[Federal Register Volume 66, Number 158 (Wednesday, August 15, 2001)]
[Notices]
[Pages 42904-42905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20500]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44661; File No. 4-208]


Intermarket Trading System; Notice of Filing of the Seventeenth 
Amendment to the ITS Plan Relating to Regional Computer Interface, 30-
Second Commitment Expiration, and the Principal Place of Business of 
the Boston Stock Exchange, Inc.

August 8, 2001.
    Pursuant to section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 11A3a3-2 thereunder,\2\ notice is hereby given 
that on July 16, 2001, the Intermarket Trading System Operating 
Committee (``ITSOC'') submitted to the Securities and Exchange 
Commission (``Commission'') a proposed amendment (``Seventeenth 
Amendment'') to the restated ITS Plan.\3\ The purpose of the proposed 
amendment is to: (1) Recognize the NASD's use of the Regional Computer 
Interface (``RCI'');\4\ (2) provide for a six-month pilot program for 
the use of a 30-second commitment expiration; and (3) reflect the BSE's 
new principal place of business. The Commission is publishing this 
notice to solicit comment on the proposed amendment from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 240.11Aa3-2.
    \3\ The ITS is a National Market System (``NMS'') plan, which 
was designed to facilitate intermarket trading in exchange-listed 
equity securities based on current quotation information emanating 
from the linked markets. See Securities Exchange Act Release No. 
19456 (January 27, 1983), 48 FR 4938 (February 3, 1983).
    The ITS Participants include the American Stock Exchange LLC 
(``AMEX''), the Boston Stock Exchange, Inc. (``BSE''), the Chicago 
Board Options Exchange, Inc. (``CBOE''), the Chicago Stock Exchange, 
Inc. (``CHX''), the Cincinnati Stock Exchange, Inc. (``CSE''), the 
National Association of Securities Dealers, Inc. (``NASD''), the New 
York Stock Exchange, Inc. (``NYSE''), the Pacific Exchange, Inc. 
(``PCX''), and the Philadelphia Stock Exchange, Inc. (``PHLX'') 
(``Participants'').
    \4\ ``RCI'' is defined in Section 1 (34A) of the ITS Plan as the 
``automated linkage between the System and, and collectively, the 
Regional Switches and the AMEX [Display Book Manager] DBM that, when 
implemented, will enable members located on the floors of the Amex, 
BSE, the CHX, the PSE, and the PHLX to participate in the 
Applications.''
---------------------------------------------------------------------------

I. Description of the Amendment

    The proposed amendment recognizes the NASD's use of the RCI by 
deleting references to the ``ITS/CAES Interface'' \5\ and incorporating 
NASD members registered as ITS/CAES Market Makers as part of the 
definition of ``RCI'' in section 1(34A) of the ITS Plan, thus enabling 
the NASD to use the communications network that links the exchange 
markets electronically to facilitate trades among Participant markets.
---------------------------------------------------------------------------

    \5\ See ITS Plan, Section 1(15) (defining ``ITS/CAES 
Interface''); Section 10(e)(i) (discussing ``Standard Automated 
Interfaces''); Section 11(a)(iii)(B) (discussing the ``New 
Participant's Share of Development Costs''); and Section 
11(a)(iii)(E) (regarding ``CAES Interface Costs'').
---------------------------------------------------------------------------

    In addition, the proposed amendment provides for a six-month pilot 
program for the use of a 30-second commitment expiration. Currently, 
the ITS Plan provides that the sender of the commitment may designate a 
time period during which the commitment shall be irrevocable following 
acceptance by the System.\6\ If the commitment is not accepted or 
rejected during the applicable time period (which commences to run upon 
the time stamping of the commitment when it is accepted by the System), 
the commitment is automatically canceled by the System at the end of 
the applicable time period.\7\ The two time period options currently 
available are known as ``T-1,'' which has a duration of one minute, and 
``T-2,'' which has a duration of two minutes.\8\ The proposed amendment 
would allow for a third time period option known as ``T-30S,'' which 
would have a duration of 30 seconds. This option would commence on the 
date of Commission approval of this Seventeenth Amendment, or 
immediately following installation of the T-30S functionality by the 
Securities Industry Automation Corporation (``SIAC''), whichever is 
later, and would remain available until the last trading day of the 
sixth full calendar month following such commencement.\9\
---------------------------------------------------------------------------

    \6\ See ITS Plan, Section 6(b)(i) (discussing ``Commitment 
Information, Expiration'').
    \7\ See ITS Plan, Section 6(b)(iv) (discussing ``Commitment 
Validation, Routing'').
    \8\ See note 5, supra.
    \9\ The ITSOC also proposed to either continue the T-30S option 
for one or more additional six-month periods or to make the T-30S 
option permanent. The ITSOC must determine such option by a 
unanimous vote of the ITSOC (with all representatives voting). Prior 
to any such vote, the ITSOC shall review the functioning of the 
option in terms of, but not limited to, the percentage of T-30S 
commitments that are automatically cancelled (expired) in the System 
overall and by each Participant Market.
---------------------------------------------------------------------------

    Lastly the proposed amendment amends the ITS Plan to reflect the 
BSE's new principal place of business. The BSE's principal place of 
business is 100 Franklin Street, Boston, Massachusetts 02110.

II. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed Plan

[[Page 42905]]

amendment 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 Plan amendment that are 
filed with the Commission, and all written commissions relating to the 
proposed Plan amendment 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 
proposed Plan Amendment will also be available for inspection and 
copying at the principal office of the ITS. All submissions should 
refer to File No. 4-208 and should be submitted by September 5, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(29).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-20500 Filed 8-14-01; 8:45 am]
BILLING CODE 8010-01-M