[Federal Register Volume 66, Number 198 (Friday, October 12, 2001)]
[Notices]
[Page 52159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25702]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44903; File No. 4-208]


Intermarket Trading System; Order Granting Approval 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.

October 3, 2001.
    On July 16, 2001, the Intermarket Trading System Operating 
Committee (``ITSOC'') submitted to the Securities and Exchange 
Commission (``Commission''), pursuant to Section 11A of the Securities 
Exchange Act of 1934 (``ACT''),\1\ and Rule 11A3a3-2 thereunder,\2\ a 
proposed amendment (``Seventeenth Amendment'') to the restated ITS 
Plan.\3\ The proposed amendment recognized the National Association of 
Securities Dealers, Inc.'s (``NASD'') use of the Regional Computer 
Interface (``RCI''),\4\ and provided for a six-month pilot program for 
the use of a 30-second commitment expiration. In addition, the proposed 
amendment reflected the BSE's new principal place of business. Notice 
of the proposed amendment appeared in the Federal Register on August 
15, 2001.\5\ The Commission received no comments on the proposed 
amendment. This order approves the proposed amendment.
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    \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.''
    \5\ See Securities Exchange Act Release No. 44661 (August 8, 
2001), 65 FR 42904.
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    The Commission finds that the proposed amendment is consistent with 
the Act and the rules and regulations thereunder applicable to the ITS 
and, in particular, sections 11A(a)(1)(C)(ii) and (D) of the Act,\6\ 
and Rule 11A3-2(c)(2) thereunder,\7\ which requires among other things, 
that such plan amendment is necessary or appropriate in the public 
interest, for the protection of investors and the maintenance of fair 
and orderly markets, and removes impediments to, and perfects the 
mechanisms of, a national market system. Specifically, the Commission 
believes that the plan amendment should help to enable the NASD to use 
the communications network that links all the Participant markets. In 
addition, the Commission believes that by providing a shorter 
commitment expiration option of 30-seconds as a six-month pilot 
program, the proposed amendment should foster efficiency and enhance 
competition among Participant markets.
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    \6\ 15 U.S.C. 78k-1(a)(1)(C)(ii) and (D).
    \7\ 17 CFR 240.11A3-2(c)(2).
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    It Is Therefore Ordered, pursuant to section 11A(a)(3)(B) of the 
Act,\8\ that the proposed Seventeenth Amendment be, and hereby is, 
approved.
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    \8\ 15 U.S.C. 78k-1(a)(3)(B).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(29).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-25702 Filed 10-11-01; 8:45 am]
BILLING CODE 8010-01-M