[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Notices]
[Pages 49826-49827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23826]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41838; File No. ATS-EXEMPT-99-01]


Notice of Order Granting BondNet an Exemption From Compliance 
With Regulation ATS Until October 21, 1999

September 7, 1999.
    On May 7, 1999 the Commission issued an Order granting BondNet, an 
alternative trading system operated as a division of the Bank of New 
York, an exemption from Regulation ATS until October 21, 1999 pursuant 
to Rule 301(a)(5) of the Securities Exchange Act

[[Page 49827]]

of 1934. The Order is attached as Exhibit A.
Margaret H. McFarland,
Deputy Secretary.

Exhibit A

SECURITIES AND EXCHANGE COMMISSION

[File No. ATS-EXEMPT-99-01]

May 7, 1999.

Order Granting BondNet an Exemption From Compliance With Regulation ATS 
Until October 21, 1999

    BondNet, an alternative trading system operated as a division of 
the Bank of New York, filed an application for a temporary exemption 
from Regulations ATS pursuant to Rule 301(a)(5) of the Securities 
Exchange Act of 1934 (``Exchange Act'').
    Under the new regulatory framework applicable to exchanges and 
alternative trading systems, BondNet is required to register as an 
exchange, or register as a broker-dealer and comply with Regulation 
ATS. The Commission notes that the Bank of New York is currently 
operating subject solely to regulation by banking authorities, and 
consequently, BondNet must undertake the registration process with 
the Commission and the National Association of Securities Dealers, 
Inc. to comply with Regulation ATS. Under Rule 301(a)(5) of the 
Exchange Act, the Commission may, by order, grant an exemption from 
the requirements of Regulation ATS after determining that such an 
order is consistent with the public interest, the protection of 
investors, and the removal impediments to, and perfection of the 
mechanisms of, a national market system.
    The Commission has reviewed BondNet's application for a 
temporary exemption from Regulation ATS to allow it time to fully 
comply with that rule's requirements. The Commission finds that such 
an exemption is consistent with the public interest, the protection 
of investors, and the removal of impediments to, and perfection of 
the mechanisms of, a national market system and has determined to 
grant BondNet an exemption from Regulation ATS until October 21, 
1999.
    The Commission finds good cause to grant BondNet's request for 
confidential treatment for 120 days from the date of issuance of 
this Order.
    It is therefore ordered, pursuant to Rule 301(a)(5) of the 
Exchange Act, that BondNet's exemption from Regulation ATS until 
October 21, 1999, be granted.

    By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. 99-23826 Filed 9-13-99; 8:45 am]
BILLING CODE 8010-01-M