Federal Register / Vol. 66, No. 37 / Friday, February 23, 2001 / Notices 11341

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

2 17 CFR 240.19b–4.

3CBOE Rule 5.3 describes the criteria for

underlying securities. Specifically, Interpretations

and Policies .06 under CBOE Rule 5.3 indicates

which securities are deemed appropriate for options

trading.

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

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

6 15 U.S.C. 78s(b)(3)(A).

7 17 CFR 240.19b–4(f)(6).

8Under Rule 19b–4(f)(6)(iii), the Exchange must

given written notice of its intent to file the proposed

rule change, along with a brief description and text

of the proposed rule change, at least five business

days prior to the date of filing the rule change, or

such shorter time as designated by the Commission.

As required, the Exchange has provided the

Commission with written notice of its intent to file

the proposed rule change.

Conclusion

For the reasons summarized above,

Applicants assert that the requested

order meets the standards set forth in

section 26(b) of the 1940 Act, and

should, therefore, be granted.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4496 Filed 2–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43969; File No. SR–CBOE–

01–02]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

Chicago Board Options Exchange,

Incorporated To Amend Its Rules To

Allow for $0.50 Strike Price Intervals

for Options Based on Certain Index

Portfolio Shares

February 15, 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

31, 2001, the Chicago Board Options

Exchange, Incorporated (‘‘Exchange’’ or

‘‘CBOE’’) 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 the CBOE. 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 CBOE proposes to amend its rules

to allow for $0.50 strike price intervals

for options based on certain Index

Portfolio Shares (‘‘IPSs’’).

The text of the proposed rule change

is available at the Office of the

Secretary, CBOE 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

CBOE 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 CBOE 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 Exchange is proposing to

establish $0.50 strike price intervals for

options based on certain IPSs. More

specifically, the Exchange intends to list

options on the iShares S&P 100 Index

Fund (ticker symbol ‘‘OEF’’), an IPS

which currently trades on the Exchange.

OEF is an exchange-traded fund that

represents ownership in an open-end

management company established to

hold a portfolio of stocks replicating the

S&P Index (‘‘Index’’ or ‘‘S&P 100’’). It

holds substantially all of the securities

of the Index in approximately the same

proportions as reflected in the Index.

The Exchange will list options on

OEF pursuant to the criteria set forth in

Interpretations and Policies .06 under

CBOE Rule 5.3.3 However, the Exchange

believes that it is appropriate to amend

CBOE Rule 5.5, by adding

Interpretations and Policies .06, to

provide that options on OEF be set to

$0.50 or greater strike price intervals.

These 1⁄2 point increments would

correspond favorably to the 5-point

increments in certain broad-based index

options traded on the Exchange, such as

the S&P 100 (‘‘OEX’’) and S&P 500

(‘‘SPX’’), because the size of the OEFbased contract will be approximately

one-tenth of the size of the option

contracts on the OEX. Accordingly, the

Exchange believes that to effectively

compliment existing CBOE products

and to help ensure efficient trading of

OEF options, adopting $0.50 strike price

intervals for OEF options is necessary.

The Exchange recognizes that adding

series of options for trading under the

proposed rule change may result in a

slight increase in message traffic;

however, the Exchange represents that it

has the necessary systems capacity to

support any additional series of options

that may be added under the proposed

rule.

2. Statutory Basis

The Exchange believes that the

proposed rule change is consistent with

Section 6(b) of the Act 4 in general, and

furthers the objectives of Section 6(b)(5)

of the Act 5 in particular, in that it will

permit trading in options based on OEF

pursuant to strike intervals designed to

promote just and equitable principles of

trade, and thereby will provide

investors with the ability to invest in

options based on an additional CBOE

product.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The CBOE does not believe that the

proposed rule change will impose any

burden on competition 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

No written comments were either

solicited or received with respect to the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; and

(3) does not become operative for 30

days from the date of filing, or such

shorter time as the Commission may

designate if consistent with the

protection of investors and the public

interest, the proposed rule change has

become effective pursuant to Section

19(b)(3)(A) 6 of the Act and Rule 19b–

4(f)(6) 7 thereunder.8

A proposed rule change filed under

Rule 19b–4(f)(6) may not become

operative prior to 30 days after the date

of filing. However, Rule 19b–4(f)(6)(iii)

permits the Commission to designate a

shorter time if such action is consistent

with the protection of investors and the

public interest. The Exchange seeks to

have the proposed rule change become

operative on January 31, 2001, to allow

11342 Federal Register / Vol. 66, No. 37 / Friday, February 23, 2001 / Notices

9For purposes only of accelerating the operative

date of this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78c(f). 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4. 3See February 8, 2001 letter from Jeffrey S. Davis

(‘‘Davis’’), Assistant General Counsel, Nasdaq, to

Katherine A. England (‘‘England’’), Assistant

Director, Division of Market Regulation

(‘‘Division’’), SEC (‘‘Amendment No. 1’’). In

Amendment No. 1, Nasdaq converted the proposal

to a non-controversial filing pursuant to Section

19(b)(3)(A) and Rule 19b–4(f)(6). 15 U.S.C.

78s(b)(3)(A) and 17 CFR 240.19b–4(f)(6). Nasdaq

also asked the Commission to waive the 30-day

operative waiting period. The Commission

considers Nasdaq’s original filing as satisfying the

5-day pre-filing notice requirement. See Rule 19b–

4(f)(6)(iii). 17 CFR 240.19b–4(f)(6)(iii). For purposes

of calculating the 60-day abrogation period, the

Commission considers the period to commence as

of February 8, 2001, the date of the last substantive

amendment to the proposal.

4See February 13, 2001 letter from Davis to

England (‘‘Amendment No. 2’’). In Amendment No.

2, Nasdaq completely replaced the original

proposed rule language with new language, to

correct inaccuracies in the text of the proposed rule

as it was originally filed. The new proposed rule

language in Amendment No. 2 does not change the

substance of the proposal, which creates a new

method for accessing ACT, and establishes fees for

using the new method of access. Telephone

conversation between Davis and Joseph Morra,

Special Counsel, Division, SEC, February 13, 2001.

5 15 U.S.C. 78s(b)(3)(A).

6 17 CFR 240.19b–4(f)(6).

it to implement these $0.50 strike price

intervals immediately.

The Commission believes that it is

consistent with the protection of

investors and the public interest that the

proposed rule change become operative

immediately as of January 31, 2001.9 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.

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 CBOE. All

submissions should refer to File No.

SR–CBOE–01–02 and should be

submitted by March 16, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.10

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4498 Filed 2–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43968; File No. SR–NASD–

01–05]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change and

Amendment Nos. 1 and 2 by the

National Association of Securities

Dealers, Inc. Relating to Access to, and

Fees Assessed for, the Automated

Confirmation and Transaction Service

February 15, 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

12, 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

(‘‘Commission’’ or ‘‘SEC’’) the proposed

rule change as described in Items I, II,

and III below, which Items have been

prepared by Nasdaq. On February 8,

2001, Nasdaq amended the proposal.3

On February 13, 2001, Nasdaq again

amended the proposal.4 Nasdaq filed

the proposal pursuant to Section

19(b)(3)(A) of the Act,5 and Rule 19b–

4(f)(6) thereunder,6 which renders the

proposal effective upon filing with the

Commission. The Commission is

publishing this notice to solicit

comments on the proposed rule change,

as amended, from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Nasdaq proposes to amend NASD

Rule 7010(g) to create ‘‘Nasdaq ACT,’’

an internet-based means for member

firms to report trades to the Automated

Confirmation and Transaction (‘‘ACT’’)

Service. Nasdaq also proposes to

establish fees to be assessed for the use

of Nasdaq ACT. The text of the

proposed rule change is below.

Proposed new language is in italics.

Proposed deletions are in brackets.

Rule 7010 System Services

(a)–(f) No Change.

(g) Confirmation Transaction Service (ACT):

Transaction Related Charges:

Comparison ........................... $0.0144/side per 100 shares (minimum 400 shares; maximum 7,500 shares)

Automated Give-Up .............. $0.01/side per 100 shares (minimum 400 shares; maximum 7,500 shares)

Late Report—T+N ................. $0.288/side

Browse/query ........................ $0.288/query 1

Terminal fee .......................... $57.00/month (ACT only terminals)

CTCI fee ................................. $575.00/month

Nasdaq ACT .......................... $300/month (full functionality) or $150/month (up to an average of twenty transactions per

day each month) 2

Service desk .......................... $57.00/month [2] 3

Trade Reporting .................... $.029/side (applicable only to reportable transaction not subject to trade comparison through

ACT) [3] 4

Risk Management Charges ... $.035/side and $17.50/month per correspondent firm

Footnotes