[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Notices]
[Pages 49983-49984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24471]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44846; File No. 4-430]


Order Extending the Deadline for the American Stock Exchange LLC, 
the Boston Stock Exchange, Inc., the Chicago Board Options Exchange, 
Inc., the Chicago Stock Exchange, Inc., the Cincinnati Stock Exchange, 
the International Securities Exchange, LLC, the National Association of 
Securities Dealers, Inc., the New York Stock Exchange, Inc., the 
Pacific Exchange, Inc., and the Philadelphia Stock Exchange, Inc. to 
Submit Rule Filings Concerning the Implementation of Decimal Pricing in 
Equity Securities and Options Pursuant to Section 11A(a)(3)(B) of the 
Securities Exchange Act of 1934

September 25, 2001.
    Notice is hereby given that, pursuant to Section 11A(a)(3)(B) of 
the Securities Exchange Act of 1934 (``Exchange Act''),\1\ the 
Securities and Exchange Commission (``Commission'') modifies its May 
22, 2001 Order \2\ to the American Stock Exchange LLC, the Boston Stock 
Exchange, Inc., the Chicago Board Options Exchange, Inc., the Chicago 
Stock Exchange, Inc., the Cincinnati Stock Exchange, the International 
Securities Exchange, LLC, the National Association of Securities 
Dealers, Inc., the New York Stock Exchange, Inc., the Pacific Exchange, 
Inc., and the Philadelphia Stock Exchange, Inc. (collectively the 
``Participants'') to extend the deadline set forth in the May 22, 2001 
Order that requires the Participants to submit rule filings to 
establish the minimum price variation (``MPV'') in each market for 
quoting equity securities and options by November 5, 2001.
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    \1\ Section 11A(a)(3)(B) authorizes the Commission, in 
furtherance of its statutory directive to facilitate the 
establishment of a national market system, by rule or order, ``to 
authorize or require self-regulatory organizations to act jointly 
with respect to matters as to which they share authority under [the 
Act] in planning, developing, operating or regulating a national 
market system (or a subsystem thereof) or one or more facilities 
thereof.'' 15 U.S.C. 78k-1(a)(3)(B).
    \2\ Securities Act Release No. 44336 (May 22, 2001), 66 FR 29368 
(May 30, 2001).
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    The Commission's May 22, 2001 Order amended a prior June 8, 2000 
Order \3\ that had established the framework for the Participants to 
convert their quotation prices in equity securities and options from 
fractions to decimals. The May 22, 2001 Order extended the deadline for 
the Participants to submit studies regarding

[[Page 49984]]

the impact of decimal pricing on systems capacity, liquidity and 
trading behavior, including an analysis of whether there should be a 
uniform price increment for securities, from June 8, 2001 to September 
10, 2001. The Order also extended the deadline for the Participants to 
submit the rule filings that would individually establish an MPV for 
each market from July 9, 2001 to November 5, 2001.
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    \3\ Securities Act Release No. 42914 (June 8, 2001), 65 FR 38010 
(June 19, 2000).
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    In view of the market disruption caused by the attacks of September 
11, 2001, the Commission believes that it is necessary and appropriate 
to extend the deadline set forth in the May 22, 2001 Order for the 
Participants to submit their rule filings. The Commission believes that 
such an extension is necessary to give the Participants adequate time 
to thoroughly analyze the important investor protection and market 
integrity issues that need to be addressed in order to preserve the 
benefits of decimalization.
    Therefore, It Is Ordered, pursuant to Section 11A(a)(3)(B) of the 
Exchange Act,\4\ that the Participants shall submit their rule filings 
pursuant to Section 19(b)(2) of the Exchange Act no later than January 
14, 2002. All other aspects of the Commission's Orders of May 22, 2001 
and June 8, 2000 remain in effect until otherwise ordered by the 
Commission.
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    \4\ 15 U.S.C. 78K-1(a)(3)(B).

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-24471 Filed 9-28-01; 8:45 am]
BILLING CODE 8010-01-P