Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices 56961 

121 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3PACE is the Exchange’s automated order 

routing, delivery, execution and reporting system 

for equities. See Phlx Rule 229. 

4Amendment No. 1, which replaced and 

superseded the original filing in its entirety, 

included additional text in the purpose section to 

further clarify the description and operation of the 

proposed rule change, and also included a minor 

edit to the text of Phlx Rule 229. 

5See Securities Exchange Act Release No. 52239 

(August 11, 2005), 70 FR 48457 (‘‘Notice’’). 

6The term ‘‘listing market’’ refers to the 

applicable New York listing market. 

7The term ‘‘Directed Specialist’’ has the same 

meaning as in Phlx Rule 229A(b)(3), when there is 

more than one specialist assigned in a security. 

When there is only one specialist assigned in a 

security, the term Directed Specialist means that 

sole specialist. 

8Under the proposal, the Exchange’s matching 

algorithm would sort eligible orders by time priority 

and descending volume, thereby minimizing the 

number of different orders that any one order could 

match against. 

9Under the proposal, a Directed Specialist could 

elect to adopt a shorter time threshold for the 

receipt of orders in all securities traded by the 

Directed Specialist. 

10 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

11 15 U.S.C. 78f(b)(5). 

for Terra Nova is approved until 

December 31, 2005. 

For the Commission, by the Division of 

Market Regulations, pursuant to delegated 

authority.121

Jonathan G. Katz, 

Secretary. 

[FR Doc. E5–5314 Filed 9–28–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52495; File No. SR–Phlx–

2005–14] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Order Granting Approval to Proposed 

Rule Change and Amendment No. 1 

Thereto Relating to Order Matching at 

the Opening in PACE 

September 22, 2005. 

I. Introduction 

On March 10, 2005, the Philadelphia 

Stock Exchange, Inc. (‘‘Phlx’’ 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 

amend Phlx Rule 229 to permit the 

PACE System 3 to modify the opening 

process to match certain orders, 

described below, to each other, where 

possible, instead of matching such 

orders with the specialist. On July 28, 

2005, the Phlx filed Amendment No. 1 

to the proposed rule change.4 The 

proposed rule change, as amended, was 

published for comment in the Federal 

Register on August 17, 2005.5 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change, as amended. 

II. Description of the Proposal 

Currently, eligible market and limit 

orders received before the opening of 

the listing market 6 are guaranteed an 

execution against the specialist to whom 

the order was directed (the ‘‘Directed 

Specialist’’) 7 at the open price. The 

Exchange has proposed to modify the 

PACE System to match certain eligible 

orders received before the open against 

other eligible contra-side orders (as 

available) at the opening price, rather 

than execute such orders against the 

Directed Specialist.8 The Directed 

Specialist would continue to provide 

executions for any orders that would be 

ineligible for the proposed matching 

feature (as described below) and also for 

any imbalance of directed orders 

resulting from the proposed matching 

feature. However, the proposal would 

have the effect of removing the Directed 

Specialist from interaction with orders 

received before the open when such 

orders would be eligible for matching 

against other orders. The proposal also 

modifies the conditions for an order to 

be guaranteed an automatic execution at 

the listing market’s opening price 

(whether matched against another order 

or against the Directed Specialist). 

Automatic Execution Guarantee 

Under the proposal, in order to be 

guaranteed an automatic execution at 

the listing market’s opening price, 

market orders that are of a size equal to 

or smaller than the Directed Specialist’s 

automatic execution guarantee size 

would need to be entered anytime 

before the actual opening of the 

applicable listing market, but market 

orders that are larger than the Directed 

Specialist’s automatic execution 

guarantee size would need to be entered 

at least two minutes before the actual 

opening of the listing market.9 Limit 

orders would need to be entered at least 

two minutes prior to the actual opening 

on the listing market and to be tradedthrough by the listing market’s opening 

price in order to receive the automatic 

execution guarantee. Neither market 

orders nor limit orders would be eligible 

for an automatic execution guarantee at 

the listing market’s opening price if they 

are marked sell short or laid-off by the 

Directed Specialist. 

Orders Types Eligible for Matching 

Under the proposal, only round-lot 

market and limit orders would be 

eligible for matching at the opening 

price of the listing market. Other order 

types would not be eligible for the 

matching feature and would continue to 

be executed against the Directed 

Specialist, including: odd-lot orders, 

partial round-lot all-or-none orders, the 

odd-lot portion of partial round-lot 

eligible orders, and round-lot all-ornone orders when a single contra-side 

order with sufficient volume is not 

available. In addition, the imbalance of 

any directed orders that, although 

eligible for matching, could not match 

against other orders due to the lack of 

available contra-orders would be 

executed against the Directed Specialist. 

Other Changes 

Finally, the proposal would delete 

existing language in Phlx Rule 229, 

Supplementary Material .10(b), relating 

to the size of market and limit orders 

and the receipt time required to receive 

the opening price, since the treatment of 

such orders will be covered in 

Supplementary Materials .06 and .10(a), 

and it would also delete Supplementary 

Material .11 relating to the refusal of 

orders, as the Phlx believes that 

specialists today have sufficient 

methods available to them to manage 

the risk associated with orders received 

before the opening. 

III. Discussion and Commission 

Findings 

The Commission finds that the 

proposed rule change, as amended, is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.10 In particular, the 

Commission believes that the proposal 

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

Act,11 which requires that the rules of 

an exchange be designed to promote just 

and equitable principles of trade, to 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

The Commission notes that the 

proposal would remove all size 

restrictions on orders guaranteed an 

automatic execution at the opening 

price, provided that such orders are 

received within a certain time before the 

opening of the listing market and are not 

marked sell short or laid off at another 

56962 Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices 

12 15 U.S.C. 78s(b)(2). 13 17 CFR 200.30–3(a)(12). 

market. The Commission further notes 

that eligible, round-lot market and limit 

orders would be eligible to be 

automatically matched against other 

eligible orders at the opening price, 

without the participation of the Directed 

Specialist. The Commission believes 

that the proposal, by providing the 

proposed matching feature for eligible 

customer orders, appears to be 

reasonably designed to increase the 

automated handling of customer orders 

at the opening and reduce the risk of 

specialists trading ahead of customer 

orders. The Commission notes that the 

Exchange has represented that the 

proposal excludes order types involving 

odd-lots (odd-lot orders, partial roundlot all-or-none orders, and the odd-lot 

portion of partial round-lot eligible 

orders) from the proposed matching 

feature because such orders could 

otherwise match against round-lot 

orders, thereby generating a succession 

of additional odd-lots and transaction 

receipts, which would impose an undue 

transaction cost burden on firms 

entering round-lot orders. The 

Commission also notes that the 

Exchange has represented that all-ornone orders are not eligible for the 

proposed matching feature when a 

single contra-side order with sufficient 

volume is not available in order that, in 

keeping with the terms of all-or-none 

orders, such orders may be filled 

through a single execution. The 

Commission notes that the Directed 

Specialist would be obligated to execute 

all orders that are eligible for an 

automatic execution guarantee but that 

are ineligible for the proposed matching 

feature. The Commission also notes that 

the Directed Specialist is responsible for 

providing executions for any imbalance 

of orders that result from the matching 

feature. The Commission believes that 

the proposal appears to be reasonably 

designed to ensure the execution of 

orders entitled to an automatic 

execution guarantee, address the 

concerns of the Exchange’s customers, 

and promote efficient executions. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,12 that the 

proposed rule change (SR–Phlx–2005–

14), as amended, be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–19496 Filed 9–28–05; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

Data Collection Available for Public 

Comments and Recommendations 

ACTION: Notice and request for 

comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, this 

notice announces the Small Business 

Administration’s intention to request 

approval on a new and/or currently 

approved information collection. 

DATES: Submit comments on or before 

November 28, 2005. 

ADDRESSES: Send all comments 

regarding whether these information 

collections are necessary for the proper 

performance of the function of the 

agency, whether the burden estimates 

are accurate, and if there are ways to 

minimize the estimated burden and 

enhance the quality of the collections, to 

Carmen-Rosa Torres, Director, Office of 

Analysis, Planning, and Accountability, 

Small Business Administration, 409 3rd 

Street SW., Suite 6000, Washington, DC 

20416. 

FOR FURTHER INFORMATION CONTACT: 

Carmen-Rosa Torres, Director, 202–205–

6112 Carmenrosa.torres@sba.gov Curtis 

B. Rich, Management Analyst, 202–205–

7030 curtis.rich@sba.sba. 

SUPPLEMENTARY INFORMATION: 

Title: ‘‘Lender Survey’’. 

Description of Respondents: This 

survey will be administered to 

representatives of lenders that originate 

small business loans. 

Form No: N/A. 

Annual Responses: 75. 

Annual Burden: 37.5. 

Title: ‘‘Assisted Business Survey’’. 

Description of Respondents: This 

survey will be administered to a random 

sample of businesses assisted under 

various SBA programs. 

Form No: N/A. 

Annual Responses: 3,000. 

Annual Burden: 1,000. 

Jacqueline White, 

Chief, Administrative Information Branch. 

[FR Doc. 05–19513 Filed 9–28–05; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

CommunityExpress Pilot Program 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice of Pilot Program 

extension. 

SUMMARY: This notice announces the 

extension of SBA’s CommunityExpress 

Pilot Program until November 30, 2005. 

This extension will allow time for SBA 

to complete its decisionmaking 

regarding potential modifications and 

enhancements to the Program. 

DATES: The CommunityExpress Pilot 

Program is extended under this notice 

until November 30, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Charles Thomas, Office of Financial 

Assistance, U.S. Small Business 

Administration, 409 Third Street, 

Washington, DC 20416; Telephone (202) 

205–6490; charles.thomas@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

CommunityExpress Pilot Program was 

established in 1999 as a subprogram of 

the Agency’s SBAExpress Pilot Program. 

Lenders approved for participation in 

CommunityExpress are authorized to 

use the expedited loan processing 

procedures in place for the SBAExpress 

Pilot Program, but the loans approved 

under this Program must be to 

distressed or underserved markets. To 

encourage lenders to make these loans, 

SBA provides its standard 75–85 

percent guaranty, which contrasts to the 

50 percent guaranty the Agency 

provides under SBAExpress. However, 

under CommunityExpress, participating 

lenders must arrange and, when 

necessary, pay for appropriate technical 

assistance for any borrowers under the 

program. Maximum loan amounts under 

this Program are limited to $250,000. 

The extension of this Program until 

November 30, 2005, will allow SBA to 

more fully evaluate the results and 

impact of the Program and to consider 

possible changes and enhancements to 

the Program. It will also allow SBA to 

further consult with its lending partners 

and the small business community 

about the Program. 

(Authority: 13 CFR 120.3) 

Michael W. Hager, 

Associate Deputy Administrator. 

[FR Doc. 05–19442 Filed 9–28–05; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

Export Express Pilot Program 

AGENCY: U.S. Small Business 

Administration (SBA).