Federal Register, Volume 65 Issue 81 (Wednesday, April 26, 2000)

[Federal Register Volume 65, Number 81 (Wednesday, April 26, 2000)]
[Notices]
[Pages 24528-24529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10369]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42702, File No. SR-Phlx-00-19]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Changing the Name of the VWAP System to ``eVWAP''

April 19, 2000.
    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 March 3, 2000, the Philadelphia Stock Exchange, Inc. (``PHLX'' or 
``Exchange''), filed a proposed rule change with the Securities and 
Exchange Commission (``SEC'' or ``Commission''). The proposed rule 
change is described in Items I, II, and III below, which Items have 
been prepared by Exchange. On April 12, 2000, the Exchange filed 
Amendment No. 1 to the proposed rule change.\3\ The Exchange filed the 
proposed rule change, as amended, pursuant to section 19(b)(3)A) of the 
Act,\4\ and Rule 19b-4(f)(6) thereunder,\5\ which renders the proposed 
rule change 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See April 12, 2000 letter from Nandita Yagnik, Exchange, to 
Rebekah Liu, Special Counsel, Division of Market Regulation, SEC 
(``Amendment No. 1''). In Amendment No. 1, the Exchange requested 
that the proposed rule change be filed under Section 19(b)(3)(A) of 
the Act and Rule 19b-4(f)(6) thereunder. 15 U.S.C. 78s(b)(3)(A) and 
17 CFR 240.19b-4(f)(6). The Exchange also requested that the 
Commission waive the 5-day notice of its intent to file the proposal 
by treating the original proposed rule change as the prefiling 
notice required under Rule 19b-4(f)(6); and requested that the 
Commission waive the 30-day period before the proposal becomes 
effective to permit the proposed rule change to become immediately 
effective.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Phlx Rule 237 so that the name of an 
electronic trading system, and the name of the calculation component of 
this system, currently referred to as ``Universal Trading System,'' 
``UTS,'' ``Volume Weighted Average Price Trading System,'' ``VTS,'' 
``Volume Weighted Average Price'' and ``VWAP^TM,'' would be 
changed to ``eVWAP^TM.'' eVWAP would denote both the name of 
the system and the name of the calculation component, depending upon 
the context in which the term is used.

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 Exchange 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 Exchange 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 proposes to change the name of this electronic trading 
system and the terminology for its pricing calculation to ``eVWAP.'' 
The system, which was developed by Universal Trading Technologies 
Corporation (``UTTC''), is operated as a facility of the Exchange under 
Section 3(a)(2) of the Act. The Commission approved the Exchange's 
operation of the system on March 24, 1999.\6\
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    \6\ See Securities Exchange Act Release No. 41210 (March 24, 
1999), 64 FR 15857 (April 1, 1999) (SR-Phlx-96-14).
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    UTTC has informed the Exchange that the proposed name and reference 
changes will be consistent with and facilitate the registration of a 
certain trademark by UTTC in ``eVWAP''. The ``e'' will promote UTTC's 
branding strategy regarding the system and more clearly reflect the 
electronic character of the system and its calculation component. The 
proposed rule change does not change the substance or operation of the 
system or the calculations.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act \7\ 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 public interest.
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    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change, as 
amended, will result in any burden on competition that is 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change, as amended.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    The foregoing rule change has become effective upon filing pursuant 
to section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) \9\ 
thereunder because the proposed rule change does not (i) significantly 
affect the protection of investors or the public interest; (ii) impose 
any significant burden on competition; and (iii) become operative for 
30 days from the date on which the proposed rule change was filed, or 
such shorter time as the Commission may

[[Page 24529]]

designate. At any time within 60 days of the filing of such 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. The Commission 
finds that the proposed rule change does not affect the substantive 
operation of the Volume Weighted Average Price Trading System. In 
addition, the Commission finds that the Exchange provided the required 
prefiling written notice of its intent to file this proposed rule 
change when it filed the original proposed rule change.\10\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ In reviewing this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
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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 
Exchange. All submissions should refer to File No. SR-Phlx-00-19 and 
should be submitted by May 17, 2000.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-10369 Filed 4-25-00; 8:45 am]
BILLING CODE 8010-01-M