Federal Register / Vol. 66, No. 35 / Wednesday, February 21, 2001 / Notices 11075

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

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

6 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by EMCC.

trading with any part of the cross

transaction.

The Exchange implemented

Commentary .02 to facilitate execution

of block size crosses on the Amex. In

implementing this exception to the

Exchange’s rules of precedence, the

Exchange was responding competitively

to regional exchanges that were

attracting Amex orders because orders

to cross are not readily broken up by

other trading interest in those markets

which may lack a trading crowd or limit

orders on specialists’ books.

The Exchange expects that decimal

pricing in minimum increments of $.01

will result in increased numbers of cross

transactions being broken up because it

will be less expensive to provide price

improvement than under previous

increments. The Exchange believes this

will place the Exchange at an increased

competitive disadvantage to other

markets where crosses can be effected

with little or no risk of interference, will

deprive customer block size orders of

the benefits of primary market pricing,

and will detract from primary market

liquidity. The Exchange, therefore,

believes it is appropriate to reduce the

size of agency orders that can be crossed

under Rule 126(g), Commentary .02, to

5,000 shares.

Amex clean cross procedures will

continue to preserve auction market

principles by providing the possibility

of price improvement (because members

must follow Amex Rule 151 crossing

procedures), and by requiring that

members trade with other market

interest having time priority at that

price before trading with any part of the

cross transaction. In addition, the

Exchange believes the proposal will

enhance competition among markets in

the execution of agency crosses, and

will increase the possibility that pricing

of agency crosses will be executed more

efficiently and at better prices.

2. Statutory Basis

The Amex believes that the proposed

rule change is consistent with section

6(b) of the Act 4 in general and further

the objectives of section 6(b)(5) 5 in

particular in that it is designed to

promote just and equitable principles of

trade, to remove impediments to and

perfect the mechanism of a free and

open market and a national market

system, and, in general to protect

investors and the public interest.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes that the

proposed rule change will impose no

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 solicited

or received with respect to the proposed

rule change.

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 Exchange 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 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. Copies of such filing will also be

available for inspection and copying at

the principal office of the Amex. All

submissions should refer to file number

SR–Amex–01–02 and should be

submitted by March 14, 2001.

For the Commission by the Division

of Market Regulations, pursuant to

delegated authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4263 Filed 2–20–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43956; File No. SR–EMCC–

00–9]

Self-Regulatory Organizations;

Emerging Markets Clearing

Corporation; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change Relating to Fee

Schedules

February 13, 2001.

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

Securities Exchange Act of 1934

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

November 29, 2000, the Emerging

Markets Clearing Corporation (‘‘EMCC’’)

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 primarily by EMCC.

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

parties.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change will allow

EMCC to modify its current fee

schedule.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

EMCC 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. EMCC has prepared

summaries, set forth in sections (A), (B),

and (C) below, of the most significant

aspects of these statements.2

11076 Federal Register / Vol. 66, No. 35 / Wednesday, February 21, 2001 / Notices

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

2 17 CFR 240.19b–4.

3See Letter from Thomas P. Moran, Assistant

General Counsel, Nasdaq, to Jack Drogin, Assistant

Director, Division of Market Regulation,

Commission, dated January 30, 2001 (Amendment

No. 1). In Amendment No. 1, the Nasdaq added a

footnote to proposed NASD Rule 4710(b)(1)(D)(3)

requiring the lead underwriter of a secondary

offering to submit a written request to the Nasdaq

Market Operations Department for immediate

processing of executions in secondary offerings. See

infra note 4.

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

EMCC’s input charges for bonds and

warrants are set on a sliding scale based

upon the time the trade is input into

EMCC’s system. The last input time

frame is currently 11 a.m. (New York

time) of SD–2 (or T + 1) and occurs after

EMCC performs the calculation of final

margin payments on that day. EMCC

would prefer that trades received on

SD–2 be received in time to be included

in the margin calculation for that day so

that they can be guaranteed sooner and

thus provide more certainty to members.

The risk system cut-off time for

calculation of final margin is 8 a.m.

(New York time) on SD–2, therefore

EMCC is setting the cut-off time for

incremental fee purposes at 8 a.m. as

well. This change has become effective

on January 1, 2001.

The proposed rule change is

consistent with the requirements of

Section 17A of the Act and the rules and

regulations thereunder applicable to

EMCC because it provides for the

equitable allocation of dues, fees and

other charges among EMCC’s

participants.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

EMCC does not believe that the

proposed rule change will have an

impact on or impose a 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 relating to the

proposed rule change have been

solicited or received. EMCC will notify

the Commission of any written

comments received by EMCC.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change has become

effective pursuant to Section

19(b)(3)(A)(ii) of the Act and Rule 19b–

4(f)(2) thereunder because the proposed

rule change is changing a due, fee, or

charge imposed by the self-regulatory

organization. At any time within sixty

days of the filing of such 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 in

the Commission’s Public Reference

Section, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of EMCC. All submissions should

refer to File No. SR–EMCC–00–9 and

should be submitted by March 14, 2001.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4260 Filed 2–20–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43958; File No. SR–NASD–

01–03]

Self–Regulatory Organizations: Notice

of Proposed Rule Change and

Amendment No. 1 Thereto by the

National Association of Securities

Dealers, Inc. Relating to the

Elimination of the Interval Delay

Between Executions for Initial Public

Offerings and Secondary Offerings in

the Nasdaq National Market Execution

System

February 13, 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 January 5,

2001, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its subsidiary,

the Nasdaq Stock Market, Inc.

(‘‘Nasdaq’’), filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by Nasdaq. On January 31,

2001, the NASD, through Nasdaq, filed

Amendment No. 1 to the proposed rule

change.3 The Commission is publishing

this notice to solicit comments on the

proposed rule change and Amendment

No. 1 from interested persons.

I. Self–Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Nasdaq is filing a proposed rule

change, on a six-month pilot basis, to

eliminate the interval delay between

executions against the same market

maker at the same price level during the

first day of trading of the securities of

initial public offerings (‘‘IPOs’’) and

secondary offerings in the Nasdaq

National Market Execution System

(‘‘NNMS’’ or ‘‘SuperSOES’’). Below is

the text of the proposed rule change, as

amended. Proposed new language is

italicized.

* * * * *

4710. Participant Obligations in NNMS

(a) No Change.

(b) Market Makers

(1) An NNMS Market Maker in an

NNMS Security shall be subject to the

following requirements:

(A) No change.

(B) No change.

(C) No change.

(D) (1) Except as provided in

subparagraphs (2) and (3) below, after

the NNMS system has executed an order

against a market maker’s displayed

quote and reserve size (if applicable),

that market maker shall not be required

to execute another order at its bid or

offer in the same security until 5

seconds has elapsed from the time the

order was executed, as measured by the

time of execution in the Nasdaq system.

(2) For securities included in the

Nasdaq 100 Index, after the NNMS

system has executed an order against a

market maker’s displayed quote and

reserve size (if applicable), that market

maker shall not be required to execute

another order at its bid or offer in the

same security until 2 seconds has