33730 Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices

10 17 CFR 200.30–3(12).

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 44289

(May 10, 2001), 66 FR 27188.

4 In approving this proposed rule change, the

Commission notes that it has considered the

proposed rule’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 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 15 U.S.C. 78f(b).

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

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15801 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44454; File No. SR–CHX–

2001–09]

Self-Regulatory Organizations; The

Chicago Stock Exchange, Inc.; Order

Granting Approval to Proposed Rule

Change To Allow Floor Brokers To

Clear a Specialist’s Post by Telephone

June 20, 2001.

By April 23, 2001, the Chicago Stock

Exchange, Inc. (‘‘CHX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘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 permit floor brokers to clear

a specialist’s post by telephone.

The proposed rule change was

published for comment in the Federal

Register on May 16, 2001.3 The

Commission received no comments on

the proposal.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

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 Section 6(b)(5)

of the Act 6 because it will expand the

ways in which floor brokers may probe

the CHX’s market, allowing for greater

speed and efficiency, while continuing

to satisfy the purpose of CHX Article

XX, Rule 10.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,7 that the

proposed rule change (SR–CHX–2001–

09) be, and it hereby is, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15946 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44438; File No. SR–ISE–

2001–13]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

International Securities Exchange LLC

Relating to Fee Changes

June 18, 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 15,

2001, the International Securities

Exchange LLC (‘‘ISE’’ 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 Exchange.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

1. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The ISE is proposing the following

changes to its fee schedule: (i) To extend

its customer fee waiver; (ii) to provide

for waivers of fees for multiple ‘‘Click’’

terminals; (iii) to impose certain

‘‘cabinet’’ and ‘‘router’’ fees; and (iv) to

provide discounts for multiple

‘‘session’’ fees.

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

ISE 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 ISE 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 effect the following changes

in the ISE’s fees.

Customer fee waiver: the ISE currently

waives customer transaction fees. This

waiver is scheduled to expire on May

26, 2001. Because customer fee waivers

continue to be part of the competitive

landscape, the ISE is proposing to

extend this waiver through May 2002.

‘‘Click’’ fee waiver: ‘‘Clicks’’ are ISE

order-entry terminals. The Exchange is

proposing a one-year pilot program

waiving all terminal and related fees for

multiple Click order-entry terminals.

While the ISE has provided multipleterminal discounts for Clicks, it believes

that a more aggressive program of

waiving all fees for the second and

subsequent terminals will help generate

significant incremental order flow and

enhance the Exchange’s competitive

posture.

Cabinet and router fees: The ISE is

proposing: (1) a $2,000 fee to remove

computer cabinets from member firms

and (2) a $500 fee for installing or

removing routers. These fees will

recoup the ISE’s costs.

‘‘Session’’ fees: The ISE currently

charges market makers $1,000 for each

‘‘log-on’’ session. Because some

members now have a high number of

such sessions, it is proposing a

multiple-session discount to $750 for

the 21st to 40th session and $500 per

session thereafter.

2. Statutory Basis

The Exchange believes that its

proposal to amend its fee schedule as

specified above is consistent with

Section 6(b) 3 of the Act, in general, and

Section 6(b)(4) of the Act,4 in particular,

because it provides for the equitable

allocation of reasonable dues, fees and

other charges among its members and

other persons using its facilities.

B. Self-Regulatory Organization’s

Statement of the Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received.

Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices 33731

5 15 U.S.C. 78s(b)(3)(A).

6 17 CFR 240.19b–4(f)(2).

7 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. 43290

(February 2, 2001), 66 FR 9613.

4 In approving this proposed rule change, the

Commission notes that it has considered the

proposed rule’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 16 U.S.C. 78s(b)(2).

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. 44033

(March 2, 2001), 66 FR 14239.

4The Commission has requested from the

Exchange an explanation of the surveillance

procedures it intends to implement to ensure that

specialists comply with the proposed rule as

amended. This approval order is contingent upon

the Commission’s finding that such surveillance

procedures are adequate.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing rule change

establishes or changes a due, fee, or

other charge imposed by the Exchange,

it has become effective pursuant to

Section 19(b)(3)(A) 5 of the Act and

subparagraph (f)(2) of Rule 19b-4 6

thereunder. 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 at

the Commission’s Public Reference

Room. Copies of such filing also will be

available for inspection and copying at

the principal office of the ISE. All

submissions should refer to File No.

SR–ISE–2001–13 and should be

submittd by July 16, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15800 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44453; File No. SR–ISE–

01–03]

Self-Regulatory Organizations;

International Securities Exchange,

LLC; Order Granting Approval to

Proposed Rule Change Relating to

Market Maker Block Transactions

June 20, 2001.

On January 12, 2001, the International

Securities Exchange (‘‘ISE’’) filed with

the Securities and Exchange

Commission (‘‘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 permit market makers to enter

block-size orders into the ISE’s Block

Order mechanism.

The proposed rule change was

published for comment in the Federal

Register on February 8, 2001.3 The

Commission received no comments on

the proposal.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

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 Section 6(b)(5)

of the Act 6 because it allows ISE market

makers to participate in the Block Order

Mechanism to the same extent as

Electronic Access Members and thus to

more easily hedge or liquidate positions

resulting from their market making

activities on the ISE.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,7 that the

proposed rule change (File No. SR–ISE–

01–03) be, and it hereby is, approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15945 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44450; File No. SR–NYSE–

00–30]

Self-Regulatory Organizations; Order

Granting Approval to Proposed Rule

Change by the New York Stock

Exchange, Inc. Amending NYSE Rule

104

June 19, 2001.

I. Introduction

On June 29, 2000, the New York Stock

Exchange, Inc. (‘‘NYSE’’ or ‘‘Exchange’’)

filed witht he 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 NYSE

Rule 104. On February 21, 2001, the

Exchange filed Amendment No. 1 to the

proposed rule change with the

Commission.

The proposed rule change, as

presented in Amendment No. 1, was

published for comment in the Federal

Register on March 9, 2001.3 No

comments were received on the

proposal. This order approves the

proposal, as amended.4

II. Description of the Proposal

Current, NYSE Rule 104 requires

specialists to obtain Floor Official

approval when purchasing on a direct

plus tick or selling on a direct minus

tick, or when purchasing on a zero plus

tick more than 50% of the stock offered.

These transactions are considered

destabilizing, and therefore require

Floor Official approval to effect. The

Exchange is proposing to amend NYSE

Rule 104.10(7) to permit specialists to

effect these destabilizing transactions,

under certain circumstances, to bring

the price of a listed foreign security into

parity with the price of a foreign

ordinary security.

Specifically, in order for a specialist

to effect a destabilizing transaction

under the proposed rule, the price of the

transaction to bring the security into

parity (a) must be based on the last sale