29612 Federal Register / Vol. 66, No. 105 / Thursday, May 31, 2001 / Notices

23 15 U.S.C. 781(f).

24 15 U.S.C. 78k–1.

25 17 CFR 240.11Aa3–2(c)(2).

26 17 CFR 200.30–3(a)(29).

1 15 U.S.C. 78k–1.

2 17 CFR 240.11Aa3–2.

3OPRA is a national market system plan

approved by the Commission pursuant to Section

11A of the Exchange Act, 15 U.S.C. 78k–1, and Rule

11Aa3–2 thereunder, 17 CFR 240.11Aa3–2. See

Securities Exchange Act Release No. 17638 (March

18, 1981). The OPRA Plan provides for the

collection and dissemination of last sale and

quotation information on options that are traded on

the participant exchanges. The five categories to the

OPRA Plan that currently operate an options market

are the American Stock Exchange, the Chicago

Board Options Exchange (‘‘CBOE’’), the

International Securities Exchange (‘‘ISE’’), the

Pacific Exchange, and the Philadelphia Stock

Exchange. The New York Stock Exchange is a

signatory to the OPRA Plan, but sold its options

business to the Chicago Board Options Exchange in

1997. See Securities Exchange Act Release No.

38542 (April 23, 1997), 62 FR 23521 (April 30,

1997).

4See Letters from Robert L.D. Colby, Deputy

Director, Division of Market Regulation,

Commission, to Michael J. Simon, Senior Vice

President and General Counsel, ISE, dated May 25,

2000 and Edward J. Joyce, President, CBOE, dated

November 6, 2000.

5See Letters from Robert L.D. Colby, Deputy

Director, Division of Market Regulation,

Commission, to Michael J. Simon, Senior Vice

President and General Counsel, ISE, and Edward J.

Joyce, President, CBOE, dated May 24, 2001.

6See proposed OPRA Plan amendment, Section

V.(c)(iii)(A).

7See proposed OPRA Plan amendment, Sectioin

V.(c)(iii)(B). 8See proposed OPRA Plan amendment, Section

V.(c)(iii)(C). 9Exchange Act Rule 11Ac1–1, 17 CFR

240.11Ac1–1.

VII. Conclusion

It is Therefore Ordered, pursuant to

sections 12(f) 23 and 11A 24 of the Act

and paragraph (c)(2) of Rule 11Aa3–2 25

thereunder, that the Participants’

request to extend the effectiveness of the

Plan, as amended, for Nasdaq/NM

securities traded on an exchange on an

unlisted or listed basis through July 19,

2001, and certain exemptive relief

through July 19, 2001, is approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.26

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13631 Filed 5–30–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44347; File No. SR–OPRA–

2001–02]

Options Price Reporting Authority;

Notice of Filing of Amendment to

OPRA Plan to Permit Exchanges to

Disseminate Unconsolidated Market

Information to Certain of Their

Members

May 24, 2001.

Pursuant to section 11A of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 11Aa3–2

thereunder,2 notice is hereby given that

on April 12, 2001, the Options Price

Reporting Authority (‘‘OPRA’’),3

submitted to the Securities and

Exchange Commission (‘‘SEC’’ or

‘‘Commission’’) an amendment to the

Plan for Reporting of Consolidated

Options Last Sale Reports and

Quotation Information (‘‘OPRA Plan’’).

The amendment would permit options

exchanges to disseminate

unconsolidated market information to

certain of their members under certain

circumstances.

I. Description and Purpose of the

Amendment

The purpose of the proposed

amendment is to change the provision

of the OPRA Plan that requires the

parties to use the OPRA System as the

exclusion means for the dissemination

of options last sale reports and

quotation information (the ‘‘exclusivity

clause’’). The proposed amendment, in

part, would modify the exclusivity

clause to incorporate two conditional,

temporary exemptions from the

exclusivity clause that the Commission

previously granted to the ISE and the

CBOE.4 These exemptions, which expire

on May 26, 2001, and which the

Commission is extending today until

September 1, 2001,5 permit these two

exchanges to disseminate to all of their

members, but not to other persons,

unconsolidated market information

pertaining to options traded in their

respective markets by means of

communication networks other than the

OPRA System, subject to conditions.

The proposed amendment would

modify the exclusivity clause so that

each OPRA participant could

disseminate its own market information

by means of communication networks

separate from the OPRA System under

the following conditions. First, an

OPRA participant could disseminate its

own market information through means

separate from the OPRA System only to

other OPRA participants and to its

members to display on terminals or

workstations used by persons associated

with such members who are authorized

to enter or transmit orders or quotations

in the options market maintained by the

OPRA participant.6 This condition

means that an exchange’s market

information could not be furnished to a

customer of a member, whether over a

terminal sponsored by a member or

otherwise. Second, each member to

which an OPRA participant

disseminates its market information

would be required to have equivalent

access to consolidated options market

information disseminated by OPRA for

the same classes or series of options that

are included in the market information.7

Access would be deemed to be

‘‘equivalent’’ if the information were

equally accessible on the same terminal

or workstation. Both of these conditions

are consistent with conditions set forth

by the Commission in the exemption

letters to the ISE and CBOE.

Finally, the proposed amendment

would prohibit OPRA participants from

disseminating their market information

through means other than the OPRA

System on a more timely basis than the

same information is furnished to the

OPRA System for inclusion in the

consolidated information disseminated

by OPRA.8 While this condition is

similar to one set forth in the exemption

letters, the proposed amendment differs

materially from that in the exemption

letters because it would not consider

market information to be disseminated

more timely than information is

furnished to the OPRA System simply

because the market information

includes additional or more frequently

updated information, so long as it does

not include additional or more

frequently updated price information in

respect of the best bid or best offer for

any series of options as compared with

price information furnished to OPRA.

Accordingly, the proposed amendment

would permit an OPRA participant to

provide market information through a

network separate from the OPRA

System that is in addition to or different

from the information furnished to the

OPRA System, including information

concerning orders and quotations in the

OPRA participants’ market that do not

represent the best bid and offer and size

information that is not furnished to

OPRA.

The Quote Rule 9 requires that if an

exchange collects from responsible

brokers or dealers quotation sizes and

aggregate quotation sizes in listed

options, such exchange must make

available the aggregate quotation sizes

associated with the best bid and offer to

quotation vendors. The Commission

believes, and OPRA acknowledges, that,

absent an exemption from the Quote

Rule, an exchange may not make

available aggregate quote size through a

network separate from the OPRA

System (i.e., make available to a

quotation vendor) without also making

such information available to other

Federal Register / Vol. 66, No. 105 / Thursday, May 31, 2001 / Notices 29613

10 17 CFR 24.0.11Aa3–2. OPRA requested that the

Commission approve the amendment prior to May

26, 2001, to avoid disrupting the markets of the two

exchanges that are now operating under the

previously granted temporary exemptions, which

are scheduled to expire on that date. However, in

order to allow for a full comment period on this

proposal, the Commission has extended the

previously granted temporary exemptions for

another 90 days. See note 5, supra.

11 17 CFR 200.30–3(a)(29).

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

2 17 CFR 240.19b–4.

3The initial portfolio of securities comprising the

Select Ten Index for the first year will be the

highest dividend yielding stocks as of May 1, 2001,

and are as follows: Philip Morris Co., Inc.; Eastman

Kodak Co.; General Motors Corp.; DuPont El De

Nemours; J.P. Morgan Chase & Co.; Caterpillar Inc.;

International Paper Co.; SBC Communications, Inc.;

Proctor & Gamble Co.; and Minnesota Mining &

Manufacturing Co. The portfolio of securities will

include the ten highest dividend yielding stocks in

the DJIA for that year and the Amex will not have

any discretion in the selection process.

4See Securities Exchange Act Release No. 27753

(March 1, 1990), 55 FR 8626 (March 8, 1990) (order

approving File No. SR–Amex–89–29).

5Subject to the criteria in the prospectus

regarding the construction of the Index, the

Exchange has sole discretion regarding changes to

the Index due to annual reconstitutions and

adjustments to the Index and the multipliers of the

individual components.

6The initial listing standards for Select Ten Notes

require: (1) A minimum public distribution of one

million units; (2) a minimum of 400 shareholders;

(3) a market value of at least $4 million; and (4) a

term of at least one year. In addition, the listing

guidelines provide that the issuer have assets in

excess of $100 million, stockholder’s equity of at

least $10 million, and pre-tax income of at least

$750,000 in the last fiscal year or in two of the three

prior fiscal years. In the case of an issuer which is

unable to satisfy the earning criteria stated in

Section 101 of the Company Guide, the Exchange

will require the issuer to have the following: (1)

Assets in excess of $200 million and stockholders’

equity of at least $10 million; or (2) assets in excess

of $100 million and stockholder’s equity of at least

$20 million.

7The Exchange’s continued listing guidelines are

set forth in Sections 1001 through 1003 of Part 10

Continued

quotation vendors through the OPRA

System.

By modifying the OPRA Plan to

incorporate the previously granted

exemptions from the OPRA Plan’s

exclusivity clause, OPRA believes that

the proposed amendment would place

all of the parties to the OPRA Plan on

equal footing with respect to the right to

disseminate their market data to their

members. OPRA believes that this

would allow any of the parties to the

OPRA Plan to make market information

available to those of its members who

enter or transmit orders or quotes in or

to its market, while at the same time

assuring that all persons who have

access to market information also have

equal access to consolidated market

information disseminated by OPRA.

OPRA represents that because parties

that operate an electronic market or an

electronic trading facility must be

allowed to disseminate market

information to their members who enter

orders or quotes in their markets, the

proposed amendment would provide

parties who do not maintain such

electronic facilities with the same right

to disseminate market information to

their members, thereby fostering fair

and equal competition among all of the

parties.

II. Implementation of Amendment

The proposed amendment will be

effective upon its approval by the

Commission pursuant to Rule 11Aa3–2

of the Act.10

III. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing,

including whether the proposed OPRA

Plan Amendment 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, and all written

statements with respect to the proposed

OPRA Plan amendment that are filed

with the Commission, and all written

communications relating to the

proposed OPRA Plan amendment

between the Commission and any

person, other than those 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 filing also will be

available at the principal offices of

OPRA. All submissions should refer to

File No. SR–OPRA–2001–02 and should

be submitted by June 21, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13635 Filed 5–30–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44342; File No. SR–Amex–

2001–28]

Self Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of a Proposed

Rule Change by the American Stock

Exchange LLC Relating to the Listing

and Trading of Select Ten Notes

May 23, 2001.

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 May 7,

2001, the American Stock Exchange LLC

(‘‘Amex’’ or ‘‘Exchange’’) filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I and

II below, which Items have been

prepared by the Exchange. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons and is

approving the proposal on an

accelerated basis.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Amex proposes to list and trade

notes, the return on which is based

upon an equal-dollar weighted portfolio

of securities representing the ten highest

dividend yielding stocks in the Dow

Jones Industrial Average (‘‘DJIA’’) from

year to year (the ‘‘Select Ten Index’’ or

‘‘Index’’).3

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 III below. The Exchange 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

Under section 107A of the Amex

Company Guide (‘‘Company Guide’’),

the Exchange may approve for listing

and trading securities which cannot be

readily categorized under the listing

criteria for common and preferred

stocks, bonds, debentures, or warrants.4

The Amex proposes to list for trading

under section 107A of the Company

Guide notes based on the Select Ten

Index (the ‘‘Select Ten Notes’’ or

‘‘Notes’’). The Select Ten Index will be

determined, calculated and maintained

solely by the Amex.5

The Select Ten Notes will conform to

the initial listing guidelines under

Section 107 6 and continued listing

guidelines under sections 1001–1003 7