Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Notices 26887

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

2 17 CFR 240.19b–4.

3See Letter from Claire P. McGrath, Vice

President and Special Counsel, Derivative

Securities, Amex, to Nancy Sanow, Assistant

Director, Division of Market Regulation,

Commission, dated April 26, 2001 (‘‘Amendment

No. 1’’). In Amendment No. 1, the Exchange

requested that the proposed rule change be

considered a ‘‘non-controversial’’ rule change under

paragraph (f)(6) of Rule 19b–4 under the Act, which

renders the proposal effective upon receipt of this

filing by the Commission, and requested that the

Commission accelerate the operative date of the

proposal. In addition, the Exchange amended

proposed Amex Rule 940(a)(6), which defines

‘‘eligible order,’’ to include a reference to

subparagraph (d) of the proposed rule.

4On January 30, 2001, the Commission approved

similar proposals submitted by the Chicago Board

Options Exchange, Inc. (‘‘CBOE’’) and the

International Securities Exchange LLC (‘‘ISE’’). See

Securities Exchange Act Release No. 43904 (January

30, 2001), 66 FR 9112 (February 6, 2001). On

February 20, 2001, the Commission issued a notice

of filing and immediate effectiveness of a similar

proposal submitted by the Pacific Exchange, Inc.

(‘‘PCX’’). See Securities Exchange Act Release No.

43986 (February 20, 2001), 66 FR 12578 (February

27, 2001).

5Under the proposal, the interim linkage would

be for a pilot period expiring on January 31, 2002.

ACTION: Notice of interest rates and

assumptions.

SUMMARY: This notice informs the public

of the interest rates and assumptions to

be used under certain Pension Benefit

Guaranty Corporation regulations. These

rates and assumptions are published

elsewhere (or are derivable from rates

published elsewhere), but are collected

and published in this notice for the

convenience of the public. Interest rates

are also published on the PBGC’s web

site (http://www.pbgc.gov).

DATES: The interest rate for determining

the variable-rate premium under part

4006 applies to premium payment years

beginning in May 2001. The interest

assumptions for performing

multiemployer plan valuations

following mass withdrawal under part

4281 apply to valuation dates occurring

in June 2001.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION:

Variable-Rate Premiums

Section 4006(a)(3)(E)(iii)(II) of the

Employee Retirement Income Security

Act of 1974 (ERISA) and § 4006.4(b)(1)

of the PBGC’s regulation on Premium

Rates (29 CFR part 4006) prescribe use

of an assumed interest rate in

determining a single-employer plan’s

variable-rate premium. The rate is the

‘‘applicable percentage’’ (currently 85

percent) of the annual yield on 30-year

Treasury securities for the month

preceding the beginning of the plan year

for which premiums are being paid (the

‘‘premium payment year’’). The yield

figure is reported in Federal Reserve

Statistical Releases G.13 and H.15.

The assumed interest rate to be used

in determining variable-rate premiums

for premium payment years beginning

in May 2001 is 4.80 percent (i.e., 85

percent of the 5.65 percent yield figure

for April 2001).

The following table lists the assumed

interest rates to be used in determining

variable-rate premiums for premium

payment years beginning between June

2000 and May 2001.

For premium payment years

beginning in:

The assumed interest rate is:

June 2000 ................................. 5.23

July 2000 .................................. 5.04

For premium payment years

beginning in:

The assumed interest rate is:

August 2000 ............................. 4.97

September 2000 ....................... 4.86

October 2000 ............................ 4.96

November 2000 ........................ 4.93

December 2000 ........................ 4.91

January 2001 ............................ 4.67

February 2001 .......................... 4.71

March 2001 ............................... 4.63

April 2001 ................................. 4.54

May 2001 .................................. 4.80

Multiemployer Plan Valuations

Following Mass Withdrawal

The PBGC’s regulation on Duties of

Plan Sponsor Following Mass

Withdrawal (29 CFR part 4281)

prescribes the use of interest

assumptions under the PBGC’s

regulation on Allocation of Assets in

Single-employer Plans (29 CFR part

4044). The interest assumptions

applicable to valuation dates in June

2001 under part 4044 are contained in

an amendment to part 4044 published

elsewhere in today’s Federal Register.

Tables showing the assumptions

applicable to prior periods are codified

in appendix B to 29 CFR part 4044.

Issued in Washington, DC, on this 8th day

of May 2001.

Joseph H. Grant,

Acting Executive Director, Pension Benefit

Guaranty Corporation.

[FR Doc. 01–12199 Filed 5–14–01; 8:45 am]

BILLING CODE 7708–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44271; File No. SR–Amex–

2001–20]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

American Stock Exchange LLC

Relating to the Implementation of

‘‘Interim Linkages’’

May 7, 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 21,

2001, the American Stock Exchange LLC

(‘‘Amex’’ or ‘‘Exchange’’) 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 the self-regulatory

organization. On April 27, 2001, the

Exchange filed Amendment No. 1 to the

proposal.3 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 Amex proposes to adopt Amex

Rule 940 providing for the

implementation of ‘‘interim linkages’’

with the other option exchanges.4

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 purpose of this proposed rule

change is to implement certain aspects

of an intermarket options linkage on an

‘‘interim’’ basis.5 This interim linkage

would utilize existing systems to

facilitate the sending and receiving of

order flow between Amex specialists

26888 Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Notices

6See Securities Exchange Act Release Nos. 43086

(July 28, 2000), 65 FR 48023 (August 4, 2000);

43573 (November 16, 2000), 65 FR 70851

(November 28, 2000); and 43574 (November 16,

2000), 65 FR 70850 (November 28, 2000).

7 15 U.S.C. 78f(b).

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

9 15 U.S.C. 78s(b)(3)(A).

10 17 CFR 240.19b–4(f)(6).

11For purposes only of accelerating the operative

date of this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f).

12See note 4, supra.

13 15 U.S.C. 78f(b)(5).

and their counterparts on the other

option exchanges as an interim step

towards development of a ‘‘permanent’’

linkage.

The Commission has approved a

linkage plan that now includes all five

option exchanges.6 The option

exchanges continue to work towards

implementation of this linkage.

However, because the implementation

may take a significant amount of time,

the option exchanges have discussed

implementing an ‘‘interim’’ linkage.

Such a linkage would use the existing

market infrastructure to route orders

between market makers on the

participating exchanges in a more

efficient manner.

The key component of the interim

linkage would for the participating

exchanges to open their automated

customer execution system, on a limited

basis, to market maker orders.

Specifically, market makers would be

able to designate certain orders as

‘‘customer’’ orders, and thus would

receive automatic execution of those

orders on participating exchanges.

This proposed rule would authorize

the Amex to implement bilateral or

multilateral interim arrangements with

the other exchanges to provide for equal

access between market makers on our

respective exchanges. The Exchange

currently anticipates that the initial

arrangements would allow Amex

specialists and their equivalents on the

other exchanges, when holding

customer orders, to effectively send

those orders to the other market for

execution when the other market has a

better quote. Such orders would be

limited in size to the lesser of the size

of the two markets’ automatic execution

size for customer orders. The interim

linkage may be expanded to include

limited access principal orders (i.e.,

when the market maker is not holding

a customer order), for orders of no more

than 10 contracts. This access for

principal orders will allow market

makers to attempt to ‘‘clear’’ another

market displaying a superior quote.

All interim linkage orders must be

‘‘immediate or cancel’’ (i.e., they cannot

be placed on an exchange’s limit order

book), and a market maker may send a

linkage order only when the other

(receiving) market is displaying the

national best bid or offer and the

sending market is displaying an inferior

price. This will allow a market maker to

access the better price for its customer.

Any exchange participating in the

interim linkage will implement

heightened surveillance procedures to

help ensure that their market makers

send only properly-qualified orders

through the linkage.

Specialist participation in the interim

linkage will be voluntary. Only when a

specialist and its equivalent on another

exchange believe that this form of

mutual access would be advantageous

will the exchanges employ the interim

linkage procedures. The Amex believes

that the interim linkage will benefit

investors and will provide useful

experience that will help the exchanges

in implementing the full linkage.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act 7 in general and

furthers the objectives of Section

6(b)(5) 8 in particular in that it is

designed to prevent fraudulent and

manipulative acts and practices,

promote just and equitable principles of

trade, remove impediments to and

perfect the mechanisms of a free and

open market and a national market

system, and, in general, protect

investors and the public interest.

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.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No written comments were solicited

or received with respect to the proposed

rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change has been

filed by the Exchange as a ‘‘noncontroversial’’ rule change pursuant to

Section 19(b)(3)(A) of the Act 9 and

subparagraph (f)(6) of Rule 19b–4

thereunder.10 Because the foregoing

proposed rule change: (i) does not

significantly affect the protection of

investors or the public interest; (ii) does

not impose any significant burden on

competition; and (iii) by its terms, does

not become operative for 30 days after

the date of the filing, or such shorter

time as the Commission may designate

if consistent with the protection of

investors and the public interest;

provided that the Exchange has given

the Commission written notice of its

intent to file the proposed rule change

at least five business days prior to the

filing date of the proposed rule change,

it has become effective pursuant to

Section 19(b)(3)(A) of the Act and Rule

19b–4(f)(6).

The Exchange has requested that the

Commission accelerate the operative

date of the proposal. The Commission

finds that it is appropriate to accelerate

the operative date of the proposal and

designate the proposal to become

operative today.11

The Commission finds good cause for

accelerating the operative date of the

proposed rule change. The Commission

notes that it has approved similar

proposals filed by the ISE and the

CBOE.12 Acceleration of the operative

date should enable investors effecting

transactions on the Amex to obtain

better prices displayed on other

exchanges and thus, is consistent with

Section 6(b)(5) of the Act.13

At any time within 60 days of the

filing of the proposed 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 Act.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether it 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 Amex. All

Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Notices 26889

14 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 17 CFR 240.19b(f)(6).

4 15 U.S.C. 78f(b).

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

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

7 17 C.F.R. 240.19b–4(f)(6).

submissions should refer to SR–AMEX–

2001–20 and should be submitted by

June 5, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–12133 Filed 5–14–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44258; File No. SR–CBOE–

2001–20]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated Relating to Prohibition

Against Members Functioning as

Market Makers

May 4, 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 April 12,

2001, the Chicago Board Options

Exchange, Incorporated (‘‘CBOE’’ or

‘‘Exchange’’) 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 CBOE. The Exchange has designated

the proposed rule change as constituting

a ‘‘non-controversial’’ rule change under

paragraph (f)(6) of Rule 19b–4 under the

Act,3 which renders the proposal

effective upon receipt of this filing by

the Commission. 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 CBOE proposes to adopt a new

Rule 6.8C, Prohibition Against Members

Functioning as Market-Makers, which

restricts the entry of certain option limit

orders. The text of the proposed rule

change is available at the Office of the

Secretary, CBOE and at the Commission.

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

CBOE 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 CBOE 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, Proposed Rule

Change 

1. Purpose

The Exchange proposes to adopt new

Rule 6.8C, Prohibition Against Members

Functioning as Market-Makers, which

will restrict the entry of certain option

limit orders into the Exchange’s

electronic Order Routing System

(‘‘ORS’’). The proposed new rule

provides that member firms, acting as

either principal or agent, may neither

enter nor permit the entry of orders into

ORS if the orders are limit orders for the

account or accounts of the same

beneficial owners and limit orders are

entered in such a manner that the

beneficial owner(s) effectively is

operating as a market maker by holding

itself out as willing to buy and sell such

securities on a regular or continuous

basis. In determining whether a

beneficial owner effectively is operating

as a market-maker, the Exchange will

consider, among other things, the

simultaneous or near simultaneous

entry of limit orders to buy and sell the

same security; the multiple acquisition

and liquidation of positions in the

security during the same day; and the

entry of multiple limit orders at

different prices in the same security.

The Exchange states that its business

model depends upon Designated

Primary Market-Makers (‘‘DPMs’’) and

market makers for competition and

liquidity. To encourage participation by

these market makers, the Exchange

needs to limit the ability of members

that are not DPMs or market makers to

compete on preferential terms within its

automated systems. In addition, because

customers’ orders are provided with

certain benefits such as automatic

execution, priority of bids and offers

and firm quote guarantees, and

customers should not be allowed to act

as market makers. The proposed rule

will prevent non-DPM/market maker

members and their customers from

reaping the benefits of market making

activities without any of the

concomitant obligations, such as

providing continuous quotations during

all market conditions. The proposed

rule is designed to prevent certain

members and customers from obtaining

an unfair advantage by acting as

unregistered DPMs and market makers

by virtue of their customer status.

Permitting members (other than DPMs

or market makers) or customers to enter

multiple limit orders to such an extent

that they are effectively acting as market

makers in an option, while not requiring

them to fulfill the obligations imposed

upon registered market makers, would

give such members and customers an

inordinate advantage over other market

participants.

2. Statutory Basis

The proposed rule change is

consistent with Section 6(b) of the Act 4

in general and furthers the objectives of

Section 6(b)(5) 5 in particular in that it

is designed to prevent fraudulent and

manipulative acts and practices, to

promote just and equitable principles of

trade, to foster cooperation and

coordination with persons engaged in

facilitating transactions in securities,

and to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

CBOE 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

No written comments were solicited

or received with respect to the proposed

rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change has been

filed as a ‘‘non-controversial’’ rule

change pursuant to Section 19(b)(3)(A)

of the Act 6 and subparagraph (f)(6) of

Rule 19b–4 thereunder.7 Because the

foregoing rule change: (i) does not

significantly affect the protection of

investors or the public interest; (ii) does