Federal Register / Vol. 65, No. 225 / Tuesday, November 21, 2000 / Notices 69983

8Telephone conversation between Richard

Rudolph, Counsel, Phlx, and Hong-Anh Tran,

Special Counsel, Division of Market Regulation,

Commission, October 25, 2000.

9 15 U.S.C. 78f(b).

10 15 U.S.C. 78f(b)(5).

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

effective as of the date of Commission

approval of the proposed rule change.8

2. Statutory Basis

The Phlx believes that the proposed

rule change is consistent with Section 6

of the Act,9 and in particular Section

6(b)(5) thereof,10 in that it is designed to

promote just and equitable principles of

trade by enabling investors and traders

of Euro FCO contracts to manage the

foreign currency risks with respect to

the Euro more effectively.

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

The Phlx neither solicited nor

received any written comments.

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 Phlx 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

the principal office of the Phlx. All

submissions should refer to File No.

SR–Phlx–00–66 and should be

submitted by December 12, 2000.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–29712 Filed 11–20–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43546; File No. SR–Phlx–

00–47]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

(‘‘Phlx’’) Relating to Requirement That

Certain Members and Member

Organizations for Whom the Phlx is the

Designated Examining Authority Give

Prior Written Notice to the Phlx’s

Examinations Department of Any

Changes in Business Operation

November 9, 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 November

3, 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 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 Phlx proposes to adopt Rule 610

to require that members and member

organizations for which the Exchange is

the Designated Examining Authority

(‘‘DEA’’), that operate as a specialist,

floor broker and/or Registered Options

Trade (‘‘ROT’’) and that have changed

their business operations, or engaged in

new business (for example, an ROT

engages in off-floor proprietary trading),

which materially affects the net capital,

examinations and registration

requirements to which the member or

member organization is subject, to

provide prior written notice to the

Exchange’s Examinations Department of

any such changes in business

operations. Below is the complete text

of the proposed rule change. Proposed

new text is in italics.

* * * * *

Philadelphia Stock Exchange, Inc.

* * * * *

Regulation of Members and Member

Organizations

* * * * *

Rule 610. Notification of Changes in

Business Operations

Any member or member organization

for which the Exchange is the

Designated Examining Authority

(‘‘DEA’’), that operates as a specialist,

floor broker and/or Registered Options

Trader (‘‘ROT’’), shall provide prior

written notification to the Examinations

Department of any change in the

business operations of such member or

member organization which would

cause the member or member

organization to be subject to additional

or modified net capital requirements,

examination schedules or other

registration, examination or regulatory

requirements.

* * * * *

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 Orgnaization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The purpose of the proposed rule is

to provide notification to the Exchange’s

Examinations Department of changes in

the business operations of member and

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