13618 Federal Register / Vol. 66, No. 44 / Tuesday, March 6, 2001 / Notices

137 15 U.S.C. 78s(b)(2).

138 In approving the proposals, the Commission

has considered their impact on efficiency,

competition, and capital formation.

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

2 17 CFR 240.19b–4.

3See January 5, 2001 letter from Cindy L. Sink,

Senior Attorney, Regulatory Policy, PCX to Nancy

Sanow, Assistant Director, Division of Market

Regulation (‘‘Division’’), SEC and attachments

(‘‘Amendment No. 1’’). In response to a request

from the Division, the PCX converted the proposal

from effective upon filing pursuant to section

19(b)(3)(A) of the Act, to being considered pursuant

to Section 19(b)(2) in Amendment No. 1. 15 U.S.C.

78s(b)(3)(A). 15 U.S.C. 78s(b)(2).

4Securities Exchange Act Release No. 43846

(January 16, 2001), 66 FR 7526.

5The Commission notes that when the PCX

imposes a sanction in excess of $2,500, it must

comply with Rule 19d–1 under the Act. 17 CFR

240.19d–1.

6 In approving this rule, the Commission has

considered its impact on efficiency, competition,

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

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

8 15 U.S.C. 78f(b)(5).

thirtieth day after the date of

publication of notice of filing thereof in

the Federal Register. Amendment No. 1

to the NYSE proposal ensures that the

NYSE and NASD approaches to the

regulation of day trading margin rules

are consistent so that they can be

applied and interpreted uniformly.

Amendment No. 1 to the NASD’s rule

proposal also ensures that the NASD’s

and NYSE’s approaches to the

regulation of day trading are consistent

and provides for additional time for

firms to implement its proposed rule

change. For these reasons, the

Commission finds good cause for

accelerating approval of both

amendments.

V. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the Amendment

No. 1 to each proposed rule change,

including whether they are 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 changes 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. Copies of Amendment No. 1 to

the NYSE proposed rule change will

also be available for inspection and

copying at the principal office of the

NYSE. Copies of Amendment No. 1 to

NASD proposed rule change will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File Nos.

SR–NYSE–99–47 or SR–NASD–00–03

and should be submitted by March 27,

2001.

VI. Conclusion

It is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,137 that the

proposals SR–NYSE–99–47 and SR–

NASD–00–03 as amended, be and

hereby are approved.138

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–5402 Filed 3–5–01; 8:45 am]

BILLING CODE 6717–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44010; File No. SR–PCX–

00–37]

Self-Regulatory Organizations; the

Pacific Exchange, Inc.; Order Granting

Approval to Proposed Rule Change to

Increase Fines for Violations of

Exchange Rules Under the Exchange’s

Minor Rule Plan

February 27, 2001.

I. Introduction

On December 11, 2000, the Pacific

Exchange, Inc. (‘‘PCX’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’ or ‘‘SEC’’),

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 to increase fines

for members, floor brokers and market

makers for violating Exchange rules

under the Minor Rule Plan. The

Exchange amended the proposal on

January 8, 2001.3 The proposed rule

change was published for comment in

the Federal Register on January 23,

2001.4 The Commission received no

comments on the proposal. This order

approves the proposed rule change, as

amended.

II. Description of the Proposal

The Exchange proposes to amend PCX

Rule 10.13(k) governing Minor Rule

Plan violations to increase most of the

fines. The PCX believes the current

average Minor Rule Plan fine of $250 is

too low to deter violations of PCX rules.

The Exchange believes that an increase

in fines will more adequately sanction

violations of the PCX’s order handling

and investigating rules, many of which

are processed under the Minor Rule

Plan.

Most PCX Minor Rule Plan violations

currently specify a fine of $250 for a

first violation, $500 for a second, and

$750 for a third. Multiple violations are

calculated on a two-year basis. Under

the proposed increases, most fines will

be $1,000 for a first violation, $2,500 for

a second and $3,500 for a third,5

calculated on the same two-year basis.

Some violations, such as disruptive

conduct or abusive language on the

options floor, will be $500 for a first

violation, $2,000 for a second, and

$3,500 for a third.

Other violations, such as a member’s

failure to cooperate with a PCX

examination of its financial

responsibility or operational condition,

will be fined $2,000 for a first violation,

$4,000 for a second, and $5,000 for a

third. A member that impedes or fails to

cooperate in an Exchange investigation

will be fined $3,500 for a first violation,

$4,000 for a second, and $5,000 for a

third. Less serious violations, such as

fines for improper dress under the PCX

dress code, remain unchanged at $100

for the first violation, $200 for the

second, and $500 for the third.

Under the proposal, the Enforcement

Department would continue to exercise

its discretion under PCX Rule 10.13(f)

and take cases out of the Minor Rule

Plan to pursue them as formal

disciplinary matters if the facts or

circumstances warrant such action.

III. Discussion

The Commission has reviewed

carefully the PCX’s proposed rule

change and finds, for the reasons set

forth below, that the proposal is

consistent with the requirements of the

Act and the rules and regulations

thereunder applicable to a national

securities exchange,6 and with the

requirements of section 6(b).7 In

particular, the Commission finds the

proposal is consistent with section

6(b)(5) 8 of the Act in that it is designed

to prevent fraudulent and manipulative

acts and practices, 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

Federal Register / Vol. 66, No. 44 / Tuesday, March 6, 2001 / Notices 13619

9 15 U.S.C. 78f(b)(6).

10 15 U.S.C. 78s(b)(2).

11 17 CFR 200.30–3(a)(12).

public interest. The Commission finds

the proposal is also consistent with

section 6(b)(6) 9 of the Act, which

requires that the rules of an exchange

provide that its members and associated

persons be appropriately disciplined for

violations of the Act and the rules of the

Exchange. The Commission believes

that the proposed rule change should

assist the Exchange in exercising its

responsibilities as self-regulatory

organization to properly conduct

surveillance and to diligently monitor

its members for compliance with the

securities laws. The Commission also

believes that increasing the fines for

Minor Rule Plan violations will serve as

a deterrent, and hopefully will result in

fewer violations. The Commission

notes, however, that the Exchange must

continue to exercise its discretion under

PCX Rule 10.13(f) and pursue violations

of the rules included in the Minor Rule

Plan as formal disciplinary matters if

the facts and circumstances of the

violation warrant such action.

IV. Conclusion

It Is Therefore Ordered, pursuant to

section 19(b)(2) of the Act,10 that the

proposed rule change (SR–PCX–00–37),

as amended, is approved.

For the Commission, by the Division

of Market Regulation, pursuant to

delegated authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–5331 Filed 3–5–01; 8:45 am]

BILLING CODE 8010–1–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Economic Injury Disaster

#9K85]

State of Georgia

Bryan, Glynn, and McIntosh Counties

and the contiguous counties of Brantley,

Bulloch, Camden, Chatham, Effingham,

Evans, Liberty, Long, and Wayne in the

State of Georgia constitute an economic

injury disaster loan area as a result of

extended cold and severe freezes that

occurred between December 17, 2000

and January 7, 2001. Eligible small

businesses and small agricultural

cooperatives without credit available

elsewhere may file applications for

economic injury assistance as a result of

this disaster until the close of business

on November 26, 2001 at the address

listed below or other locally announced

locations: U.S. Small Business

Administration, Disaster Area 2 Office,

One Baltimore Place, Suite 300, Atlanta,

GA 30308.

The interest rate for eligible small

businesses and small agricultural

cooperatives is 4 percent.

The number assigned for economic

injury for the State of Georgia is 9K8500.

(Catalog of Federal Domestic Assistance

Program No. 59002.)

Dated: February 26, 2001.

John Whitmore,

Acting Administrator.

[FR Doc. 01–5333 Filed 3–5–01; 8:45 am]

BILLING CODE 8025–01–U

SMALL BUSINESS ADMINISTRATION

[Declaration of Economic Injury Disaster

#9K86]

State of Iowa

Hardin County, Iowa and the

contiguous counties of Butler, Franklin,

Hamilton, Grundy, Marshall, Story, and

Wright constitute an economic injury

disaster loan area as a result of a natural

gas explosion in the City of Hubbard on

December 7, 2000. Eligible small

businesses and small agricultural

cooperatives without credit available

elsewhere may file applications for

economic injury assistance as a result of

this disaster until the close of business

on November 26, 2001 at the address

listed below or other locally announced

locations: U.S. Small Business

Administration, Disaster Area 3 Office,

4400 Amon Carter Blvd., Suite 102, Ft.

Worth, TX 76155.

The interest rate for eligible small

businesses and small agricultural

cooperatives is 4 percent.

The number assigned for economic

injury for the State of Iowa is 9K8600.

(Catalog of Federal Domestic Assistance

Program No. 59002.)

Dated: February 26, 2001.

John Whitmore,

Acting Administrator.

[FR Doc. 01–5334 Filed 3–5–01; 8:45 am]

BILLING CODE 8025–01–U

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster #3318]

State of Mississippi

As a result of the President’s major

disaster declaration on February 23,

2001, I find that Holmes, Lowndes and

Oktibbeha Counties in the State of

Mississippi constitute a disaster area

due to damages caused by Severe

Storms and Tornadoes on February 16,

2001. Applications for loans for

physical damage as a result of this

disaster may be filed until the close of

business on April 24, 2001 and for

economic injury until the close of

business on November 23, 2001 at the

address listed below or other locally

announced locations: U.S. Small

Business Administration, Disaster Area

2 Office, One Baltimore Place, Suite

300, Atlanta, GA 30308.

In addition, applications for economic

injury loans from small businesses

located in the following contiguous

counties in Mississippi may be filed

until the specified date at the above

location: Attala, Carroll, Choctaw, Clay,

Humphreys, Leflore, Madison, Monroe,

Noxubee, Webster, Winston and Yazoo;

Lamar and Pickens counties in the State

of Alabama.

The interest rates are:

Percent

For Physical Damage:

Homeowners With Credit Available Elsewhere ..................... 7.000

Homeowners Without Credit

Available Elsewhere .............. 3.500

Businesses With Credit Available Elsewhere ..................... 8.000

Businesses and Non-Profit Organizations Without Credit

Available Elsewhere .............. 4.000

Others (Including Non-Profit Organizations) With Credit

Available Elsewhere .............. 7.000

For Economic Injury:

Businesses and Small Agricultural Cooperatives Without

Credit Available Elsewhere ... 4.000

The number assigned to this disaster

for physical damage is 331811. For

economic injury the number is 9K8300

for Mississippi, and 9K8400 for

Alabama.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008).

Dated: February 26, 2001.

Herbert L. Mitchell,

Associate Administrator, For Disaster

Assistance.

[FR Doc. 01–5332 Filed 3–5–01; 8:45 am]

BILLING CODE 8025–01–U