[Federal Register Volume 65, Number 229 (Tuesday, November 28, 2000)]
[Notices]
[Pages 70851-70852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30193]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43573, File No. 4-429]


Joint Industry Plan; Order Approving an Amendment to the Options 
Intermarket Linkage Plan to Add the Philadelphia Stock Exchange, Inc. 
as a Participant

November 16, 2000.

I. Introduction

    On September 20, 2000, the Philadelphia Stock Exchange, Inc. 
(``Phlx'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``SEC'' or ``Commission'') in accordance with section 11A 
of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 11Aa3-2 
thereunder,\2\ a proposed amendment to the Options Intermarket Linkage 
Plan (``Linkage Plan'') \3\ to become a participant to the Linkage 
Plan. Notice of filing and an order granting temporary effectiveness of 
the proposal through January 18, 2001 was published in the Federal 
Register on September 29, 2000.\4\ The Commission did not receive any 
comments on the proposal. This order approves the proposed amendment on 
a permanent basis.
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    \1\ 15 U.S.C. 78k-1.
    \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 
(``Amex''), 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).
    \4\ See Securities Exchange Act Release No. 43311 (September 20, 
2000), 65 FR 58584.
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II. Discussion

    The current participants to the Linkage Plan are the Amex, CBOE, 
ISE, Pacific Exchange, Inc. (``PCX''), and Phlx.\5\ The proposed 
amendment to the Linkage Plan would add the Phlx as a participant to 
the Linkage Plan on a permanent basis. The Phlx has submitted a singed 
copy of the Linkage Plan to the Commission in accordance with the 
procedures set forth in the Linkage Plan regarding the admission of new 
participants. Sections 4(c) and 5(C)(ii) of the Linkage Plan provide 
for the admission of new participants, in which eligible exchanges \6\ 
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 Commissions 
approval of the plan as

[[Page 70852]]

amended to reflect the new participant; and (iii) paying the applicable 
fee.
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    \5\ On September 20, 2000, the Commission approved the PCX as a 
participant to the Linkage Plan on a temporary basis. See Securities 
Exchange Act Release No. 43310 (September 20, 2000), 65 FR 58583 
(September 29, 2000). The Commission notes that it is concurrently 
approving a proposed amendment approving the PCX as a participant to 
the Linkage Plan on a permanent basis. See Securities Exchange Act 
Release No. 43574 (November 16, 2000).
    \6\ The Linkage Plan defines an ``eligible exchange'' as 
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 for Reporting of Consolidated Last Sale 
Reports and Quotation Information.
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    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. Specifically, the Commission 
believes that the proposed amendment, which permits the Phlx to become 
a participant to the Linkage Plan, is consistent with Congress' goal, 
as set forth in section 11A(a)(1)(D) of the Act,\7\ 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, 
dealers, 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 the Rule 11Aa3-2 \8\ under the Act 
in that it will contribute to the maintenance of fair and orderly 
markets and remove impediments to the perfect the mechanisms of a 
national market system by allowing the linked markets to more easily 
access better prices available on the participant exchanges. The 
Commission finds, therefore, that approving the proposed Linkage Plan 
amendment is appropriate and consistent with section 11A of the Act.\9\
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    \7\ 15 U.S.C. 78k-1(a)(1)(D).
    \8\ 17 CFR 240.11Aa3-2.
    \9\ 15 U.S.C. 78-1.
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III. Conclusion

    It Is Therefore Ordered, pursuant to section 11A(a)(3)(B) of the 
Act \10\ and Rule 11Aa3-2 thereunder,\11\ that the proposed Linkage 
Plan amendment is approved and the Phlx is authorized to act jointly 
with the other participants to the Linkage Plan in planning, 
developing, operating, or regulating the intermarket linkage plan as a 
means of facilitating a national market system.
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    \10\ 15 U.S.C. 78k-1(a)(3)(B).
    \11\ 17 CFR 240.11Aa3-2.

    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)(29).
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Jonathan G. Katz,
Secretary.
[FR Doc. 00-30193 Filed 11-27-00; 8:45 am]
BILLING CODE 8010-01-M