71150 Federal Register / Vol. 65, No. 230 / Wednesday, November 29, 2000 / Notices

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

2 17 CFR 240.19b–4.

3Letter from Bruce Ferguson, Associate General

Counsel, Legal & Regulatory Policy, Amex, to Jack

Drogin, Assistant Director, Division of Market

Regulation, Commission, September 25, 2000

(‘‘Amendment No. 1’’). Amendment No. 1 made a

technical revision to the text of Amex Rule 417.

4Securities Exchange Act Release No. 43468

(October 20, 2000), 65 FR 65034 (October 31, 2000).

5The NASD filed a proposed rule change to adopt

a new rule very similar to new Amex rule 471 (SR–

NASD–00–50). See Securities Exchange Act Release

No. 43580 (November 17, 2000).

6NASD Code of Conduct, Section IX, Paragraph

C.3.

7See Letter from Lori Richards, Director, OCIE,

SEC to Richard Syron, Chairman and Chief

Executive Officer, Amex, November 6, 1998. The

SEC recommendation that the Amex adopt a rule

prohibiting members from making loans to

Exchange employees was made as a result of an SEC

examination of all SRO conflict of interest policies.

The SEC staff’s recommendation arose from a 1996

incident in which an Amex member made a

$70,000 loan to an Amex floor employee.

to one. The shareholders have elected

all six of the Company’s current

directors. If the Company were to add

two Disinterested Directors, the

Company would not be required to seek

shareholder approval to comply with

section 16(a) of the Act, which requires

that at least two-thirds of a fund’s

directors be elected by shareholders.

The Company would be vulnerable to

the possibility of having to

unexpectedly call a shareholders’

meeting that it would not otherwise

have to call in the event of the death or

resignation of a director. If the Company

were instead to reduce the number of

Interested Directors from two to one, it

would reduce the size of its board by

over sixteen percent. Applicants submit

that reconstitution of the Company’s

board would serve no public interest,

and may be contrary to the interests of

shareholders of the Company.

5. For the reasons stated above,

applicants submit that the requested

relief is necessary and appropriate in

the public interest and consistent with

the protection of investors and the

purposes fairly intended by the policy

and provisions of the Act.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30371 Filed 11–28–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43607; File No. 265–22]

Advisory Committee on Market

Information

AGENCY: Securities and Exchange

Commission.

ACTION: Notice of meeting of the

Securities and Exchange Commission

Advisory Committee on Market

Information.

SUMMARY: The second meeting of the

Securities and Exchange Commission

Advisory Committee on Market

Information (‘‘Committee’’) will be held

on December 14, 2000, in the William

O. Douglas Room, at the Commission’s

main offices, 450 Fifth Street, N.W.,

Washington, DC., beginning at 1:00 p.m.

The meeting will be open to the public,

and the public is invited to submit

written comments to the Committee.

ADDRESSES: Written comments should

be submitted in triplicate and should

refer to File No. 265–22. Comments

should be submitted to Jonathan G.

Katz, Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, DC 20549–0609.

FOR FURTHER INFORMATION CONTACT:

Anitra Cassas, Special Counsel, Division

of Market Regulation, at 202–942–0089;

Securities and Exchange Commission,

450 Fifth Street, N.W., Washington, DC

20549–1001.

SUPPLEMENTARY INFORMATION: In

accordance with Section 10(a) of the

Federal Advisory Committee Act, 5

U.S.C. App. 10a, and the regulations

thereunder, the Designated Federal

Official of the Committee, David S.

Shillman, has ordered publication of

this notice that the Committee will

conduct a meeting on December 14,

2000, in the William O. Douglas Room

at the Commission’s main offices, 450

Fifth Street, N.W., Washington, DC.,

beginning at 1:00 p.m. The meeting will

be open to the public. This will be the

second meeting of the Committee. The

purpose of this meeting will be to

discuss appropriate models for

consolidating and disseminating market

information, and other issues relating to

the public availability of market

information in the equities and options

markets.

Dated: November 21, 2000.

Jonathan G. Katz,

Secretary.

[FR Doc. 00–30370 Filed 11–28–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43587; File No. SR–Amex–

00–23]

Self Regulatory Organizations; Order

Granting Accelerated Approval to

Proposed Rule Change by the

American Stock Exchange LLC

Relating to Member Firm Transactions

with Exchange Employees

November 17, 2000.

I. Introduction

On April 13, 2000, the American

Stock Exchange LLC (‘‘Amex’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’), pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’),1 and Rule 19b–4

thereunder,2 a proposed rule change to

amend certain Amex rules relating to

member firm transactions with Amex

employees. On September 25, 2000, the

Amex filed Amendment No. 1 to the

proposal.3 The proposed rule change

was published for comment in the

Federal Register on October 31, 2000. 4

No comments were received on the

proposal. This order approves the

proposal rule change, as amended, on

an accelerated basis.

II. Description of the Proposal

The Exchange proposes to amend

Amex Rule 15 (Loans by Exchange

Officers) and Amex Rule 416 (Accounts

of Employees of Exchange and

Members), to delete Amex Rule 348

(Gratuities to Employees of Exchange),

and to add new Amex Rule 417

(Transactions Involving Exchange

Employees).5

A. Member Loans to Exchange

Employees

The NASD Code of Conduct generally

prohibits NASD and Amex employees

from accepting loans from members,

issuers, or any person with whom the

NASD or Amex transacts business.6

Amex Rule 15 also prohibits Exchange

employees from accepting loans from

members without prior written approval

of the Exchange, but does not

specifically prohibit members from

making those loans to Exchange

employees.

The SEC staff has recommended that

the Amex adopt a rule expressly

prohibiting members from making loans

to Amex employees, outside routine

brokerage or banking relationships.7 The

Amex therefore proposes to amend

Amex Rule 15 to expressly provide that

no member shall make a loan to an

Exchange employee without prior

approval of the Amex board of

Governors. The Amex also proposes to

adopt new Amex Rule 417(b), which

prohibits members from making loans to

Exchange employees outside of

disclosed, routine banking and