Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Notices 21423

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 43983

(February 20, 2001), 66 FR 12576 (February 27,

2001).

4 In approving this proposed rule change, the

Commission notes that it has considered the

proposed rule’s impact on efficiency, competition,

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

5 15 U.S.C. 78f.

6 15 U.S.C. 78f(b)(5).

7See, e.g., American Stock Exchange Rule 950(d),

Commentary .04., Chicago Board Options Exchange

Rule 6.9(e).

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See letter from Laura Gansler, Counsel, NASD

Dispute Resolution, to Florence Harmon, Senior

Special Counsel, Division of Market Regulation,

Commission, dated April 19, 2001 (‘‘Amendment

No. 1’’). In Amendment No. 1, the NASD changed

the first sentence of NASD Rule 10306 to indicate

that the terms of a settlement agreement do not

need to be disclosed to NASD Dispute Resolution,

rather than the NASD as originally proposed.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–10609 Filed 4–27–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44208; File No. SR–ISE–

01–02]

Self-Regulatory Organizations;

International Securities Exchange LLC;

Order Granting Approval to Proposed

Rule Change Relating to Anticipatory

Hedging Activity

April 20, 2001.

On January 12, 2001, the International

Securities Exchange LLC (‘‘ISE’’ or

‘‘Exchange’’) field 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

relating to anticipatory hedging activity.

The proposed rule change would

prohibit a member or a person

associated with a member who has

knowledge of all the terms and

conditions concerning the imminent

execution of (1) an order and a solicited

order, (2) an order being facilitated, or

(3) two orders being crossed, to enter,

based on that knowledge, an order to

buy or sell an option of the same class,

shares in the underlying security, or any

related instrument, before the same

information is disclosed to the trading

crowd.

The proposed rule change was

published for comment in the Federal

Register on February 27, 2001.3 The

Commission received no comments on

the proposal.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange 4 and, in particular, the

requirements of section 6 of the Act 5

and the rules and regulations

thereunder. The Commission finds

specifically that the proposed rule

change is consistent with section 6(b)(5)

of the Act,6 because it is designed to

maintain the integrity of the ISE’s

market by preventing the misuse of nonpublic information and affording the

trading crowd a fair and full

opportunity to make informed trading

decisions. It also conforms to similar

rules at other options exchanges relating

to anticipatory hedging.7

It is therefore ordered, pursuant to

section 19(b)(2) of the Act,8 that the

proposed rule change (File No. SR–ISE–

01–02) be, and it hereby is, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–10608 Filed 4–27–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44214; File No. SR–NASD–

2001–21)

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

National Association of Securities

Dealers, Inc., Relating to Amendments

to the Fee Structure of the Code of

Arbitration Procedure

April 24, 2001.

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 23,

2001, the National Association of

Securities Dealers, Inc. (‘‘NASD’’),

through its wholly owned subsidiary,

NASD Dispute Resolution, Inc. (‘‘NASD

Dispute Resolution’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I, II,

and III below, which Items have been

prepared by NASD Dispute Resolution.

On April 20, 2001, the NASD filed

Amendment No. 1 to the proposal.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change, as amended, from interested

persons.

I. Self–Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

NASD Dispute Resolution is

proposing to amend the Code of

Arbitration of Procedure (‘‘Code’’) to

clarify or simplify several fee-related

provisions of the Code. Proposed new

language is in italics; proposed

deletions are in brackets.

* * * * *

10306. Settlements

[All settlements upon any matter shall

be at the election of the parties.]

(a) Parties to an arbitration may agree

to settle their dispute at any time.

(b) The terms of a settlement

agreement do not need to be disclosed

to NASD Dispute Resolution. However,

the parties will remain responsible for

payment of fees incurred, including fees

for previously scheduled hearing

sessions. If the parties fail to agree on

the allocation of outstanding fees, the

fees shall be divided equally among all

parties.

* * * * *

10319. Adjournments

(a) The arbitrator(s) may, in their

discretion, adjourn any hearing(s) either

upon their own initiative or upon the

request of any party to the arbitration.

(b) [Unless waived by the Director of

Arbitration upon a showing of financial

need,] If an adjournment requested by a

party is granted after arbitrators have

been appointed, the [a] party requesting

the adjournment [after arbitrators have

been appointed shall deposit with the

request for an adjournment,] shall pay a

fee equal to the initial deposit of hearing

session fees for the first adjournment

and twice the initial deposit of hearing

session fees, not to exceed [$1,000]

1,500 for a second or subsequent

adjournment requested by that party. [If

the adjournment is granted, the

arbitrator(s) may direct the return of the

adjournment fee.] The arbitrators may

waive these fees in their discretion. If

more than one party requests the

adjournment, the arbitrators shall

allocate the fees among the requesting

parties.

(c) Upon receiving a third request

consented to by all parties for an

adjournment, the arbitrator(s) may

dismiss the arbitration without

prejudice to the Claimant filing a new

arbitration.

* * * * *