would

have to conduct compliance meetings

with their personnel at least on an

annual basis. In addition, members and

related organizations for which the

Exchange is the DEA would have to

conduct office inspections according to

an inspection cycle established in their

written supervisory procedures.

Third, the proposed amendment to

Rule 748 would require that members

and related organizations have written

supervisory procedures that set forth the

specific supervisory system and other

essential information regarding

supervisory personnel.

Fourth, the proposed amendment to

Rule 748 would contain standards for

supervision and for written supervisory

procedures. Written supervisory

procedures and the system for applying

such procedures would have to be

reasonably designed to prevent and

detect, insofar as practicable, violations

of the applicable securities laws and

regulations, including the by-laws and

rules of the Exchange. A similar

standard for supervision would be

applicable to those entrusted with the

duty to supervise others. 5

The text of the proposed rule change

is available at the Phlx or the

Commission.

II. Self-Regulatory Organization’s

Statements of the Purpose of, and the

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 purpose of the proposed rule

change is to enhance Rule 748 and

thereby provide the Exchange with

better tools to monitor and enforce

proper supervision. The Exchange

believes that the proposed rule change

should significantly strengthen the

ability of the Exchange to carry out its

oversight responsibilities as a selfregulatory organization, especially over

branch offices of member firms

conducting business away from the floor

of the Exchange.

In addition, the Exchange believes

that enhancements to Rule 748, such as

the requirements to conduct periodic

compliance meetings and office

inspections and to keep records of the

same, should help the Exchange carry

out its compliance and surveillance

functions. The proposed supervisory

standards should also help both the

Exchange and its members carry out

their respective duties.

2. Statutory Basis

The Exchange believes the proposed

rule change is consistent with Section

6(b) of the Act 6 in general, and in

particular, with 6(b)(5) of the Act,7 in

that it is designed to promote just and

equitable principles of trade, prevent

fraudulent and manipulative acts and

practices, and protect investors and the

public interest by augmenting the

supervisory procedures found in

Exchange Rule 748.8

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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

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 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 Exchange 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

Room. Copies of such filing will also be

available for inspection and copying at

Federal Register / Vol. 65, No. 209 / Friday, October 27, 2000 / Notices 64471

9 17 CFR 200.30–3(a)(12).

the principal office of the Phlx. All

submissions should refer to File No.

SR–Phlx–00–32 and should be

submitted by November 17, 2000.

For the Commission by the Division

of Market Regulation, pursuant to

delegated authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–27648 Filed 10–26–00; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3302]

State of Florida

As a result of the President’s major

disaster declaration on October 4, 2000,

I find that Broward, Collier, MiamiDade, and Monroe Counties in the State

of Florida constitute a disaster area due

to damages caused by severe storms and

flooding beginning on October 3, 2000,

and continuing. Applications for loans

for physical damage as a result of this

disaster may be filed until the close of

business on December 3, 2000 and for

economic injury until the close of

business on July 5, 2001 at the address

listed below or other locally announced

locations: U.S. Small Business

Administration, Disaster Area 2 Office,

One Baltimore Place, Suite 300, Atlanta,

GA 30308.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Hendry, Lee, and Palm Beach in the

State of Florida may be filed until the

specified date at the above location.

The interest rates are:

Percent

For Physical Damage:

Homeowners With Credit

Available Elsewhere .......... 7.375

Homeowners Without Credit

Available Elsewhere .......... 3.687

Businesses With Credit Available Elsewhere .................. 8.000

Businesses and Non-Profit

Organizations Without

Credit Available Elsewhere 4.000

Others (Including Non-Profit

Organizations) With Credit

Available Elsewhere .......... 6.750

For Economic Injury:

Businesses and Small Agricultural Cooperatives Without Credit Available Elsewhere ................................. 4.000

The numbers assigned to this disaster

are 330206 for physical damage and

9J3200 for economic injury.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: October 6, 2000.

Allan I. Hoberman,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 00–27635 Filed 10–26–00; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3302]

State of Florida; Amendment #1

In accordance with a notice from the

Federal Emergency Management

Agency, dated October 11, 2000, the

above-numbered Declaration is hereby

amended to establish the incident

period for this disaster as beginning on

October 3, 2000 and continuing through

October 11, 2000.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is

December 3, 2000 and for economic

injury the deadline is July 5, 2001.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: October 17, 2000.

Herbert L. Mitchell,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 00–27637 Filed 10–26–00; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3290]

State of Montana; Amendment #2

In accordance with a notice received

from the Federal Emergency

Management Agency, dated September

26, 2000, the above-numbered

Declaration is hereby amended to

establish the incident period for this

disaster as beginning on July 13, 2000

and continuing through September 25,

2000.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is

October 29, 2000 and for economic

injury the deadline is May 30, 2001.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: October 6, 2000.

Allan I. Hoberman,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 00–27633 Filed 10–26–00; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3299]

State of Ohio; Amendment #1

In accordance with information

received from the Federal Emergency

Management Agency on October 5,

2000, the above-numbered Declaration

is hereby amended to change the

deadline for filing applications for

physical damages as a result of this

disaster from November 25, 2000 to

November 27, 2000.

All other information remains the

same, i.e., the deadline for filing

applications for economic injury is June

26, 2001.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008.)

Dated: October 6, 2000.

Allan I. Hoberman,

Acting Associate Administrator for Disaster

Assistance.

[FR Doc. 00–27634 Filed 10–26–00; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3303]

State of Wisconsin

Eau Claire County and the contiguous

counties of Buffalo, Chippewa, Clark,

Dunn, Jackson, Pepin, and Trempealeau

in the State of Wisconsin constitute a

disaster area due to damages caused by

severe storms and flooding that

occurred on September 10–11, 2000.

Applications for loans for physical

damage as a result of this disaster may

be filed until the close of business on

December 4, 2000 and for economic

injury until the close of business on July

5, 2001 at the address listed below or

other locally announced locations: U.S.

Small Business Administration, Disaster

Area 2 Office, One Baltimore Place,

Suite 300, Atlanta, GA 30308.

The interest rates are:

Percent

For Physical Damage:

Homeowners With Credit

Available Elsewhere .......... 7.375

Homeowners Without Credit

Available Elsewhere .......... 3.687

Businesses With Credit Available Elsewhere .................. 8.000

Businesses and Non-Profit

Organizations Without

Credit Available Elsewhere 4.000

Others (Including Non-Profit

Organizations) With Credit

Available Elsewhere .......... 6.750

For Economic Injury: