[Federal Register Volume 66, Number 162 (Tuesday, August 21, 2001)]
[Notices]
[Pages 43924-43925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21019]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44703, File No. 4-208]


Joint Industry Plan; Notice of Filing and Order Granting 
Temporary Effectiveness of Amendment to Plan Establishing Procedures 
Under Rule 11Ac-5

August 15, 2001.
    Pursuant to section 11A(a)(3) of the Securities Exchange Act of 
1934 (``Act'') \1\ and Rule 11Aa3-2 thereunder,\2\ notice is hereby 
given that on July 11, 2001, the Chicago Board Options Exchange, Inc. 
(``CBOE'' or ``Exchange'') submitted to the Securities and Exchange 
Commission (``SEC'' or ``Commission'') an amendment to the national 
market system plan establishing procedures under Rule 11 Ac1-5 
(``Joint-SRO Plan'' or ``Plan'').\3\ The amendment proposes to add the 
CBOE as a participant to the Joint-SRO Plan. The Commission is 
publishing this notice and order to solicit comments from interested 
persons on the proposed Joint-SRO Plan amendment, and to grant 
temporary effectiveness to the proposed amendment through December 19, 
2001.
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    \1\ 15 U.S.C. 78k-1(a)(3).
    \2\ 17 CFR 240.11Aa3-2.
    \3\ On April 12, 2001, the Commission approved a national market 
system plan for the purpose of establishing procedures for market 
centers to follow in making their monthly reports available to the 
public under Exchange Act Rule 11Ac1-5. See Securities Exchange Act 
Release No. 44177 (April 12, 2001), 66 FR 19814 (April 17, 2001).
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I. Description and Purpose of the Amendment

    The current participants to the Joint-SRO Plan are the American 
Stock Exchange LLC (``Amex''), Boston Stock Exchange, Inc. (``BSE''), 
Chicago Stock Exchange, Inc. (``CHX''), Cincinnati Stock Exchange, Inc. 
(``CSE''), National Association of Securities Dealers, Inc. (``NASD''), 
New York Stock Exchange, Inc. (``NYSE''), Pacific Exchange, Inc. 
(``PCX'') and Philadelphia Stock Exchange, Inc. (``Phlx''). The 
proposed amendment would add the CBOE as a participant to the Joint-SRO 
Plan.
    The CBOE has submitted a signed copy of the Joint-SRO Plan to the 
Commission in accordance with the procedures set forth in the Plan 
regarding new participants. Section III(b) of the Joint-SRO Plan 
provides that a national securities exchange or national securities 
association may become a party to the Plan by: (i) Executing a copy of 
the Plan, as then in effect (with the only changes being the addition 
of the new participant's name in Section 11(a) of the Plan and the new 
participant's single-digit code in Section VI(a)(1) of the Plan) and 
(ii) submitting such executed plan to the Commission for approval.

II. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
Joint-SRO Plan 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, and 
all written statements with respect to the proposed Joint-SRO Plan 
amendment that are filed with the Commission, and all written 
communications relating to the proposed Joint-SRO Plan amendment 
between the Commission and any person, other than those 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 the filing also will be available at the 
principal offices of the CBOE. All submissions should refer to File No. 
4-208 and should be submitted by September 20, 2001.

III. Commission's Findings and Order Granting Accelerated Approval 
of Proposed Plan Amendment

    After careful review, the Commission finds that the proposed Joint-
SRO Plan amendment is consistent with the requirements of the Act and 
the rules and regulations thereunder.\4\ Specifically, the Commission 
believes that the proposed amendment, which permits the CBOE to become 
a participant to the Joint-SRO Plan, is consistent with the 
requirements of section 11A of the Act, and Rule 11Aa3-2 thereunder. 
The Plan establishes appropriate procedures for market centers to 
follow in making their monthly reports required pursuant to Rule 11Ac1-
5, available to the public in a uniform, readily accessible, and usable 
electronic format. The proposed amendment to include the CBOE as a 
participant in the joint-SRO Plan will contribute to the maintenance of 
fair and orderly markets and remove impediments to and perfect the 
mechanisms of a national market system by facilitating the uniform 
public disclosure of order execution information by all market centers.
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    \4\ In approving this proposed Joint-SRO Plan amendment, the 
Commission has considered the proposal's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
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    The Commission finds good cause to grant temporary effectiveness to 
the proposed Joint-SRO Plan amendment, for 120 days, until December 19, 
2001. The Commission believes that it is necessary and appropriate in 
the public interest, for the maintenance of fair and orderly markets, 
to remove impediments to, and perfect mechanisms of, a national market 
system to allow the CBOE to become a participant in the Joint-SRO Plan. 
on August 1st, the CBOE started trading QQQ (an Amex-listed exchange-
traded fund that frequently trades over 50 million shares a day). The 
CBOE represents that it intends to comply with Rule 11Ac1-5 for QQQ and 
for any other product currently subject to the Rule that the CBOE may 
trade pursuant to unlisted trading privileges (``UTP''). As a Plan 
participant, the CBOE would have timely information on the Plan 
procedures as they are formulated and modified by the participants. The 
Commission finds, therefore, that granting temporary effectiveness of 
the proposed Joint-SRO Plan amendment is appropriate and consistent 
with section 11A of the Act.\5\
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    \5\ 15 U.S.C. 78k-1.

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[[Page 43925]]

IV. Conclusion

    It is therefore ordered, pursuant to section 11A of the Act \6\ and 
Rule 11Aa3-2 thereunder,\7\ that the proposed Joint-SRO Plan amendment 
is approved for 120 days, through December 19, 2001.
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    \6\ 15 U.S.C. 78k-1.
    \7\ 17 CFR 240.11Aa3-2.

    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)(29).
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Jonathan G. Katz,
Secretary.
[FR Doc. 01-21019 Filed 8-20-01; 8:45 am]
BILLING CODE 8010-01-M