75754 Federal Register / Vol. 65, No. 233 / Monday, December 4, 2000 / Notices

26 15 U.S.C. 78s(b)(2).

27 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3PCX Constitution, Article II, Section 1(a).

4 15 U.S.C. 78f.

of Amendment No. 1 to the proposed

rule change.

VI. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning Amendment No.

1, including whether Amendment No. 1

is consistent with the Act. Persons

making written submissions should file

six copies thereof with the Secretary,

Securities and Exchange Commission,

450 Fifth Street, N.W., Washington, D.C.

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 NYSE. All

submissions should refer to File No.

SR–NYSE–00–36 and should be

submitted by December 26, 2000.

VII. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act, 26 that the

proposed rule change (SR–NYSE–00–

36), as amended, is approved through

September 1, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority. 27

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30721 Filed 12–1–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43619; File No. SR–PCX–

00–44]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Pacific Exchange, Inc. Relating to

Committee Voting Requirements

November 27, 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

20, 2000, the Pacific Exchange, Inc.

(‘‘PCX’’ 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 PCX is proposing to amend PCX

Rule 11.2(a) to replace the word

‘‘present’’ with the word ‘‘voting’’ to

allow committee action to be approved

by a majority of those voting at a

meeting at which a quorum has been

established. Below is the complete text

of the proposed rule change. Proposed

new text is in italics. Proposed deletions

are in [brackets].

* * * * *

Pacific Exchange, Inc.

Constitution and Rules

* * * * *

Rule 11

Committees of the Exchange

¶6233 Committee Procedures

Rule 11.2(a). Except as otherwise

provided in the Constitution, the Rules,

or a resolution of the Board, each

committee shall determine its own time

and manner of conducting its meetings.

The vote of a majority of the members

of a committee [present] voting at a

meeting at which a quorum is present

shall be the act of the committee.

Committees may act by written consent

of a majority of the members of the

committee.

(b) No change.

* * * * *

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 Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

Currently, the PCX’s Board of

Governors and the Exchange’s standing

committees operate under different

voting standards. The voting standard

applied to committees is more

restrictive than that applied to the Board

of Governors. The standard for

committee voting is set by PCX Rule

11.2(a) which states that ‘‘the vote of a

majority of the members of a committee

present at a meeting at which a quorum

is present shall be the act of the

committee.’’ This differs from the voting

requirement for the Board of Governors

which may act upon the affirmative vote

of ‘‘not less than a majority of the

Governors voting at a meeting at which

a quorum is present * * *’’ 3 This

section allows the Board of Governors to

act on the majority vote of the

Governors voting, regardless of whether

the number of Governors recusing or

abstaining reduces the number of those

eligible to vote below a quorum, below

a majority of the Governors attending or

below a majority of the total number of

Governors on the Board.

Unlike Section 1(a), PCX Rule 11.2(a)

requires a vote of a majority of

committee members present at the

meeting, rather than a mere majority of

those voting. The PCX believes that Rule

11.2(a) should be amended to make it

consistent with the requirements set

forth for the PCX Board of Governors.

Recent changes in the ownership of, or

capital investment in, many PCX

member firms has increased the number

of instances in which committee

members must abstain or recuse from a

committee vote. This may delay or

preclude a committee from taking

action, thereby reducing the

responsiveness of a committee to

rapidly changing market conditions and

limiting overall committee effectiveness.

The proposed rule change conforms

the committee voting standard to that

applied to the PCX Board of Governors.

The rule change will allow for greater

committee responsiveness, improved

timing for committee actions, and

consistency across the Exchange with

respect to rules of order.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6 of the Act, 4 in general, and

furthers the objectives of Section

Federal Register / Vol. 65, No. 233 / Monday, December 4, 2000 / Notices 75755

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

6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 240.19b–4(f)(3).

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See PCX Rules 6.75(a)–(b).

4 Id.

5A ‘‘spread order’’ is an order to buy a stated

number of option contracts and to sell the same

number of contracts (or contracts representing the

same number of shares of the underlying security)

of the same class of options. See PCX Rule 6.62(d).

6A‘‘straddle order’’ is an order to buy or to sell

the same number of options of each type with

respect to the same underlying security and having

the same exercise price and expiration date (e.g., an

Continued

6(b)(5) 5, in particular, in that it is

designed to promote just and equitable

principles of trade.

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 that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants, or Others

Written comments on the proposed

rule change were neither solicited nor

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) 6 of the Securities Exchange

Act of 1934 and subparagraph (f)(3) of

Securities Exchange Act Rule 19b–4

thereunder 7 because it is concerned

solely with the administration of the

Exchange. At any time within 60 days

of this filing, the Commission may

summarily abrogate this 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 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, 450 Fifth Street, NW.,

Washington, DC. Copies of such filing

will also be available for inspection and

copying at the principal office of the

PCX. All submissions should refer to

File No. SR–PCX–00–44 and should be

submitted by December 26, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–30720 Filed 12–1–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43623; File No. SR–PCX–

00–04]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the Pacific Exchange, Inc. Relating to

Buy-Writes & Book Priority

November 27, 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 March 3,

2000, the Pacific Exchange, Inc. (‘‘PCX’’

or ‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’ or ‘‘SEC’’) 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 Exchange is proposing to amend

its rules to facilitate the execution of

stock/option orders on the Exchange.

Below is the text of the proposed rule

change. Proposed new language is

italicized and proposed deletions are in

[brackets].

* * * * *

¶ 5139 Priority of Bids and Offers

Rule 6.75. Except as provided by Rule

6.76 below, the following rules of

priority shall be observed with respect

to bids and offers:

(a)–(c) No change.

(d) Notwithstanding anything in

paragraphs (a) and (b) to the contrary,

when a member is holding a spread

order, a straddle order, or a combination

order, or stock/option order and is

bidding or offering on the basis of a total

credit or debit for the order and has

determined that the order may not be

executed by a combination of

transactions with or within the bids and

offers displayed by the Order Book

Official or other members, in procedures

determined by the Options Floor

Trading Committee, then the order may

be executed as a spread, straddle, or

combination, or stock/option order at

the total credit or debit with one or

more members without giving priority

to bids or offers for the individual

option series of the Order Book Official

or of other members at the post that are

no better than the bids or offers

comprising such total credit or debit.

Commentary: .01–.03—No change.

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 Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange’s priority rules for

options provide, in general, that the

highest bids and lowest offers have

priority over other bids and offers,

except that orders in the Limit Order

Book have priority over other bids and

offers at the same price.3 The rules

further provide if there are two or more

bids (or offers) representing the highest

bid (or lowest offer), and no orders in

the Limit Order Book are involved, then

priority is afforded to those bids (or

offers) in the sequence in which they

were made.4 PCX Rule 6.75(d) currently

allows three exceptions to the priority

rules with respect to ‘‘spread orders,’’ 5

‘‘straddle orders,’’ 6 and ‘‘combination