Federal Register / Vol. 66, No. 125 / Thursday, June 28, 2001 / Notices 34505

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

2 17 CFR 240.19b–4.

3Alternatively, however, the LMM or members of

the trading crowd may provide price improvement

to the customer orders in the book. In such case,

the Auto-Ex Book feature would not be used.

4See Securities Exchange Act Release No. 44234

(April 30, 2001), 66 FR 23059 (May 7, 2001).

5 In Amendment No. 1, the Exchange made

certain changes to the numbering and lettering of

the proposed rules. The Amendment did not make

any changes to the substance of the proposal. See

Letter from Michael D. Pierson, Vice President,

Regulatory Policy, PCX, to Andrew Shipe, Attorney,

Division of Market Regulation, dated June 20, 2001.

6 In approving this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78(c)(f).

7 15 U.S.C. 78f(b)(5).

8 15 U.S.C. 78s(b)(2).

9 17 CFR 200.30–3(a)(12).

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44468; File No. SR–PCX–

00–03]

Self-Regulatory Organizations; Order

Approving Proposing Rule Change,

and Notice of Filing and Order

Granting Accelerated Approval to

Amendment No. 1 to Proposed Rule

Change, by the Pacific Exchange, Inc.

Implementing a One-Year Pilot

Program Relating to Its Automatic

Execution System

June 22, 2001.

I. Introduction and Description of the

Proposed Rule Change

On February 15, 2000, the Pacific

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

file with the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’),

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 implement a

one-year pilot program relating to its

automatic execution system.

The Exchange proposes to amend its

rules to allow, for the duration of the

pilot program, automatic executions of

orders in its Limit Order Book (‘‘Book’’)

when those orders become marketable.

Specifically, when one or more orders

in the Book become marketable, as

indicated by a locked or crossed market

being displayed on the trading floor, the

Lead Market Maker (‘‘LMM’’) may direct

the Order Book Official to initiate the

‘‘Auto-Ex Book’’ function, which will

cause marketable orders in the Book to

be automatically executed against the

accounts of market makers who are

participating in the Exchange’s Auto-Ex

system at the time.3

Notice of the proposed rule change

was published for comment in the

Federal Register on May 7, 2001.4 No

comments were received on the

proposed rule change. On June 21, 2001,

the Exchange filed Amendment No. 1 to

the proposed rule change.5 This order

approves the proposed rule change. In

addition, the Commission is publishing

this notice to solicit comments on

Amendment No. 1 to the proposed rule

change and is simultaneously approving

Amendment No. 1 on an accelerated

basis.

II. Discussion

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.6 In particular, the

Commission believes that the proposal

is consistent with Section 6(b)(5) of the

Act,7 which requires, among other

things, that the rules of an exchange be

designed to promote just and equitable

principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market,

and to protect investors and the public

interest. The proposed rule change

should help to facilitate the more

efficient execution of orders; eliminate

inefficiencies associated with manual

trading; eliminate backlogs of

unexecuted orders; promoted fair

participation in trading against orders in

the Book, and in general market

efficiency on the PCX. Moreover, the

Exchange is proposing to implement the

Auto-Ex Book function as a one-year

pilot program, which will enable the

Exchange and the Commission to

evaluate its operation before it can be

renewed.

The Commission further finds good

cause to approve Amendment No. 1 to

the proposed rule change prior to the

thirtieth day after the date of

publication of notice thereof in the

Federal Register. In Amendment No. 1,

the Exchange simply re-numbered and

re-lettered certain paragraphs of rule

text, and made no substantive changes

to the proposal. Therefore, the

Commission finds good cause to

approve Amendment No. 1 on an

accelerated basis.

III. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning Amendment No.

1, including whether Amendment No. 1

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 PCX. All

submissions should refer to File No.

SR–PCX–00–03 and should be

submitted by July 19, 2001.

IV. Conclusion

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,8 that the

proposed rule change (File No. SR–

PCX–00–03) be, and it hereby is,

approved as a pilot program through

June 22, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–16259 Filed 6–28–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3341]

State of Minnesota; Amendment #3

In accordance with a notice received

from the Federal Emergency

Management Agency, dated June 19,

2001, the above-numbered Declaration

is hereby amended to reopen the

incident period for this disaster as

beginning on March 23, 2001 and

continuing.

All other information remains the

same, i.e., the deadline for filing

applications for physical damage is July

15, 2001 and for economic injury the

deadline is February 15, 2002.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: June 21, 2001.

Herbert L. Mitchell,

Associate Administrator for Disaster

Assistance.

[FR Doc. 01–16283 Filed 6–27–01; 8:45 am]

BILLING CODE 8025–01–P