[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Notices]
[Pages 40759-40760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19376]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44605; File No. SR-ISE-2001-21]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the International Securities 
Exchange LLC Repealing Listing

July 27, 2001.
    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 12, 2001, the International Securities Exchange LLC 
(``Exchange'' or ``ISE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The ISE is proposing to repeal its rules providing procedures for 
the listing of new options.

[[Page 40760]]

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the ISE 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 
test of these statements may be examined at the places specified in 
Item IV below. The ISE 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
    The Exchange's application for registration as a national 
securities exchange included rules governing the listing of new options 
(``ISE Listing Rules'').\3\ With some modifications, these rules 
paralleled the Joint-Exchange Options Plan (``JEOP'') that the other 
options exchanges had filed with the Commission.\4\ These rules became 
effective upon the ISE's registration as a national securities 
exchange.\5\ Thereafter, the ISE, together with the four other options 
exchanges and the Options Clearing Corporation, submitted as Options 
Listing Procedures Plan (``OLPP'') establishing common listing 
procedures for the five exchanges.\6\ The Commission recently approved 
the OLPP,\7\ rendering the ISE Listing Rules obsolete. The purpose of 
the filing is to repeal the ISE Listing Rules.
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    \3\ See Exhibit B to Amendment No. 2 to the ISE's Form 1, filed 
with the Commission on February 17, 2000.
    \4\ In September 1991, the Commission approved the JEOP for the 
selecting, listing, challenging, and arbitrating the eligibility of 
new standardized equity options filed by the American Stock Exchange 
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE''), New 
York Stock Exchange, Inc., Pacific Exchange, Inc. (``PCX''), and the 
Philadelphia Stock Exchange, Inc. (``Phlx''). See Securities 
Exchange Act Release No. 29698 (September 17, 1991), 56 FR 48594 
(September 25, 1991).
    \5\ See Securities Exchange Act Release No. 42455 (February 24, 
2000); 65 FR 11387 (March 2, 2000).
    \6\ The Commission directed the Amex, CBOE, PCX, and Phlx to 
amend the JEOP to eliminate advance notice to other markets of the 
intention to list a new or existing option; to eliminate any 
provisions of the JEOP that prevent a market from commencing to list 
or trade any option listed on another market or an option that 
another market has expressed an intent to list; and to eliminate any 
provisions of the JEOP that allow one market to delay the 
commencement of trading of an option by another market. See Section 
IV.B.a of the Order Instituting Public Administrative Proceedings 
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934, 
Making Findings and Imposing Sanctions, Securities Exchange Act 
Release No. 43268 (September 11, 2000).
    \7\ Securities Exchange Act Release No. 44521 (July 6, 2001), 66 
FR 36809 (July 13, 2001).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \8\ in general and furthers the objectives 
of Section 6(b)(5) \9\ in particular in that it is designed to promote 
just and equitable principles of trade, remove impediments to a free 
and open market and a national market system, and protect investors and 
the public interest.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The ISE does not believe that the proposed rule change will impose 
any inappropriate burden on competition.

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

    No written comments were either solicited or received.

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)\11\ thereunder. 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\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6)\12\ does not 
become operative prior to 30 days after the date of filing or such 
shorter time as the Commission may designate if such action in 
consistent with the protection of investors and the public interest. 
Because the OLPP is now effective and the ISE Listing Rules are not 
consistent with the OLPP, the ISE requested that the Commission 
accelerate the implementation of the proposed rule change so that it 
may take effect without the five-day notice period and prior to the 30 
days specified in Rule 19b-4(f)(6)(iii).\13\ The Commission believes 
that it is consistent with the protection of investors and the public 
interest and therefore finds good cause to accelerate the operative 
date of the proposed rule change. Acceleration of the operative date 
will permit the Exchange to implement the OLPP without undue delay. For 
these reasons, the Commission finds good cause to designate that the 
proposal became operative immediately upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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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. 
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 
ISE. All submissions should refer to the File No. SR-ISE-2001-21 and 
should be submitted by August 24, 2001.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-19376 Filed 8-2-01; 8:45 am]
BILLING CODE 8010-01-M