69984 Federal Register / Vol. 65, No. 225 / Tuesday, November 21, 2000 / Notices

3See 15 U.S.C. 78s(g)(1).

4 15 U.S.C. 78f.

5 15 U.S.C. 78f(b)(1).

6 15 U.S.C. 78f(b)(5).

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

8 17 CFR 240.19b–4(f)(6).

9 17 CFR 200.03–3(a)(12).

1See Amendment No. 1 dated November 2, 2000

from Cynthia K. Hoekstra, Philadelphia Stock

Exchange to Madge M. Hamilton, Esq., Division of

Market Regulation, SEC (‘‘Amendment No. 1’’). This

release incorporates all changes made in

Amendment No. 1.

member organizations to bolster the

examinations function. Specifically,

pursuant to Section 19(g)(1) of the Act,3

self-regulatory organizations (‘‘SROs’’)

are required to enforce member

compliance with the provisions of the

Act and the SRO’s own rules.

Conducting cycle examinations of

member firms for whom they are DEA

is one method used by SROs to assess

such compliance. Currently, the Phlx

conducts examinations of its member

firms on a periodic basis. The type of

business a firm conducts is determinate

of the interval between examinations as

to any one particular firm. For example,

the Phlx may examine specialist firms

and proprietary trading firms annually,

floor brokerage firms once every other

year and ROTs once every three years.

If a Phlx member would change its

business operations, the change may

affect the examination cycle for that

particular firm. Further, new business

operations often trigger both subtle

changes in various regulatory

requirements as well as larger issues of

applicability of new provisions and

obligations of which a firm may not be

aware.

As stated above, the proposed rule

change would require any member or

member organization operating as a

specialist, floor broker, and/or ROT and

whose DEA is the Phlx, to notify, in

writing, the Phlx Examinations

Department of any change in its

business operations which would cause

it to be subject to additional or modified

net capital requirements. The

Examinations Department could then

adjust the examination cycle as to the

particular firm, as well as to advise such

firm of new reporting and net capital

requirements, if applicable. This

information will also assist the

Examinations Department in better

focusing its examinations.

The Exchange believes that the

proposed rule change should facilitate

more efficient and effective periodic and

systematic assessment of its member

firms’ compliance with the Act,

consistent with its mandate under

Section 19(g) of the Act.

2. Statutory Basis

The Phlx believes that the proposal is

consistent with Section 6 of the Act,4 in

general, and furthers the objectives of

Section 6(b)(1) of the Act 5 in particular,

in that it is designed to ensure that Phlx

is so organized and has the capacity to

be able to carry out the purposes of the

Act and to comply, and to enforce

compliance by its members and persons

associated with its members, with the

provisions of the Act, the rules and

regulations thereunder, and the rules of

the Phlx. The proposed rule change is

also consistent with Section 6(b)(5) of

the Act,6 in that it is designed to ensure

member firm compliance with federal

securities laws and the rules of the Phlx,

which should 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.

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)

of the Act 7 and Rule 19b–4(f)(6)

thereunder 8 because the rule change

will become operative 30 days after the

date of filing with the Commission, and

because this proposal: (i) Does not

significantly affect the protection of

investors or the public interest; (ii) does

not impose any significant burden on

competition; and (iii) the Exchange

provided written notice to the

Commission with a brief description

and the text of the proposed rule change

on July 12, 2000. At any time within 60

days of this filing, the Commission may

summarily abrogate this proposal 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, view 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 at

the Commission’s Public Reference

Room, 450 Fifth Street, NW.,

Washington, DC. Copies of such 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–00–47 and should be

submitted by December 12, 2000.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–29713 Filed 11–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43558; File No. SR–Phlx–

00–85]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change and

Amendment No. 1 by the Philadelphia

Stock Exchange, Inc. Relating to

Equity Option Transaction Charges For

Broker-Dealers and Firms

November 14, 2000.

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

Securities Exchange Act of 1934

(‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is

hereby given that on November 3, 2000,

the Philadelphia Stock Exchange, Inc.

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the amended

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by the Exchange.1

On October 4, 2000, the Phlx filed the

original proposed rule change. 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, pursuant to Rule 19b–4 of

the Act, proposes to adopt a $.20 equity

Federal Register / Vol. 65, No. 225 / Tuesday, November 21, 2000 / Notices 69985

2Equity Option Charges are comprised of the

Option Comparison charge, Option Transaction

charge, Option Floor Brokerage Assessment and the

Floor Brokerage Transaction Fee.

3See Securities Exchange Act Release No. 43343

(SR–Phlx–00–80) (September 26, 2000), 65 FR

59243 (October 4, 2000).

4See Securities Exchange Act Release No. 42676

(SR–AMEX–00–15) (April 13, 2000), 65 FR 21223

(April 20, 2000); Securities Exchange Act Release

No. 42850 (SR–CBOE–00–06) (May 30, 2000), 65 FR

36187 (June 7, 2000); and Securities Exchange Act

Release No. 43115 (SR–PCX–00–16) (August 3,

2000), 65 FR 49280 (August 11, 2000). See also

Securities Exchange Act Release No. 43020 (SR–

PCX–00–14) (July 10, 2000), 65 FR 44558 (July 18,

2000).

option transaction charge on off-floor

members for broker-dealer transactions,

as defined herein, including a related

definition of ‘‘firm/proprietary’’ for the

purpose of the Summary of Equity

Option Charges that appears in the

Exchange’s schedule of dues, fees and

charges.2

A copy of the text of the Summary of

Equity Option Charges may be obtained

from the Exchange or the Commission.

II. Self-Regulatory Organization’s

Statements 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

Currently, the Exchange imposes a

transaction charge on equity options

transactions executed on the Exchange.

The charges vary depending on whether

the transaction involves a firm,

Registered Options Trader (‘‘ROT’’) or

specialist. Previously, equity option

transaction charges were also imposed

on customer executions, but on August

31, 2000, the Exchange eliminated all

equity option transaction charges for

customer executions.3 Other exchanges

also eliminated similar customer equity

option fees.4

To offset the elimination of the

customer equity option transaction and

comparison charges, the Exchange

proposes to impose a fee on its members

of $.20 per contract for all off-floor

broker-dealer orders routed to the

Exchange. This category would include

ROTs who are trading from off-floor and

broker-dealer routing orders through

firm, customer or market maker

accounts carried by a member clearing

firm, but not firm/proprietary orders, as

defined below. All other equity option

transaction charges will remain

unchanged. Thus, the purpose of the

proposal is to offset the recently waived

equity option customer charges.

For purposes of the equity option

transaction charge, the term brokerdealer charge is defined as a charge that

is applied to members for orders,

entered from other than the floor of the

Exchange, for any account (i) in which

the holder of beneficial interest is a

member of non-member broker-dealer or

(ii) in which the holder of beneficial

interest is a person associated with or

employed by a member or non-member

broker-dealer. This includes orders for

the account of an ROT entered from offfloor. The Exchange believes the

proposed fee is reasonable and

equitable, as the next-highest equity

option transaction charge is $.19 for

ROTs ($.16 transaction charge + $.03

comparison charge) and $.18 per

contract for specialists. Thus, the

proposed $.20 fee is only slightly

higher.

Because the proposed $.20 fee does

not apply to firm orders, (which may

otherwise be captured in the proposed

broker-dealer definition), the Exchange

proposes a corresponding change to the

definition of firm for purposes of the

firm/proprietary comparison and

transaction charges that would now

limit these fees to a certain category of

firm trades—firm/proprietary trades.

According to the proposal, a firm/

proprietary transaction or comparison

charge applies to members for orders for

the proprietary account of any member

or non-member broker-dealer that

derives more than 35 percent of its

annual, gross revenues from

commissions and principal transactions

with customers. Firms will be required

to verify this amount to the Exchange by

certifying that they have reached this

threshold and by submitting a copy of

their annual report, which was prepared

in accordance with Generally Accepted

Accounting Principles (‘‘GAAP’’). In the

event that a firm has not been in

business for one year, the most recent

quarterly reports, prepared in

accordance with GAAP, will be

accepted. This definition applies to both

the option comparison charge and the

transaction charge, and would appear

on the summary of equity option

charges as a footnote. Currently, a

definition of ‘‘firm’’ does not appear on

the summary. In addition, the footnote

text that reads ‘‘(Non-clearing firm

members’ proprietary transactions are

eligible for the ‘‘firm’’ rate based upon

submission of a Phlx rebate request form

with supportive documentation within

thirty (30) days of invoice date.)’’ will be

deleted as it is no longer necessary now

that the category of broker-dealer is

specifically included in the option

transaction charge.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act in general and

furthers the objectives of Section 6(b)(4)

of the Act, in particular, by providing

for the equitable allocation of reasonable

dues, fees and other charges among

members and other Exchange

participants. The Exchange believes that

the proposed increase in the Equity

Option transaction charge for brokerdealers is not unreasonable, as stated

above. In addition, the Exchange notes

that members will be charged the same

option transaction charge for trades on

behalf of both member and non-member

broker-dealers trading off the floor

(including ROTs trading from off-floor)

of the Exchange. The Exchange

emphasizes that only members/member

organizations are billed transaction fees,

whether for their own trading or their

customers.

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.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing proposed rule change

has been designated as a fee change

pursuant to Section 19(b)(3)(A) of the

Act and Rule 19b–4(f)(2) thereunder.

Accordingly, the proposal will take

effect upon filing of Amendment No. 1

with the Commission. At any time

within 60 days of the filing of

Amendment No. 1, 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.

69986 Federal Register / Vol. 65, No. 225 / Tuesday, November 21, 2000 / Notices

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 Phlx. All

submissions should refer to File No.

SR–Phlx–00–85 and should be

submitted by December 12, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–29747 Filed 11–20–00; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Data Collection Available for Public

Comments and Recommendations

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995, this

notice announces the Small Business

Administration’s intentions to request

approval on a new, and/or currently

approved information collection.

DATES: Submit comments on or before

January 22, 2001.

ADDRESSES: Send all comments

regarding whether this information

collection is necessary for the proper

performance of the function of the

agency, whether the burden estimate is

accurate, and if there are ways to

minimize the estimated burden and

enhance the quality of the collection, to

Harriet Fredman, Deputy Assistant

Administrator, Office of Women

Business Ownership, Small Business

Administration, 409 3rd Street, SW.,

Suite 4400.

FOR FURTHER INFORMATION CONTACT:

Harriet Fredman, Deputy Assistant

Administrator, 202–205–6673 or Curtis

B. Rich, Management Analyst, (202)

205–7030.

SUPPLEMENTARY INFORMATION: Title:

Mentoring Programs that work,

Women’s Network for Entrepreneurial

Training (WNET).

Form No’s: 2031, 2031A, 2031B,

2013C, 2031D, 2031E, 2031F, 2031G.

Description of Respondents: SBA’s

Women’s Business Ownership

Representatives.

Annual Responses: 10,000.

Annual Burden: 2,000.

ADDRESSES: Send all comments

regarding whether these information

collections are necessary for the proper

performance of the function of the

agency, whether the burden estimate is

accurate, and if there are ways to

minimize the estimated burden and

enhance the quality of the collections, to

Carol Fendler, System Accountant,

Office of Investment Division, Small

Business Administration, 409 3rd Street,

SW., Suite 6300.

FOR FURTHER INFORMATION CONTACT:

Carol Fendler, System Accountant, 202–

205-7559 or Curtis B. Rich, Management

Analyst, (202) 205–7030.

SUPPLEMENTARY INFORMATION: Title:

Request for information concerning

Portfolio Financing

Form No: 857.

Description of Respondents: SBIC

Investment Companies.

Annual Responses: 2,160.

Annual Burden: 2,160.

Title: Financial Institution

Confirmation Form.

Form No: 860.

Description of Respondents: SBIC

Investment Companies

Annual Responses: 750.

Annual Burden: 750.

Jacqueline White,

Chief, Administrative Information Branch.

[FR Doc. 00–29825 Filed 11–20–00; 8:45 am]

BILLING CODE 8025–01–U

SMALL BUSINESS ADMINISTRATION

Notice of Sale of Business and

Disaster Assistance Loans

AGENCY: Small Business Administration.

ACTION: Notice of Sale of Business and

Disaster Assistance Loans—Loan Sale

#3.

SUMMARY: This notice announces the

Small Business Administration’s

(‘‘SBA’’) intention to sell approximately

19,200 secured and unsecured business

and disaster assistance loans,

(collectively referred to as the ‘‘Loans’’).

This is SBA’s third sale in its Asset

Sales Program and the second sale that

includes disaster assistance loans,

which includes both business and

consumer loans. The total unpaid

principal balance of the Loans is

approximately $1.15 billion (U.S.). SBA

previously guaranteed some of the

Loans under various sections of the

Small Business Act, as amended, 15

U.S.C. 631 et seq. or the Small Business

Investment Act, as amended, 15 U.S.C.

695 et seq. Any SBA guarantees that

might have existed at one time have

been paid and no SBA guaranty is

available to the successful bidders in

this sale. The majority of the loans were

originated from and are serviced by

SBA. The collateral for the secured

Loans includes commercial and

residential real estate and other

businesses and personal property

located nationwide. This notice also

summarizes the bidding process for the

Loans.

DATES: The Bidder Information Package

will be available to qualified bidders

beginning on or about October 3, 2000.

The Bid Date is scheduled for December

5, 2000, and closings are scheduled to

occur between December 15, 2000 and

December 29, 2000. These dates are

subject to change at SBA’s discretion.

ADDRESSES: Bidder Information

Packages will be available to qualified

bidders from SBA’s Transaction

Financial Advisor, Hanover Capital

Partners Ltd. (‘‘Hanover’’). Bidder

Information Packages will only be made

available to parties that have submitted

a completed Confidentiality Agreement

and Bidder Qualification Statement and

have demonstrated that they are

qualified bidders. The Confidentiality

Agreement and Bidder Qualification

Statement are available on the SBA

Website at www.sba.gov/assets/

sale3.html or by calling (877) 457–6754.

The completed Confidentiality and

Bidder Qualification Statement should

be sent to the attention of Kathryn Merk,

SBA Loan Sale 3, by fax, at (732) 572–

5959 and mailed, to Hanover Capital

Partners Ltd., 100 Metroplex Drive,

Suite 301, Edison, NJ 08817.

The Due Diligence Facility is

scheduled to open on or about October

3, 2000 and close on or about December

4, 2000. These dates are subject to

change at SBA’s discretion.

FOR FURTHER INFORMATION CONTACT:

Margaret L. Hawley, Program Manager,

Small Business Administration, 409

Third Street, SW, Washington, DC

20416; 202–401–8234. This is not a toll

free number. Hearing or speechimpaired individuals may access this