Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 15731 

16 15 U.S.C. 78q(d). 

17 17 CFR 240.17d–2. 

18 17 CFR 200.30–3(a)(34). 

1 15 U.S.C. 78s(b)(l). 

2 17 CFR 240. 19b–4. 

3Amendment No. 1 effected technical corrections 

to the proposed rule texts. 

4Amendment No. 2 effected a technical 

correction to the proposed rule text. 

5See Securities Exchange Act Release No. 55436 

(March 8, 2007), 72 FR 12639 (March, 16, 2007) 

(File No. 4–429). 

6On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating the Linkage proposed by 

Amex, CBOE, and ISE. See Securities Exchange Act 

Release No. 43086 (July 28, 2000), 65 FR 48023 

(August 4, 2000). Subsequently, Phlx, Pacific 

Exchange, Inc. (n/k/a NYSE Arca, Inc.), and BSE 

joined the Linkage Plan. See Securities Exchange 

Act Release Nos. 43573 (November 16, 2000), 65 FR 

70851 (November 28, 2000); 43574 (November 16, 

2000), 65 FR 70850 (November 28, 2000); and 49198 

(February 5, 2004), 69 FR 7029 (February 12, 2004). 

7See http://www.amex.com, http:// 

www.bostonstock.com, http://www.cboe.com, 

http://www.iseoptions.com, http://www.nyse.com, 

and http://www.phlx.com. 

8The term ‘‘member,’’ as used herein, includes 

NYSE Arca OTP Holders and OTP Firms and 

Boston Options Exchange (‘‘BOX’’) Options 

Participants. See NYSE Arca Rules 1.1(q) and 1.1(r) 

and Chapter I, Sec. 1(a)(40) of BOX Rules, 

respectively. 

9See Section 2(16) of the Linkage Plan. For the 

purposes of these proposed rule changes only, 

references to ‘‘Linkage Orders’’ herein pertain to 

Principal Acting as Agent (‘‘P/A’’) Orders and 

Principal Orders. See Section 2(16)(a) and (b) of the 

Linkage Plan, respectively, for definitions of ‘‘P/A 

Order’’ and ‘‘Principal Order.’’

that the amended plan is necessary or 

appropriate in the public interest and 

for the protection of investors, to foster 

cooperation and coordination among 

self-regulatory organizations, and to 

remove impediments to and foster the 

development of a national market 

system. In particular, the Commission 

continues to believe that the plan is an 

achievement in cooperation among the 

SRO participants, and that the plan will 

reduce unnecessary regulatory 

duplication by allocating to the 

designated SRO the responsibility for 

certain options-related sales practice 

matters that would otherwise be 

performed by multiple SROs. The plan 

promotes efficiency by reducing costs to 

firms that are members of more than one 

of the SRO participants. In addition, 

because the SRO participants coordinate 

their regulatory functions in accordance 

with the plan, the plan promotes, and 

will continue to promote, investor 

protection. 

V. Conclusion 

This order gives effect to the amended 

plan submitted to the Commission that 

is contained in File No. S7–966. The 

SRO participants shall notify all 

members affected by the amended plan 

of their rights and obligations under the 

amended plan. 

It is therefore ordered, pursuant to 

Sections 17(d) 16 of the Act, that the 

amended plan of the Amex, BSE, CBOE, 

ISE, NASD, NYSE, NYSE Arca, and Phlx 

filed pursuant to Rule 17d–2 17 is 

approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5981 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55539; File Nos. SR–Amex–

2007–21; SR–BSE–2007–07; SR–CBOE–

2007–13; SR–ISE–2007–12; SR–NYSEArca–

2007–28; SR–Phlx–2007–21] 

Self-Regulatory Organizations; 

American Stock Exchange LLC and 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Order Granting Accelerated Approval 

to Proposed Rule Changes; Boston 

Stock Exchange, Inc.; International 

Securities Exchange, LLC; NYSE Arca, 

Inc.; and Philadelphia Stock Exchange, 

Inc.: Notice of Filing and Order 

Granting Accelerated Approval to a 

Proposed Rule Change, as Amended, 

Relating to Linkage Orders 

March 27, 2007. 

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 February 

16, 2007, February 20, 2007, February 

13, 2007, February 6, 2007, March 14, 

2007, and March 14, 2007, the American 

Stock Exchange LLC (‘‘Amex’’), the 

Boston Stock Exchange, Inc. (‘‘BSE’’), 

the Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’), the 

International Securities Exchange, LLC 

(‘‘ISE’’), NYSE Arca, Inc. (‘‘NYSE 

Arca’’), and the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’) (each, an 

‘‘Exchange’’ and, collectively, the 

‘‘Exchanges’’), respectively, filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule changes as described in 

Items I and II below. On March 12, 

2007, March 13, 2007, March 19, 2007, 

and March 20, 2007, BSE, ISE, NYSE 

Arca, and Phlx, respectively, filed 

Amendment No. 1 to their proposed 

rule changes.3 On March 21, 2007, Phlx 

filed Amendment No. 2 to its proposed 

rule change.4 The Commission is 

publishing this notice to solicit 

comments on the proposed rule 

changes, as amended, from interested 

persons and is approving the proposed 

rule changes, as amended, on an 

accelerated basis. 

I. Self-Regulatory Organizations’

Statement of the Terms of Substance of 

the Proposed Rule Changes 

The Exchanges propose to amend 

their respective rules pertaining to the 

Intermarket Options Linkage 

(‘‘Linkage’’) to conform such rules to 

Joint Amendment No. 22 5 of the Plan 

for the Purpose of Creating and 

Operating an Intermarket Option 

Linkage (‘‘Linkage Plan’’).6 The text of 

the proposed rule changes are available 

at the Exchanges’ Web sites,7 the 

Exchanges’ principal offices, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organizations’

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Changes 

In its filing with the Commission, 

each Exchange included statements 

concerning the purpose of, and basis for, 

its 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 III below. The 

Exchanges have prepared summaries, 

set forth in Sections A, B, and C below, 

of the most significant aspects of such 

statements. 

A. Self-Regulatory Organizations’

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Changes 

1. Purpose 

The Exchanges propose to reduce 

certain ‘‘turn-around’’ times in the 

Linkage to 5 seconds. Specifically, if a 

member 8 of an Exchange does not 

receive a response to its Linkage Order 9

within 5 seconds, that member would 

be able to reject any response purporting 

to be an execution received thereafter. 

The member would also be able to trade 


hsrobinson on PROD1PC76 with NOTICES
15732 Federal Register / Vol. 72, No. 62 / Monday, April 2, 2007 / Notices 

10 10 Joint Amendment No. 22 to the Linkage Plan 

became summarily effective for a period not to 

exceed 120 days on March 8, 2007. See supra note 

5. 

11 11 15 U.S.C. 78f(b). 

12 2 15 U.S.C. 78f(b)(5). 

13 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

and capital formation. See U.S.C. 78c(f). 

14 15 U.S.C. 78f(b)(5). 

15 15 U.S.C. 78s(b)(2). 

16See supra note 10. 

17 17 CFR 200.30–3(a)(12). 

through the Exchange that failed to 

respond within 5 seconds. Similarly, if 

a member of one Exchange responds to 

a Linkage Order more than 5 seconds 

after receiving that order, and the 

Exchange that sent the Linkage Order 

cancels such response, the member 

would be required to cancel any 

purported trade resulting from that 

order. The Exchanges state that, as they 

have become more automated, 

experience with Linkage indicates that 

reducing the turn-around time to 5 

seconds is expected to facilitate speedy 

executions of orders while not adversely 

affecting the ability of members to make 

markets on their Exchanges. The 

Exchanges submitted the proposed rule 

changes in conjunction with Joint 

Amendment No. 22 to the Linkage 

Plan.10

2. Statutory Basis 

The Exchanges believe the proposed 

rule changes are consistent with the Act 

and the rules and regulations under the 

Act applicable to national securities 

exchanges and, in particular, the 

requirements of Section 6(b) of the 

Act.11 Specifically, the Exchanges 

believe the proposed rule changes are 

consistent with the requirements of 

Section 6(b)(5) of the Act 12 that the 

rules of an exchange be designed to 

prevent fraudulent and manipulative 

acts, to promote just and equitable 

principles of trade, 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. 

B. Self-Regulatory Organizations’

Statement on Burden on Competition 

The Exchanges believe that the 

proposed rule changes would impose no 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organizations’

Statement on Comments on the 

Proposed Rule Changes Received From 

Members, Participants or Others 

The Exchanges have neither solicited 

nor received comments on these 

proposals. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

changes are consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Numbers SR–Amex–2007–21; SR–BSE–

2007–07; SR–CBOE–2007–13; SR–ISE–

2007–12; SR–NYSEArca–2007–28; SR–

Phlx–2007–21 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Numbers SR–Amex–2007–21; SR–BSE–

2007–07; SR–CBOE–2007–13; SR–ISE–

2007–12; SR–NYSEArca–2007–28; SR–

Phlx–2007–21. These file numbers 

should be included on the subject line 

if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submissions, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

changes that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule changes 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 the filings also will be 

available for inspection and copying at 

the principal offices of the Exchanges. 

All comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Numbers SR–Amex–2007–21; SR–BSE–

2007–07; SR–CBOE–2007–13; SR–ISE–

2007–12; SR–NYSEArca–2007–28; SR–

Phlx–2007–21 and should be submitted 

on or before April 23, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Changes 

After careful consideration, the 

Commission finds that the proposed 

rule changes, as amended, are consistent 

with the requirements of the Act and the 

rules and regulations thereunder, 

applicable to national securities 

exchanges.13 In particular, the 

Commission finds that the proposals are 

consistent with the provisions of 

Section 6(b)(5) of the Act 14 in that they 

are designed to promote just and 

equitable principles of trade, 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. The Commission 

believes that reducing the time required 

by an Exchange to respond to a Linkage 

Order and reducing the amount of time 

a member sending a Linkage Order must 

wait before trading through a 

nonresponsive Exchange should 

facilitate the more timely execution of 

orders across the Exchanges. 

The Commission also finds good 

cause, pursuant to Section 19(b)(2) of 

the Act 15 for approving the proposal 

prior to the thirtieth day after the date 

of publication of the notice of the filing 

thereof in the Federal Register. Granting 

accelerated approval would facilitate 

the implementation of these changes in 

conjunction with the Joint Amendment 

No. 22 to the Linkage Plan.16

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule changes (SR–Amex–

2007–21 and SR–CBOE–2007–13) and 

proposed rule changes (SR–BSE–2007–

07; SR–ISE–2007–12; SR–NYSEArca–

2007–28; and SR–Phlx–2007–21), as 

amended, are hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5967 Filed 3–30–07; 8:45 am] 

BILLING CODE 8010–01–P 


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