[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Notices]
[Pages 40773-40774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19382]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44601; File No. SR-Phlx-2001-64]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Philadelphia Stock 
Exchange, Inc. Withdrawing From the Joint-Exchange Options Plan

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 June 22, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'' 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 
Phlx. The Commission is publishing this notice to solicit comments on 
the proposed rule change from interest persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.196-5.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Phlx proposes to withdraw from the Joint-Exchange Options PLan 
(``JEOP'') \3\ upon the effectiveness of the proposed Options Listing 
Procedures Plan (``OLPP'').\4\
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    \3\ 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 
Phlx. See Securities Exchange Act Release No. 29698 (September 17, 
1991), 56 FR 48593/4 (September 25, 1991.)
    \4\ The Commission directed the Phlx, Amex, CBOE, and PCX 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 take 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) (``Order''). Pursuant to the 
Order, Amex, CBOE, PCX, and Phlx, along with the International 
Securities Exchange LLC and the The Options Clearing Corporation, 
proposed the OLPP, to replace the current JEOP. See Securities 
Exchange Act Release No. 44287 (May 10, 2001), 66 FR 27184 (May 16, 
2001).
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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 Phlx 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 Phlx 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 purpose of the proposed rule change is to effect the Exchange's 
withdrawal from the current JEOP. The Exchange proposes to make the 
withdrawal operative upon the approval of the OLPP by the Commission. 
The Commission approved the OLPP on July 6, 2001.\5\
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    \5\ See Securities Exchange Act Release No. 44521 (July 6, 
2001), 66 FR 36809 (July 13, 2001).
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    The Exchange believes that the OLPP satisfies the Commission's 
mandates concerning procedures for the certification and listing of 
options. Therefore, the parties no longer need to rely on the JEOP for 
such procedures, but rather will follow the new procedures set forth in 
the OLPP.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \6\ in general and furthers the objectives 
of Section 6(b)(5) \7\ 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 by withdrawing the Exchange from the JEOP upon the 
implementation of the OLPP.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Phlx 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; (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate; and the Exchange has 
given the Commission written notice of its intention to file the 
proposed rule change at least five business days prior to filing, or 
such shorter time as designated by the Commission, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) \9\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19-4(f)(6).
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    The Exchange has requested that the Commission acclerate the 
operative date and to waive the five day pre-filing requirement so that 
the proposed rule change may take effect upon approval of the OLPP by 
the Commission. 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 
and to waive the five day pre-filing requirement. Acceleration of the 
operative date and waiving the pre-filing requirement 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

[[Page 40774]]

operative immediately upon Commission approval of the OLPP.\10\
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    \10\ 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 person 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 
Phlx. All submissions should refer to the File No. SR-Phlx-2001-64 and 
should be submitted by August 24, 2001.

    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)(12).


Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-19382 Filed 8-2-01; 8:45 am]
BILLING CODE 8010-01-M