31264 Federal Register / Vol. 66, No. 112 / Monday, June 11, 2001 / Notices

26 15 U.S.C. 78k–1(a)(1)(C).

27See NASD Regulation Letter, page 2.

28 Id.

29 In approving this proposal, the Commission has

considered the proposed rule’s impact on

efficiently, competition and capital formation. 15

U.S.C. 78c(f). Additionally, the Commission notes

that the Association’s definition of ‘‘quotation’’

under the proposal differs from the definition of

‘‘quotation’’ under Exchange Act Rule 15c2–11. 17

CFR 240.15c2–11. The Association’s definition of

‘‘quotation’’ will have no impact whatsoever on the

definition of ‘‘quotation’’ under Exchange Act Rule

15c2–11.

30 15 U.S.C. 78o–3(b)(6).

31 15 U.S.C. 78o–3(b)(11).

32 15 U.S.C. 78k–1(a)(1)(C).

33 15 U.S.C. 78s(b)(2).

34 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3PACE is the acronym for the Exchange’s

Automated Communication and Execution System.

It is the Exchange’s order routing, delivery,

execution and reporting system for its equity

trading floor. See Exchange Rule 229.

4Specialists would continue to be subject to the

PACE Specialist Charge of $.20 per specialist trade

against PACE executions (excluding PACE trades on

the opening). Telephone conversation between

Diana Tenenbaum, Counsel, Phlx, and Sonia Patton,

Attorney, Division of Market Regulation,

Commission (May 29, 2001).

5 If the monthly transaction value of a particular

customer is between $0–$25 million, a rate of $0.14

for every $1,000 of value will be charged. The rate

decreases as the amount of the monthly transaction

value increases. PACE users receive trade discounts

based on trade size.

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

7 15 U.S.C. 78f(b)(4).

11A(a)(1)(C),26 which grants the

Commission the authority to require

rules designed to ensure appropriate

protection of investors and the

maintenance of fair and orderly markets

to assure: (1) Economically efficient

execution of securities transactions; (2)

fair competition among brokers and

dealers; (3) the availability to brokers,

dealers and investors of information

with respect to quotations and

transactions in securities; (4) the

practicability of brokers executing

investors’ orders in the best market; and

(5) an opportunity for investors’ orders

to be executed without the participation

of a dealer.

The Commission has reviewed

carefully the commenter’s letter, and is

not persuaded by the commenter’s

assertions. NASD Regulation has stated

that the proposed rule change will not

affect the process by which trading

resumes after a trading halt is lifted for

Nasdaq National Market Securities and

Nasdaq SmallCap securities, and has

explained in detail those procedures.27

Additionally, NASD Regulation has

stated it would not consider the entry of

closed quotations into Nasdaq for these

types of securities a violation of NASD

Rule 3340, provided the quotations were

entered in conformity with Nasdaq’s

resumption process.28 The Commission

also agrees that the responsibility to

ensure compliance with NASD rules

rests with the NASD’s members, and

that the proposal is important because it

delineates the prohibition of specific

conduct during trading halts.29

V. Conclusion

For the reasons stated above, the

Commission finds that the proposed

rule change, as amended, is consistent

with the Act, in general, and in

particular with Sections 15A(b)(6),30

15A(b)(11),31 and 11A(a)(1)(c)32 of the

Act.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,33 that the

proposed rule change (SR–NASD–00–

33), as amended, be and hereby is

approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.34

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14587 Filed 6–8–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44381; File No. SR–Phlx–

2001–57]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

Waiving Equity Transaction Value

Charges for PACE Orders

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 21,

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 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 waive equity

transaction value charges for orders that

are electronically routed to the

Exchange through PACE.3 The proposed

waiver of fees will be implemented on

June 1, 2001.

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 waive equity transaction

value charges for orders that are

electronically routed to the Exchange

through PACE.4 Presently, orders routed

to the Exchange through PACE are

charged an equity transaction value

charge, which is subject to a discount

schedule based on the total value of

monthly transactions.5 Accordingly, all

related PACE trade discounts and

credits would no longer apply.

The proposed amendment is designed

to promote the Exchange’s reputation as

a cost-effective trading forum for PACE

customers and traders transacting equity

business. Furthermore, the Exchange

believes that the proposed amendment

should encourage electronic order flow

to the Exchange, which in turn should

promote a more liquid equities market.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

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

with Section 6(b)(4),7 in particular, by

providing for the equitable allocation of

reasonable dues, fees and other charges

among participants. Eliminating certain

charges for PACE transactions (1)

alleviates a financial burden on PACE

users and thus encourages the

transaction of equities by the investing

public, and (2) promotes competition

among the various exchanges.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any inappropriate burden on

competition.

Federal Register / Vol. 66, No. 112 / Monday, June 11, 2001 / Notices 31265

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

9 17 CFR 240.19b–4(f)(2).

10 17 CFR 200.30–3(a)(12).

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No written comments were either

solicited or received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing proposed rule change

has been designated as a fee change

pursuant to Section 19(b)(3)(A) 8 of the

Act and Rule 19b–4(f)(2) 9 thereunder.

Accordingly, the proposal will take

effect upon filing with the Commission.

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 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 Phlx. All

submissions should refer to File No.

SR–Phlx–2001–57 and should be

submitted July 2, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14586 Filed 6–8–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3338, Amdt. #1]

State of Illinois

In accordance with notices received

from the Federal Emergency

Management Agency, dated May 29 and

May 31, 2001, the above-numbered

Declaration is hereby amended to

establish the incident period for this

disaster as occurring between April 18,

2001 and continuing through May 29,

2001. The above-numbered Declaration

is also amended to include Adams,

Calhoun, Mercer and Pike Counties in

the State of Illinois as disaster areas

caused by flooding occurring between

April 18, 2001 and continuing through

May 29, 2001.

In addition, applications for economic

injury loans from small businesses

located in Brown, Greene, Jersey, Knox,

Morgan and Scott Counties in the State

of Illinois; and Lincoln, Marion, Pike,

Ralls and St. Charles Counties in the

State of Missouri may be filed until the

specified date at the previously

designated location. Any counties

contiguous to the above named primary

counties and not listed here have been

previously declared.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is July

9, 2001 and for economic injury the

deadline is February 11, 2002.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: June 4, 2001.

Herbert L. Mitchell,

Associate Administrator For Disaster

Assistance.

[FR Doc. 01–14566 Filed 6–8–01; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Economic Injury Disaster

#9L78]

Commonwealth of Massachusetts (and

Contiguous Counties in New

Hampshire)

Essex County and the contiguous

county of Middlesex in the

Commonwealth of Massachusetts; and

Hillsborough and Rockingham Counties

in the State of New Hampshire

constitute an economic injury disaster

loan area as a result of a fire that

occurred on April 28, 2001 in

Amesbury, Massachusetts. Eligible

small businesses and small agricultural

cooperatives without credit available

elsewhere may file applications for

economic injury assistance as a result of

this disaster until the close of business

on March 1, 2002 at the address listed

below or other locally announced

locations: U.S. Small Business

Administration, Disaster Area 1 Office,

360 Rainbow Blvd, South 3rd Floor,

Niagara Falls, NY 14303.

The interest rate for eligible small

businesses and small agricultural

cooperatives is 4 percent. The numbers

assigned for economic injury for this

disaster are 9L7800 for Massachusetts;

and 9L7900 for New Hampshire.

(Catalog of Federal Domestic Assistance

Program No. 59002)

Dated: June 1, 2001.

John Whitmore,

Acting Administrator.

[FR Doc. 01–14565 Filed 6–8–01; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3345]

State of West Virginia

As a result of the President’s major

disaster declaration on June 3, 2001, I

find that Boone, Kanawha, Logan,

Mercer, Raleigh and Wyoming Counties

in the State of West Virginia constitute

a disaster area due to damages caused

by flooding, severe storms, and

landslides beginning on May 15, 2001

and continuing. Applications for loans

for physical damage as a result of this

disaster may be filed until the close of

business on August 2, 2001, and for

loans for economic injury until the close

of business on March 4, 2002 at the

address listed below or other locally

announced locations: U.S. Small

Business Administration, Disaster Area

1 Office, 360 Rainbow Blvd., South, 3rd

Floor, Niagara Falls, NY 14303.

In addition, applications for economic

injury loans from small businesses

located in the following contiguous

counties in West Virginia may be filed

until the specified date at the above

location: Clay, Fayette, Jackson, Lincoln,

McDowell, Mingo, Nicholas, Putnam,

Roane, and Summers; and Bland, Giles,

and Tazewell Counties in Virginia.

The interest rates are:

Percent

For Physical Damage:

Homeowners With Credit Available Elsewhere ...................... 6.625

Homeowners Without Credit

Available Elsewhere .............. 3.312

Businesses With Credit Available Elsewhere ...................... 8.000

Businesses and Non-Profit Organizations Without Credit

Available Elsewhere .............. 4.000