[Federal Register Volume 68, Number 86 (Monday, May 5, 2003)]
[Notices]
[Page 23784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11013]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47733; File No. 4-208]


Intermarket Trading System; Order Granting Approval of the 
Twentieth Amendment to the ITS Plan Relating to the Recognition of the 
Use by the Chicago Board Options Exchange, Inc. of the Regional 
Computer Interface and the Description of Commitment Acceptance 
Applicable to Specialists of the Boston Stock Exchange, Inc.

April 24, 2003.
    On March 14, 2003, 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 (``Twentieth Amendment'') to the restated ITS 
Plan.\3\ The proposed amendment recognized the use by the Chicago Board 
Options Exchange, Inc. (``CBOE'') of the Regional Computer Interface 
(``RCI''); and revised the description of commitment acceptance 
applicable to specialists of the Boston Stock Exchange, Inc. (``BSE''). 
Notice of the proposed amendment appeared in the Federal Register on 
April 3, 2003.\4\ 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 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''), BSE, 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'') 
(collectively, ``Participants'').
    \4\ See Securities Exchange Act Release No. 47578 (March 26, 
2003), 67 FR 16319.
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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,\5\ 
and Rule 11A3-2(c)(2) thereunder,\6\ which require among other things, 
that a plan amendment must be necessary or appropriate in the public 
interest, for the protection of investors and the maintenance of fair 
and orderly markets, and shall remove impediments to, and perfect the 
mechanisms of, a national market system. Specifically, the Commission 
believes that the plan amendment should enable the CBOE to use the 
communications network that links all the Participant markets. Further, 
the Commission believes that the proposed amendment clarifies in the 
ITS Plan those instances where an ITS transaction will be represented 
by one or more BSE Registered specialists.
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    \5\ 15 U.S.C. 78k-1(a)(1)(C)(ii) and (D).
    \6\ 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,\7\ that the proposed Twentieth Amendment be, and hereby is, 
approved.
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    \7\ 15 U.S.C. 78k-1(a)(3)(B).

    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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-11013 Filed 5-2-03; 8:45 am]
BILLING CODE 8010-01-P