Federal Register / Vol. 66, No. 107 / Monday, June 4, 2001 / Notices 30037

10 15 U.S.C. 78f(b)(5).

11 15 U.S.C. 78s(b)(2).

12 In approving the proposal, the Commission has

considered the rule’s impact on efficiency,

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

17 CFR 200.30–3(a)(12).

13 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 43823

(January 9, 2001), 66 FR 3633.

4See letters from Cindy L. Sink, Senior Attorney,

Regulatory Policy, PCX to Heather Traeger,

Attorney Adviser, Division of Market Regulation

(‘‘Division’’), SEC, dated January 10 and April 11,

2001 (‘‘Amendment Nos. 2 and 3,’’ respectively). In

Amendment No. 2, proposed rules 10.13(h)(35) and

10.13(k)(i)(35) are renumbered as 10.13(h)(38) and

10.13(k)(i)(38) because Rules 10.13(h)(35), (36) and

(37) already exist. In Amendment No. 3, Rules

10.13(h)(30) and 10.13(k)(i)(30), which address

fines for violations of option floor trading

restrictions on members with financial

arrangements (Rule 6.40(b)), are eliminated to

reflect rule changes made by other filings. Also

rules affected by the removal of Rules 10.13(h)(30)

and 10.13(k)(i)(30) are renumbered. These are

technical amendments that do not need to be

published for comment.

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

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

7 15 U.S.C. 78s(b)(2).

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3AUTOM is the Exchange’s electronic order

delivery and reporting system, which provides for

the automatic entry and routing of equity option

and index option orders to the Exchange trading

floors. Orders delivered through AUTOM may be

executed manually, or certain orders are eligible for

AUTOM’s automatic execution feature, AUTO–X.

Continued

elimination of PCX Rule 6.40, in

conjunction with the codification of

new paragraph (h) of PCX Rule 6.84,

should help assure an appropriate

balance between the need to impose

reasonable trading restrictions for joint

account participants and the need to

allow PCX members flexibility to

participate in trading crowds.

Accordingly, the Commission finds that

the PCX’s proposal is designed to

promote just and equitable principles of

trade, to facilitate transactions in

securities, to remove impediments to

and perfect the mechanism of a free and

open market, and to protect investors

and the public interest, as specified in

section 6(b)(5) of the Act.10

IV. Conclusion

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,11 that the

proposed rule change (File No. SR–

PCX–00–21) is approved.12

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.13

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13882 Filed 6–1–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44345; File No. SR–PCX–

99–48]

Self-Regulatory Organization’s; Pacific

Exchange, Inc.; Order Approving

Proposed Rule Change and

Amendments No. 1, 2 and 3 Relating to

Miscellaneous House-Keeping

Amendments to Options Trading Rules

May 23, 2001.

I. Introduction

On November 5, 1999, the Pacific

Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘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 to amend its

options trading rules for house-keeping

purposes.

The proposed rule change and

Amendment No. 1 were published for

comment in the Federal Register on

January 16, 2001.3 No comments were

received on the proposal. The proposal

was amended on January 11 and April

12, 2001.4 In this order, the Commission

is approving the proposed rule change,

as amended.

II. Description of the Proposal

The PCX proposes to modify its rules

on options trading by clarifying existing

provisions, eliminating superfluous

provisions, codifying current policies

and procedures, and renumbering

certain Option Floor Procedure Advices.

III. Discussion

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, and in particular, with the

requirements of section 6(b)(5).5

Specifically, the Commission finds that

updating and clarifying rules and

codifying current policies and

procedures will enhance the ability of

PCX members to comply with PCX’s

rules thereby promoting just and

equitable principles of trade, fostering

cooperation and coordination with

persons engaged in regulating, clearing,

settling, processing information with

respect to, and facilitating transactions

in securities, and in general, protecting

investors and the public interest.

The Commission also considers the

proposal as it relates to the PCX’s minor

rule violation plan to be consistent with

section 6(b)(5),6 which requires that

members and persons associated with

members be appropriately disciplined

for violations of Exchange Rules.

IV. Conclusion

It is therefore Ordered, pursuant to

section 19(b)(2) of the Act,7 that the

proposed rule change (SR–PCX–99–48),

as amended, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13885 Filed 6–1–01; 8:45am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44362; File No. SR–Phlx2001–56]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the Philadelphia Stock

Exchange, Inc. To Extend Its Pilot

Program to Disengage Its Automatic

Execution System (‘‘AUTO–X’’) for a

Period of Thirty Seconds After the

Number of Contracts Automatically

Executed in a Given Option Meets the

AUTO–X Minimum Guarantee for That

Option

May 29, 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 17,

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 and II 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 and to approve the proposal on

an accelerated basis, for a six-month

pilot, scheduled to end on May 31,

2001.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Phlx proposes to extend, for an

additional six months, its pilot program

effecting a systems change to AUTO–X,

the automatic execution feature of the

Exchange’s Automated Options Market

System (‘‘AUTOM’’),3 that would