28768 Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Notices

11 15 U.S.C. 78o–3(b)(5).

12 15 U.S.C. 78o–3.

13 15 U.S.C. 78o–3(b)(5).

14See 1998 Notice, supra note 6.

15See June 30 Notice, supra note 4.

16 In approving this proposal, the Commission has

considered its impact on efficiency, competition,

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

17 15 U.S.C. 78o–3(b)(5).

18 15 U.S.C. 78s(b).

19 15 U.S.C. 78s(b)(2).

20 17 CFR 200.30–2(a)(12).

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

2 17 CFR 240.19b–4.

3On 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).

shares; and (4) no fee will be charged to

a member who receives an execution in

SOES or NNMS.

2. Statutory Basis

Nasdaq believes the proposed rule

change is consistent with section

15A(b)(5) 11 of the Act, which requires

that the rules of the NASD provide for

the equitable allocation of reasonable

dues, fees and other charges among

members and issuers and other persons

using any facility or system which the

NASD operates or controls.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq believes that the proposed

rule change will not result in any

burden on competition that is not

necessary or appropriate in furtherance

of the purpose of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

Comments were neither solicited nor

received on the proposed rule change.

III. 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 NASD. All

submissions should refer to File No.

SR–NASD–2001–31 and should be

submitted by June 14, 2001.

IV. Commission’s Findings and Order

Granting Accelerated Approval of the

Proposed Rule Change

After careful review, 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 association, and, in particular,

the requirements of section 15A of the

Act.12 Specifically the Commission

finds that the proposal is consistent

with section 15A(b)(5) of the Act, which

requires that the rules of a national

securities association provide for the

equitable allocation of reasonable dues,

fees and charges among members and

issuers and other persons using any

facility or system which the association

operates or controls.13

The Commission notes that the pilot

program provided in NASD Rule

7010(i), which establishes reduced fees

for members who enter directed

SelectNet orders, was implemented in

February 1998 14 and was most recently

extended through March 31, 2001.15

The Commission finds that it is

consistent with the Act to permit

retroactive application of the pilot

program from the expiration of the

current pilot program and to extend the

pilot program through March 31, 2002,

or the Implementation Date, whichever

is sooner, to allow market participants

to continue to receive the benefit of the

reduced Select Net fees provided under

the pilot program.

The Commission finds good cause for

approving the proposed rule change

prior to the 30th day after the date of

publication of notice thereof in the

Federal Register.16 Specifically, the

Commission notes that accelerated

approval of the proposal will allow the

pilot program to continue without

interruption. Accordingly, the

Commission finds that it is consistent

with sections 15A(b)(5) 17 and 19(b) 18 of

the Act to approve the proposal on an

accelerated basis.

V. Conclusion

It is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,19 that the

proposed rule change (SR–NASD–2001–

31), as amended, is hereby approved on

an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.20

Jonathan G. Katz,

Secretary.

[FR Doc. 01–13162 Filed 5–23–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44311; File No. SR–Phlx–

2001–52]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.,

Relating to an Interim Intermarket

Linkage Program

May 16, 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 14,

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 selfregulatory organization. The

Commission is publishing this notice to

solicit comments on the proposed rule

changes 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 a rule

authorizing implementation of ‘‘interim

linkages’’ with the other options

exchanges.3

II. Self-Regulatory Organization’s

Statement of the Propose 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. The text of

these statements may be examined at

Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Notices 28769

4See 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).

5As with other orders that are executed under the

automatic execution parameters of the Exchange,

when a limit order constitutes the Exchange’s best

bid or offer, the specialist executes the incoming

order against that order.

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

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

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

9 17 CFR 240.19b–4(f)(6).

10For 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).

11See note 4, supra.

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 the proposed rule

change is to implement certain aspects

of an intermarket options linkage on an

‘‘interim’’ basis. The interim linkage

would utilize existing market

infrastructure to facilitate the sending

and receiving of order flow between

Phlx Specialists and later, Registered

Options Traders, and their counterparts

on the other options exchanges as an

interim step towards development of a

‘‘permanent’’ linkage. The Exchange

proposes that the interim linkage would

be in effect on a pilot basis until January

31, 2002.

By way of background, the

Commission has approved a linkage

plan that now includes all five options

exchanges.4 The options exchanges

continue to work towards

implementation of this linkage, which

include contracting with a third party to

build a linkage infrastructure. Since this

will take a significant amount of time,

the options 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 interm

linkage would be the participating

exchanges opening their automated

customer execution systems, on a

limited basis, to market maker orders.

Specifically, market makers, such as

Phlx Specialists and later Registered

Options Traders, would be able to

designate certain orders as ‘‘customer’’

orders, and thus, would receive

execution under the automatic

execution parameters of participating

exchanges pursuant to the interim

linkage.5

This proposed rule would authorize

the Phlx 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 initial

arrangements would allow Phlx

Specialists and their equivalents on the

other exchanges, when they are holding

customer orders, to send orders

reflecting the customer 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’

‘‘firm’’ quotes for customer orders. The

Exchange expects that the interim

linkage may expand to include limited

access for pure principal orders of no

more than 10 contracts.

Under the proposed rule, all interim

linkage orders must be ‘‘immediate or

cancel’’ (that is, they cannot be placed

on an exchange’s limit order book), and

a market maker can send a linkage order

only when the other (receiving) market

is displaying the best national bid or

offer and the sending market is

displaying an inferior price. This should

allow a Phlx Specialist to access the

better price for its customer. In addition,

if the interim linkage includes principal

orders, it would allow market makers to

attempt to ‘‘clear’’ another market

displaying a superior quote. Any

exchange participating in the interim

linkage will implement heightened

surveillance procedures to help ensure

that their respective market makers send

only properly-qualified orders through

the interim linkage.

Phlx Specialist’ participation in the

interim linkage will be voluntary. Only

when a Phlx Specialist and their

equivalent on another exchange believe

that this form of mutual access would be

advantageous will the exchanges

employ the interim linkage procedures.

The Exchange believes that the interim

linkage should benefit investors and

should provide useful experience to

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 6 in general and

furthers the objectives of section

6(b)(5) 7 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

regulating, clearing, settling, processing

information with respect to, and

facilitating transactions in securities, to

remove impediments to and perfect the

mechanism for a free and open market

and a national market system, and, in

general, to protect investors and the

public interest.

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

Written comments were neither

solicited nor received.

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 8 and

subparagraph (f)(6) of Rule 19b–4

thereunder.9 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 waive the 5-day pre-filing

requirement and 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.10

The Commission finds good cause for

waiving the 5-day pre-filing requirement

and 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.11 Acceleration of the

28770 Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Notices

12 15 U.S.C. 78f(b)(5).

13 17 CFR 200.30–3(a)(12).

operative date should enable investors

effecting transactions on the Phlx to

obtain better prices displayed on other

exchanges and thus, is consistent with

section 6(b)(5) of the Act.12

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.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 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 SR–Phlx–

2001–52 and should be submitted by

June 14, 2001.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.13

Jonathan G. Katz,

Secretary.

[FR Doc. 01–13161 Filed 5–23–01; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

[Public Notice 3676]

Culturally Significant Objects Imported

for Exhibition Determinations: ‘‘Eternal

Egypt: Masterworks of Ancient Art

From the British Museum’’

AGENCY: Department of State.

ACTION: Notice; correction.

SUMMARY: On August 24, 2000, Notice

was published on page 52804 of the

Federal Register (Volume 65, Number

169) by the Department of State

pursuant to Pub. L 89–259 relating to

the exhibit ‘‘Eternal Egypt: Masterworks

of Ancient Art from the British

Museum.’’ The referenced Notice is

corrected as follows. In the SUMMARY

after ‘‘July 7, 2002,’’ add the following

additional venue: ‘‘The Fine Arts

Museums of San Francisco, CA,

California Palace of the Legion of Honor,

from on or about August 10, 2002, to on

or about November 3, 2002,’’

FOR FURTHER INFORMATION CONTACT: For

further information, including a list of

exhibit objects, contact Jacqueline

Caldwell, Attorney-Adviser, Office of

the Legal Adviser, U.S. Department of

State (telephone: 202/619–6982). The

address is U.S. Department of State, SA–

44, 301 4th Street, SW., Room 700,

Washington, DC 20547–0001.

Dated: May 16, 2001.

Helena Kane Finn,

Acting Assistant Secretary for Educational

and Cultural Affairs, Department of State.

[FR Doc. 01–13151 Filed 5–23–01; 8:45 am]

BILLING CODE 4710–08–P

DEPARTMENT OF STATE

[Public Notice 3674]

Culturally Significant Objects Imported

for Exhibition Determinations:

‘‘Picasso: The Artist’s Studio’’

AGENCY: 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.

2459), the Foreign Affairs Reform and

Restructuring Act of 1998 (112 Stat.

2681, et seq.), Delegation of Authority

No. 234 of October 1, 1999, and

Delegation of Authority No. 236 of

October 19, 1999, as amended, I hereby

determine that the objects to be

included in the exhibition ‘‘Picasso: The

Artist’s Studio,’’ imported from abroad

for the temporary exhibition without

profit within the United States, are of

cultural significance. The objects are

imported pursuant to loan agreements

with the foreign lenders. I also

determine that the exhibition or display

of the exhibit objects at the Wadsworth

Atheneum in Hartford, CT from on or

about June 7, 2001 to on or about

September 23, 2001, and at The

Cleveland Museum of Art, Cleveland,

OH from on or about October 28, 2001

to on or about January 6, 2002, is in the

national interest. Public Notice of these

Determinations is ordered to be

published in the Federal Register.

FOR FURTHER INFORMATION CONTACT: For

further information, including a list of

the exhibit objects, contact Paul W.

Manning, Attorney-Adviser, Office of

the Legal Adviser, U.S. Department of

State (telephone: 202/619–5997). The

address is U.S. Department of State, SA–

44, 301 4th Street, SW., Room 700,

Washington, DC 20547–0001.

Dated: May 16, 2001.

Helena Kane Finn,

Acting Assistant Secretary for Educational

and Cultural Affairs, Department of State.

[FR Doc. 01–13149 Filed 5–23–01; 8:45 am]

BILLING CODE 4710–08–P

DEPARTMENT OF STATE

[Public Notice 3675]

Culturally Significant Objects Imported

for Exhibition Determinations: ‘‘Syria:

Land of Civilization’’

AGENCY: 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.

2459), the Foreign Affairs Reform and

Restructuring Act of 1998 (112 Stat.

2681, et seq.), Delegation of Authority

No. 234 of October 1, 1999, and

Delegation of Authority No. 236 of

October 19, 1999, as amended, I hereby

determine that the objects to be

included in the exhibition ‘‘Syria: Land

of Civilization,’’ imported from abroad

for the temporary exhibition without

profit within the United States, are of

cultural significance. The objects are

imported pursuant to a loan agreement

with the foreign lender. I also determine

that the exhibition or display of the

exhibit objects at the Riverfront Arts

Center in Wilmington, DE from on or

about July 14, 2001 to on or about

October 21, 2001 and at the Fernbank

Museum of Natural History, Atlanta,

GA, from on or about February 15, 2002

to on or about May 20, 2002 is in the

national interest. Public Notice of these

Determinations is ordered to be

published in the Federal Register.

FOR FURTHER INFORMATION CONTACT: For

further information, including a list of

the exhibit objects, contact Carol

Epstein, Attorney-Adviser, Office of the

Legal Adviser, U.S. Department of State

(telephone: 202/619–6981). The address

is U.S. Department of State, SA–44, 301

4th Street, SW., Room 700, Washington,

DC 20547–0001.