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