[Federal Register Volume 68, Number 49 (Thursday, March 13, 2003)]
[Notices]
[Pages 12109-12110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5993]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47450; File No. SR-Amex-2003-02]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change and Amendment No. 1 Thereto by 
the American Stock Exchange LLC Relating to an Extension of the Interim 
Intermarket Linkage Program

March 5, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 27, 2003, the American Stock Exchange LLC (``Amex'' or 
``Exchange'') filed with the Securities and Exchange Commission the 
proposed rule change as described in items I and II below, which items 
have been prepared by the Amex. The Exchange submitted Amendment No. 1 
to the proposed rule change on March 4, 2003.\3\ The Exchange filed the 
proposed rule change pursuant to section 19(b)(3)(A) of the Act,\4\ and 
rule 19b-4(f)(6) thereunder,\5\ which renders the proposal effective 
upon filing with the Commission. The Commission is publishing this 
notice to solicit comments on the proposed rule change, as amended, 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See letter to Jennifer Lewis, Division of Market Regulation, 
Commission, from Jeffrey P. Burns, Assistant General Counsel, Amex, 
dated March 4, 2003 (``Amendment No. 1''). In Amendment No. 1, Amex 
proposes that the extension of its interim linkage expire on January 
31, 2003.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6). The Amex requests that the 
Commission waive the 30-day operative delay. The Amex provided the 
Commission with notice of its intention to file this proposal on 
January 22, 2003.
---------------------------------------------------------------------------

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

    The Amex proposes to extend until January 31, 2003, the pilot 
program providing for the implementation of ``interim linkages'' with 
the other option exchanges.

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

    In its filing with the Commission, the Amex included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
item IV below. The Amex 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 purpose of this proposed rule change is to request an extension 
of the ``interim'' intermarket options linkage.\6\ Currently, the 
Exchange is operating the interim linkage on a pilot basis pursuant to 
Amex rule 940. The interim linkage utilizes the Exchange's existing 
systems to facilitate the sending and receiving of order flow between 
Amex specialists and their counterparts on the other option exchanges 
as an interim step towards development of a permanent linkage in the 
options market.\7\ The Exchange now proposes that the interim linkage 
remain in effect on a pilot basis until January 31, 2003.
---------------------------------------------------------------------------

    \6\ On January 31, 2002, the Commission extended the Exchange's 
Interim Linkage until December 31, 2002. See Securities Exchange Act 
Release No. 45373 (January 31, 2002), 67 FR 5860 (February 7, 2002) 
(File No. SR-Amex-2002-03). The Commission previously approved the 
Interim Linkage, on a pilot basis, for all options exchanges. See 
Securities Exchange Act Release Nos. 43904 (January 30, 2001), 66 FR 
9112 (February 6, 2001) (File Nos. SR-ISE-00-15 and SR-CBOE-00-58); 
43986 (February 20, 2001), 66 FR 12578 (February 27, 2001) (File No. 
SR-PCX-2001-10); 44271 (May 7, 2001), 66 FR 26887 (May 15, 2001) 
(File No. SR-Amex-2001-20); and 44311 (May 16, 2001), 66 FR 28768 
(May 24, 2001) (File No. SR-Phlx-2001-52).
    \7\ The Commission approved the Plan for the Purpose of Creating 
and Operating an Intermarket Options Linkage in July 2000. See 
Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 
48023 (August 4, 2000).
---------------------------------------------------------------------------

    For the reasons stated above, the Amex requests an extension of the 
pilot program until January 31, 2003.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
section 6(b) of the Act,\8\ in general, and furthers the objectives of 
section 6(b)(5),\9\ in particular, because it should prevent fraudulent 
and manipulative acts and practices, promote just and equitable 
principles of trade, remove impediments to and perfect the mechanisms 
of a free and open market and a national market system, and, in 
general, protect investors and the public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Amex does not believe that the proposed rule change will impose 
any burden on competition.

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: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
(3) does not become operative for 30 days from the date of filing, or 
such shorter date as the Commission may designate, if consistent with 
the protection of investors and the public interest; and (4) the 
Exchange provided the Commission with notice of its intent to file the 
proposed rule change at least five days prior to the filing date, the 
proposed rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \10\ and rule 19b-4(f)(6) \11\ thereunder.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under rule 19b-4(f)(6) \12\ does not 
become operative prior to 30 days after the date of filing or such 
shorter time as the Commission may designate if such action is 
consistent with the protection of investors and the public interest. 
The Amex has requested, in order to permit the uninterrupted operation 
of the interim linkage, that the Commission accelerate the 
implementation of the proposed rule change so that it may take effect 
prior to the 30 days specified in

[[Page 12110]]

rule 19b-4(f)(6)(iii).\13\ The Commission believes waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. Acceleration of the operative date will permit 
operation of the interim options linkage to continue uninterrupted.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes of accelerating the implementation of the 
proposed rule change only, the Commission notes that it has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change 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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, 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 the Amex. All submissions should refer to File 
Number SR-Amex-2003-02 and should be submitted by April 3, 2003.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-5993 Filed 3-12-03; 8:45 am]
BILLING CODE 8010-01-P