Federal Register / Vol. 66, No. 81 / Thursday, April 26, 2001 / Notices 21031

43 15 U.S.C. 78s(b). 44 15 U.S.C. 78mm(a)(1).

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

2 17 CFR 240.19b–4. 3Securities Exchange Act Release No. 43677

(December 5, 2000), 65 FR 78230.

scheme, including the proposed rule

change requirements of Section 19(b).43

Fair competition will be maintained in

the market to provide enhanced

software products to broker-dealers.

Under these circumstances, the

Commission believes at this point that

competitive forces can be relied upon to

produce software products at fair prices

that meet the needs of broker-dealers. In

sum, the Commission believes that FSI

will neither be unnecessarily hampered

in its competition to provide software

services to broker-dealers nor given an

unfair competitive advantage because of

its ownership by Nasdaq.

IV. Conclusion

It Is Therefore Ordered, pursuant to

section 36(a)(1) of the Exchange Act,44

that the NASD’s application for a

conditional exemption (Form Type 34–

36 MR; File No. 79–9) is approved.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–10394 Filed 4–25–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44209; 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 fifth meeting of the

Securities and Exchange Commission

Advisory Committee on Market

Information (‘‘Committee’’) will be held

on May 14, 2001, in the William O.

Douglas Room, at the Commission’s

main offices, 450 Fifth Street, NW.,

Washington, DC, beginning at 9 a.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, NW.,

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, NW., 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 May 14, 2001, in

the William O. Douglas Room at the

Commission’s main offices, 450 Fifth

Street, NW., Washington, DC beginning

at 9 a.m. The meeting will be open to

the public. This will be the fifth meeting

of the Committee. The purpose of this

meeting will be to discuss alternative

models for the provision of market data,

and other issues relating to the public

availability of market information in the

equities and options markets.

Dated: April 20, 2001.

Jonathan G. Katz,

Secretary.

[FR Doc. 01–10387 Filed 4–25–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44197; File No. SR–CBOE–

00–49]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Inc., Order Approving Proposed Rule

Change Relating to RAES Eligibility

Requirements for SPX Options

April 18, 2001.

I. Introduction

On September 20, 2000, the Chicago

Board Options Exchange, Inc. (‘‘CBOE’’

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 proposal to amend CBOE

Rule 24.16, which governs the eligibility

of Market-Makers to participate on the

Exchange’s Retail Automatic Execution

System (‘‘RAES’’) in options on the

Standard & Poor’s 500 Index (‘‘SPX’’).

The proposed rule change was

published for comment in the Federal

Register on December 14, 2000.3 No

comments were received on the

proposal. This order approves the

proposed rule change.

The text of the proposed rule change

is set forth below. Proposed new

language is in italics; proposed

deletions are in brackets.

* * * * *

Rule 24.16

(a) Individual Members. Any individual

Exchange member who has registered as

a Market-Maker, who has signed the

RAES Participation Agreement

applicable to individuals, and who has

completed the RAES instructional

program is eligible to log onto RAES in

SPX, so long as the requirements set

forth in paragraph (iv) below are met:

* * * * *

(iv) RAES participation in SPX is limited

to SPX Market-Makers. To qualify, a

Market-Maker must: (A) be approved

under Exchange rules as a Market-Maker

with a letter of guarantee, and (b)

maintain his principal business on the

CBOE as a Market-Maker.[, (C) execute at

least fifty percent of his Market-Maker

contracts for the preceding calendar

month in SPX and (D) execute at least

seventy-five percent of his Market-Maker

trades for the preceding calendar month

in SPX in person. In making these

calculations, RAES trades will not be

considered.]

* * * * *

(d) Member Organizations with Multiple

Nominees

(i) A member organization with multiple

Market-Maker/nominees on the floor

may arrange to have the RAES trades of

all its nominees assigned to a single

Market-Maker account, provided that the

firm’s participating nominees have first

executed the RAES Participation

Agreement applicable to firms and the

manager of the multiple nominee

account has satisfactorily completed the

RAES instructional program. Thereafter,

each of the participating nominees will

be able to trade through RAES only in

the manner described below, and not as

a member of a joint account or as an

individual. Each eligible nominee must

meet the SPX Market-Maker [obligations]

requirements set forth in paragraph

[(c)(i)(A)–(D)](a)(iv) above. Members of a

multiple nominee RAES account may

only participate in that one account and

may not participate directly or indirectly

in any other RAES account, nor may a

member organization participate directly

or indirectly in SPX on RAES in more

than one account.

* * * * *

(e) Authority to Disapprove

(i) No person or entity may participate

directly or indirectly in RAES, or share

in the profits, directly or indirectly, with

more than RAES group.[. which may not

exceed the maximum number of RAES

participants set by the appropriate MPC

from time to time. In no event may the

appropriate MPC set a maximum number

higher than 331⁄3% of the average

number of RAES participants for the

prior quarter. The appropriate MPC will

give groups one month’s notice if a

reduction in group size becomes

necessary due to application of this size

limit. The appropriate MPC reserves the

authority to establish lower limits on the

size of groups eligible to use RAES. Size

limits may be imposed by the

appropriate MPC at any time.]