[Federal Register Volume 66, Number 111 (Friday, June 8, 2001)]
[Notices]
[Pages 30970-30971]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14461]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44382; File No. SR-Phlx-2001-55]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Relating to Short Sales

June 1, 2001.
    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 May 16, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items the Phlx has prepared. 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.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Phlx proposes to amend Phlx Rule 455, Short Sales, by adding 
new Supplementary Material .01. The text of the proposed rule change is 
below, with new language in italics.
Rule 455. Short Sales
    (a)-(d) No change.
Supplementary Material
    .01  This Rule 455 shall not prohibit any transaction or 
transactions which the Commission, upon written request or upon its 
motion, exempts, either unconditionally or on specified terms and 
conditions.

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 Phlx 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 Phlx 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
    Rule 10a-1 under the Act \3\ addresses short selling. Subsection 
(f) of Rule 10a-1 provides that Rule 10a-1 shall not prohibit any 
transaction or transactions that the Commission, upon written request 
or upon its own motion, exempts, either unconditionally or on specified 
terms and conditions.
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    \3\ 17 CFR 240.10a-1. See also Securities Exchange Act Release 
No. 42037 (October 20, 1999), 64 FR 57996 (October 28, 1999) 
(Concept Release on Short Sales).
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    Phlx Rule 455 also addresses short selling. proposed Supplementary 
Material .01 of Phlx Rule 455 would track the language of Rule 10a-1(f) 
to clarify that nothing in Phlx Rule 455 prohibits any transaction or 
transactions that the Commission has exempted from Rule 10a-1 pursuant 
to Rule 10a-1(f).
2. Statutory Basis
    The Phlx believes the proposed rule change is consistent with the 
provisions of Section 6(b) of the Act \4\ and furthers the objectives 
of Section 6(b)(5) of the Act \5\ in that it is designed to perfect the 
mechanisms of a free and open market and the national market system, 
protect investors and the public interest and promote just and 
equitable principles of trade by clarifying and describing clearly in 
the Phlx's rules that nothing in Phlx Rule 455 prohibits any 
transaction or transactions which the Commission, upon written request 
or upon its own motion, has exempted pursuant to Rule 10a-1(f).
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    \4\ 15 U.S.C. 78f(b).
    \5\ 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

[[Page 30971]]

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 Phlx neither solicited nor received any written comments.

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

    The proposed rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \6\ and subparagraph (f)(1) of Rule 19b-4 
thereunder \7\ because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. At any time within 60 days of the 
filing of the 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(i).
    \7\ 17 CFR 240.19b-4(f)(1).
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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 proposal 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 amendment, all written statement 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 that 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 Phlx. All 
submissions should refer to file number SR-Phlx-2001-55 and should be 
submitted by June 29, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-14461 Filed 6-7-01; 8:45 am]
BILLING CODE 8010-01-M