1166 Federal Register / Vol. 66, No. 4 / Friday, January 5, 2001 / Notices

9 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3 In Amendment No. 1, the Exchange: replaced

the term ‘‘Nasdaq-100 Shares’’ with ‘‘Nasdaq-100

Index Tracking Stock’’ noted that ‘‘Nasdaq-100

Index Tracking Stock’’ and ‘‘QQQ’’ are service

marks of the Nasdaq Stock Market, Inc. (‘‘Nasdaq’’)

and that the Phlx has entered into a licensing

agreement with Nasdaq to use those marks for

certain purposes; observed that the Commission has

approved a related rule filing, File No. SR–Phlx–

00–54, relating to the listing and trading of Trust

Shares; clarified that a fee for trades not processed

through the Phlx Automated Communication and

Execution System (‘‘PACE’’) will be paid by

members of the Exchange; and clarified that the

Phlx will charge specialists a per-share fee whether

or not an order is executed via PACE. See letter

from Carla Behnfeldt, Counsel, Phlx, to Nancy

Sanow, Assistant Director, Division of Market

Regulation, Commission, dated December 14, 2000

(‘‘Amendment No. 1’’).

4File No. SR–Phlx–00–54.

5Securities Exchange Act Release No. 43717

(December 13, 2000). The proposal is pending

publication in the Federal Register.

6The Nasdaq-100, Nasdaq-100 Index, Nasdaq,

The Nasdaq Stock Market, Nasdaq-100 SharesSM,

Nasdaq-100 Trust SM, Nasdaq-100 Index Tracking

Stock SM, and QQQ SM, are trademarks or service

marks of The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’)

and have been licensed for use for certain purposes

by the Phlx pursuant to a License Agreement with

Nasdaq. The Nasdaq-100 Index (‘‘Index’’) is

determined, composed, and calculated by Nasdaq

without regard to the Licensee, the Nasdaq-100

TrustTM, or the beneficial owners of Nasdaq-100

SharesSM. Nasdaq has complete control and sole

discretion in determining, comprising or calculating

the Index or in modifying in any way its method

for determining, comprising or calculating the

Index in the future.

7The $1.00 fee for non-PACE trades will be paid

by a member who is trading with a specialist, either

for the member’s own account or for the account of

the member’s customer. See Amendment No. 1,

supra note 3.

8 Id.

9 15 U.S.C. 78f(b).

10 15 U.S.C. 78s(b)(4).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–317 Filed 1–4–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43776; File No. SR–PHLX–

00–103]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and

Amendment No. 1 Thereto by the

Philadelphia Stock Exchange, Inc.

Relating to Proposed Fees for

Processing of Units of Beneficial

Interest in the Nasdaq-100 Trust,

Series 1

December 28, 2000.

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 December

8, 2000, the Philadelphia Stock

Exchange, Inc. (‘‘Phlx’’ 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.

On December 14, 2000, the Exchange

submitted Amendment No. 1 to the

proposed rule change.3 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 Exchange proposes to amend its

fee schedule to accommodate the

trading of Units of Beneficial Interest in

the Nasdaq 100 Trust, Series 1

(‘‘Nasdaq-100 Index Tracking Stock’’),

traded under the symbol and widely

known as QQQ. On June 14, 2000, the

Phlx filed a proposed rule change with

the Commission to permit, among other

things, the trading pursuant to unlisted

trading privileges (‘‘UTP’’), of Nasdaq100 Index Tracking Stock.4 The

proposal has been approved.5 In

addition, the Exchange has obtained a

license to use the Nasdaq-100 Index in

connection with the trading of the

Nasdaq-100 Index Tracking Stock.6

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

Phlx 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 Phlx 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 provide for fees that will

apply to trading on the Exchange of

Units of Beneficial Interest in the

Nasdaq 100 Trust, Series 1, referred to

as ‘‘Nasdaq 100 Shares.’’ Specifically,

under the Exchange’s proposal the

Exchange will assess no charge to

members for trades entered through the

Phlx Automated Communication and

Execution System (‘‘PACE’’), but will

impose a $1.00 fee for non-PACE

trades.7 Specialists will be charged a fee

of $0.002 per share, with a maximum

charge of $50.00 per trade, whether or

not a trade takes place on PACE.8 No

other Phlx transaction fees will apply to

trades in Nasdaq-100 Index Tracking

Stock. The Exchange represents that,

upon initiation of trading, members will

be notified, by means of a circular, of

the new fees applicable to trading in

Nasdaq-100 Index Tracking Stock.

The Exchange represents that the fees

proposed above for transactions in

Nasdaq-100 Index Tracking Stock are

lower than the fees charged for other

equities already traded on the Exchange.

The Phlx believes that the proposed

lower fees should encourage trading of

Nasdaq-100 Index Tracking Stock, while

ensuring that the amounts collected will

still cover the Exchange’s costs of

administering the trading of this new

product. The Exchange further states

that lower fees should also provide

market participants with a more

affordable market for the trading of this

product. The Phlx states that a more

affordable, competitive market for

trading should attract more order flow

in Nasdaq-100 Index Tracking Stock to

the Exchange, which in turn should

further increase liquidity of Nasdaq-100

Index Tracking Stock, and create a

tighter, more liquid market. The Phlx

represents that increased market

competition should both benefit

investors and protect the public interest

in general.

2. Statutory Basis

The Exchange believes that the

proposal is consistent with Section 6(b)

of the Act,9 in general, and furthers the

objectives of Section (6)(b)(4) 10 in

particular because it applies equally to

all members that would be trading the

Nasdaq-100 Index Tracking Stock and,

therefore, is an equitable allocation of

reasonable fees among Exchange

members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Phlx represents that it does not

believe the proposed rule change will

impose any inappropriate burden on

competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

No written comments were either

solicited or received.

Federal Register / Vol. 66, No. 4 / Friday, January 5, 2001 / Notices 1167

11 15 U.S.C. 78s(b)(3)(A)(ii).

12 17 CFR 240.19b–4(f)(2).

13 15 U.S.C. 78s(b)(3)(C).

14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78S(b)(1).

2Securities Exchange Act Release No. 39444

(December 11, 1997), 62 FR 66703 [File Nos. SR–

SCCP–97–04, SR–DTC–97–16, SR–NSCC–97–08,

and SR–Philadep–97–04].

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing proposed rule change

has become effective pursuant to

Section 19(b)(3)(A)(ii) of the Act 11 and

Rule 19b–4(f)(2) thereunder 12 because it

establishes or changes a due, fee, or

other charge imposed by the selfregulatory organization. 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.13

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule

change, as amended, 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 Phlx. All

submissions should refer to File No.

SR–Phlx–00–103 and should be

submitted by January 26, 2001.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.14

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–312 Filed 1–4–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43781; File No. SR–SCCP–

00–05]

Self-Regulatory Organization; Stock

Clearing Corporation of Philadelphia;

Notice of Filing and Order Granting

Accelerated Approval on a Temporary

Basis of a Proposed Rule Change

Extending Approval of Restructured

and Limited Clearing Services

December 28, 2000.

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

Securities Exchange Act of 1934

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

December 6, 2000, the Stock Clearing

Corporation of Philadelphia (‘‘SCCP’’)

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 SCCP. The

Commission is publishing this notice

and order to solicit comments from

interested persons and to grant

accelerated approval of the proposal.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

SCCP proposes to extend, for a one

year period ending December 31, 2001,

the ability to provide limited clearance

and settlement services. Specifically,

SCCP seeks to continue to provide trade

confirmation and recording services for

members of the Philadelphia Stock

Exchange, Inc. (‘‘Phlx’’) effecting

transactions through Regional Interface

Operations (‘‘RIO’’) and ex-clearing

accounts. SCCP will also continue to

provide margin accounts to certain

participants cleared through an account

established by SCCP at the National

Securities Clearing Corporation

(‘‘NSCC’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

SCCP 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 self-regulatory

organization has prepared summaries,

set forth is 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

The purpose of the proposed rule

change is to continue SCCP’s

restructured business for an additional

one year period through December 31,

2001.

Background

In an Agreement dated as of June 18,

1997, by and among the Phlx, SCCP,

Philadelphia Depository Trust Company

(‘‘Philadep’’), NSCC, and The

Depository Trust Company (‘‘DTC’’),

Philadep and SCCP agreed to certain

provisions, including that: (i) Philadep

would cease providing securities

depository services; (ii) Philadep would

make available to its participants access

to the facilities of one or more other

organizations providing depository

services; (iii) SCCP would make

available to SCCP participants access to

the facilities of one or more other

organizations providing securities

clearing services; and (iv) SCCP would

transfer to the books of such other

organizations the CNS system open

positions of SCCP participants on the

books of SCCP.

In December, 1997, the Commission

approved a proposed rule change which

gave effect to the Agreement and which

reflected Philadep’s withdrawal from

the depository business and SCCP’s

restructured and limited clearance and

settlement business.2 At that time, the

Commission stated that ‘‘because a part

of SCCP’s proposed rule change

concerns the restructuring of SCCP’s

operations to enable SCCP to offer

limited clearing and settlement services

to certain Phlx members, the

Commission finds that it is appropriate

to grant only temporary approval to the

portion of SCCP’s proposed rule change

that amends SCCP’s By-laws, Rules, or

Procedures. This will allow the

Commission and SCCP to see how well

SCCP’s restructured operations are

functioning under actual working

conditions and to determine whether

any adjustments are necessary. Thus,

the Commission is approving the

portion of SCCP’s proposal that amends

its By-laws, Rules, or Procedures

through December 31, 1998.’’ In

December 1998 and December 1999, one

year extensions of such approval were

granted by the Commission to allow

SCCP to continue its restructured and