53030 Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Notices 

1On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket options 

market linkage (‘‘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, PCX, 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). 

2A ‘‘Principal Order’’ is an order for the principal 

account of an eligible market maker that does not 

relate to a customer order the market maker is 

holding. See Section 2(16)(b) of the Linkage Plan. 

3Specified in Section 8(b)(iii) of the Linkage Plan. 

4See Securities Exchange Act Release No. 52074 

(July 20, 2005), 70 FR 43469. 

10 15 U.S.C. 78k–1. 

11 17 CFR 240.11Aa3–2. 

12 15 U.S.C. 78k–1. 

13 17 CFR 240.11Aa3–2. 

14 17 CFR 200.30–3(a)(29). 

Council in securing private sector 

participation in its activities. The 

Council members are distinguished 

individuals appointed by the President 

from non-Federal sectors. The PCAST is 

co-chaired by Dr. John H. Marburger, III, 

the Director of the Office of Science and 

Technology Policy, and by E. Floyd 

Kvamme, a Partner at Kleiner Perkins 

Caufield & Byers. 

Stanley S. Sokul, 

General Counsel, Office of Science and 

Technology Policy. 

[FR Doc. 05–17595 Filed 9–2–05; 8:45 am] 

BILLING CODE 3170–W4–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52350; File No. 4–429] 

Joint Industry Plan; Order Approving 

Amendment No. 17 to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage Regarding 

Modifying the 80/20 Test for 

Determining Limitations on Principal 

Order Access to Linkage 

August 26, 2005. 

I. Introduction 

On April 20, 2005, May 20, 2005, May 

12, 2005, April 13, 2005, April 27, 2005 

and May 11, 2005, the American Stock 

Exchange LLC (‘‘Amex’’), the Boston 

Stock Exchange, Inc. (‘‘BSE’’), the 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’), the 

International Securities Exchange 

(‘‘ISE’’), the Pacific Exchange, Inc. 

(‘‘PCX’’), and the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’) (collectively, 

‘‘Participants’’), respectively, filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) Joint 

Amendment No. 17 to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage (‘‘Linkage 

Plan’’).1 In Joint Amendment No. 17, the 

Participants propose to modify the 80/ 

20 Test to determine limitations on 

Principal Order 2 access to Linkage.3

The proposed amendment to the 

Linkage Plan was published in the 

Federal Register on July 27, 2005.4 No 

comments were received on the 

proposed amendment. This order 

approves the proposed amendment to 

the Linkage Plan. 

II. Description and Purpose of the 

Proposed Amendment 

The purpose of the Joint Amendment 

is to modify the 80/20 Test contained in 

Section 8(b)(iii) of the Linkage Plan, 

which provides that market makers 

should send Principal Orders through 

the Linkage on a limited basis and not 

as a primary aspect of their business. 

The 80/20 Test implements this general 

principle by prohibiting a market maker 

from sending Principal Orders in an 

eligible option class if, in the last 

calendar quarter, the market maker’s 

Principal Order contract volume is 

disproportionate to the market maker’s 

contract volume executed against 

customer orders in its own market. 

The Participants have expressed 

concern that the application of the 80/ 

20 Test has resulted in anomalies for 

market makers with limited volume in 

an eligible option class. Specifically, if 

a market maker has very little overall 

trading volume in an option, the 

execution of one or two Principal 

Orders during a calendar quarter could 

result in the market maker failing to 

meet the 80/20 Test. This would bar the 

market maker from using the Linkage to 

send Principal Orders for the following 

calendar quarter. The Participants 

contend that it was not their intent to 

bar market makers with limited volume 

from sending Principal Orders through 

the Linkage in these circumstances 

since such trading clearly was not ‘‘a 

primary aspect of their business.’’ Thus, 

in Joint Amendment No. 17, the 

Participants propose to create a de 

minimis exemption from the 80/20 Test 

for market makers that have total 

contract volume of less than 1,000 

contracts in an options class for a 

calendar quarter. 

III. Discussion 

After careful consideration, the 

Commission finds that the proposed 

amendment to the Linkage Plan seeking 

to create a de minimis exception to the 

80/20 Test is consistent with the 

requirements of the Act and the rules 

and regulations thereunder. 

Specifically, the Commission finds that 

the proposed amendment to the Linkage 

Plan is consistent with Section 11A of 

the Act 10 and Rule 11Aa3–2 

thereunder,11 in that it will increase the 

availability of Linkage to members of 

the Participants by limiting the 

applicability of the 80/20 Test in 

situations where market makers have 

minimal trading volume in a particular 

options class. 

The Commission recognizes that the 

Participants do not believe that it is 

necessary to bar market makers with 

limited volume from sending Principal 

Orders through the Linkage, as such 

trading does not raise concerns that a 

member is sending such orders as ‘‘a 

primary aspect of their business.’’ The 

Commission believes that the de 

minimis exemption from the 80/20 Test 

proposed by the Participants for market 

makers that have total contract volume 

of less than 1,000 contracts in an 

options class for a calendar quarter 

should ensure that market makers with 

relatively low volume in a particular 

options class can send a reasonable 

number of Principal Orders without 

being barred by application of the 80/20 

Test from using the Linkage in the 

following calendar quarter. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act 12 and Rule 

11Aa3–2 thereunder,13 that the 

proposed Joint Amendment No. 17 is 

hereby approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Margaret H. McFarland, 

Deputy Secretary. 

[FR Doc. E5–4835 Filed 9–2–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Pub. L. 94–409, that the 

Securities and Exchange Commission 

will hold the following meeting during 

the week of September 5, 2005: 

A Closed Meeting will be held on 

Wednesday, September 7, 2005 at 10 

a.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Notices 53031 

13 17 CFR 240.11Aa3–2. 14 17 CFR 200.30–3(a)(29). 1FirstEnergy’s other public utility subsidiaries 

are Jersey Central Power & Light Company, 

Pennsylvania Electric Company, Metropolitan 

Edison Company, York Haven Power Company, The 

Waverly Electric Power & Light Company and 

American Transmission Systems, Incorporated. 

These companies are not applicants in this 

proceeding. 

2The Utility Subsidiaries do not propose to 

transfer their remaining percentage ownership 

interests in certain fossil-fuel units that are not now 

being leased by FE GenCo. 

staff members who have an interest in 

the matters may also be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), (9)(B), and 

(10) and 17 CFR 200.402(a) (3), (5), (7), 

9(ii) and (10) permit consideration of 

the scheduled matters at the Closed 

Meeting. 

Commissioner Nazareth, as duty 

officer, voted to consider the items 

listed for the closed meeting in closed 

session. 

The subject matters of the Closed 

Meeting scheduled for Wednesday, 

September 7, 2005, will be: 

Formal orders of investigations; 

Institution and settlement of 

injunctive actions; and 

Institution and settlement of 

administrative proceedings of an 

enforcement nature. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: August 31, 2005. 

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–17660 Filed 8–31–05; 4:58 pm] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 35–28021] 

Filings Under the Public Utility Holding 

Company Act of 1935, as Amended 

(‘‘Act’’) 

August 30, 2005 

Notice is hereby given that the 

following filing(s) has/have been made 

with the Commission pursuant to 

provisions of the Act and rules 

promulgated under the Act. All 

interested persons are referred to the 

application(s) and/or declaration(s) for 

complete statements of the proposed 

transaction(s) summarized below. The 

application(s) and/or declaration(s) and 

any amendment(s) is/are available for 

public inspection through the 

Commission’s Branch of Public 

Reference. 

Interested persons wishing to 

comment or request a hearing on the 

application(s) and/or declaration(s) 

should submit their views in writing by 

September 26, 2005, to the Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9303, and serve a copy on the 

relevant applicant(s) and/or declarant(s) 

at the address(es) specified below. Proof 

of service (by affidavit or, in the case of 

an attorney at law, by certificate) should 

be filed with the request. Any request 

for hearing should identify specifically 

the issues of facts or law that are 

disputed. A person who so requests will 

be notified of any hearing, if ordered, 

and will receive a copy of any notice or 

order issued in the matter. After 

September 26, 2005, the application(s) 

and/or declaration(s), as filed or as 

amended, may be granted and/or 

permitted to become effective. 

FirstEnergy Corp., et al. (70–10307) 

FirstEnergy Corp., (‘‘FirstEnergy’’), a 

registered holding company; its public 

utility subsidiaries: Ohio Edison 

Company, an Ohio corporation (‘‘Ohio 

Edison’’); The Cleveland Electric 

Illuminating Company, an Ohio 

corporation (‘‘Cleveland Electric’’); The 

Toledo Edison Company, an Ohio 

corporation (‘‘Toledo Edison’’); and 

Pennsylvania Power Company, a 

Pennsylvania corporation and wholly 

owned subsidiary of Ohio Edison, 

(‘‘Penn Power’’), collectively, ‘‘Utility 

Subsidiaries;’’ all of 76 South Main 

Street, Akron, Ohio 44308, have filed an 

application-declaration, as amended 

(‘‘Application’’) under sections 9(a), 10 

and 12(b) of the Act and rule 45 under 

the Act. FirstEnergy and the Utility 

Subsidiaries are referred to as 

‘‘Applicants.’’ FirstEnergy directly owns 

all of the outstanding common stock of 

Ohio Edison, Cleveland Electric, Toledo 

Edison, and indirectly through Ohio 

Edison owns all of the outstanding 

common stock of Penn Power’’.1

Ohio Edison was organized under the 

laws of the State of Ohio in 1930 and 

owns property and does business as an 

electric public utility in that state. Ohio 

Edison also has ownership interests in 

certain generating facilities located in 

the Commonwealth of Pennsylvania. 

Ohio Edison engages in the generation, 

distribution and sale of electric energy 

to communities in a 7,500 square mile 

area of central and northeastern Ohio 

having a population of approximately 

2.8 million. 

Ohio Edison owns all of Penn Power’s 

outstanding common stock. Penn Power 

was organized under the laws of the 

Commonwealth of Pennsylvania in 1930 

and owns property and does business as 

an electric public utility in that state. 

Penn Power is also authorized to do 

business and owns property in the State 

of Ohio. Penn Power furnishes electric 

service to communities in a 1,500 

square mile area of western 

Pennsylvania having a population of 

approximately 300,000. 

Cleveland Electric was organized 

under the laws of the State of Ohio in 

1892 and does business as an electric 

public utility in that state. Cleveland 

Electric engages in the generation, 

distribution and sale of electric energy 

in an area of approximately 1,700 square 

miles in northeastern Ohio having a 

population of approximately 1.9 

million. It also has ownership interests 

in certain generating facilities located in 

Pennsylvania. 

Toledo Edison was organized under 

the laws of the State of Ohio in 1901 

and does business as an electric public 

utility in that state. Toledo Edison 

engages in the generation, distribution 

and sale of electric energy in an area of 

approximately 2,500 square miles in 

northwestern Ohio having a population 

of approximately 800,000. It also has 

interests in certain generating facilities 

located in Pennsylvania. 

Requested Authorization 

Applicants request authorization for 

certain transactions that are related to 

the sale of their respective interests in 

certain fossil-fuel and hydroelectric 

generating facilities owned by the 

Utility Subsidiaries to FirstEnergy 

Generation Corp. (‘‘FE GenCo’’), which 

is a direct wholly-owned subsidiary of 

FirstEnergy Solutions Corp. (‘‘FE 

Solutions’’) and an indirect subsidiary 

of FirstEnergy. FE GenCo is an ‘‘exempt 

wholesale generator’’ (‘‘EWG’’) under 

Section 32 of the Act. These asset 

transfers are in furtherance of 

FirstEnergy’s Ohio and Pennsylvania 

corporate separation plans, which were 

described in FirstEnergy’s Application/