[Federal Register Volume 66, Number 3 (Thursday, January 4, 2001)]
[Notices]
[Pages 837-838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-214]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43771; File No. SR-NYSE-00-33]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc., Amending NYSE Rule 15A Relating to the Intermarket Trading System

December 22, 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 July 18, 2000, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I, II and III below, which Items have been prepared by the 
Exchange. On November 30, 2000, the Exchange filed an amendment to the 
proposed rule change.\3\ As amended, the proposal is effective upon 
filing with the Commission, pursuant to section 19(b)(3)(A) of the 
Act,\4\ and Rule 19b-4(f)(6) thereunder.\5\ 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\ See November 30, 2000 letter from James E. Buck, Corporate 
Secretary, NYSE, to Joseph P. Morra, Special Counsel, Division of 
Market Regulation, Commission (``Amendment No. 1''). In Amendment 
No. 1, the NYSE asked the Commission to consider the proposal 
pursuant to Section 19(b)(3)(A) of Act and Rule 19b-4(f)(6) 
thereunder. 15 U.S.C. 78s(b)(3)(A), 17 CFR 240.19b-4(f)(6). The 
Commission has agreed to accept the original proposal as satisfying 
the 5-day pre-filing requirement pursuant to Rule 19b-4(f)(6). 17 
CFR 240.19b-4(f)(6).
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6). For purposes of calculating the 60-
day abrogation period, the Commission considers the period to begin 
as of the date the Exchange filed Amendment No. 1, November 30, 
2000.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Exchange proposes to amend NYSE Rule 15A with respect to the 
definition of ``ITS/CAES Market Maker.'' Below is the text of the 
proposed rule change. Additions are italicized and deletions are in 
brackets. NYSE Rule 15A(a)(6)
    ``ITS/CAES Market Maker'', as that term is used in the Rule, means 
a NASD member that is registered as a market maker with the NASD for 
the purposes of the Applications with respect to one or more specified 
System securities [``ITS/CAES securities'' as more fully described in 
the ITS Plan].

II. Self-Regulatory Organization's Statement of the Purposes 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

[[Page 838]]

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
    According to the Exchange, the purpose of the proposed rule change 
is to amend the definition of ``ITS/CAES Market Maker'' to eliminate 
the current reference to ``ITS/CAES securities.'' Since 1982, the 
National Association of Securities Dealers' participation in the ITS 
Plan had been limited to securities subject to SEC Rule 19c-3 (``ITS/
CAES Securities'').\6\ On December 9, 1999, the Commission adopted 
amendments to the ITS Plan to expand the ITS/CAES linkage to all listed 
securities, thus rendering unnecessary the term ``ITS/CAES 
securities.'' \7\
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    \6\ 17 CFR 240.19c-3.
    \7\ See Securities Exchange Act Release No. 42212 (December 9, 
1999), 64 FR 70297 (December 16, 1999).
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2. Statutory Basis
    The Exchange believes that the proposed amendment to NYSE Rule 15A 
is consistent with section 6(b)(5) of the Act \8\ as it is designed to 
promote just and equitable principles of trade. The Exchange also 
believes the amendment is consistent with section 11A(a)(1)(D) of the 
Act,\9\ which calls for the linking of markets for qualified 
securities.
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    \8\ 15 U.S.C. 78f(b)(5).
    \9\ 15 U.S.C. 78k-1(a)(1)(D).
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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 
impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited not received written comments on 
the proposed rule change.

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

    Because the foregoing 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 from the date on which it was 
filed, or such shorter time as the Commission may designate, it has 
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and 
Rule 19b-4(f)(6) thereunder.\11\ 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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    \10\ U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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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 NW., Washington, DC 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 File No. SR-NYSE-00-33 and should 
be submitted by January 25, 2001.

    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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Jonathan G. Katz,
Secretary.
[FR Doc. 01-214 Filed 1-3-01; 8:45 am]
BILLING CODE 8010-01-M