11078 Federal Register / Vol. 66, No. 35 / Wednesday, February 21, 2001 / Notices

7 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

3See Letter from Charles Falgie, Director of

Enforcement/Counsel, Phlx, to Nancy Sanow,

Assistant Director, Division of Market Regulation

(‘‘Division’’), Commission (Aug. 22, 2000)

(‘‘Amendment No. 1’’). In Amendment No. 1, the

Phlx corrected its rule language and clarified which

language of the rule text was to be added and

deleted. The Phlx also added a paragraph

describing that the proposal would allow the Chair

of the Business Conduct Committee (‘‘Committee’’)

to designate another person to oversee the

Chairperson’s duties pursuant to Phlx rules.

The Phlx indicated that the designee would be a

Business Conduct Committee member. Telephone

conversation between Charles Falgie, Director of

Enforcement/Counsel, Phlx, and Melinda Diller,

Attorney, Division, Commission (Sept. 1, 2000).

4See Letter from Charles Falgie, Director of

Enforcement/Counsel, Phlx, to Nancy Sanow,

Assistant Director, Division, Commission (Nov. 8,

2000) (‘‘Amendment No. 2’’). In Amendment No. 2,

the Phlx changed the text of the rule language and

revised time limits and the manner in which a

Respondent’s request for a hearing is handled.

5See Letter from Charles Falgie, Director of

Enforcement/Counsel, Phlx, to Nancy Sanow,

Assistant Director, Division, Commission (Nov. 20,

2000) (‘‘Amendment No. 3’’). In Amendment No. 3,

the Phlx ‘‘marked’’ the filing and the text of the rule

language to indicate the changes made in

Amendment No. 2, which were not properly

indicated.

6See Letter from Charles Falgie, Director of

Enforcement/Counsel, Phlx, to Nancy Sanow,

Assistant Director, Division, Commission (Dec. 13,

2000) (‘‘Amendment No. 4’’). In Amendment No. 4,

the Phlx made a few technical corrections to the

text of the proposed rule.

7See Securities Exchange Act Release No. 43757

(December 20, 2000), 65 FR 82432.

8See Letter from Charles Falgie, Director of

Enforcement/Counsel, Phlx, to Nancy Sanow,

Assistant Director, Division, Commission (Jan. 11,

2001) (‘‘Amendment No. 5’’). In Amendment No. 5,

the Phlx made a few more technical corrections to

the text of the proposed rule. The Phlx also clarified

that it inadvertently indicated the addition of the

term ‘‘its’’ and the deletion of the term ‘‘their’’

between the terms ‘‘Respondent’’ and ‘‘in’’ in the

first sentence under proposed Rule 960.5(a)(1).

Telehpone conversation between Charles Falgie,

Director of Enforcement/Counsel, Phlx, and Sapna

C. Patel, Attorney, Division, Commission (Jan. 12,

2001). Because Amendment No. 5 only makes

minor technical corrections to the proposed rule

text, the Commission is not required to solicit

comments on it.

9See also Chicago Board Options Exchange, Rule

17.8. Offers of Settlement, Interpretations and

Policies .02 (discussing a similar timing guideline

for scheduling a hearing date).

10See Amendment No. 2, supra note 4; see also

Amendment No. 3, supra note 5. The Phlx

confirmed that Amendment No. 3 incorrectly

indicates that the time periods for scheduling the

hearing date and for providing a transcript of the

hearing to the Hearing Panel members and the

Respondents were initially ten days and later

amended to five days. However, these time periods

have, and will remain, five days throughout the

filing. Telephone conversation between Charles

Falgie, Director of Enforcement/Counsel, Phlx, and

Sapna C. Patel, Law Clerk, Division, Commission

(Nov. 27, 2000).

11See Amendment No. 2, supra note 4; see also

Amendment No. 3, supra note 5.

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 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 NASD. All

submissions should refer to File No.

SR–NASD–01–03 and should be

submitted by March 14, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4259 Filed 2–20–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–43952; File No. SR–Phlx–

00–13]

Self-Regulatory Organizations; Order

Granting Approval of the Proposed

Rule Change, as Amended, by the

Philadelphia Stock Exchange, Inc.

Relating to Timing Guidelines for

Application in Disciplinary Hearings

February 12, 2001.

I. Introduction

On July 13, 2000, the Philadelphia

Stock Exchange, Inc. (‘‘Phlx’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission (‘‘SEC’’ or

‘‘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

amending Phlx Rule 960.5(a), (b), (c),

and (d) to provide timing guidelines for

certain procedures conducted pursuant

to Phlx Rule 960.5. On August 23, 2000,

the Phlx filed Amendment No. 1 to the

proposed rule change.3 On November 9,

2000, the Phlx filed Amendment No. 2

to the proposed rule change.4 On

November 22, 2000, the Phlx filed

Amendment No. 3 to the proposed rule

change.5 On December 13, 2000, the

Phlx filed Amendment No. 4 to the

proposed rule change.6 Notice of the

proposal, as amended, was published in

the Federal Register on December 28,

2000.7 The Commission received no

comments on the proposal. On January

11, 2001, the Phlx filed Amendment No.

5 to the proposed rule change.8 This

order approves the proposal, as

amended.

II. Description of the Proposal

The Phlx proposes to amend Phlx

Rule 960.5 to provide timing guidelines

for certain procedures relating to

disciplinary hearings. Revised Rule

960.5 proposes to adopt a timing

guideline of 120 days for the Chair of

the Committee to schedule a hearing

date after a hearing has been requested

in the written Answer filed by a

Respondent in response to a Statement

of Charges.9 The Phlx also proposes a

five business day timing guideline 10 for

the Chair of the Committee, or its

designee, to schedule a hearing date and

name a Hearing Panel after receiving a

request from Counsel for the Exchange.

If the request for a hearing comes from

the Respondent, Counsel for the

Exchange must request that a hearing

date be set and a Hearing Panel be

named within ten business days of

receiving Respondent’s request.11

Evidence and witness lists must be

exchanged between the parties, as well

as provided to the members of the

Federal Register / Vol. 66, No. 35 / Wednesday, February 21, 2001 / Notices 11079

12See also Cincinnati Stock Exchange, Rule 8.6.

Hearings, Sub-Paragraph (b) Notice and List of

Documents (discussing a similar time frame for

parties to exchange evidence and witness lists). 13See Amendment No. 1, supra note 3. 14See Amendment No. 1, supra note 3. 15See also Pacific Exchange, Rule 10.7. Decision

(discussing a similar time frame after receipt of the

transcript in which to produce a report); see also

Amendment No. 2, supra note 4; see also

Amendment No. 3, supra note 5. 16See Amendment No. 1, supra note 3.

17See Amendment No. 1, supra note 3.

The Phlx later confirmed that the Chair of the

Committee would name the designee on behalf of

the Committee. Telephone conversation between

Charles Falgie, Director of Enforcement/Counsel,

Phlx, and Sapna C. Patel, Attorney, Division,

Commission (Jan. 31, 2001).

18The Commission has considered the proposed

rule’s impact on efficiency, competition and capital

formation. 15 U.S.C. 78c(f).

19 15 U.S.C. 78f(b).

20 15 U.S.C. 78f(b)(6).

21 15 U.S.C. 78f(b)(7).

22See supra notes 9, 12, and 15.

23 15 U.S.C. 78f(b)(6) and 15 U.S.C. 78f(b)(7).

24 15 U.S.C. 78s(b)(2).

25 17 CFR 200.30–3(a)(12).

Hearing Panel, not less than eight

business days prior to the scheduled

hearing date.12 Counsel for the

Exchange must provide a transcript of

the hearing to the Hearing Panel

members and the Respondent within

five business days of receipt of the

transcript. The Respondent, along with

being provided a copy of the transcript,

will be issued a bill for its portion of the

costs of the transcript.13 The Exchange

and the Respondent would bear equally

the costs of the transcript, which would

include, but will not be limited to, the

costs for the court reporter,

reproduction of the transcript, and

producing copies.14 The Hearing Panel,

on receipt of the transcript, would then

have forty-five days to produce a

hearing report.15 Finally, the proposed

amendments establish formal

procedures for requesting and granting

adjournments of the hearing date.

Requests would be presented in writing

to the presiding person of the Hearing

Panel and would be considered for just

cause.16

The proposed amendments also allow

the Chair of the Committee to name a

designee on behalf of the Committee.17

This is proposed for administrative

purposes, such as the Chair’s

unavailability due to illness, the need

for recusal, or other circumstances

which may arise.

III. Discussion

After careful review, the Commission

finds that the proposed rule change is

consistent with the requirements of the

Act 18 and the rules and regulations

thereunder applicable to a national

securities exchange and, in particular,

the requirements of section 6 of the

Act.19 Section 6(b)(6) of the Act 20

requires the rules of an exchange must

provide that Exchange members, and

persons associated with Exchange

members, are appropriately disciplined

for violations of the provisions of the

Act, the rules and regulations

thereunder, or the rules of the Exchange.

Section 6(b)(7) of the Act 21 provides

that there be a fair procedure for

disciplining Exchange members and

persons associated with members.

The Commission believes that the

Exchange’s codification of certain

timing guidelines relating to its

disciplinary hearing process should

foster a prompt, efficient disciplinary

process and clarify the procedures for

Exchange members and the general

public. The Exchange has represented

that, although these timing guidelines

are not expressly a part of the

Exchange’s rules, the Exchange has been

following these timing guidelines as a

part of Exchange procedure.

Furthermore, the time periods indicated

throughout Phlx Rule 960.5 are similar

to time periods employed by other

exchanges.22 The Commission believes

that, by expressly codifying these timing

guidelines for disciplinary hearings, the

Exchange will be able to impose and

monitor compliance with the guidelines

more effectively. The Commission also

believes that the proposed rule change

will improve the speed, fairness, and

efficiency of disciplinary hearings,

thereby promoting a fair procedure for

the disciplining of Exchange members

and persons associated with Exchange

members.

IV. Conclusion

For the foregoing reasons, the

Commission finds that the proposed

rule change, as amended, is consistent

with the Act and the rules and

regulations thereunder applicable to a

national securities exchange, and, in

particular, with sections 6(b)(6) and

6(b)(7).23

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,24 that the

proposed rule change, as amended (SR–

Phlx–00–13) is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.25

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–4262 Filed 2–20–01; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Privacy Act of 1974; as Amended;

Alterations to Existing Systems of

Records

AGENCY: Social Security Administration.

ACTION: Notice of minor non-substantive

changes to existing systems of records.

SUMMARY: In accordance with the

Privacy Act (5 U.S.C. 552a(b)(12)), we

are issuing public notice of our intent to

amend the following existing systems of

records to allow disclosure of personally

identifiable information to consumer

reporting agencies in accordance with

31 U.S.C. 3711(e):

• Master Beneficiary Record, 60–

0090,

• Recovery of Overpayment,

Accounting and Reporting, 60–0094;

and

• Supplemental Security Income

Record and Special Veterans Benefits,

60–0103.

We also are modifying the language in

the notice entitled, Supplemental

Security Income Record and Special

Veterans Benefits to: (1) More accurately

describe the records maintained in this

system of records, and (2) clarify

language in routine use numbered 19 for

this system of records. We invite public

comments on these proposals.

DATES: These changes are effective

immediately on February 21, 2001.

ADDRESSES: Interested individuals may

comment on this publication by writing

to the SSA Privacy Officer, Social

Security Administration, 3–A–6

Operations Building, 6401 Security

Boulevard, Baltimore, Maryland 21235–

6401. All comments received will be

available for public inspection at the

above address.

FOR FURTHER INFORMATION CONTACT: Ms.

Pamela McLaughlin, Social Insurance

Specialist, Social Security

Administration, 3–C–2 Operations

Building, 6401 Security Boulevard,

Baltimore, Maryland 21235–6401,

telephone (410) 965–3677.

SUPPLEMENTARY INFORMATION:

I. Disclosure to Consumer Reporting

Agencies

The Privacy Act of 1974, as amended,

(5 U.S.C. 552a(b)(12)) permits Federal

agencies to disclose certain information

to consumer reporting agencies in

accordance with 31 U.S.C. 3711(e)

without the consents of the individuals

to whom the information pertains. The

purpose of this disclosure is provide an

incentive for individuals to pay the

outstanding debts they owe to the

Federal government by including

information about these debts in the