[Federal Register Volume 65, Number 229 (Tuesday, November 28, 2000)]
[Notices]
[Pages 70850-70851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30192]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43574, File No. 4-429]


Joint Industry Plan; Order Approving an Amendment To the Options 
Intermarket Linkage Plan to Add the Pacific Exchange, Inc. as a 
Participant

November 16, 2000.

I. Introduction

    On September 20, 2000, the Pacific Exchange, Inc. (``PCX'' or 
``Exchange'') submitted to the Securities and Exchange Commission 
(``SEC'' or ``Commission'') in accordance with section 11A of the 
Securities Exchange Act of 1934 (``Act'')\1\ and Rule 11Aa3-2 
thereunder,\2\ a proposed amendment to the Options Intermarket Linkage 
Plan (``Linkage Plan'')\3\ to become a

[[Page 70851]]

participant to the Linkage Plan. Notice of filing and an order granting 
temporary effectiveness of the proposal through January 18, 2001 was 
published in the Federal Register on September 29, 2000.\4\ The 
Commission did not receive any comments on the proposal. This order 
approves the proposed amendment on a permanent basis.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 240.11Aa3-2.
    \3\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating an intermarket 
options market linkage proposed by the American Stock Exchange LLC 
(``Amex''), the Chicago Board Options Exchange, Inc. (``CBOE''), and 
the International Securities Exchange LLC (``ISE''). See Securities 
Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 
4, 2000).
    \4\ See Securities Exchange Act Release No. 43310 (September 20, 
2000), 65 FR 58583.
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II. Discussion

    The current participants to the Linkage Plan are the Amex, CBOE, 
ISE, PCX, and Philadelphia Stock Exchange, Inc. (``Phlx'').\5\ The 
proposed amendment to the Linkage Plan would add the PCX as a 
participant to the Linkage Plan on a permanent basis. The PCX has 
submitted a signed copy of the Linkage Plan to the Commission in 
accordance with the procedures set forth in the Linkage Plan regarding 
the admission of new participants. Sections 4(c) and 5(c)(ii) of the 
Linkage Plan provide for the admission of new participants, in which 
eligible exchanges \6\ may become a party to the plan by: (i) Executing 
a copy of the plan, as then in effect; (ii) effecting an amendment to 
the plan reflecting the addition of the new participant's name and 
obtaining the Commission's approval of the plan as amended to reflect 
the new participant; and (iii) paying the applicable fee.
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    \5\ On September 20, 2000, the Commission approved the Phlx as a 
participant to the Linkage Plan on a temporary basis. See Securities 
Exchange Act Release No. 43311 (September 20, 2000), 65 FR 58584 
(September 29, 2000). The Commission notes that it is concurrently 
approving a proposed amendment approving the Phlx as a participant 
to the Linkage Plan on a permanent basis. See Securities Exchange 
Act Release No. 43573 (November 16, 2000).
    \6\ The Linkage Plan defines as ``eligible exchange'' as a 
national securities exchange registered with the Commission pursuant 
to Section 6(a) of the Act, 15 U.S.C. 78f(a), that is a participant 
in the Options Clearing Corporation and a party to the Options Price 
Reporting Authority Plan for Reporting of Consolidated Options Last 
Sale Reports and Quotation Information.
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    After careful review, the Commission finds that the proposed 
Linkage Plan amendment is consistent with the requirements of the Act 
and the rules and regulations thereunder. Specifically, the Commission 
believes that the proposed amendment, which permits the PCX to become a 
participant to the Linkage Plan, is consistent with Congress' goal, as 
set forth in section 11A(a)(1)(D) of the Act,\7\ in which Congress 
found that the linking of all markets for qualified securities through 
communication and data processing facilities will foster efficiency, 
enhance competition, increase the information available to brokers, 
dealers, and investors, facilitate the offsetting of investors' orders, 
and contribute to best execution of such orders. The Commission 
believes the proposed amendment to include PCX as a participant in the 
Linkage Plan is also consistent with Rule 11Aa3-2 \8\ under the Act in 
that it will contribute to the maintenance of fair and orderly markets 
and remove impediments to and perfect the mechanisms of a national 
market system by allowing the linked markets to more easily access 
better prices available on the participant exchanges. The Commission 
believes that it is necessary and appropriate in the public interest, 
for the maintenance of fair and orderly markets, to remove impediments 
to, and perfect mechanisms of, a national market system to allow the 
PCX to become a participant in the Linkage Plan. The Commission finds, 
therefore, that approving the proposed Linkage Plan amendment is 
appropriate and consistent with section 11A of the Act.\9\
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    \7\ 15 U.S.C. 78k-1(a)(1)(D).
    \8\ 17 CFR 240.11Aa3-2.
    \9\ 15 U.S.C. 78k-1.
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III. Conclusion

    It Is Therefore Ordered, pursuant to section 11A(a)(3)(B) of the 
Act \10\ and Rule 11Aa3-2 thereunder,\11\ that the proposed Linkage 
Plan amendment is approved and the PCX is authorized to act jointly 
with the other participants to the Linkage Plan in planning, 
developing, operating, or regulating the intermarket linkage plan as a 
means of facilitating a national market system.
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    \10\ 15 U.S.C. 78k-1(a)(3)(B).
    \11\ 17 CFR 240.11Aa3-2.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(29).
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Jonathan G. Katz,
Secretary.
[FR Doc. 00-30192 Filed 11-27-00; 8:45 am]
BILLING CODE 8010-01-M