[Federal Register Volume 65, Number 190 (Friday, September 29, 2000)]
[Notices]
[Pages 58584-58585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25023]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43311, File No. 4-429]


Joint Industry Plan; Notice of Filing and Order Granting 
Temporary Effectiveness of Amendment to the Options Intermarket Linkage 
Plan

September 20, 2000.
    Pursuant to section 11A(a)(3) of the Securities Exchange Act of 
1934 (``Act'') \1\ and Rule 11Aa3-2 thereunder,\2\ notice is hereby 
given that on September 20, 2000, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``SEC'' or ``Commission'') an amendment to the Options 
Intermarket Linkage Plan (``Linkage Plan'').\3\ The amendment proposes 
to add the Phlx as a participant to the Linkage Plan. The Commission is 
publishing this notice and order to solicit comments from interested 
persons on the proposed Linkage Plan amendment, and to grant temporary 
effectiveness to the proposed Linkage Plan amendment through January 
18, 2001.
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    \1\ 15 U.S.C. 78k-1(a)(3).
    \2\ 17 CFR 240.11Aa3-2.
    \3\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating an intermarket 
options market linkage proposed by the American Stock Exchange LLC 
(``Amed''), the Chicago Board Options Exchange, Inc. (``CBOE''), and 
the International Securities Exchange LLC (``ISE''). See Securities 
Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 
4, 2000).
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I. Description and Purpose of the Amendment

    The current participants to the Linkage Plan are Amex, CBOE, and 
ISE. The proposed amendment to the Linkage Plan would add the Phlx as a 
participant to the Linkage Plan. The Phlx has submitted a signed copy 
of the Linkage Plan to the Commission in accordance with the procedures 
set forth in the Linkage Plan regarding new participants. Section 4(c) 
and 5(c)(ii) of the Linkage Plan provide for the admission of new 
participants, in which eligible exchanges \4\ may become a party to the 
plan by: (i) executing a copy of the plan, as then in effect; (ii) 
effecting an amendment to the plan reflecting the addition of the new 
participant's name and obtaining the Commission's approval of the plan 
as amended to reflect the new participant; and (iii) paying the 
applicable fee.
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    \4\ The Plan defines an ``eligible exchange'' as a national 
securities exchange registered with the Commission pursuant to 
Section 6(a) of the Act, 15 U.S.C. 78f(a), that is a participant in 
the Options Clearing Corporation and a party to the Options Price 
Reporting Authority Plan.
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II. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
Linkage Plan amendment 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, and 
all written statements with respect to the proposed Linkage Plan 
amendment that are filed with the Commission, and all written 
communications relating to the proposed Linkage Plan amendment between 
the Commission and any person, other than those 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 the filing also will be available at the 
principal offices of the Phlx. All submissions should refer to File No. 
4-429 and should be submitted by October 30, 2000.

III. Commission's Findings and Order Granting Accelerated Approval 
of Proposed Plan Amendment

    After careful review, the Commission finds that the proposed 
Linkage Plan amendment is consistent with the requirements of the Act 
and the rules and regulations thereunder.\5\ Specifically, the 
Commission believes that the proposed amendment, which permits Phlx to 
become a participant to the Linkage Plan, is consistent with Section 
11A(a)(1)(D) of the Act,\6\ in which Congress found that the linking of 
all markets for qualified securities through communication and data 
processing facilities will foster efficiency, enhance competition, 
increase the information available to brokers, and investors, 
facilitate the offsetting of investors' orders, and contribute to best 
execution of such orders. The Commission believes the proposed 
amendment to include Phlx as a participant in the Linkage Plan is also 
consistent with Rule 11Aa3-2 \7\ in that it will contribute to the 
maintenance of fair and orderly markets and remove impediments to and 
perfect the mechanisms of a national market system by allowing the 
linked markets to more easily access better prices available on the 
participant exchanges.
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    \5\ In approving this proposed Linkage Plan amendment, the 
Commission has considered the proposal's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78k-1(a)(1)(D).
    \7\ 17 CFR 240.11Aa3-2.
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    The Commission finds good cause to grant temporary effectiveness to 
the proposed Linkage Plan amendment, for 120 days, until January 18, 
2001. The Commission believes that it is necessary and appropriate in 
the public interest, for the maintenance of fair and orderly markets, 
to remove impediments to, and perfect mechanisms of, a national market 
system to allow the Phlx to become a participant in the Linkage Plan. 
The Commission finds, therefore, that granting temporary effectiveness 
of the proposed Linkage Plan amendment is appropriate and consistent 
with Section 11A of the Act.\8\
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    \8\ 15 U.S.C. 78k-1.
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IV. Conclusion

    It Is Therefore Ordered, pursuant to Section 11A of the Act \9\ and 
Rule 11Aa3-2 thereunder,\10\ that the proposed Linkage Plan amendment 
is

[[Page 58585]]

approved for 120 days, through January 18, 2001.
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    \9\ 15 U.S.C. 78k-1.
    \10\ 17 CFR 240.11Aa3-2.

    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)(29).
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Margaret H. McFarland,
Deputy Secretay.
[FR Doc. 00-25023 Filed 9-28-00; 8:45 am]
BILLING CODE 8010-01-M