[Federal Register Volume 65, Number 166 (Friday, August 25, 2000)]
[Notices]
[Pages 51888-51889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21747]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43169; File No. SR-Phlx-00-76]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc., Extending the Pilot Program for Rule 98, Emergency 
Committee, Until November 17, 2000

August 17, 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 August 14, 2000, the Philadelphia Stock Exchange, Inc. (``Exchange'' 
or ``Phlx'') 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 the Exchange. The Exchange filed the proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-
4(f)(6) thereunder,\4\ 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 from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 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 is proposing to extend the pilot period for Rule 98, 
Emergency Committee, until November 17, 2000. No changes to the 
existing rule language are being proposed.

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
    On December 23, 1999, the Commission approved amendments to 
Exchange Rule 98, Emergency Committee (the ``Committee''), which 
updated the composition of the Committee to reflect the current 
governance structure of the Exchange, on a 120-day pilot basis.\5\ The 
Commission approved the amendments to Exchange Rule 98 on a pilot basis 
in order to allow the Exchange to examine the operation of the 
Committee to ensure that the Committee is not dominated by any one 
Exchange interest (e.g., On-Floor or Off-Floor interests). The 
Commission requested that the Exchange report back to the Commission on 
its views as to whether the Committee structure ensures that all 
Exchange interests are fairly represented by the Committee. The 
Commission approved an extension of the pilot program for an additional 
120 days on June 5, 2000.\6\ On July 14, 2000, the Exchange filed a 
proposed rule change to approve the amendments to Rule 98

[[Page 51889]]

on a permanent basis.\7\ In that filing, the Exchange also submitted 
its report back to the Commission addressing the representation of 
Exchange interests on the Committee. The Commission has requested that 
the Exchange file the instant proposed rule change to extend the 
current pilot program through November 17, 2000 in order to allow the 
Commission and the Exchange time to assess the Exchange's report and 
the operation of the Committee in general.
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    \5\ Securities Exchange Act Release No. 42272 (December 23, 
1999), 65 FR 153 (January 3, 2000) (SR-Phlx-99-42).
    \6\ Securities Exchange Act Release No. 42898 (June 5, 2000), 65 
FR 36879 (June 12, 2000)(SR-Phlx-00-41).
    \7\ SR-Phlx-00-63, filed with the Commission on July 14, 2000.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6(b)(5) of the Act \8\ which requires 
that the rules of an Exchange be designed to perfect the mechanisms of 
a free and open market and a national market system, and to protect 
investors and the public interest.
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    \8\ 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 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 \9\ and Rule 19b-4(f)(6) \10\ 
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 after the date of filing, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest; provided the Exchange has given the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. At any 
time within 60 days of the filing of a rule change pursuant to Section 
19(b)(3)(A) of the Act, the Commission may summarily abrogate the 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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    The Commission finds that it is appropriate to accelerate the 
effective date of the proposed rule change and to permit the proposed 
rule change to become immediately effective because the proposal simply 
extends a previously approved pilot program until November 17, 2000. 
The Commission also finds it appropriate to waive the 5-day pre-filing 
requirement. By extending the pilot program, the Commission will enable 
the Committee to be in place and operational in the event of any 
extraordinary market conditions or emergencies at the Exchange, and 
will afford the Commission and the Exchange the opportunity to assess 
the Exchange's report concerning the representation of all interests on 
the Emergency Committee.\11\
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    \11\ For purposes only of accelerating the operative date of 
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, N.W., Washington, D.C. 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 the File No. SR-Phlx-00-76 
and should be submitted by September 15, 2000.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-21747 Filed 8-24-00; 8:45 am]
BILLING CODE 8010-01-M