30970 Federal Register / Vol. 66, No. 111 / Friday, June 8, 2001 / Notices

6 In approving this rule, the Commission has

considered its impact on efficiency, competition,

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

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

8 15 U.S.C. 78s(b)(2).

9 15 U.S.C. 78f(b)(5).

10 15 U.S.C. 78s(b)(2).

11 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 17 CFR 240.10a–1. See also Securities Exchange

Act Release No. 42037 (October 20, 1999), 64 FR

57996 (October 28, 1999) (Concept Release on Short

Sales).

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

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

the Act. Persons making written

submissions should file six copies

thereof with the Secretary, Securities

and Exchange Commission, 450 Fifth

Street, NW., 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 CBOE. All

submissions should refer to file number

SR–CBOE–17 and should be submitted

by June 29, 2001.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

After careful review, the Commission

finds that the proposed rule change. as

amended, is consistent with the

requirements of the act and the rules

and regulations thereunder applicable to

a national securities exchange 6 and, in

particular, the requirements of Section

6(b)(5) of the Act.7 Specifically, the

Commission finds that the proposed

rule change will make the Exchange’s

approval process for membership

applications consistent with the

Exchange’s generally applicable

committee voting process. In addition,

the Commission believes that clarifying

that membership owners are permitted

to waive the notice requirement relating

to the exercise of an Authorization to

Sell a membership will help ensure that

members are aware of this right.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after date of

publication of the notice of filing thereof

in the Federal Register pursuant to

Section 19(b)(2) of the Act.8 Accelerated

approval will permit the Exchange to

use its generally applicable committee

voting process in approving

membership applications, and will put

membership owners on notice of their

right to waive the notice requirement

relating to Authorizations to Sell,

without undue delay. Accordingly the

Commission finds that it is consistent

with Section 6(b)(5) of the Act 9 to

approve the proposal on an accelerated

basis.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,10 that the

proposed rule change (SR–CBOE–2001–

17), as amended, is hereby approved on

an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14460 Filed 6–7–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44382; File No. SR–Phlx–

2001–55]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Relating to Short Sales

June 1, 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 16,

2001, the Philadelphia Stock Exchange,

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

and Exchange Commission

(‘‘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 amend Phlx

Rule 455, Short Sales, by adding new

Supplementary Material .01. The text of

the proposed rule change is below, with

new language in italics.

Rule 455. Short Sales

(a)–(d) No change.

Supplementary Material

.01 This Rule 455 shall not prohibit

any transaction or transactions which

the Commission, upon written request

or upon its motion, exempts, either

unconditionally or on specified terms

and conditions.

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, 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

Rule 10a–1 under the Act 3 addresses

short selling. Subsection (f) of Rule 10a–

1 provides that Rule 10a–1 shall not

prohibit any transaction or transactions

that the Commission, upon written

request or upon its own motion,

exempts, either unconditionally or on

specified terms and conditions.

Phlx Rule 455 also addresses short

selling. proposed Supplementary

Material .01 of Phlx Rule 455 would

track the language of Rule 10a–1(f) to

clarify that nothing in Phlx Rule 455

prohibits any transaction or transactions

that the Commission has exempted from

Rule 10a–1 pursuant to Rule 10a–1(f).

2. Statutory Basis

The Phlx believes the proposed rule

change is consistent with the provisions

of Section 6(b) of the Act 4 and furthers

the objectives of Section 6(b)(5) of the

Act 5 in that it is designed to perfect the

mechanisms of a free and open market

and the national market system, protect

investors and the public interest and

promote just and equitable principles of

trade by clarifying and describing

clearly in the Phlx’s rules that nothing

in Phlx Rule 455 prohibits any

transaction or transactions which the

Commission, upon written request or

upon its own motion, has exempted

pursuant to Rule 10a–1(f).

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will result in

any burden on competition that is not

Federal Register / Vol. 66, No. 111 / Friday, June 8, 2001 / Notices 30971

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

7 17 CFR 240.19b–4(f)(1).

8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4. 3See Securities Exchange Act Release No. 44220

(April 25, 2001), 66 FR 22059.

4 In approving this proposed rule change, the

Commission has considered the proposal’s impact

on efficiency, competition, and capital formation.

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

5 15 U.S.C. 78f.

6 15 U.S.C. 78f(b)(5).

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

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12).

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 Phlx neither solicited nor

received any written comments.

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)(i) of the Act 6 and

subparagraph (f)(1) of Rule 19b–4

thereunder 7 because it constitutes a

stated policy, practice, or interpretation

with respect to the meaning,

administration, or enforcement of an

existing rule. 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

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 proposal 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 amendment, all written

statement 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 that

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 number

SR–Phlx–2001–55 and should be

submitted by June 29, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14461 Filed 6–7–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44386; File No. SR–Phlx–

2001–45]

Self-Regulatory Organizations;

Philadelphia Stock Exchange, Inc.;

Order Granting Approval of Proposed

Rule Change Amending Rule 930

June 4, 2001.

On April 20, 2001, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ 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 Rule 930 to add paragraph (k).

Rule 930(k) relates to the Exchange’s

ability to allow a member who leases a

membership (‘‘lessee’’) to pay past-due

fees owed to the Exchange by the lessor

under a lease agreement, on behalf of

the lessor. Rule 930(k) states that the

Exchange is a third party beneficiary of

the lease agreement, and shall have the

right to permit payment by a lessee of

past-due fees owed to the Exchange by

the lessor. The Rule further states that

should the lessee pay such past due

amounts, the lessee shall provide

written notice to the lessor and the

Exchange. Once the lessee has elected to

make such payments, the lessee may

continue to make such payments for a

period of up to three months and set off

such amounts, with notice to the

Exchange and lessor against amounts

due the lessor by the lessee.

Furthermore, Rule 930(k) states that

notwithstanding the terms of the lease

agreement, a lessee will not be

considered in default of the lease

agreement solely by virtue of having

elected to make such payments. The

Exchange also amended Rule 930 to

make certain minor technical

amendments to the text of the rule in

order to make the various paragraphs

contained in the rule more consistent.

The proposed rule change was

published for comment in the Federal

Register on May 2, 2001.3 The

Commission received no comments on

the proposal.

The Commission finds that the

proposed rule change is consistent with

the Act and the rules and regulations

under the Act applicable to a national

securities exchange 4 and, in particular,

the requirements of Section 6 of the

Act 5 and the rules and regulations

thereunder. The Commission finds

specifically that the proposed rule

change is consistent with the

requirement of Section 6(b)(5) 6 because

it is designed to promote just and

equitable principles of trade and to

protect investors and the public interest

by enabling lessees to continue trading

on the Exchange even when their

respective lessors fail to pay fees owed

the Exchange when due.

The Commission is not required

under Section 19(b)(2) of the Act 7 to

find that a proposed rule change by a

self-regulatory organization is lawful

under state corporation law; in

approving this proposal, the

Commission is relying on the Phlx’s

representation that it has the general

power under applicable provisions of

Delaware law to modify Rule 930 by

adding paragraph (k). The Commission

is also relying on the Phlx’s

representations that proposed Rule

930(k) is permissible under

Pennsylvania contract law. The

Commission has not independently

evaluated the accuracy of Phlx’s

representations regarding Delaware or

Pennsylvania law.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (SR–Phlx–2001–

45) is approved.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14462 Filed 6–7–01; 8:45 am]

BILLING CODE 8010–01–M