[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Notices]
[Pages 40756-40757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19383]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44604; File No. SR-Amex-2001-43]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Changed by the American Stock Exchange 
LLC 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 28, 2001, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') 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 2540.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The Amex proposes to withdraw its participation in the Joint-
Exchange Options Plan (``JEOP'') effective upon the approved by the 
Commission of the Options Listing Procedures Plan (``OLPP'').

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 Amex 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 Amex 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    In September 1991, the Commission approved the JEOP,\3\ which 
provided specific procedures for the selecting, listing, challenging, 
and arbitrating the eligibility of new standardized equity options. At 
the end of last year, the current options exchanges \4\ and the Options 
Clearing Corporations (``OCC'') began discussions on replacing the 
JEOP.\5\ On January 11, 2001, the five

[[Page 40757]]

options exchanges and the OCC submitted the OLPP, which sets forth new 
procedures for the listing and trading of standardized options.\6\ In 
may instances the new procedures set forth in the OLPP conflict with 
procedures in the JEOP. On July 6, 2001, the Commission approved the 
OLPPP and its procedures now govern the listing and trading of 
standardized options.\7\ Therefore, participation in the JEOP is now 
unnecessary and inappropriate. Consequently, the Exchange proposes to 
withdraw from participation in the JEOP.
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    \3\ The Amex, Chicago Board Options Exchange, Inc. (``CBOE''), 
New York Stock Exchange, Inc., Pacific Exchange, Inc. (``PCX''), and 
Philadelphia Stock Exchange, Inc. (``Phlx'') each filed the JEOP as 
a proposed rule change. See Securities Exchange Act Release No. 
29698 (September 17, 1991) 56 FR 48594 (September 25, 1991).
    \4\ The International Securities Exchange (``ISE''), which began 
trading standardized options in 2000, in adopted elements of the 
JEOP as part of its rules.
    \5\ The Commission directed the Amex, the CBOE, the PCX, and the 
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) (``Order'').
    \6\ See Securities Exchange Act Release No. 44287 (May 10, 2001) 
66 FR 27184 (May 16, 2001).
    \7\ See Securities Exchange Act Release No. 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 Amex 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 \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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    The Exchange has requested that the Commission accelerate 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 
operative immediately upon Commission approval of the OLPP.\12\
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    \12\ 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 20549-0609. 
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 
Amex. All submissions should refer to the File No. SR-Amex-2001-43 and 
should be submitted by August 24, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-19383 Filed 8-2-01; 8:45 am]
BILLING CODE 8010-01-M