Federal Register / Vol. 66, No. 45 / Wednesday, March 7, 2001 / Notices 13815

provision of the Act, if and to the extent

that such exemption is necessary or

appropriate in the public interest and

consistent with the protection of

investors and the purposes fairly

intended by the policy and provisions of

the Act. Applicants request an

exemption under section 6(c) from

sections 18(c) and 18(i) to permit the

Fund to issue multiple classes of shares.

4. Applicants submit that the

proposed allocation of expenses and

voting rights among multiple classes is

equitable and will not discriminate

against any group or class of

shareholders. Applicants submit that

the proposed arrangements would

permit the Fund to facilitate the

distribution of its securities and provide

investors with a broader choice of

shareholder services. Applicants assert

that their proposal does not raise the

concerns underlying section 18 of the

Act to any greater degree than open-end

investment companies’ multiple class

structures that are permitted by rule

18f–3 under the Act. Applicants state

that the Fund will comply with the

provisions of rule 18f–3 as if it were an

open-end investment company.

Early Withdrawal Charges

5. Section 23(c) of the Act provides,

in relevant part, that no registered

closed-end investment company will

purchase securities of which it is the

issuer, except: (i) On a securities

exchange or other open market; (ii)

pursuant to tenders, after reasonable

opportunity to submit tenders given to

all holders of securities of the class to

be purchased; or (iii) under other

circumstances as the Commission may

permit by rules and regulations or

orders for the protection of investors.

6. Rule 23c–3 under the Act permits

a registered closed-end investment

company (an ‘‘interval fund’’) to make

repurchase offers of between five and

twenty-five percent of its outstanding

shares at net asset value at periodic

intervals pursuant to a fundamental

policy of the interval fund. Rule 23c–

3(b)(1) under the Act provides that an

interval fund may deduct from

repurchase proceeds only a repurchase

fee, not to exceed two percent of the

proceeds, that is reasonably intended to

compensate the fund for expenses

directly related to the repurchase.

7. Section 23(c)(3) provides that the

Commission may issue an order that

would permit a closed-end investment

company to repurchase its shares in

circumstances in which the repurchase

is made in a manner or on a basis that

does not unfairly discriminate against

any holders of the class or classes of

securities to be purchased. As noted

above, section 6(c) provides that the

Commission may exempt any person,

security or transaction from any

provision of the Act, if and to the extent

that the exemption is necessary or

appropriate in the public interest and

consistent with the protection of

investors and the purposes fairly

intended by the policy and provisions of

the Act. Applicants request relief under

sections 6(c) and 23(c) from rule 23c–3

to permit them to impose EWCs on

shares submitted for repurchase that

have been held for less than a specified

period.

8. Applicants believe that the

requested relief meets the standards of

sections 6(c) and 23(c)(3). Rule 6c–10

under the Act permits open-end

investment companies to impose

CDSCs, subject to certain conditions.

Applicants state that EWCs are

functionally similar to CDSCs imposed

by open-end investment companies

under rule 6c–10. Applicants state that

EWCs may be necessary for the

Investment Adviser to recover

distribution costs. Applicants will

comply with rule 6c–10 as if that rule

applied to closed-end investment

companies. The Fund also will disclose

EWCs in accordance with the

requirements of Form N–IA concerning

CDSCs. Applicants further state that the

Fund will apply the EWC (and any

waivers or scheduled variations of the

EWC) uniformly to all shareholders in a

given class and consistently with the

requirements of rule 22d–1 under the

Act.

Asset-Based Distribution Fees

9. Section 17(d) of the Act and rule

17d–1 under the Act prohibit an

affiliated person of a registered

investment company or an affiliated

person of such person, acting as

principal, from participating in or

effecting any transaction in connection

with any joint enterprise or joint

arrangement in which the investment

company participates unless the

Commission issues an order permitting

the transaction. In reviewing

applications submitted under section

17(d) and rule 17d–1, the Commission

considers whether the participation of

the investment company in a joint

enterprise or joint arrangement is

consistent with the provisions, policies

and purposes of the Act, and the extent

to which the participation is on a basis

different from or less advantageous than

that of other participants.

10. Rule 17d–3 under the Act

provides an exemption from section

17(d) and rule 17d–1 to permit openend investment companies to enter into

distribution arrangements pursuant to

rule 12b–1 under the Act. Applicants

request an order under section 17(d) and

rule 17d–1 under the Act to permit the

Fund to impose asset-based distribution

fees. Applicants have agreed to comply

with rules 12b–1 and 17d–3 as if those

rules applied to closed-end investment

companies.

Applicants’ Condition

Applicants agree that any order

granting the requested relief will be

subject to the following condition:

Applicants will comply with the

provisions of rules 6c–10, 11a–3, 12b–

1, 17d–3, 18f–3, and 22d–1 under the

Act, as amended from time to time, as

if those rules applied to closed-end

management investment companies,

and will comply with the NASD Sales

Charge Rule, as amended from time to

time.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–5538 Filed 3–6–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

Sunshine Act Meeting, Agency Meeting

Notice is hereby given, pursuant to

the provisions of the Government in the

Sunshine Act, Pub. L. 94–409, that the

Securities and Exchange Commission

will hold the following meeting during

the week of March 5, 2001.

A closed meeting will be held on

Monday, March 5, 2001, at 2 p.m.

Commissioner Hung, as duty officer,

determined that no earlier notice thereof

was possible.

Commissioners, Counsel to the

Commissioners, the Secretary to the

Commission, and recording secretaries

will attend the closed meeting. Certain

staff members who have an interest in

the matters may also be present.

The General Counsel of the

Commission, or his designee, has

certified that, in his opinion, one or

more of the exemptions set forth in 5

U.S.C. 552b(c)(4), (8), (9)(A) and (10)

and 17 CFR 200.402(a)(4), (8), (9)(A) and

(10), permit consideration of the

scheduled matters at the closed meeting.

The subject matter of the closed

meeting will be: Institution of an

administrative proceeding of an

enforcement nature.

At times, changes in Commission

priorities require alterations in the

scheduling of meeting items. For further

information and to ascertain what, if

13816 Federal Register / Vol. 66, No. 45 / Wednesday, March 7, 2001 / Notices

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

2 17 CFR 240.19b–4.

3 17 CFR 240.19b(f)(6).

4See letter from Claire McGrath, Vice President

and Special Counsel, Amex to Nancy Sanow,

Assistant Director, Division of Market Regulation

(‘‘Division’’), Commission, dated February 26, 2001

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

Exchange deleted Commentary .01(g) from the

proposed rule text, and clarified the circumstances

under which customer orders would be routed to

the specialist instead of being automatically

executed.

any, matters have been added, deleted

or postponed, please contact:

The Office of the Secretary at (202)

942–7070.

Dated: March 2, 2001.

Jonathan G. Katz,

Secretary.

[FR Doc. 01–5675 Filed 3–5–01; 12:26 pm]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[File No. 500–1]

In the Matter of Ives Health Co. Inc.;

Order of Suspension of Trading

March 5, 2001.

It appears to the Securities and

Exchange Commission that there is a

lack of current and accurate information

concerning the securities of Ives Health

Company, Inc., an Oklahoma

corporation, with its principal place of

business in Claremore, Oklahoma.

Questions have been raised about the

adequacy and accuracy of publicly

disseminated information concerning,

among other things, a product being

marketed by Ives Health for treatment of

human immunodeficiency virus (HIV).

The Commission is of the opinion that

the public interest and the protection of

investors require a suspension of trading

in the securities of Ives Health.

Therefore, it is ordered, pursuant to

section 12(k) of the Securities Exchange

Act of 1934, that trading in the

securities of Ives Health Company, Inc.

is suspended for the period from 9:30

a.m. EST, March 5, 2001, through 11:59

p.m. EST, March 16, 2001.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–5676 Filed 3–5–01; 1:12 pm]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44013; File No. SR–AMEX–

01–05]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

American Stock Exchange LLC

Relating to Price Matching and

Improvement Enhancements to AutoEx

February 28, 2001.

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

Securities Exchange Act of 1934,1 and

Rule 19b–4 thereunder,2 notice is

hereby given that on February 12, 2001,

the American Stock Exchange LLC (the

‘‘Amex’’ or the ‘‘Exchange’’) 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 Exchange.

The Exchange has designed the

proposed rule change as constituting a

‘‘non-controversial’’ rule change under

paragraph (f)(6) of Rule 19b–4 under the

Act,3 which renders the proposal

effective upon receipt of this filing by

the Commission. On February 27, 2001,

the Exchange Commission received

Amendment No. 1 to the filing.4

The Commission is publishing this

notice to solicit comments on the

proposed rule change from interested

persons.

1. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Amex proposes to implement

price improvement enhancements to the

Exchange’s Automatic Execution

system. Below is the text of the

proposed rule change. Proposed new

language is in italics.

* * * * *

Automatic Execution of Options Orders

Rule 933

(a)–(b) No change.

Commentary

.01(a) Orders to buy or sell options

that are multiply traded on one or more

options exchanges in addition to the

Exchange will not be automatically

executed at prices inferior to the current

best bid or offer displayed by any other

options exchange, as such best bids or

offers are identified by the Exchange’s

order routing system.

(b) Customer orders in those series of

options that have been specifically

designated by the Auto-Ex

Enhancements Committee (‘‘automatic

price matching series’’), under

circumstances where the Exchange’s

best bid or offer is inferior to the current

best bid or offer displayed by another

options exchange by no more than the

‘‘price matching amount,’’ as defined

below, will be automatically executed at

the current best bid or offer displayed by

the other options exchange. If the

Exchange’s best bid or offer is inferior to

the current best bid or offer displayed by

another options exchange by more than

the price matching amount, the order

will be routed to the specialist and not

automatically executed. Only customer

orders within the order size parameters

established by the Auto-Ex

Enhancements Committee will be

eligible for automatic price matching. A

customer order that exceeds the

established order size parameter will be

routed to the specialist and not

automatically executed.

(c) Customer orders in those series of

options that have been specifically

designed by the Auto-Ex Enhancements

Committee (‘‘automatic price

improvement series’’) will be

automatically executed when the

Exchange’s best bid or offer is equal to

the current best bid or offer by the price

improvement amount, as defined below.

Only customer orders within the order

size parameters established by the AutoEx Enhancements Committee will be

eligible for automatic price

improvement. A customer order that

exceeds the established order size

parameter will be either automatically

executed at the Exchange’s best bid or

offer if it is within the Auto-Ex order

size parameters, or it will be routed to

the specialist and not automatically

executed.

(d) Notwithstanding paragraphs (b)

and (c) above, orders for automatic

price matching series or automatic price

improvement series will be routed to the

specialist and not automatically

executed in situations where: (i) the

current best bid or offer for one of the

series is crossed (e.g., 4.20 bid, 4 asked)

or locked (e.g., 4 bid, 4 asked); (ii) the

specialist in conjunction with a Floor

governor or two Floor Officials

determined quotes in such options or

options exchange(s) are not reliable; or

(iii) the Exchange is experiencing

communications or systems problems,

‘‘fast markets,’’ or delays in the

dissemination of quotes by the Options

Price Reporting Authority (‘‘OPRA’’).

Members and member organizations

will be notified when the Exchange has

determined that quotes are not reliable

and prior to one or both Auto-Ex

Enhancements being shut off and

customer orders being routed to the

specialist for execution. The specialist

will report the execution or nonexecution of such orders to the firm that