[Federal Register Volume 66, Number 138 (Wednesday, July 18, 2001)]
[Notices]
[Pages 37508-37509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17929]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44544; File No. SR-ISE-2001-04]


Self Regulatory Organizations; International Securities Exchange 
LLC; Order Granting Approval to Proposed Rule Change Relating To Its 
Disciplinary Procedures

July 12, 2001.
    On February 6, 2001, the International Securities Exchange LLC 
(``ISE'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to make certain changes to its

[[Page 37509]]

disciplinary rule and procedures. These changes are intended to reflect 
and facilitate the ``hybrid'' regulatory scheme resulting from the 
ISE's regulatory services agreement with NASD Regulation, Inc. 
(``NASDR'') pursuant to which, among other things, NASDR provides 
services related to conducting regulatory investigations and 
disciplinary actions.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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    The proposed rule change was published for comment in the Federal 
Register on May 29, 2001.\3\ The Commission received no comments on the 
proposal.
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    \3\ See Securities Exchange Act Release No. 44327 (May 18, 
2001), 66 FR 29188.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6 of the Act \5\ and the rules 
and regulations thereunder. The Commission finds specifically that the 
proposed rule change is consistent with Sections 6(b)(6) and 6(b)(7) of 
the Act, respectively,\6\ in that the proposed rule change satisfies 
the requirements that an Exchange's rule: (1) Provide that its members 
and persons associated with its members shall be appropriately 
disciplined for violation of the Exchange Act, the rules and 
regulations thereunder, or the rules of the exchange; and (2) provides 
a fair procedure for the disciplinary of members and persons associated 
with members.
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    \4\ In approving this proposed rule change, the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(6)-(7).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (File No. SR-ISE-2001-04) be, and 
it hereby is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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. 01-17929 Filed 7-17-01; 8:45 am]
BILLING CODE 8010-01-M