[Federal Register Volume 68, Number 189 (Tuesday, September 30, 2003)]
[Notices]
[Pages 56370-56371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24758]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48531; File No. SR-Phlx-2003-43]


Self-Regulatory Organizations; Order Approving Proposed Rule 
Change by the Philadelphia Stock Exchange, Inc. Relating to the 
Limitation of Liability of the Options Clearing Corporation to Exchange 
Members

September 24, 2003.
    On June 2, 2003, the Philadelphia Stock Exchange, Inc. (``Phlx'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to Exchange By-Law 12-11 to provide that the 
Options Clearing Corporation (``OCC'') will have no liability to Phlx 
members, with respect to the use, non-use, or inability to use the 
Options Intermarket Linkage (``Linkage''). The proposed rule change was 
published for comment in the Federal Register on August 19, 2003.\3\ 
The Commission received no comments on the proposal. This order 
approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 48323 (August 12, 2003), 
68 FR 49835.
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    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange \4\ and, in 
particular, the requirements of Section 6(b) of the Act \5\ and the 
rules and regulations thereunder. The Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\6\ 
which requires, among other things, that the rules of the Exchange be 
designed to foster cooperation and coordination with persons engaged in 
regulation, clearing, settling, processing information with respect to, 
and facilitating transactions in securities, to remove impediments to 
and perfect the mechanism of a free and open market and a national 
market system, and, in general, to protect investors and the public 
interest.
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    \4\ In approving this proposed rule change the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Commission notes that the Phlx, along with the other exchanges 
that are Participants in the Linkage Plan, entered

[[Page 56371]]

into an agreement with the OCC, which operates the central core or 
``hub'' to and from which all Linkage orders are routed.\7\ In the 
Agreement, the Phlx committed to file a proposed rule change with the 
Commission that would limit the liability of the OCC to Phlx members. 
The Commission believes that this proposed rule change should foster 
cooperation and promote a relationship between the Phlx and the OCC 
that is conducive to the effective operation of the Linkage.
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    \7\ Linkage Project and Facilities Management Agreement (``the 
Agreement'') (January 30, 2003).
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    It Is Therefore Ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (File No. SR-Phlx-2003-43) be, 
and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    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)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-24758 Filed 9-29-03; 8:45 am]
BILLING CODE 8010-01-P