67346 Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices

12There may be unique situations when dealers

effect transactions in violation of the rule and

cannot reverse the transactions under the second

exception. For example, a dealer may

unintentionally sell an unauthorized amount of

securities to a customer already holding an

authorized amount. The transaction would be a

violation of the rule, albeit an unintentional one.

The MSRB believes the enforcement agencies have

enough flexibility that they are not required to

further penalize the dealer if the dealer corrects the

situation by reversing the transaction.

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 44830

(September 21, 2001), 66 FR 49728 (September 28,

2001) (SR–PCX–2001–37).

4The PCX proposes to change only the amounts

of the fees that it charges for transactions in the

options that are included in the proposed amended

Schedule of Rates. Any fees currently being charged

for transactions in options that are not listed in this

amendment to the Schedule of Rates would not be

affected by the proposed rule change. Telephone

conversation between Mai Shiver, Senior Attorney,

PCX, and Patrick Joyce, Special Counsel, Division

of Market Regulation, Commission, on December

10, 2001.

current investors would not be affected

and that future investors in issues

issued after June 1, 2002 will have

notice of the effect of minimum

denominations on their municipal

securities positions.

5. Other Suggestions

A.G. Edwards and TBMA both

recommended that dealers should be

able to correct an erroneous transaction

done in a below-minimum

denomination amount. If a dealer

mistakenly sells a below-minimum

denomination position to a customer,

such a correction generally would be

possible under the second exception in

the proposed rule change.12 Other

commentators suggested that the rule

should not apply if the issuer failed to

state the purpose of its denomination

restriction in bond documents or if a

below-minimum denomination position

was created by an action of the issuer,

such as by a partial call. The MSRB

notes that issuers do not generally state

the purpose of the denominations they

choose. Moreover, Rule 15c2–12

provides disclosure exemptions that

apply to an issue regardless of whether

the issuer states the purpose of its

minimum denomination in bond

documents or exercises calls that take

an investor’s authorized position into a

below-minimum denomination amount.

Therefore, the MSRB has not adopted

these suggestions.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding, or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

(a) by order approve such proposed

rule change, or

(b) institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are inviting to

submit written data, views, and

arguments concerning the forgoing,

including whether the proposed rule

change is consistent with the Act.

Persons making written submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. Copies of

the submissions, 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 the filing will also be

available for inspection and copying at

the MSRB’s principal offices. All

submissions should refer to File SR–

MSRB–2001–07 and should be

submitted by January 18, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–31917 Filed 12–27–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–45167; File No. SR–PCX–

2001–49]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Pacific Exchange, Inc. Relating to

Changes in Marketing Fees

December 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 December

3, 2001, the Pacific Exchange, Inc.

(‘‘PCX’’) filed with the Security and

Exchange Commission (‘‘Commission’’)

the proposed rule change as described

in Items I, II and III below, which the

PCX has prepared. 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 PCX proposes to change its

marketing fee for certain options and to

declare a marketing fee for recently

listed options. A copy of the proposed

new Schedule of Fees and Charges for

Exchange Services is available at the

PCX and at the Commission.

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

PCX included statements concerning the

purpose of and basis for the proposed

rule change and discussed any

comments it had received on the

proposed rule change. The text of these

statements may be examined at the

places specified in Item IV below. The

PCX has prepared summaries, set forth

in Sections A, B, and C below, of the

most significant aspects of the

statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The PCX recently adopted a paymentfor-order-flow program under which it

charges a marketing fee ranging from $0

to $1.00 per contract on a per-issue

basis.3 The PCX segregates the funds

from this fee by trading post and makes

the funds available to Lead Market

Makers for their use in attracting orders

in the options traded at the posts. The

PCX charges the marketing fees in the

amounts set forth in its Schedule of Fees

and Charges for Exchange Services,

hereinafter referred to as the ‘‘Schedule

of Rates.’’

The PCX proposes to amend its

Schedule of Rates in order to change the

marketing fee that it charges for certain

options and to adopt new marketing fees

for newly listed options, beginning with

the start of the December trade month

and continuing until further notice.

Only the amount of the fee is being

changed.4 The PCX believes that the

Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Notices 67347

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

6 15 U.S.C. 78f(b)(4).

7 15 U.S.C. 78s(b)(3)(A).

8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12).

proposed rule change has been designed

to enable the PCX to compete with other

markets in attracting options business,

and that the proposed rule change is

therefore reasonable and equitable.

2. Basis

The PCX believes that the proposed

rule change is consistent with Section

6(b) of the Act,5 particularly Section

6(b)(4) of the Act,6 in that it provides for

the equitable allocation of reasonable

dues, fees, and other charges among its

members.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The PCX does not believe that the

proposed rule change will impose any

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

The PCX neither solicited nor

received any written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the PCX has designated the

foregoing as a fee change pursuant to

Section 19(b)(3)(A) of the Act 7 and Rule

19b–4(f)(2) thereunder,8 the proposal

has become effective immediately upon

filing with the Commission. At any time

within 60 days after the filing of the

proposed rule change, the Commission

may summarily abrogate the 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 in

the Commission’s Public Reference

Room, 450 Fifth Street, NW.,

Washington, DC 20549. 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–2001–

49 and should be submitted by January

18, 2002.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–31871 Filed 12–27–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Interest Rates

The Small Business Administration

publishes an interest rate called the

optional ‘‘peg’’ rate (13 CFR 120.214) on

a quarterly basis. This rate is a weighted

average cost of money to the

government for maturities similar to the

average SBA direct loan. This rate may

be used as a base rate for guaranteed

fluctuating interest rate SBA loans. This

rate will be 4.625 (4 5⁄8) percent for the

January–March quarter of FY 2002.

LeAnn M. Oliver,

Deputy Associate Administrator for Financial

Assistance.

[FR Doc. 01–31951 Filed 12–27–01; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

Region 1—Maine District Advisory

Council; Public Meeting

The U.S. Small Business

Administration Augusta, Maine District

Advisory Council, will hold a public

meeting at 10:00 a.m. February 5th,

2002 at 68 Sewall Street, Room 510,

Augusta, Maine to discuss such matters

as may be presented by members, staff

of the U.S. Small Business

Administration, or others present.

Anyone wishing to make an oral

presentation to the Board must contact

Mary MaAleney, in writing by letter or

fax no later than January 25th, 2002, in

order to be put on the agenda. Please

direct questions to Mary McAleney,

District Director, U.S. Small Business

Administration, 68 Sewall Street, Room

512, Augusta, Maine 04330, (201) 622–

8386 phone, (207) 622–8277 fax. For

further information, write or call Mary

McAleney, District Director, U.S. Small

Business Administration, 68 Sewall

Street, Room 512, Augusta, Maine

04330, (207) 622–8386 phone, (207)622–

8277 fax.

Steve Tupper,

Committee Management Officer.

[FR Doc. 01–31952 Filed 12–27–01; 8:45 am]

BILLING CODE 8025–01–P

SOCIAL SECURITY ADMINISTRATION

Modifications to the Disability

Determination Procedures; Extension

of Disability Claims Process Redesign

Prototype and Test of Single

Decisionmaker Model

AGENCY: Social Security Administration.

ACTION: Notice of the extension of two

tests involving modifications to the

disability determination procedures.

SUMMARY: We are announcing the

extension of two tests of modifications

to our disability determination

procedures that we are conducting

under the authority of current rules

codified at 20 CFR 404.906 and

416.1406. These rules provide authority

to test several modifications to the

disability determination procedures that

we normally follow in adjudicating

claims for disability insurance benefits

under title II of the Social Security Act

(the Act) and for supplemental security

income payments based on disability

under title XVI of the Act. We have

decided to extend selection of cases for

six months while we identify the most

positive elements of the tests for rollout,

and to enable us to address transition

issues.

DATES: We are extending our selection

of cases to be included in these tests

from December 31, 2001 until no later

than June 28, 2002. If we decide to

continue selection of cases for these

tests beyond this date, we will publish

another notice in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Phil

Landis, Director, Disability Process

Redesign Staff, Office of Disability,

Social Security Administration, 6401

Security Boulevard, Baltimore,

Maryland, 21235, 410–965–5388.

SUPPLEMENTARY INFORMATION: Current

regulations at 20 CFR 404.906 and

416.1406 authorize us to test,

individually or in any combination,

several different modifications to the

disability determination procedures. We