[Federal Register Volume 63, Number 171 (Thursday, September 3, 1998)]
[Notices]
[Pages 47050-47051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23763]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40373; File No. 4-208]


Intermarket Trading System; Notice of Filing of Proposed 
Thirteenth Amendment to the ITS Plan Relating to the Elimination of the 
Requirement That the Cincinnati Stock Exchange, Inc. Submit Proposed 
Rule Changes to Its Rule 11.9 or the Description of NSTS Processing to 
Other ITS Participants for Review and Comment Prior to Filing Such 
Changes With the Securities and Exchange Commission, and Making Certain 
Technical Changes

August 27, 1998.
    Pursuant to Rule 11 Aa3-2 under the Securities Exchange Act of 1934 
(``Exchange Act'' or ``Act''), notice is hereby given that on August 
17, 1998, the Intermarket Trading System (``ITS'') submitted to the 
Securities and Exchange Commission (``Commission'') an amendment 
(``Thirteenth Amendment'') to the restated ITS Plan.\1\ The purpose of 
the amendment is to (1) eliminate the requirement that the Cincinnati 
Stock Exchange, Inc., submit proposed rule changes to its Rule 11.9 or 
the description of NSTS processing to other ITS Participants for review 
and comment prior to filing such changes with the Commission; (2) 
recognize the change in corporate name from the Pacific Stock Exchange, 
Inc. (``PSE'') to the Pacific Exchange, Inc. (``PCX''); (3) change the 
corporate address of the CSE; and (4) make a technical correction to 
Section 8(e)(iv)(D). The Commission is publishing this notice to 
solicit comments on the amendment from interested persons.
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    \1\ The ITS Plan is a National Market System (``NMS'') plan 
approved by the Commission pursuant to Section 11A of the Act and 
Rule 11Aa3-2. Exchange Act Release No. 19456 (January 27, 1983), 48 
FR 4938.
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    The ITS is a communications and order routing network linking eight 
national securities exchanges and the electronic over-the-counter 
(``OTC'') market operated by the National Association of Securities 
Dealers, Inc. (``NASD''). The ITS was designed to facilitate 
intermarket trading in exchange-listed equity securities based on 
current quotation information emanating from the linked markets.
    Participants to the ITS Plan include the American Stock Exchange, 
Inc. (``Amex''), the Boston Stock Exchange, Inc. (``BSE''), the Chicago 
Board Options Exchange, Inc. (``CBOE''), the Chicago Stock Exchange, 
Inc. (``CHX''), the Cincinnati Stock Exchange, Inc. (``CSE''), the 
NASD, the New York Stock

[[Page 47051]]

Exchange, Inc. (``NYSE''), the PCX, and the Philadelphia Stock 
Exchange, Inc. (``PHLX'').

I. Description of the Amendment

    The purpose of the amendments is to (1) eliminate the requirement 
that the CSE must submit proposed changes to its Rule 11.9 or the 
description of NSTS processing to other ITS Participants for review and 
comment prior to filing such changes with the Commission; (2) recognize 
the change in corporate name from the Pacific Stock Exchange, Inc. 
(``PSE'') to the Pacific Exchange, Inc. (``PCX''); (3) change the 
corporate address of the CSE; and (4) make a technical correction to 
Section 8(e)(iv)(D).
    The amendment concerning prior review of CSE rule changes responds 
to the Commission's request in its letter to all Participants, dated 
May 27, 1997.\2\
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    \2\ See letter from Jonathan G. Katz, Secretary, Commission, to 
ITS Participants, dated May 27, 1997.
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    To amend the second paragraph of Section 8(e)(iii) to read, in 
full, as follows: 8. Participants' Implementation Obligations. (e) CSE 
Implementation Obligations (iii) NSTS Rule Changes.
    The CSE shall not alter (A) the obligations of a Designated Dealer 
set out in CSE Rule 11.9 so as to remove the obligation of Designated 
Dealers to make continuous, two-sided markets in stocks assigned to 
them as Designated Dealers or (B) the definition of ``Contributing 
Dealer'' in CSE Rule 11.9 so as to remove the obligations of 
Contributing Dealers to provide to all NSTS Users through NSTS, during 
CSE trading hours, regular bids and offers in stocks in which they are 
registered as Contributing Dealers.
    To change all references to ``Pacific Stock Exchange'' and ``PSE'' 
to ``Pacific Exchange'' and ``PCX'', respectively. The sections to be 
amended are: Preamble, first paragraph; Section 1(33), (34A), (34B), 
Section 3, Section 6(a)(ii), Section 7(a) and Section 11(a)(iii)(E-1).
    To amend Section 3, in part, as follows: Cincinnati Stock Exchange, 
Inc. (``CSE''), registered as a national securities exchange under the 
Act and having its principal place of business at One Financial Place, 
440 South LaSalle Street, Suite 2600, Chicago, Illinois 60605.
    To cause the second sentence of subsection (e)(iv)(D) of Section 8 
to read, in full, as follows: The other Participants undertake to 
consider in good faith any such proposed interpretation with a view 
towards making a determination as anticipated by section 1(1B) that 
``Approved Dealer'' no longer excludes ``Contributing Dealers.''

II. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
amendments are 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. Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed plan amendment that are 
filed with the Commission, and all written communications relating to 
the proposed plan amendment 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 at the Commission's Public Reference Room. Copies of the 
filing will also be available for inspection and copying at the 
principal office of the ITS. All submissions should refer to File No. 
4-208 and should be submitted by September 24, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\ 17 CFR 200.30-3(a)(29).
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Jonathan G. Katz,
Secretary.
[FR Doc. 98-23763 Filed 9-2-98; 8:45 am]
BILLING CODE 8010-01-M