28188 Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices

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

2 17 CFR 240.19b-4.

3See Securities Exchange Act Release No. 35369

(February 14, 1995), 60 FR 9702 (February 21,

1995).

4A ‘‘trading rotation’’ is a series of very brief time

periods during each of which bids, offers, and

transactions in only a single, specified option

contract can be made. See CBOE Rule 6.2.

5See CBOE Rules 6.2 and 24.13.

than those set forth above. Or, the

Commission may find that the Postal

Service’s determination disposes of one

or more of those issues.

The Postal Reorganization Act

requires that the Commission issue its

decision within 120 days from the date

this appeal was filed (39 U.S.C. 404

(b)(5)). In the interest of expedition, in

light of the 120-day decision schedule,

the Commission may request the Postal

Service to submit memoranda of law on

any appropriate issue. If requested, such

memoranda will be due 20 days from

the issuance of the request and the

Postal Service shall serve a copy of its

memoranda on the petitioners. The

Postal Service may incorporate by

reference in its briefs or motions, any

arguments presented in memoranda it

previously filed in this docket. If

necessary, the Commission also may ask

petitioners or the Postal Service for

more information.

The Commission orders:

(a) The Postal Service shall file the

record in this appeal by May 30, 1995.

(b) The Secretary of the Postal Rate

Commission shall publish this Notice

and Order and Procedural Schedule in

the Federal Register.

By the Commission.

Margaret P. Crenshaw,

Secretary.

Appendix

Rowletts, Kentucky 42772 Docket No.

A95–12

May 15, 1995—Filing of Appeal letter.

May 23, 1995—Commission Notice and

Order of Filing of Appeal.

June 9, 1995—Last day of filing of petitions

to intervene (see 39 CFR 3001.111(b)).

June 19, 1995—Petitioners’ Participant

Statement or Initial Brief (see 39 CFR

3001.115(a) and (b)).

July 10, 1995—Postal Service’s Answering

Brief (see 39 CFR 3001.115(c)).

July 24, 1995—Petitioners’ Reply Brief

should Petitioner choose to file one (see 39

CFR 3001.115(d)).

July 31, 1995—Deadline for motions by any

party requesting oral argument. The

Commission will schedule oral argument

only when it is a necessary addition to the

written filings (see 39 CFR 3001.116).

September 12, 1995 Expiration of the

Commission’s 120-day decisional schedule

(see 39 U.S.C. 404(b)(5))

[FR Doc. 95–13093 Filed 5–26–95; 8:45 am]

BILLING CODE 7710–FW–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–35742; File No. SR–CBOE–

95–04]

Self-Regulatory Organizations; Order

Approving a Proposed Rule Change by

the Chicago Board Options Exchange,

Incorporated, Relating to Certain

Procedures Regarding Trading

Rotations and Opening Procedures

May 19, 1995.

I. Introduction

On January 18, 1995, the Chicago

Board Options Exchange, Incorporated

(‘‘CBOE’’ or ‘‘Exchange’’) filed the

following proposed rule changes 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

(1) Granting two concurring Floor

Officials the discretion to call for one or

more trading rotations on any business

day pursuant to Rule 6.2; (2) codifying

in Rule 6.2, the current practice of

allowing two concurring Floor Officials

the discretion to delay commencement

of the opening rotation in any class of

options; (3) granting two concurring

Floor Officials the discretion to delay

the commencement of the opening

rotation for index options, and deleting

the requirement that any delays in the

opening rotation must be in five minute

intervals, pursuant to Interpretation .03

to Rule 24.13; (4) granting Order Book

Officials the discretion to determine the

appropriate rotation order and manner,

or to deviate from a previously

established rotation policy or procedure,

pursuant to Rule 6.2; (5) adding

Interpretation .04 to Rule 6.2 to specify

that the decision to conduct an

abbreviated rotation is one, but not the

only example of a type of rotation

modification that may be employed; (6)

granting the Order Book Official the

authority to prescribe that two or more

trading rotations be employed

simultaneously pursuant to Rule 6.2; (7)

granting two concurring Floor Officials

the authority to commence more than

one trading rotation after 3:10 p.m.

(central time) pursuant to Interpretation

.02 to Rule 6.2; (8) clarifying that the

factors, provided in Interpretation .02 to

Rule 6.2, to consider in determining

whether to commence more than one

trading rotation after 3:10 p.m., are not

limited to those enumerated; (9)

clarifying that although closing rotations

are not ordinarily conducted in expiring

series of index options, such closing

rotations are not absolutely prohibited

pursuant to Interpretation .03 to Rule

6.2; (10) granting two concurring Floor

Officials the authority to deviate from

the procedures for closing rotations

pursuant to Interpretation .03 to Rule

6.2; (11) granting Order Book Officials

the discretion to determine the

appropriate rotation order and manner,

or to deviate from a previously

established rotation policy or procedure

for index options pursuant to Rule

24.13; and (12) deleting a portion of

Rule 24.13 that requires an Order Book

Official to open the nearest expiration

series of index options before opening

the remaining series in a manner she or

he deems appropriate.

Notice of the proposal was published

for comment and appeared in the

Federal Register on February 21, 1995.3

No comment letters were received on

the proposed rule changes. This order

approves the Exchange’s proposal.

II. Description of Proposal

The CBOE proposes to amend its rules

relating to certain procedures regarding

trading rotations4 and opening

procedures.5 First, CBOE proposes to

amend Rule 6.2 to grant two concurring

Floor Officials discretion to direct that

one or more trading rotations be

employed on any business day.

Currently, Rule 6.2 grants only the Floor

Procedures Committee this discretion.

CBOE believes that it is impractical to

assemble the entire Floor Procedures

Committee for such as intra-day

decision. CBOE states that under Rule

6.6(b)(iii), two concurring Floor

Officials already have the discretion to

call a trading rotation after the

declaration of a fast market. By

amending Rule 6.2, this discretion

would not be limited to fast market

situations.

CBOE proposes to further amend Rule

6.2 by codifying the current practice of

allowing two concurring Floor Officials

to delay commencement of the opening

rotation in any class of options in the

interests of a fair and orderly market.

CBOE believes that the rules should

expressly grant Floor Officials the

power to react to market conditions and

circumstances by delaying an opening

rotation when it is in the interests of a

fair and orderly market. Interpretation

.01(b) to Rule 6.2 currently grants two
Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices 28189

6The ‘‘appropriate’’ Floor Procedures Committee

is the committee that makes policy regarding the

particular class of options in question. See

Securities Exchange Act Release No. 35369

(February 14, 1995), 60 FR 9702 (February 21,

1995).

7CBOE believes that a system malfunction or a

major announcement in the markets late in the

trading day, among other things, may require a

closing rotation for expiring series of index options

in order to accommodate any order flow problems

resulting from such occurrences. Telephone

conversation between Edward Joyce, CBOE,

Michael Meyer, Attorney, Schiff, Hardin, and

Waite, Michael Walinskas, Branch Chief, and John

Ayanian, Attorney, Office of Market Supervision

(‘‘OMS’’), Division of Market Regulation (‘‘Market

Regulation’’), Commission, on February 13, 1995.

concurring Floor Officials the authority

to conduct the rotation in a manner

other than that set forth in the Rule, but

Rule 6.2 does not state expressly that

the Floor Officials may also delay the

opening rotation.

Similarly, CBOE proposes to amend

Interpretation .03 to Rule 24.13, by

granting two concurring Floor Officials

greater discretion to delay the

commencement of the opening rotation

for index options, and by deleting the

requirement that any delays in the

opening rotation must be in five (5)

minute intervals. Rather than limiting

the circumstances and the time period

in which two concurring Floor Officials

may delay the opening, amended

Interpretation .03 would permit Floor

Officials to delay the opening rotation at

their discretion in the interests of a fair

and orderly market. The circumstances

outlined in current Interpretation .03 to

Rule 24.13, in which two concurring

Floor Officials may delay the opening,

would remain as factors that Floor

Officials may consider in deciding

whether to delay the opening rotation.

If Floor Officials do in fact delay the

opening rotation, CBOE believes that

these officials should be granted greater

discretion to end the delay and

commence the opening before the five

(5) minute interval has lapsed, if the

circumstances warrant that decision. In

addition, CBOE believes that for lengthy

delays, it is impractical to require two

Floor Officials to remain at the index

options post for the sole purpose of

declaring successive five minute delays.

CBOE believes that these amendments

are consistent with the amendments

proposed for Rule 6.2, which grant two

Floor Officials the authority to delay the

opening rotation in any class of options

in the interests of a fair and orderly

market. CBOE argues that because

current Interpretation .01 to Rule 24.13

provides that the procedures for

modification of a rotation and other

aspects of the rotation set forth in Rule

6.2 are applicable to index options, the

authority regarding delays in opening

contained in Rule 6.2 likewise should

apply to index options.

CBOE also proposes to amend Rule

6.2 to grant Order Book Officials more

discretion regarding the rotation order

and manner. CBOE proposes that if the

appropriate Floor Procedures

Committee 6 has not acted to establish

any policy applicable to the particular

class of options in question, then the

Order Book Official would be

authorized to determine the appropriate

order and manner for conducting the

rotation. CBOE believes this aspect of

the rule change would allowed Order

Book Officials to respond to particular

circumstances the Floor Procedures

Committee has not considered and to

conduct the rotation as is appropriate

under those circumstances.

CBOE also proposes to further amend

Rule 6.2, granting the Order Book

Official, with the approval of two

concurring Floor Officials, the authority

to deviate from a rotation policy or

procedure previously established by the

appropriate Floor Procedures

Committee. The Exchange believes that

in certain circumstances, it may be

appropriate to deviate from the

established procedure, but it would be

impractical to assemble the Floor

Procedure Committee for an intra-day

decision allowing such a deviation. Rule

6.2, as amended, would allow two

concurring Floor Officials to act for the

entire committee and approve or

disapprove an Order Book Official’s

proposed deviation from the previously

established rotation policy or procedure.

Currently, pursuant to Interpretation

.01(b) to Rule 6.2, the Order Book

Official, with the approval of two

concurring Floor Officials or the Floor

Procedures Committee, may conduct an

opening rotation in a manner other than

that set forth in Interpretation .01(b). By

amending Rule 6.2, CBOE proposes to

extend this existing policy to all

rotations.

CBOE also proposes to add

Interpretation .04 to Rule 6.2 to specify

that the decision to conduct an

abbreviated rotation is one of the

deviations permitted under the

amended rule. Interpretation .04

provides an example of a type of

rotation modification, or deviation from

rotation policy or procedure that may be

employed, but it is not intended to be

an exclusive list.

CBOE proposes to further amend Rule

6.2 so that the Order Book Official, or

the Floor Procedures Committee, may

prescribe that two or more trading

rotations be employed simultaneously.

CBOE believes that it would be

impractical to assemble the Floor

Procedures Committee for an intra-day

decision regarding simultaneous trading

rotations.

CBOE proposes to amend

Interpretation .02 to Rule 6.2 to grant

two concurring Floor Officials the

authority to commence more than one

trading rotation after 3:10 p.m. (central

time), and to clarify that the reasons

stated for allowing two concurring Floor

Officials to conduct a rotation after the

close of trading are not exclusive. While

the amended interpretation indicates

that, in general, no more than one

trading rotation will be commenced

after 3:10 p.m., CBOE believes that it is

in the interests of a fair and orderly

market to grant two concurring Floor

Officials the discretion to exercise their

judgment in response to market

conditions or circumstances. The

amended interpretation does not

enumerate all the possible underlying

conditions and circumstances for

commencing more than one trading

rotation after the close of trading. Those

listed include the current practice of

employing a trading rotation after the

end of normal trading hours in

connection with a year-end rotation or

due to the restart of a rotation which is

already in progress. CBOE believes it

may be necessary to continue the

rotation after the normal close of trading

in order to complete the rotation for

circumstances including, but not

limited to, those stated in the amended

interpretation.

Interpretation .03 to Rule 6.2

currently provides that ‘‘a closing

rotation for an expiring series of index

options shall not be employed.’’

(Emphasis Added.) Although closing

rotations are not ordinarily employed in

expiring series of index options, CBOE

believes it is inappropriate to prohibit

closing rotations for such series. CBOE,

therefore, proposes to amend the

interpretation to state that a closing

rotation for such expiring series ‘‘is not

ordinarily’’ employed. CBOE believes

the proposed amendment to

Interpretation .03 is necessary to clarify

that, unlike the case with equity

options, closing rotations are not

ordinarily conducted in expiring series

of index options, but that such closing

rotations are not absolutely prohibited.7

Interpretation .03 to Rule 6.2 would

also be amended to grant two

concurring Floor Officials the authority

to deviate from the procedures for

closing rotations if they determine such

deviation is in the interests of a fair and

orderly market. Again, CBOE believes

that it is in the interests of a fair and

orderly market to allow two concurring

Floor Officials to exercise their
28190 Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices

8 15 U.S.C. 78f(b)(5).

judgment in response to market

conditions and circumstances.

Consistent with the above changes to

Rule 6.2 regarding the order and manner

of the rotation, CBOE proposes to

amend Rule 24.13 to give the Order

Book Official greater discretion to

determine the appropriate order and

manner for conducting the rotation for

index options. Similar to amended Rule

6.2, the Floor Procedures Committees

that make policy for an index option

would have the authority to set policy

regarding the order and manner of the

opening rotation. If the Floor Procedures

Committee has not acted to establish a

policy applicable to a particular

situation, then the Order Book Official

would be permitted to determine the

appropriate order and manner for

conducting the opening rotation. Again,

as similarly proposed in amended Rule

6.2, CBOE proposes to further amend

Rule 24.13 to grant the Order Book

Official the authority to deviate from the

appropriate Floor Procedures

Committee’s established procedure

regarding the order and manner of the

opening rotation so long as two

concurring Floor Officials approve such

as a deviation. CBOE believes that it

would be impractical to assemble a

Floor Procedures Committee for an

intra-day decision allowing a deviation

from established opening rotation policy

or procedure.

CBOE would further amend Rule

24.13 by deleting the provisions that

require the Order Book Official to open

the nearest expiration series first and

thereafter open the remaining series in

a manner he deems appropriate. CBOE

believes that the Order Book Official

should have the discretion not to open

with the nearest expiration series if a

different order would be appropriate

under the circumstances.

III. Commission Finding and

Conclusions

The Commission finds that the

proposed rule changes are consistent

with the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange, and, in particular, the

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

Act.8 Specifically, the Commission

believes that the proposed rule changes

are designed to facilitate transactions in

securities, to remove impediments to

and perfect the mechanism of a free and

open market and a national market

system, and to promote just and

equitable principles of trade.

First, the Commission believes that it

is appropriate to amend Rules 6.2 and

24.13 to grant the Order Book Official

greater discretion regarding the rotation

order and manner. The Commission

notes, however, that the discretion of

the Order Book Official is not absolute.

The Order Book Official may determine,

without subsequent approval, the

appropriate order and manner for

conducting the rotation only if the

appropriate Floor Procedures

Committee has not acted to establish

any policy applicable to the particular

class of options in question. The Order

Book Official must otherwise obtain

approval from two concurring Floor

Officials to deviate from the order and

manner for conducting the rotation for

a particular class of options already

established by the appropriate Floor

Procedures Committee. The

Commission believes the proposed

amendments to Rule 6.2 and Rule 24.13

are reasonable in view of the CBOE’s

intended goal to allow Order Book

Officials and Floor Officials the

discretion to exercise their judgment in

response to market conditions or

circumstances.

The Commission also believes that it

is appropriate to add Interpretation .04

to Rule 6.2 to state that the decision to

conduct an abbreviated rotation is one

example of a deviation from rotation

policy or procedure and one of the

modifications of rotation order and

manner that is permitted under Rule

6.2.

Further, the Commission believes that

it is appropriate to amend Rule 6.2 to

afford an Order Book Official the

discretion to authorize two or more

simultaneous trading rotations. The

Commission also finds that it is

appropriate to amend Rule 6.2 to grant

two concurring Floor officials the

discretion to direct that one or more

trading rotations be employed on any

given business day. Both situations

involve an intra-day decision that,

under current Rule 6.2, would require

the entire Floor Procedures Committee

to assemble. The Commission agrees

that it may be impractical to assemble

the Floor Procedures Committee for

such intra-day decisions. The

Commission also believes that by

granting Order Book Officials and Floor

Officials the discretion to evaluate

current market conditions and employ

the appropriate number of rotations in

response to these conditions, these

officials will be positioned to make

informed decisions regarding the

manner in which a rotation can

maintain or contribute to the

maintenance of a fair and orderly

market.

Further, the Commission believes that

the Exchange’s proposal to amend

Interpretation .02 to Rule 6.2 to grant

two concurring Floor Officials the

authority to commence more than one

trading rotation after 3:10 p.m. (central

time) to maintain a fair and orderly

market, is a reasonable response to the

Exchange’s attempt to respond to

current market conditions. The

interpretation is further amended to

clarify that the factors to be considered

in determining whether to commence

more than one trading rotation after 3:10

p.m. are not limited to those

enumerated. Although the amended

interpretation grants two concurring

Floor Officials the discretion to exercise

their judgment in response to market

conditions or circumstances, the

Commission supports CBOE’s policy

that, in general, no more than one

trading rotation will be commenced

after 3:10 p.m.

The Commission also believes that it

is reasonable to amend Rule 6.2 by

codifying the current practices of

allowing two concurring Floor Officials

to delayed commencement of the

opening rotation in any class of options

to maintain a fair and orderly market.

The proposed amendment to Rule 6.2

will expressly grant two concurring

Floor Officials the power to react to

market conditions and circumstances by

delaying the opening rotation. The

Commission believes that the proper

exercise of this authority should

contribute to the protection of investors

and the public interest by enabling

Floor Officials to respond to current

market conditions in a timely manner.

For the same reason, the Commission

also believes that it is appropriate to

amend Interpretation .03 to Rule 24.13

to grant two concurring Floor Officials

greater discretion to delay the

commencement of the opening rotation

for index options by deleting the

requirement that any delays in the

opening rotation for index options be in

five minute intervals. Specifically, the

Commission notes that by deleting this

five minute interval requirement, Floor

Officials will be able to react more

promptly to current market conditions

and commence the opening rotation in

an interval shorter than five minutes if

the circumstances warrant. By granting

Floor Officials the flexibility to

immediately commence an opening

rotation, investors may be able to reduce

their exposure to price fluctuations

occurring when the index options

markets have a delayed opening and the

stock and futures markets are open. The

Commission further notes that for

lengthy delays, it may be impractical to

require two Floor Officials to

continuously remain at the index

options post for the purpose of declaring
Federal Register / Vol. 60, No. 103 / Tuesday, May 30, 1995 / Notices 28191

9See supra note 7.

10 15 U.S.C. 78s(b)(2).

11 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1) (1988).

2As originally filed, the proposal incorrectly

stated that the effective date of the transfer of

securities was to be completed on or about May 8,

1996. The amendment set forth the correct date as

May 8, 1995. Letter from Leopold S. Rassnick,

Senior Vice President, General Counsel, and

Secretary, PTC, to Jonathan Katz, Secretary,

Commission (May 9, 1995).

3The Commission has modified the text of the

summaries prepared by PTC.

4 15 U.S.C. 78q–1(b)(3)(F) (1988).

5 15 U.S.C. 78s(b)(3)(A)(iii) (1988).

6 17 U.S.C. 240.19b–4(e)(3) (1994).

successive five minute delays. The

proposed rule change will provide the

Exchange’s Floor Officials more

flexibility to declare delayed openings

in index options in appropriate

circumstances.

Furthermore, the Commission

believes it is appropriate to amend

Interpretation .03 to Rule 6.2 to state

that a closing rotation for expiring series

of index options ‘‘is not ordinarily’’

employed. Under the current

interpretation, a closing rotation for an

expiring series of index options ‘‘shall

not be employed.’’ The Commission

believes that the proposed amendment

to Interpretation .03 should provide

CBOE Floor Officials the opportunity to

respond to extraordinary circumstances

including, but not limited to, a system

malfunction or a major announcement

in the markets late in the trading day.9

For the same reasons, the Commission

also believes that it is appropriate to

amend Interpretation .03 to Rule 6.2 to

grant two concurring Floor Officials the

authority to deviate from the procedures

for closing rotations if they determine

such deviation is to maintain a fair and

orderly market.

Finally, the Commission believes it is

appropriate to delete from Rule 24.13

the requirement that an Order Book

Official open the nearest expiration

series of index options before opening

the remaining series. The Commission

believes that the proposed rule change,

by permitting the Order Book Official to

exercise his judgment in response to

market conditions or circumstances, is

consistent with the purposes of the Act.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,10 that the

proposed rule changes (File No. SR–

CBOE–95–04) are approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–13072 Filed 5–26–95; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–35752; file No. SR–PTC–

95–04]

Self-Regulatory Organizations;

Participants Trust Company; Notice of

Filing and Immediate Effectiveness of

Proposed Rule Changing Custodians

for the Safekeeping of Physical

Certificates on Deposit With the

Participants Trust Company

May 22, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

May 1, 1995, the Participants Trust

Company (‘‘PTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change (File No. SR–PTC–95–04) as

described in Items I, II, and III below,

which Items have been prepared

primarily by PTC. On May 9, 1995, PTC

filed an amendment to the proposed

rule change.2 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 proposed rule change concerns

PTC’s change in custodians for the

safekeeping of physical certificates on

deposit with PTC.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, PTC

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. PTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of such statements.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

On April 18, 1995, PTC entered into

a custody agreement with The

Depository Trust Company (‘‘DTC’’)

providing for the safekeeping by DTC of

physical certificates on deposit with

PTC. On the same date, PTC amended

its custody agreement with Chemical

Bank providing for the termination of

the current custody arrangements with

Chemical Bank. DTC began providing

custodial services upon the completion

of the transfer of the physical

certificates to DTC on May 8, 1995. The

custodial services to be provided by

DTC are substantially similar to the

services previously provided by

Chemical Bank at considerable savings

to PTC and its participants. The change

in custodians was authorized by PTC’s

Board of Directors after completion of a

due diligence review of DTC’s facilities

and procedures. DTC currently has

approximately $8.3 trillion in securities

under its custody and control in

connection with the custodial services it

offers to its own participants.

PTC believes that the proposed rule

change is consistent with Section

17A(b)(3)(F) of the Act 4 and the rules

and regulations thereunder because it

provides for the safeguarding of

securities and funds in PTC’s custody or

control or for which PTC is responsible.

(B) Self-Regulatory Organization’s

Statements on Burden on Competition

PTC does not believe that the

proposed rule change imposes any

burden on competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

PTC has neither solicited nor received

comments on this proposed rule change.

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)(iii) of the Act 5 and

subparagraph (e)(3) of Rule 19b–4 6

thereunder because the proposed rule

change concerns the administration of

PTC. At any time within sixty days of

the filing of such rule change, 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.