Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Notices 75993

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 43407 (Oct.

3, 2000), 65 FR 60711 (Oct. 12, 2000) (SR–PHLX–

00–72).

4 15 U.S.C. 78f(b)(5).

5 In approving the proposal, the Commission has

considered the rule’s impact on efficiency,

competition, and capital formation. 15 U.S.C. 78c(f).

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30884 Filed 12–4–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43625; File No. SR–Phlx–

00–72]

Self-Regulatory Organizations; Order

Approving a Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.,

Relating to Rules 501, 505, and 506

Regarding Allocation and Specialist

Appointment, as well as Rule 748,

Supervision, to Reflect Current

Circumstances on the Equity, Foreign

Currency Option and Option Trading

Floors

November 27, 2000.

On July 25, 2000, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘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 Rules 501, 505, and 506

regarding Allocation and Specialist

Appointment, as well as Rule 748,

Supervision, to reflect current

circumstances on the equity, foreign

currency option and option trading

floors. The proposed rule change was

noticed in the Federal Register.3 No

comments were submitted on the

proposed rule change. This order

approves the proposed rule change.

I. Description of the Proposal

The Phlx proposes to amend Rules

501, 505, 506, and 748 to require certain

information be provided to the

Allocation, Evaluation and Securities

Committee (‘‘AES Committee’’) for

approval and to require certain

minimum staffing levels for specialist

units. Specifically, the Exchange

proposes to amend Rule 501(b)(4) to

require that option and foreign currency

option specialist units provide detailed

information on their application to

become a specialist unit regarding their

back-up arrangements with regard to

financial and staffing support.

The proposal would add Rule 501(c)

to require that the AES Committee

approve an individual before he may act

as a specialist on behalf of a specialist

unit. In addition, proposed Rule 501(c)

would require that applications for

individuals to act as specialist include

any other special information that the

AES Committee may require for

approval. Proposed Rule 501(c) would

also require that the AES Committee or

its designee approve an individual

before that individual may move from

one specialist unit to another specialist

unit.

The proposal would re-designate Rule

501(c) ad Rule 501(d), which requires

that to be approved and retain their

specialist privileges, option and foreign

currency option specialists must

maintain the clearing arrangements and

capital structure stated on their

application. In addition, Rule 501(d)

would require that changes regarding

back-up arrangements must be

submitted to and approved by the AES

Committee. The proposal would also

amend Rule 501(d) to require option

and foreign currency option specialists

to maintain a minimum staffing level for

each quarter turret of space on the

trading floor.

The proposal would add Rule 501(e),

which is similar to Rule 501(d), and

would contain the same staffing

requirements for equity specialists as

are currently contained in Rule

501(c)(2).

The proposal would re-designate Rule

501(d) as Rule 501(f) and amend the

language of 501(f) to state that once an

applicant is approved by the AES

Committee as a specialist unit, any

material change in the capital or staff of

the unit or any move by the head or

assistant specialist must be reported in

writing to the AES Committee within

two days of the change.

The proposal would add Rule 501,

Commentary .02, which states that for

purposes of Rule 748 on Supervision,

individuals employed or associated

with the back-up specialist will be

considered engaging in a business

activity of the specialist unit that they

are assisting. Rule 748(b) would also be

amended to refer to this situation.

The proposal would amend Rule 505

to require registrant specialist units to

report material changes on the

respective equity, option and foreign

currency option registration forms to the

AES Committee.

The proposal would amend Rule 506

to codify expressly that the AES

Committee may require applicant

specialist units to provide other

information, including system order

acceptance and execution levels, and

guarantees on the application for a

particular equity or option. The

proposal also would require that, should

a specialist be allocated that equity or

option, the specialist would be

immediately required to notify the

Exchange staff and submit for approval

to the AES Committee or its designee in

writing any change to the respective

system acceptance and execution levels

or any other material changes on that

application.

The proposal also would replace

references to the Department of

Securities in Rules 505 and 506 with

references to the Exchange staff.

II. Discussion

The Commission finds that the

proposed rule change is consistent with

the provisions of Section 6(b)(5) of the

Act,4 which require, among other

things, that the rules of the exchange be

designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with respect to facilitating

transactions in securities, 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.5 The proposed

amendments will provide the AES

Committee with additional information

to make decisions regarding allocation,

reallocation, and transfer of specialist

books as well as the approval and

retention of specialists on the trading

floor.

The Commission believes that

proposed amendment to Rule 501(b)(4)

regarding back-up arrangements for

staffing and capital will help to ensure

that specialist books continue to trade

on the floor in an efficient manner by

requiring the specialist unit to have

sufficient staff to handle the high

volume in busy markets and requiring

the back-up to step in to act as a

specialist, when the assigned specialist

is unable to do so.

The Commission believes that the

proposed amendment to Rule 501(c)

regarding the AES Committee’s

supervision of the individuals applying

to be specialists on the floor will help

to ensure that applicants have sufficient

qualifications and experience to perform

the duties of a specialist in active

markets.

75994 Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Notices

6 15 U.S.C. 78s(b)(2).

7 17 CFR 200.30–3(a)(12).

Presently, the Phlx’s Rules do not

sufficiently address the issue of staffing

levels; however, the Commission

believes that proposed amendment to

Rule 501(d) will help to ensure that

there is adequate staffing coverage on

the trading floors.

The Commission believes that

proposed amendment to Rule 506

regarding the AES Committee’s

authority to require specialist units to

state their system order acceptance and

execution levels, and notify the AES

Committee of any changes to the

respective system acceptance and

execution levels, will help the Exchange

to accurately and effectively assess

whether the specialist units have the

ability to attract order flow to the

Exchange.

The Commission believes that

proposed amendments to Rule 501,

Commentary .02 and Rule 748, will help

ensure adequate supervision of

specialist staff by considering back-up

staff used by a specialist to be

employees of the specialist unit. This

will help to hold a specialist unit

accountable for the acts of staff under

their direction, albeit such staff is not

directly employed by that specialist

unit.

Lastly, the Commission believes that

proposed amendments to Rule 501, 505,

and 506 regarding notification will help

to supply the Phlx and the AES

Committee with the appropriate

information to make determinations

regarding the ability of a specialist to

perform in a particular security in

accordance with the AES Committee’s

review procedures.

III. Conclusion

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,6 that the

proposed rule change (SR–PHLX–00–

72) is approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30881 Filed 12–4–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

The Ticket to Work and Work

Incentives Advisory Panel Meeting

AGENCY: Social Security Administration

(SSA).

ACTION: Notice of teleconferences and

meeting.

DATES: Teleconferences:

December 12, 2000, 1:30–3:30 p.m.

December 19, 2000, 1:30–3:30 p.m.

Meeting:

January 9, 2001, 8:30 a.m.–5 p.m.

January 10, 2001, 8:30 a.m.–5 p.m.

ADDRESSES:

Teleconferences: Social Security

Administration, International Trade

Center, 500 E St. SW., 8th Floor, Theatre

Room, Washington, D.C. 20254.

Meeting: Holiday Inn-Capitol, 550 C

Street, SW., Washington, DC, 20024,

(202) 479–4000, (202) 479–4353 Fax.

The hotel is located one block from the

L’Enfant Metro Station.

SUPPLEMENTARY INFORMATION:

Type of meetings: These meetings are

open to the public. The public is invited

to participate by calling into the

teleconferences or coming to the

addresses listed above for the

teleconferences and the meeting. The

public is also invited to submit

comments in writing at any time on or

before January 10, 2001.

Purpose: In accordance with section

10(a)(2) of the Federal Advisory

Committee Act, the Social Security

Administration (SSA) announces

meetings of the Ticket to Work and

Work Incentives Improvement Act

(TWWIIA) Advisory Panel (the Panel).

Section 101(f) of Public Law 106–170

establishes the Panel to advise the

Commissioner of SSA, the President,

and the Congress on issues related to

work incentives programs, planning and

assistance for individuals with

disabilities as provided under section

101(f)(2)(A) of the TWWIIA. The Panel

is also to advise the Commissioner on

matters specified in section 101(f)(2)(B)

of that Act, including certain issues

related to the Ticket to Work and SelfSufficiency Program established under

section 101(a) of that Act.

Interested parties are invited to attend

the teleconferences and meeting. The

Panel will use the teleconferences to

conduct full Panel deliberations on the

implementation of the TWWIIA. The

Panel will not be taking public

testimony at the teleconferences. The

Panel will use the meeting time to

receive public testimony, hear

presentations on the implementation of

TWWIIA, conduct full Panel

deliberation, receive briefings and

conduct business.

Teleconference Agenda: The Panel

will meet by teleconference

commencing Tuesday, December 12,

2000 at 1:30 p.m. to 3:30 p.m. The Panel

will deliberate on the implementation of

TWWIIA. The public is invited to

participate by coming in to the address

listed above or calling in to the

scheduled teleconference to listen. No

public testimony will be taken.

Teleconference Agenda: The Panel

will meet by teleconference

commencing Tuesday, December 19,

2000 at 1:30 p.m. to 3:30 p.m. The Panel

will deliberate on the implementation of

TWWIIA. The public is invited to

participate by coming in to the address

listed above or calling in to the

scheduled teleconference to listen. No

public testimony will be taken.

Meeting Agenda: The Panel will meet

in person commencing Tuesday,

January 9, 2001 at 8:30 a.m. to 5:00 p.m.

and Wednesday, January 10, 2001 at

8:30 a.m. to 5:00 p.m. Seating may be

limited so persons interested in

attending this meeting should contact

the Panel staff by e-mail or telephone.

Public testimony will be heard in

person on Tuesday, January 9, 2001 and

Wednesday, January 10, 2001 from 8:30

a.m. to 9:30 a.m. Individuals interested

in providing testimony in person should

contact the Panel staff as outlined below

to schedule time slots. Members of the

public must schedule a timeslot in order

to comment.

Each presenter will be called on by

the Chair in the order in which they are

scheduled to testify and is limited to a

maximum five-minute verbal

presentation. Full written testimony on

TWWIIA Implementation, no longer

than 5 pages, may be submitted in

person or by mail, fax or email on an ongoing basis to the Panel for

consideration.

In the event that the public comments

do not take up the scheduled time

period for each day, the Panel will use

that time to deliberate and conduct

other Panel business.

Since teleconference ports and seating

may be limited, persons interested in

attending these meetings or in providing

testimony at the in-person meeting

should contact the Panel staff by Emailing Kristen M. Breland, at

‘kristen.m.breland@ssa.gov’ or calling

(410) 966–7225.

The full agendas for the meetings

follow this announcement. The agendas

are also posted on the Internet at

http://www.ssa.gov/work/Resources/

Toolkit/ or can be received in advance

electronically or by fax upon request.

Contact Information: Anyone

requiring information regarding the

Panel should contact the TWWIIA Panel

staff. Records are being kept of all Panel

proceedings and will be available for

public inspection by appointment at the

Panel office. Anyone requiring