Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Notices 31727

9 15 U.S.C. 78s(b)(2).

10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1).

2Nasdaq Europe plans to issue a compliance

notice requiring its members to ensure that

settlement at DTC of Nasdaq Europe trades are done

in accordance with the procedures prescribed by

DTC.

appropriate clarifications of the

proposed rule change and are consistent

with section 6(b)(5) of the Act. In

addition, because these amendments

clarify the intent of the proposed rule

change and thereby strengthen the

proposal, the Commission finds good

cause for approving their provisions

prior to the thirtieth day after the date

of publication of notice of filing thereof

in the Federal Register.

III. Solicitation of Comment

Interested persons are invited to

submit written data, views, and

arguments concerning Amendment Nos.

1 and 2, including whether these

amendments are 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 CBOE. All

submissions should refer to File No.

SR–CBOE–00–43 and should be

submitted by July 3, 2001.

IV. Conclusion

For the reasons discussed above, the

Commission finds that the proposal, as

amended, is consistent with the Act and

the rules and regulations thereunder.

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,9 that the

proposed rule change (File No. SR–

CBOE–00–43), as amended, be, and

hereby it is, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14737 Filed 6–11–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44393; File No. SR–DTC–

2001–08]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by The Depository Trust

Company Relating to DTC Settling

Trades Executed on Nasdaq Europe

June 6, 2001.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on,

May 25, 2001, The Depository Trust

Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I and II

below, which items have been prepared

primarily by DTC. The Commission is

publishing this notice and order to

solicit comments on the proposed rule

change from interested parties and to

grant accelerated approval of the

proposed rule change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change provides

that participants who settle trades

executed on Nasdaq Europe through

book-entry deliveries at DTC (i) are

required to effect the settlement of such

trades in the manner prescribed by DTC

so that such trades can be separately

identified and (ii) authorize DTC to

provide to Nasdaq Europe information

relating to the settlement of such trades.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

DTC 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. DTC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of these statements.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

It is expected that on or about June 8,

2001, Nasdaq Europe, an exchange

established under Belgian law, will

begin listing securities on its European

Trading System. In order to facilitate the

settlement of these securities, Nasdaq

Europe plans to approve DTC as a

settlement location for Nasdaq Europe

trades in DTC-eligible securities. To

allow Nasdaq Europe to designate DTC

as an approved settlement location

under Belgian law, DTC must agree to

provide Nasdaq Europe upon request

with information that DTC has

pertaining to the settlement of Nasdaq

Europe trades at DTC. In order for DTC

to be able to provide this information,

DTC must require its participants (1) to

effect the settlement of such

transactions in a manner that separately

identifies them from the participants’

other settlement activities 2 and (2) to

authorize DTC to provide information

related to such trades to Nasdaq Europe.

Under the proposed rule change, DTC

will require that the settlement of

Nasdaq Europe trades be effected in a

separate subaccount that will be

established by the participant solely for

the settlement of Nasdaq Europe trades.

If it is determined that a more

automated solution should be

developed in the future, DTC will make

the necessary systems changes to allow

participants to designate settlement

activity relating to Nasdaq Europe trades

by entering a special activity code in

their deliver order instructions. If such

systems changes are made, participants

will be required to use the activity code

to identify Nasdaq Europe trades.

Participants will be kept informed by

Important Notices if DTC determines

that it will further automate the

identification of settlement activity

related to Nasdaq Europe trades.

The proposed rule change is

consistent with the requirements of

section 17A of the Act and the rules and

regulations thereunder because the

proposed rule change will increase

operational efficiencies for participants

by allowing for the settlement at DTC of

Nasdaq Europe trades in DTC-eligible

securities. The proposed rule change

will be implemented consistently with

the safeguarding of securities and funds

in DTC’s custody or control or for which

it is responsible because all of DTC’s

risk management controls will continue

in effect.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

DTC perceives no impact on

competition by reason of the proposed

rule change.

31728 Federal Register / Vol. 66, No. 113 / Tuesday, June 12, 2001 / Notices

3 15 U.S.C. 78s(b)(2).

4 17 CFR 200.30–3(a)(12).

1PACE is the Philadelphia Stock Exchange’s

Automatic Communication and Execution System.

It is the Exchange’s order routing, delivery,

execution and reporting system for its equity

trading floor. See Rule 229, Philadelphia Stock

Exchange Guide.

2 15 U.S.C. 78s(b)(1).

3 17 CFR 240.19b–4.

4 17 CFR 240.19b–4(f)(5). 5 15 U.S.C. 78s(b)(4).

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

Written comments from participants

or others have not been solicited or

received on the proposed rule change.

All participants will be informed of the

proposed rule change by an Important

Notice.

III. Date of Effectiveness of Proposed

Rule Change and Timing for

Commission Action

The Commission finds that allowing

DTC to require participants to set up

separate subaccounts solely for the

settlement of Nasdaq Europe trades and

to authorize DTC to provide settlement

information to Nasdaq Europe is

consistent with the requirements of

section 17A of the Act and the rules and

regulations thereunder applicable to

clearing agencies. Specifically, the

Commission believes that the proposal

is consistent with section 17A(b)(3)(F)

because it will facilitate the prompt and

accurate clearance and settlement of

securities transactions by allowing for

the settlement at DTC of Nasdaq Europe

trades in DTC-eligible securities.

The Commission finds good cause for

approving the proposed rule change

prior to the thirtieth day after the date

of publication of notice thereof in the

Federal Register because approval prior

to the thirtieth day of the publication

will allow DTC to settle trades in DTCeligible securities executed on the

Nasdaq Europe when Nasdaq Europe

begins trading such securities, which it

is scheduled to do on Friday, June 8,

2001.

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, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of DTC. All submissions should

refer to File No. SR–DTC–2001–08 and

should be submitted by July 3, 2001.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act,3 that the

proposed rule change is hereby

approved on an accelerated basis.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–14736 Filed 6–11–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44395; File No. SR–Phlx–

2001–46]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Philadelphia Stock Exchange, Inc.

(‘‘Phlx’’), Relating to a Reduction of the

Minimum size of PACE1 Orders that

Must Be Automatically Guaranteed by

Equity Specialists Pursuant to Phlx

Rule 229

June 6, 2001.

Pursuant to section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),2 notice is hereby given that on

April 23, 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 Exchange.

The Phlx filed the proposed rule change

pursuant to section 19(b)(3)(A) of the

Act,3 and Rule 19b–4(f)(5) thereunder.4

Pursuant to Rule 19b–4(f)(5), the Phlx

has designated this proposal as one

effecting a change in an existing orderentry or trading system of the Phlx that

does not: (1) Significantly affect the

protection of investors or the public

interest, (2) impose any significant

burden on competition, or (3)

significantly have the effect of limiting

the access to or availability of the

system. As such, the proposed rule

change is immediately effective upon

filing with the Commission. 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, pursuant to Rule 19b–4

under the Act,5 proposes to amend Phlx

Rule 229 to reduce the minimum

automatic execution size of PACE orders

for equity specialists from 599 shares to

299 shares.

The text of the proposed rule change

is as follows.

(Proposed new language is italicized;

proposed deletions are in brackets)

Rule 229, Philadelphia Stock Exchange

Automated Communication and Execution

System (PACE)

Execution of Market Orders

.05 Public Order Exposure System—

Subject to Supplementary Material Section

.07, all round-lot market orders up to 200

[500] shares and PRL market orders up to 299

[599] shares will be stopped at the PACE

Quote at the time of entry into the system

(‘‘Stop Price’’) and be subject to a delay of up

to 30 seconds from being executed in order

to receive an opportunity for price

improvement. If such market order is not

executed within the 30 second window, the

order will be automatically executed at the

Stop Price. If the PACE Quote at the time of

order entry into the system reflects a 1⁄8 point

spread or less (the difference between the

best bid and offer) for equities trading in

fractions, or .05 or less for equities trading in

decimals, pursuant to Rule 134 or 125, that

order will be executed immediately without

the 30 second delay.

Subject to these procedures, the specialist

may voluntarily agree to execute round-lot

market orders of a size greater than 200 [500]

shares and PRL market orders of a size

greater than 299 [599] shares upon entry into

the system. Where the specialist has

voluntarily agreed to execute market orders

greater than 299 [599] shares and the market

order size is greater than 299 [599] shares,

but less than or equal to the size of the PACE

Quote, the order is automatically executable

at the PACE Quote; if such order is greater

than the size of the PACE Quote, the order

shall [manually] receive an execution at the

PACE Quote up to the size of the PACE

Quote, either manually or automatically

(once this feature is implemented) with the

balance of the order receiving a professional

execution, in accordance with

Supplementary material .10(b) below;

provided that the specialist may guarantee an

automatic execution at the PACE quote up to

the entire size of such specialist’s automatic

execution guarantee (regardless of the size of

the PACE Quote).

* * * * *