27714 Federal Register / Vol. 66, No. 97 / Friday, May 18, 2001 / Notices

10 15 U.S.C. 78s(b)(3)(A)(ii).

11 17 CFT 240.19b–4(f)(2).

12 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 15 U.S.C. 78f(b)(4).

4 15 U.S.C. 78s(b)(3)(A)(ii).

5 17 CFR 240.19b–4(f).

volume is greater than that required for

a member with relatively low average

monthly trading volume.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq 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

Nasdaq did not solicit or receive

written comments on the proposed rule

change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The proposed rule change has become

effective pursuant to Section

19(b)(3)(A)(ii) of the Act,10 and Rule

19b–4(f)(2) thereunder,11 in that it

establishes or changes a due, fee, or

other charge. At any time within 60

days of the filing of such 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

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 at

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File No.

SR–NASD–2001–30 and should be

submitted by June 8, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Jonathan G. Katz,

Secretary.

[FR Doc. 01–12545 Filed 5–17–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44296; File No. SR–NYSE–

2001–09]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the New

York Stock Exchange, Inc. To Increase

the Fee for Administering the

Compliance Official Qualification

Examination (‘‘Series 14’’)

May 11, 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 May 3,

2001, the New York Stock Exchange,

Inc. (‘‘NYSE’’ or ‘‘Exchange’’), filed with

the Securities and Exchange

Commission (‘‘Commission’’), the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by the NYSE. 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 seeks to

increase the fee charged by the NYSE for

the Compliance Official Qualification

Examination (‘‘Series 14 Examination’’)

from $200 to $300.

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

Exchange Rule 342 (‘‘Offices—

Approval, Supervision and Control’’)

requires each member and member

organization to designate a person to

direct-to-day compliance activity. Such

persons, as well as those compliance

supervisors who direct ten or more

persons engaged in compliance activity,

must have overall knowledge of

securities laws and Exchange rules and

must pass the Series 14 Examination

that was initially implemented in

September 1989.

The fee for the Series 14 Examination

has been $200 since its inception in

1989. The Exchange now seeks to

increase the fee to $300. The fee

increase will defray expenses incurred

in developing, updating, and

administering the Series 14

Examination.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b)(4) of the Act,3 in that the

proposed rule change is designed to

provide for the equitable allocation of

reasonable dues, fees and other charges

among the Exchange members, issuers

and other persons using its facilities.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposed rule change will not 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

The Exchange has neither solicited

nor received comments on the proposed

rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The Exchange has designated the

proposed rule change as a fee change

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

Act 4 and subparagraph (f) of Rule 19b–

4 thereunder.5 Accordingly, the

proposed rule change has become

effective upon filing. At any time within

60 days of the filing of such proposed

Federal Register / Vol. 66, No. 97 / Friday, May 18, 2001 / Notices 27715

6 17 CFR 200.3–3(a)(12).

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

2 17 CFR 240.19b–4.

3This total period of 36 months includes the time

period that the previous pilot programs were in

effect. The first pilot program became effective

upon filing on May 16, 2000 and lasted six months,

expiring on November 16, 2000. See Securities

Exchange Act Release No. 42791 (May 16, 2000), 65

FR 33606 (May 24, 2000) (SR–Phix–00–44). The

pilot program was then extended for an additional

six-month period through May 16, 2001. See

Securities Exchange Act Release No. 43567

(November 15, 2000), 65 FR 71187 (November 29,

2000) (SR–Phlx–00–100). Therefore, the credit

program will be in effect from May 16, 2000 until

May 16, 2003.

4The credit-eligible fees are fees assessed on

members and include transaction as well as trading

floor fees. Transaction fees include equity

transaction value charges, equity floor brokerage

transaction fees, option comparison charges and

option transaction charges. Trading floor fees

include charges for trading post/booth, controller

space, shelf space, transmission, execution/

communication charge and floor facility fees. Fees

assessed on foreign currency options participants

are not considered credit-eligible fees.

5Out-of-pocket expenses include charges for

wireless telephone services, postage, ILX machines

and Dow Jones News Service.

6Pass-through costs include charges for member

health insurance and parcel delivery services.

7Capital funding fees are those fees assessed on

owners to provide for funding for technological

improvements and other capital needs. On June 29,

2000, the Commission permanently approved the

capital funding fee. See Securities Exchange Act

Release No. 4 2993 (June 29, 2000) 65 FR 42415

(July 10, 2000) (SR–Phlx–99–510.

8Payment for order flow fees are those fees

imposed on transactions by Phlx specialists and

Registered Options Traders in the Top 120 Options

on the Phlx. See Securities Exchange Act Release

Nos. 43177 (August 18, 2000), 65 FR 51889 (August

25, 2000) (SR–Phlx–00–77); 43480 (October 25,

2000), 65 FR 66275 (November 3, 2000) (SR–Phlx–

00–86 and SR–Phlx–00–87); 43481 (October 25,

2000), 65 FR 66277 (November 3, 2000) (SR–Phlx–

00–88 and SR–Phlx–00–89); and 44237 (April 30,

2001) (SR–Phlx–01–43).

9An ECN fee is currently a $2,500 monthly fee,

imposed on a one-year pilot basis, for ECNs that are

member organizations and send order flow to the

Exchange’s equity trading floor. See Securities

Exchange Act Release No. 44155 (April 5, 2001), 66

FR 19274 (April 13, 2001) (SR–Phlx–01–09). 10See Securities Exchange Act Release No. 44198

(April 18, 2001), 66 FR 21035 (April 26, 2001) SR–

Phlx–2001–47). 11See Securities Exchange Act Release No. 43567

(November 15, 2000), 65 FR 71187 (November 29,

2000) (SR–Phlx–00–100). This credit is part of the

Exchange’s long-term financing plan, which

separately includes a $1,500 capital funding fee.

See supra note 7. The Exchange reserves the right

to suspend the credit at any time. 12Pursuant to Phlx Rule 940, the parties to an A–

B–C Agreement are an employee, general partner,

or officer and the member organization with which

such person is associated. The member organization

provides all or part of the funds for the purchase

of a membership of which the legal title is placed

in the member and the equitable title is placed in

the member organization.

13 Immediate family member is defined as a

member’s spouse, parents, stepmother, stepfather,

mother-in-law, father-in-law, brothers, sons-in-law,

brothers-in-law, stepbrothers, sisters, daughters-in

law, sisters-in-law, stepsisters, children,

stepchildren or any other person living with the

member for whom the member provides at least 50

percent of his/her financial support per year.

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.

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 NYSE. All

submissions should refer to the File

Number SR–NYSE–2001–09 and should

be submitted by June 8, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to the delegated

authority.6

Jonathan G. Katz,

Secretary.

[FR Doc. 01–12544 Filed 5–17–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44292; File No. SR–Phlx–

2001–49]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Adopting a Monthly Credit of up to

$1,000 to Qualified Members for an

Aggregate Period of 36 Months

May 11, 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 24,

2001, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’ 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 Exchange.

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, pursuant to Rule 19b–4

under the Act, proposes to adopt for an

aggregate period of 36 months

(‘‘permanently adopt’’) 3 its current pilot

program that allows a monthly credit of

up to $1,000 to be applied against fees,

dues, charges and other amounts as may

from time to time be owed to the

Exchange that month (collectively

referred to as ‘‘credit-eligible fees’’) 4,

except fines, late fees, out-of-pocket

expenses,5 pass-through costs,6 capital

funding fees,7 payment for order flow

fees,8 any fees paid by equity trading

permit holders respecting any trading

permits the Exchange may issue, the fee

for electronic communications

networks,9 and the fee for the print

subscription of the Phlx Guide 10 by

members who own the membership by

which they are a member (‘‘memberowners’’) and certain other categories of

members described below. The

Exchange’s current pilot program 11 is in

effect through May 16, 2001.

In addition to member-owners, a

monthly credit of up to $1,000 may be

applied against credit-eligible fees

incurred by the following persons, who

are so closely connected to the owners

that the Exchange believes they should

be treated as member-owners: (1) all

members who are parties to an A–B–C

Agreement 12 with a member

organization who owns that

membership; or (2) all members who are

lessees if: (a) the member is also an

owner of a different membership; (b) the

member is an immediate family member

of the owner of that membership; 13 (c)

the member is associated with a member

organization in which the owner of that

membership has an interest of at least

ten percent; (d) the member leases from

an owner or a related entity of the

owner who provides order flow to the

Exchange through the member or

member organization consisting of at

least 5,000 equity trades over the

preceding twelve months or 50,000

option contracts over the preceding

twelve months; or (e) the member leases

from a clearing firm or a related entity

of the clearing firm that provides

clearing services to the leasing member.

The aforementioned categories