23308 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Notices

140See ATS Release at 70867.

141See, e.g., PCX OptiMark Release at 50046

(‘‘The failure to disseminate Profile does not

provide any other market participant with an unfair

market advantage as a result of seeing the trading

interest that is not shown to others. Any User only

knows its own Profile; it has no special access to

other Users’ Profiles. Moreover, Users have no

control or influence in determining the outcome of

a match, other than through the construction of

their own Profiles.’’)

142See Proposed PCXE Rule 7.36.

143See Proposed PCXE Rule 7.37.

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

2 17 CFR 240.19b–4.

3The Phlx defines a Top 120 Option as one of the

120 most actively traded equity options nationwide

during a six-month measuring period. The Phlx

revises its list of the Top 120 Options every six

months using data that the Options Clearing

Corporations provides.

4The transactions in Top 120 Options that are

currently excepted from the $1.00 fee are

transactions between: (1) A specialist and an ROT;

(2) an ROT and an ROT; (3) a specialist and a firm;

(4) an ROT and a firm; (5) a specialist and a brokerdealer; and (6) and ROT and and a broker-dealer.

See Securities Exchange Act Release Nos. 43177

(Aug. 18, 2000), 65 FR 51889 (Aug. 25, 2000) (SR–

Phlx–00–77); 43480 (Oct. 25, 2000), 65 FR 66275

(Nov. 3, 2000) (SR–Phlx–00–86 and SR–Phlx–00–

87); and 43481 (Oct. 25, 2000), 65 FR 66277 (Nov.

3, 2000) (SR–Phlx–00–88 and SR–Phlx–00–89),

5See Securities Exchange Act Release Nos. 43921

(February 2, 20001), 66 FR 9739 (Feb. 9, 2001) (SR–

Phlx–00–107) (amending Phlx rules to create listing

criteria and trading rules to allow the Phlx to list

QQQ options); 44054 (Mar. 8, 2001), 66 FR 15314

(Mar. 16, 2001) (SR–Phlx–01–31) (increasing the

automatic execution guarantee for QQQ options to

100 contracts); and 44055 (March 8, 2001), 66 FR

15310 (Mar. 16, 2001) (SR–Phlx–01–32) (amending

Phlx rules to create a one-point strike price interval

for QQQ options and establishing the hours of

trading for QQQ options).

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

7 15 U.S.C. 78f(b)(4) and (5).

anyone, the Commission’s concerns about a

two-tiered market—where some market

participants have information others do not—

are absent.’’140

ArcaEx’s discretionary orders will not

provide any market participant with an

unfair trading advantage.141 All Users will

see the same orders ranked in the Arca Book,

i.e., ArcaEx will display to all User those

orders which are displayed in the Limit

Order Process of the Arca Book, but not the

working orders in the Working Order

Process.142 No Users will have special access

to trading interest that is not available to

others on ArcaEx. All Users have the

equivalent opportunity to receive fills based

on both displayed and undisplayed orders.

Furthermore, no Users will be able to control

or influence the trades resulting from

conditional trading interest; the trades will

only be executed pursuant to an established

algorithm.143 Therefore, discretionary orders

fail to hurt investors in any way; they only

provide benefits to the marketplace, as

discussed in detail above.

C. Conclusion

Discretionary orders comply with Rule

11Ac1–1. Moreover, not only do such orders

not present any potential for investor harm,

they affirmatively will benefit both investor

and market liquidity.

[FR Doc. 01–11472 Filed 5–7–01; 8:45 am]

BILLING CODE 8010–01–U

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44237; File No. SR–PHLX–

2001–43]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Adding QQQ Options to the

Exchange’s List of the Top 120 Equity

Options

April 30, 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 30,

2001, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’) filed with the Securities

and Exchange Commission the proposed

rule change as described in Items I, II,

and III below, which Items the Phlx has

prepared. 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 Phlx proposes to revise its list of

the Top 120 Options 3 by adding options

on Units of Beneficial Interest in the

Nasdaq-100 Trust, Series 1, which are

widely known as and traded under the

symbol ‘‘QQQ’’. Options on the QQQ

index will be added to the Phlx’s list of

the Top 120 Options effective April 2,

2001, and will include trades that settle

on that date.

All of the options on the Phlx’s list of

Top 120 Options are included in the

Phlx’s payment for order flow program,

in which a marketing fee (currently

$1.00) is imposed on the transactions of

specialists and ROTs, which the

specialists may use to attract order flow

to Phlx. QQQ options will be included

in the marketing fee program once they

are added to the list of Top 120 Options.

The inclusion of QQQ options on the

list means that there will be 121 Options

on the Phlx’s list of the Top 120 options

through June 30, 2001, when the current

measuring period ends.

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

Phlx 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 Phlx has prepared

summaries, set forth in Sections A, B,

and C below, or 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 purpose of the proposed rule

change is add QQQ options to the Phlx’s

list of the Top 120 Options. The list of

the Top 120 Options identifies the 120

most actively traded equity options as

measured by their trading volume on all

U.S. options markets. The list of Top

120 Options is recalculated every six

months, with the measuring periods

running from January 1 through June 30

and from June 1 through November 30.

The Phlx assembled its current list of

Top 120 Options using data that the

Options Clearing Corporation gathered

during the period from June 1, 2000

through November 30, 2000.

The Phlx currently imposes a $1.00

per contract fee on transactions of Phlx

specialists and Registered Options

Traders (‘‘ROTs’’) in the Top 120

Options, with some exceptions.4 Under

the program, Phlx specialists may use

the proceeds raised from the marketing

fee to attract order flow to the Phlx.

Because options on the QQQ index are

now traded on the Phlx,5 the Phlx is

proposing to add QQQ options to its list

of the Top 120 Options during the

current measuring period. Accordingly,

from April 2, 2001, the effective date of

this proposal, through June 30, 2001, the

end of the current measuring period,

there will be a total of 121 options on

the Phlx’s list of the Top 120 Options.

2. Statutory Basis

The inclusion of QQQ options on the

Phlx’s list of the Top 120 Options would

bring QQQ options into the Phlx’s

payment for order flow program. The

Phlx believes that the QQQ specialist

unit and the ROTs who pay the $1.00

marketing fee should receive the

benefits of increase order flow, and that

the proposed rule change would

equitably allocate reasonable fees among

the Phlx’s members. Accordingly, the

Phlx—believes that the proposal is

consistent with Section 6(b) of the Act,6

and in particular furthers the objectives

of Sections 6(b)(4) and 6(b)(5) of the

Act.7 Moreover, the Phlx believes that

the inclusion of QQQ options in its list

of Top 120 Options, and the

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Notices 23309

8 15 U.S.C. 78s(b)(3)(A).

9 17 CFR 240.19b–4(f)(2).

10The Phlx has stated that any change to the

category of options to which the payment for order

flow fee applies will be subject of a separate filing

with the Commission pursuant to Section

19(b)(3)(A)(ii) of the Act. See Securities Exchange

Act Release No. 43177 (Aug. 18, 2000), 65 FR 51889

(Aug. 25, 2000) (SR–Phlx–00–77). 11 17 CFR 200.30–3(a)(12).

corresponding imposition of the $1.00

fee on various transactions in QQQ

options, should promote just and

equitable principles to trade, remove

impediments to and perfect the

mechanism of a free and open market,

and protect investors and public interest

by attracting more order flow to the

Phlx, which should result in increased

liquidity, tighter markets, and more

competition among exchange members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Phlx does not believe that the

proposed rule change will impose any

inappropriate burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Phlx neither solicited nor

received any written comments on this

proposal.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the Phlx has designated the

proposed rule change as a fee change

pursuant to Section 19(b)(3)(A) 8 of the

Act and Rule 19b–4(f)(2),9 the proposal

has become effective upon filing with

the Commission.10 At any time within

60 days of the filing of the proposed rule

change, the Commission may summarily

abrogate the 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. Copies of such filing will also be

available for inspection and copying at

the principal office of the Phlx. All

submissions should refer to File No.

SR–Phlx–2001–43 and should be

submitted by May 29, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11475 Filed 5–7–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Applicant No. 99000444]

First Capital Group of Texas III, L.P.;

Notice Seeking Exemption Under

Section 312 of the Small Business

Investment Act, Conflicts of Interest

Notice is hereby given that First

Capital Group of Texas III, L.P., 750 E.

Mulberry, Suite 305, San Antonio,

Texas 78212, an applicant for a Federal

License under the Small Business

Investment Act of 1958, as amended

(‘‘the Act’’), in connection with the

financing of a small concern, has sought

an exemption under section 312 of the

Act and section 107.730, Financings

which Constitute Conflicts of Interest of

the Small Business Administration

(‘‘SBA’’) rules and regulations (13 CFR

107.730 (2000)). First Capital Group of

Texas III, L.P. proposes to provide

equity/debt security financing to BEI

Group, Inc.,1051 East Nakoma, San

Antonio, Texas 78216. The financing is

contemplated for the purpose of

providing working capital.

The financing is brought within the

purview of Sec. 107.730(a)(1) of the

Regulations because First Capital Group

of Texas II, L.P., an Associate of First

Capital Group of Texas III, L.P.,

currently owns greater than 10 percent

of BEI Group, Inc. and therefore BEI

Group, Inc. is considered an Associate

of First Capital Group of Texas III, L.P.

as defined in Sec. 107.50 of the SBA

Regulations.

Notice is hereby given that any

interested person may submit written

comments on the transaction to the

Associate Administrator for Investment,

U.S. Small Business Administration,

409 Third Street, SW, Washington, DC

20416.

Dated: April 27, 2001.

Harry Haskins,

Acting Associate Administrator for

Investment.

[FR Doc. 01–11540 Filed 5–7–01; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Economic Injury Disaster

#9L55]

State of Ohio

Hamilton County and the contiguous

counties of Butler, Clermont and Warren

in the State of Ohio; Dearborn and

Franklin Counties in the State of

Indiana; and Boone, Campbell and

Kenton Counties in the Commonwealth

of Kentucky constitute a disaster area

due to a civil disturbance beginning on

April 9, 2001. Eligible small businesses

and small agricultural cooperatives

without credit available elsewhere may

file applications for economic injury

assistance as a result of this disaster

until the close of business on February

1, 2002 at the address listed below or

other locally announced locations: U.S.

Small Business Administration, Disaster

Area 2 Office, One Baltimore Place,

Suite 300, Atlanta, GA 30308.

The interest rate for eligible small

businesses and small agricultural

cooperatives in 4 percent.

The number assigned for economic

injury is 9L5500 for the State of Ohio;

9L5600 for the State of Indiana; 9L5700

for the Commonwealth of Kentucky.

(Catalog of Federal Domestic Assistance

Program No. 59002)

Dated: May 1, 2001.

John Whitmore,

Acting Administrator.

[FR Doc. 01–11541 Filed 5–7–01; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF STATE

[Public Notice 3653]

Culturally Significant Objects Imported

for ExhibitionDeterminations: ‘‘Spirit of

an Age: Nineteenth Century Paintings

From the Nationalgalerie, Berlin’’

DEPARTMENT: United States Department

of State.

ACTION: Notice.

SUMMARY: Notice is hereby given of the

following determinations: Pursuant to

the authority vested in me by the Act of

October 19, 1965 (79 Stat. 985, 22 U.S.C.