[Federal Register Volume 66, Number 184 (Friday, September 21, 2001)]
[Notices]
[Pages 48729-48730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23618]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44808; File No. SR-CBOE-2001-50]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the Chicago Board Options 
Exchanges, Incorporated To Adopt Certain Intermarket Trading System-
Related Terms and Conditions Regarding the Temporary Use by the 
American Stock Exchange LLC of the Facilities of the New York Stock 
Exchange, Inc.

September 17, 2001.
    Pursuant to Section 19(b)(1) of the Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on September 17, 2001, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'' or ``SEC'') the proposed rule change as 
described in Items I, II and III below, which Items have been prepared 
by the Exchange. The Exchange filed the proposal pursuant to Section 
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) \4\ thereunder, which 
renders the proposal effective upon filing with the Commission.\5\ The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
    \5\ The Exchange has asked the Commission to waive the five-day 
filing notice requirement and the 30-day operational delay, pursuant 
to Rule 19b-4(f)(6). 17 CFR 240.19b-4(f)(6). See September 17, 2001 
letter from Angelo Evangelou, Attorney, Legal Division, CBOE to 
Belinda Blaine, Associated Director, Division of Market Regulation, 
SEC, and attachments.

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

[[Page 48730]]

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The CBOE proposes to adopt the terms and conditions related to the 
Intermarket Trading System (``ITS'') that were set forth in an American 
Stock Exchange (``Amex'') proposed rule change (SR-Amex-2001-78), 
regarding the temporary use by the Amex of the facilities of the New 
York Exchange, Inc. The text of the proposed rule change is available 
at the CBOE and at the Commission.

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

    In its filing with the Commission, the CBOE included statements 
concerning the purpose of and basis for its proposal and discussed any 
comments it received regarding the proposal. The text of these 
statements may be examined at the places specified in Item IV below. 
The CBOE 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 CBOE proposes to adopt all of the terms and conditions set 
forth in Securities Exchange Act Release No. 44803 (September 17, 2001) 
with respect to the ITS Plan and ITS Participants (as defined in 
Securities Exchange Act Release No. 44803).
2. Statutory Basis
    The CBOE believes the proposed rule change is consistent with the 
provisions of Section 6(b) of the Act,\6\ in general, and Section 
6(b)(5) \7\ in particular, in that it is designed to remove impediments 
to and perfect the mechanism of a free and open market in a manner 
consistent with the protection of investors and the public interest.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The CBOE does not believe that the proposed rule change will impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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) imposes 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 \8\ and 
Rule 19b-4(f)(6) thereunder.\9\ At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the five-day 
pre-filing notice requirement and accelerate the operative date. The 
Commission finds good cause to designate the proposal to become 
operative upon filing with the Commission because such designation is 
consistent with the protection of investors and the public interest. 
Acceleration of the operative date will allow CBOE to adopt the terms 
and conditions set forth in Securities Exchange Act Release No. 44803 
without unnecessary delay. For these reasons, the Commission finds good 
cause to waive the pre-filing notice requirement and to designate that 
the proposal is both effective and operative upon filing with the 
Commission.\10\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposal 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 CBOE. All submissions 
should refer to file number SR-CBOE-2001-50 and should be submitted by 
October 12, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12)
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-23618 Filed 9-20-01; 8:45 am]
BILLING CODE 8010-01-M