30496 Federal Register / Vol. 66, No. 109 / Wednesday, June 6, 2001 / Notices

8 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3A ROT is a regular member or a foreign currency

options participant of the Exchange located on the

trading floor who has received permission from the

Exchange to trade options for his own account. See

Phlx Rule 1014(b).

4Auto-Quote is the Exchange’s electronic options

pricing system, which enables specialists to

automatically monitor and instantly update

quotations.

5The ROT must vocalize a different quote before

an order enters the system. If an ROT believes that

he or she has been unfairly allocated a portion of

the order, he or she can challenge the allocation

pursuant to Phlx Rule 124. Telephone call between

Rick Rudolph, Counsel, Phlx, Terri Evans, Special

Counsel, Division of Market Regulation

(‘‘Division’’), Commission, and Sonia Patton, Staff

Attorney, Division, Commission (May 24, 2001).

6See Order Instituting Public Administrative

Proceedings Pursuant to Section 19(h)(1) of the

Securities Exchange Act of 1934, Making Findings

and Imposing Remedial Sanctions. Securities

Exchange Act Release No. 43268 (September 11,

2000(‘‘Order’’).

7See Section IV.B.j. of the Order.

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 No.

SR–NYSE–00–31 and should be

submitted by June 27, 2001.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14155 Filed 6–5–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44369; File No. SR–Phlx–

2001–26]

Self-Regulatory Organizations; Notice

of Filing of a Proposed Rule Change by

the Philadelphia Stock Exchange, Inc.

Relating to ROT Vocalization

Requirements for Options Quotations

May 30, 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 5,

2001, the Philadelphia Stock Exchange,

Inc. (‘‘Phlx’’ 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 Phlx. 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

Commentary .01 to Exchange Rule 1080,

Philadelphia Stock Exchange

Automated Options Market (‘‘AUTOM’’)

and Automatic Execution System

(‘‘AUTO–X’’), to add an express

vocalization requirement for Phlx

Registered Options Traders (‘‘ROTs’’) 3

whose quotation for a particular option

series is different from the disseminated

quote. The proposal also would codify

the Exchange’s policy that the

disseminated market is deemed to

represent the quotation of all ROTs in

that option, unless otherwise indicated

pursuant to Phlx Rule 1080. The

proposed rule change would be set forth

in new subsection (c) of Commentary

.01. The text of the proposed rule

change is set forth below. New language

is in italics.

Rule 1080. Philadelphia Stock

Exchange Automated Options Market

(AUTOM) and Automatic Execution

System (AUTO–X)

(a)–(j) No change.

Commentary:

.01

(a) Automatic Quotation (Auto-Quote)

is the Exchange’s electronic options

pricing system, which enables

specialists to automatically monitor and

instantly update quotations.

(b) [RESERVED]

(c) The disseminated market (whether

by Auto-Quote or specialized quote

feed) is deemed to represent the

quotations of all ROTs in that option

unless a ROT has expressly indicated

otherwise in a clear and audible

manner, respecting either a specific

series, the class or the option (specifying

LEAPs), and with sufficient time for the

specialist to take action to update the

quote if necessary.

(d) If options trading systems throttle

quotations for at least three minutes, the

Chairman of the Board of Governors or

his designee may, for capacity

management purposes, mandate that the

Auto-Quote be set to update quotations

based on a certain minimum movement

in the underlying security for: (i) all

options; (ii) index options only; or (iii)

certain specified options, taking into

account certain factors that may

include, but are not limited to, the price

of the underlying security, volatility in

the underlying security, or whether

there has been any trading volume over

the last two trading days. Such

mandated minimum setting may

continue for a period of 15 minutes, and

may be continued every 15 minutes

thereafter, provided that the Exchange’s

options trading systems are throttling

quotations at the end of each such 15-

minute period.

* * * * *

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

The purpose of the proposed rule

change is to clarify that the quote

disseminated by the Exchange’s AutoQuote system 4 or by a specialist’s

proprietary system that interfaces with

AUTOM (‘‘Specialized Quote Feed’’),

which electronically prices options, is

deemed to be the quote of all ROTs in

the crowd unless the ROT has vocalized

a different quote in a clear and audible

manner with sufficient time for the

specialist to take action to update the

quote, if necessary.5

On September 11, 2000, the

Commission issued an order 6 that

requires four of the five options

exchanges, including the Phlx to adopt

new, or amend existing, rules to include

any practice or procedure, not currently

authorized by rule, whereby market

makers determine by agreement the

spreads or option prices at which they

will trade any option, or the allocation

of orders in that option.7 Specifically,

the Order required by the Exchange to

file by March 12, 2001, draft proposed

Federal Register / Vol. 66, No. 109 / Wednesday, June 6, 2001 / Notices 30497

8The Exchange is separately proposing new

subsection (b) of Commentary .01 to Phlx Rule

1080, which will provide a more thorough

description of Auto-Quote. See SR–Phlx–2001–25.

9According to the Phlx, this new language is

being proposed inasmuch as ROT’s failure to

vocalize any different quote from the disseminated

quote could be viewed as determining option prices

by agreement for purposes of the Order and is

therefore required by the Order to be provided for

in Exchange rules.

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

11 15 U.S.C. 78f(b)(5). 12 17 CFR 200.30–3(a)(12).

rules and required the Exchange to take

all reasonable steps to promptly stop

any such practice or procedure that has

not been filed or is not already

authorized by rule. The Exchange

believes that the proposed rule change

is responsive to, and compliant with,

the Order.

Currently, Phlx Rule 1080 governs the

operation of AUTOM, the Exchange’s

automated order routing, delivery,

execution and reporting system for

options. Auto-Quote, one feature of

AUTOM, is currently defined in

Commentary .01 as the Exchange’s

electronic options pricing system,

which enables specialists to

automatically monitor and instantly

update quotations.8 Alternatively,

specialists may elect to establish a

specialized proprietary connection

(‘‘specialized quote feed’’) that bypassed the Auto-Quote system. The

proposed rule change would codify the

Exchange’s vocalization requirement

when a ROT indicates that his quote in

an option is not the Exchange’s

disseminated quote. Absent such

vocalization, the disseminated quote

would be deemed to be that of all ROTs

in that option.

The current on-floor trading

environment, which involves increased

trading volume, more option classes

traded than every before, and less

physical space within which ROTs

operate, has resulted in a natural

increase in reliance on technology by

ROTs in order to function effectively

while providing liquidity in their

assigned options. One area of such

increased reliance on technology

involves quotations in options

disseminated electronically by AutoQuote. The Exchange believes that

changes in such quotations occur

rapidly, and often simultaneously, in

myriad quotations, rendering it difficult

to voice each bid or offer as it is being

disseminated electronically. Thus, the

Exchange believes that it is reasonable

to deem the disseminated quote to be

that of all ROTs in the option unless

they vocally opt out of the disseminated

quote.

The proposed rule would require the

ROT to specify the series or option class

(specifying LEAPS), and would provide

for sufficient time within which the

specialist could take action to update

the quote if necessary. The Exchange is

proposing the new language to reflect

the fact that the disseminated quote

reflects the crowd quote (unless a ROT

has expressly indicated in a clear and

audible manner).9

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act 10 in general and

furthers the objectives of Section

6(b)(5) 11 in particular in that it is

designed to promote just and equitable

principles of trade, remove

impediments to a free and open market

and a national market system, and

protect investors and the public interest

by clarifying and describing clearly in

Exchange rules the requirement that

ROTs vocalize any intent to establish

quotes that are different from the

Exchange’s disseminated quote.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Phlx does not believe that the

proposed rule change will impose any

burden on competition 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 Phlx 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

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if its finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the Phlx consents, the

Commission will:

(A) By order approve such proposed

rule change, or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

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 revisions

of 5 U.S.C. 552, will be available for

inspection and copying in the

Commission’s Public Reference Room.

Copies of such filings will also be

available for inspection and copying at

the principal office of the Phlx. All

submissions should refer to the File No.

SR–Phlx–2001–26 and should be

submitted by June 27, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14156 Filed 6–5–01; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

Bureau of Consular Affairs, Passport

Services

[Public Notice 3687]

Notice of Information Collection Under

Emergency Review: Form DS–11,

Application for Passport/Registration

(Formerly DSP–11) OMB #1405–0004

ACTION: Notice.

SUMMARY: The Department of State has

submitted the following information

collection request to the Office of

Management and Budget (OMB) for

review and approval in accordance with

the emergency review procedures of the

Paperwork Reduction Act of 1995.

Type of Request: Emergency Review.

Originating Office: Bureau of Consular

Affairs, CA/PPT/FO/FC.

Title of Information Collection:

Application for Passport/Registration.

Frequency: On Occasion.

Form Number: DS–11 (Formerly DSP–

11).

Respondents: Individuals or

Households.

Estimated Number of Respondents:

8,411,550.

Average Hours Per Response: 1⁄3 hour

(20 min.).