Document ID: SEC-2006-0999-0001
Agency: sec
Document Type: Notice
Title: Joint industry plan: American Stock Exchange, LLC, et al.
Posted Date: 2006-08-04T04:00Z

[Federal Register: August 4, 2006 (Volume 71, Number 150)]
[Notices]               
[Page 44328-44336]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04au06-114]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54239; File No. 4-524]

 
Joint Industry Plan; Notice of Filing of the NMS Linkage Plan by 
the American Stock Exchange LLC, Boston Stock Exchange, Inc., Chicago 
Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., The 
NASDAQ Stock Market LLC, National Stock Exchange, New York Stock 
Exchange LLC, and NYSE Arca, Inc.

July 28, 2006.

I. Introduction

    On July 17, 2006, pursuant to Rule 608 of the Securities Exchange 
Act of 1934 (``Act''),\1\ the American Stock Exchange LLC, (``Amex''), 
the Boston Stock Exchange, Inc., the Chicago Board Options Exchange, 
Incorporated., the Chicago Stock Exchange, Inc., The NASDAQ Stock 
Market LLC, the National Stock Exchange, the New York Stock Exchange 
LLC, (``NYSE''), and NYSE Arca, Inc. (``Participants'') filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC'') an 
executed copy of the NMS Linkage Plan (``Linkage Plan'' or ``Plan''), a 
national market system plan to create and operate an intermarket 
communications linkage pursuant to Section 11A(a)(3)(B) of the Act.\2\ 
The Linkage Plan, as stated in section 13 of the Plan, is to become 
operative on October 1, 2006. The Linkage Plan was executed by the 
eight self-regulatory organizations listed above. According to the Plan 
Participants, the Philadelphia Stock Exchange, Inc. (``Phlx'') is in 
general agreement with the policy and rules associated with the 
proposed Linkage Plan and may become a Participant before the Plan's 
operative date of October 1, 2006. Pursuant to Rule 608(b)(1),\3\ the 
Commission is publishing this notice of, and soliciting comments on, 
the Linkage Plan.
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    \1\ 17 CFR 242.608.
    \2\ This submission supersedes earlier submissions dated April 
10, 2006 and June 12, 2006.
    \3\ 17 CFR 240.608(b)(1).
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II. NMS Linkage Plan

    In the following paragraphs, the Linkage Plan Participants respond 
to the requirements of Rule 608 under the Act.

1. Purpose of Linkage Plan

    The purpose of the proposed Linkage Plan is to enable the Plan 
Participants to act jointly in planning, developing, operating and 
regulating the NMS Linkage System (``Linkage'' or ``System'') that will 
electronically link the Participant Markets to one another, as 
described in the Linkage Plan, so as to further the objectives of 
Congress as set forth in Section 11A of the Act and to facilitate 
compliance by the Participants and their respective members with Rules 
610 and 611 under Regulation NMS.

2. Governing or Constitutional Documents

    The governing document is the Linkage Plan.

3. Implementation of Plan

    The proposed Linkage Plan will become effective on October 1, 
2006.\4\
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    \4\ As the ITS Plan is still in effect, SROs may need exemptions 
from certain provisions of the ITS Plan, in conjunction with the 
implementation of the Linkage Plan. SROs should request, and the 
Commission will consider, appropriate exemptions from the provisions 
of the ITS Plan.
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4. Development and Implementation Phases

    As provided in section 13 of the proposed Plan, the Plan will 
become effective on October 1, 2006.
    As provided in section 11 of the proposed Plan, the Plan will 
terminate on June 30, 2007. Participants that wish to extend the term 
may agree to do so, subject to Commission approval. During the term of 
the Plan, a Participant may withdraw on 30 days' notice if it continues 
to maintain connectivity to all other Participants and accepts orders 
through the Linkage until June 30, 2007. A withdrawing Participant's 
right to send orders through the Linkage would terminate on the date 
the withdrawal is effective.

5. Analysis of Impact on Competition

    According to the Participants, the Plan imposes no burden on 
competition. Rather, it enhances intermarket competition by providing a 
means, in addition to any private linkages established among 
Participants, by which orders entered in any Participant Market may 
access interest displayed in other Participant Markets electronically 
and in compliance with Rule 611. The Linkage Plan imposes no fees or 
charges in connection with order executions. Further, the Plan provides 
that any fee imposed by a Participant on its members in connection with 
use of or access to the System must not discourage use of the System.

6. Written Understandings or Agreements Relating to Interpretation of, 
or Participation in, Plan

    According to the Participants, other than the Plan itself, there 
are no written understandings or agreements between or among Plan 
Participants relating to interpretations of the Plan or conditions for 
becoming a participant in the Plan.

7. Approval of Amendment by Sponsors in Accordance With Plan

    Not applicable.

8. Description of Operation of Facility Contemplated by the Proposed 
Plan

    The System includes the data processing hardware, software and 
communications network that electronically links the Participant 
Markets to one another. The System accommodates only regular way 
trading. All System trades must be compared, cleared and settled 
through SEC-registered clearing corporations. The System is designed to 
accommodate

[[Page 44329]]

trading in any Eligible Security, as defined in section VII of the 
Consolidated Tape Association (``CTA'') Plan. Section VII of the CTA 
Plan provides generally that Eligible Securities include equity 
securities registered on the NYSE, the Amex or another national 
securities exchange whose original listing requirements substantially 
meet those of NYSE or Amex. Eligible Securities do not include 
securities listed on the Nasdaq Stock Market.
    The Securities Industry Automation Corporation (``SIAC'') serves as 
the System's facilities manager and has responsibility for the 
operation and maintenance of the System. SIAC performs its function as 
facilities manager in accordance with Plan provisions and subject to 
the administrative oversight of the Supervisory Committee. (Section 
5(d)).
    The System accepts immediate or cancel limit orders. Orders must be 
sent to a Participant Market through the auspices of a member of that 
Participant, known as a Sponsoring Member.\5\ Section 6(a)(ii) states 
the minimum information that must be specified in an order, including 
the member of the destination market (the Sponsoring Member); the 
``give-up'' in the originating Participant Market; the security; the 
side (buy or sell); the amount to be bought or sold (which must be for 
one unit of trading (i.e., 100 shares) or any multiple thereof); and 
the price. The price must be equal to the bid or offer then being 
furnished by the destination Participant Market. An order must specify 
a ``time in force'' of 5, 15 or 120 seconds, after which the order will 
expire if unexecuted.
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    \5\ The Sponsoring Member will be responsible for paying 
applicable transaction fees of the destination market. In the event 
that the Participants are unable to implement Sponsoring Member 
billing on October 1, 2006, the Participants have agreed to accept 
direct exchange-to-exchange billing.
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    After February 5, 2007, all routed limit orders will be presumed by 
the executing market to be intermarket sweep orders sent in accordance 
with Rule 611(b) of Regulation NMS. (Section 6(a)(vi)). The trading 
rules applicable in destination Participant Markets will apply to 
orders received in the market and the execution of those orders in the 
market. (Section 6(b)).

9. Terms and Conditions of Access

    Section 3(c) of the Plan provides that any national securities 
exchange or national securities association may become a Plan 
Participant by agreeing, in an amendment to the Plan adopted in 
accordance with its provisions, to comply, and to enforce compliance, 
with the Plan as provided in section 3(b) of the Plan. An applicant for 
Plan participation is required to pay SIAC an amount estimated by SIAC 
to cover development costs to be incurred to accommodate the new 
Participant. In addition, before the SEC approves the applicant as a 
Plan Participant, the applicant must pay SIAC actual development costs 
in excess of estimated development costs, if any, or SIAC will 
reimburse the applicant estimated development costs that were paid and 
are in excess of actual development costs, if any. A new Participant 
shares in development costs incurred after it becomes a Participant in 
accordance with section 10(a)(iii)(A). (Section 10(a)(iii)(C)). As 
noted in Item 8, above, orders sent through the System must be sent 
through a Sponsoring Member in the executing market. There are no other 
limitations or conditions to access to the System.

10. Method of Determination and Imposition, and Amount of, Fees and 
Charges

    The Linkage Plan imposes no fees or charges in connection with 
orders executed through the Linkage. A Sponsoring Member is subject to 
applicable transaction charges imposed by the executing market.
    Section 10 (Financial Matters) provides for sharing by Participants 
of ``development costs'' and ``production costs,'' as defined in 
section 10(a). Development costs must be agreed to by all Participants. 
Each Participant must pay a fraction equal to its share of the 
``transactions base'' (as defined in section 10(a)(i)(I)) for the 
calendar quarter preceding the calendar quarter during which the 
Participants agree to incur such cost. The Plan provides that any 
development costs incurred for the benefit of less than all 
Participants will be shared by the Participants that benefit from the 
costs as they mutually agree.
    Production costs are shared by Participants such that each 
Participant, except the NYSE, pays 50% of the fraction of production 
costs for a calendar quarter equal to its share of the ``routed orders 
base'' defined in section 10(a)(i)(F), as computed for the quarter, but 
subject to a cap (the ``Production Costs Sharing Cap'', defined in 
section 10(a)(iv)(A)). The NYSE will pay the production costs in excess 
of the costs that section 10(a)(iv)(A) requires other Participants to 
pay.
    Each Participant is required to bear 100% of the costs to provide 
the communication connection from the Participant's facilities to the 
System's communications facilities maintained by SIAC. (Section 
10(a)(v)).
    Each Participant is free to determine whether or not to impose, and 
the amount of, a fee or charge on its members in connection with use of 
its facilities to access the System. Any such fee or charge must not be 
of such size, or so structured, as to discourage use of the System. 
(Section 10(b)).\6\
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    \6\ Any fees charged by Participants must be filed with the 
Commission pursuant to Section 19(b) of the Act.
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    In consideration of the NYSE's making available a designated NYSE 
operating system to assume the functions of the System in the event of 
a disaster, Participants other than NYSE have agreed to pay the NYSE 
certain fees as set forth in section 12(d) of the Plan.

11. Method and Frequency of Processor Evaluation

    Not applicable.

12. Dispute Resolution

    The Linkage Plan does not include specific provisions regarding 
resolution of disputes between or among Participants. Section 4(d) of 
the Plan provides that no action or inaction by the Supervisory 
Committee shall prejudice any Participant's right to present its views 
to the SEC or any other person with respect to any matter relating to 
the System or to seek to enforce its views in any other forum it deems 
appropriate. In addition, section 6(b) provides that the destination 
market's trading rules apply to orders received in the destination 
market and executions of orders therein. Each Participant determines 
the extent to which its trading rules apply to members in its market 
insofar as such members' issuance of orders from such market and 
resulting executions are concerned.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the Linkage Plan 
is 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 rule-comments@sec.gov. Please include 

File Number 4-524 on the subject line.

[[Page 44330]]

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 Number 4-524. This file number 
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 submission, all subsequent amendments, all written 
statements with respect to the Linkage Plan that are filed with the 
Commission, and all written communications relating to the Linkage Plan 
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. A copy of the Linkage Plan is attached to this 
Release as Exhibit A. Copies of the Plan also will be available for 
inspection and copying at http://www.itsplan.com. 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 Number 4-524 and should be submitted on or before 
August 25, 2006.
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    \7\ 17 CFR 200.30-3(a)(27).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.

Exhibit A--Plan for the Purpose of Creating and Operating an 
Intermarket Communications Linkage Pursuant to Section 11a(A)(3)(B) of 
the Securities Exchange Act of 1934

    Agreement made as of June 12, 2006, among American Stock Exchange 
LLC, Boston Stock Exchange, Inc., Chicago Board Options Exchange, Inc., 
Chicago Stock Exchange, Inc., Nasdaq Stock Market LLC, National Stock 
Exchange, New York Stock Exchange LLC, and NYSE Arca, Inc.
    Whereas, the undersigned national securities exchanges are parties 
to the plan submitted to the Securities and Exchange Commission (the 
``SEC'') for the purpose of creating and operating an intermarket 
communications linkage pursuant to section 11A(a)(3)(B) of the 
Securities Exchange Act of 1934 (the ``Act'').
    Now, therefore, in consideration of the premises and the mutual 
covenants and agreements contained herein, the parties agree to submit 
this Agreement called the NMS Linkage Plan to the SEC for approval 
pursuant to section 11A(a)(3)(B) of the Act and Rule 608 thereunder.

Definitions

    (1) ``Application'' means any use of the System to facilitate 
trades between Participant Markets that is described in the NMS Linkage 
Plan.
    (2) ``CTA Plan'' means the plan filed with the SEC pursuant to SEC 
Rule 17a-15 (subsequently amended and redesignated as Rule 11Aa3-1, and 
subsequently amended and redesignated as Rule 601), approved by the SEC 
and declared effective as of May 17, 1974, as from time to time 
amended.
    (3) ``CTA Plan Processor'' means the organization serving as 
recipient and processor of last sale prices under the CTA Plan.
    (4) ``Eligible Security'' has the meaning assigned to that term in 
the CTA Plan.
    (5) ``NMS Linkage Plan'' or ``Linkage Plan'' means the plan amended 
and restated in this instrument as from time to time amended in 
accordance with the provisions hereof.
    (6) ``NMS Linkage System'' (``Linkage'' or ``Linkage System'') 
means the system described in section 5.
    (7) ``Network A Eligible Security'' has the meaning assigned to 
that term in the CTA Plan.
    (8) ``Network B Eligible Security'' has the meaning assigned to 
that term in the CTA Plan.
    (9) ``Participant'' means a party to the Linkage Plan with respect 
to which such plan has become effective pursuant to section 13.
    (10) ``Participant('s) Market'' means each Exchange Market.
    (11) ``System'' means the data processing hardware, software and 
communications network that links electronically the Participant 
Markets to one another. The System includes (a) computers that perform 
such functions as message validation, processing, logging and switching 
and (b) from a functional standpoint, (i) high speed communications 
lines that link such computers with the Participant Markets (either 
directly or through Participant Switches), and (ii) Linkage System 
stations.
    (12) ``System security (stock)'' means a security (stock) selected 
for trading through the Applications in accordance with section 
5(b)(ii).
    (13) ``System trade'' means any trade made through any Application.

2. Purpose of Linkage Plan

    The purpose of the Linkage Plan is to enable the Participants to 
act jointly in planning, developing, operating and regulating the 
system as described in the Linkage Plan so as to further the objectives 
of Congress as set forth in section 11A(a) of the Act and to facilitate 
compliance by the Participants and their respective members with SEC 
Rules 610 and 611.

3. Parties

    (a) List of Parties. The parties to the Linkage Plan are as 
follows:

American Stock Exchange LLC (``AMEX''), registered as a national 
securities exchange under the Act and having its principal place of 
business at 86 Trinity Place, New York, New York 10006.
Boston Stock Exchange, Inc. (``BSE''), registered as a national 
securities exchange under the Act and having its principal place of 
business at as 100 Franklin Street, Boston, Massachusetts 02110.
Chicago Board Options Exchange, Inc. (``CBOE''), registered as a 
national securities exchange under the Act and having its principal 
place of business at 400 South LaSalle Street, Chicago, Illinois 60605.
Chicago Stock Exchange, Inc. (``CHX''), registered as a national 
securities exchange under the Act and having its principal place of 
business at One Financial Place, 440 South LaSalle Street, Chicago, 
Illinois 60605.
Nasdaq Stock Market LLC (``Nasdaq''), registered as a national 
securities exchange under the Act and having its principal place of 
business at 1 Liberty Plaza, 165 Broadway, New York, NY 10006.
National Stock Exchange (``NSX''), registered as a national securities 
exchange under the Act and having its principal place of business at 
440 South LaSalle Street, Suite 2600, Chicago, Illinois 60605.
New York Stock Exchange LLC (``NYSE''), registered as a national 
securities exchange under the Act and having its principal place of 
business at 11 Wall Street, New York, New York 10005.
NYSE Arca , Inc. (``Arca''), registered as a national securities 
exchange under the Act and having its principal place of business at 
100 S. Wacker Drive, Chicago, IL 60606.

    (b) Compliance Undertaking. By subscribing to and submitting the

[[Page 44331]]

Linkage Plan for filing with the SEC, each undersigned party agrees to 
comply to the best of its ability and, absent reasonable justification 
or excuse, to enforce compliance by its members in their use of the 
Linkage through its facilities with the provisions of the Linkage Plan.
    (c) New Participants. The Participants agree that any other 
national securities exchange or national securities association may 
subscribe to the Linkage Plan and become a Participant by agreeing, in 
an amendment to the Linkage Plan adopted in accordance with its 
provisions, to comply and to enforce compliance with the provisions of 
the Linkage Plan as provided in section 3(b).

4. Administration of Linkage Plan

    (a) Supervisory Committee: Composition, Voting. Each Participant 
shall select from its staff one individual to represent such 
Participant as a member of the Supervisory Committee under the Linkage 
Plan. Except as may be specifically otherwise provided herein, action 
taken pursuant to the vote of a majority of the members of the 
Supervisory Committee present at a meeting of the committee at which a 
majority of the full committee is present shall be deemed to be the 
action of the Supervisory Committee.
    (b) Supervisory Committee: Authority. The Supervisory Committee 
shall not be a policy-making or a rule-making body, but shall, either 
directly or by delegating its functions to individuals, subcommittees 
established by it from time to time or others, (i) oversee development 
of the System in accordance with the specifications therefore agreed 
upon by each Participant, (ii) monitor the operation of the System and 
(iii) advise the Participants with respect to any deficiencies, 
problems or recommendations as the Supervisory Committee may deem 
appropriate in its administration of the Linkage Plan. In this 
connection, the Supervisory Committee shall have authority to develop 
procedures and make administrative decisions necessary to facilitate 
the operation of the System in accordance with the provisions of the 
Linkage Plan.
    (c) Amendments to Linkage Plan. Any proposed change in, addition 
to, or deletion from the Linkage Plan may be effected only by means of 
a written amendment to the Linkage Plan which sets forth the change, 
addition or deletion, is executed on behalf of each Participant and is 
approved by the SEC or otherwise becomes effective pursuant to section 
11A of the Act and Rule 608(b).
    (d) Participant's Rights. No action or inaction by the Supervisory 
Committee shall prejudice any Participant's right to present its views 
to the SEC or any other person with respect to any matter relating to 
the System or to seek to enforce its views in any other forum it deems 
appropriate.

5. The System

    (a) System Monitoring.
    (i) Linkage Supervisory Stations. Each Participant will maintain a 
Linkage supervisory station where supervisors appointed by such 
Participant will be able to coordinate trade adjustments.
    (ii) Linkage Control Center. The System also includes the Linkage 
control center (``LCC''), which monitors and controls communications 
within the System, including the processing of error conditions. The 
LCC staff is able to display and, when authorized by any Participant, 
to modify the security and market records of that Participant's Market 
as such records relate to the System. The LCC staff is also able to 
indicate whether or not any Participant Market is open for System 
trades. In addition, the LCC may be used as ``back-up'' for the Linkage 
supervisory system-wide broadcasts. Finally, the LCC staff is able to 
enter adjustments of any trade pursuant to the procedures specified in 
section 6(a)(iv) and to perform data base control after trading hours.
    (b) General Operation.
    (i) Registered Clearing Corporations. The System accommodates only 
regular way trading, and all System trades must be compared, cleared 
and settled through clearing corporations registered with the SEC that 
maintain facilities through which such transactions may be compared and 
settled and that agree to supply each Participant with data reasonably 
requested in order to permit such Participant to enforce compliance by 
its members with its rules, the provisions of the Act, the rules and 
regulations thereunder, and the Linkage Plan.
    (ii) Selection of System Securities. The System is designed to 
accommodate trading in any Eligible Security. The particular securities 
that may be traded through the System at any time (``System 
securities'') shall be selected by the Supervisory Committee. The 
Supervisory Committee may add or delete System securities as it deems 
appropriate and may delay the commencement of trading in any Eligible 
Security if capacity or other operational considerations shall require 
such delay.
    (c) Administrative Messages. Administrative messages, as 
distinguished from orders, responses thereto and trade adjustment 
inputs (including names later information), may also be sent through 
the System.
    There are two categories of administrative messages that can be 
sent by Participant members: Single destination and security broadcast. 
Another category of administrative message, a ``system-wide 
broadcast'', may be sent through the System only from the Linkage 
control center.
    (d) Facilities Manager. The Securities Industry Automation 
Corporation (``SIAC'') serves as the System's facilities manager and 
has responsibility for the operation and maintenance of the System. 
SIAC performs its function as facilities manager in accordance with the 
provisions of the Linkage Plan and subject to the administrative 
oversight of the Supervisory Committee.

6. Linkage System

    (a) Technical Matters.
    (i) The System shall accept immediate or cancel (``IOC'') orders, 
provided however, that, upon the request of a Participant or 
Participants, and in accordance with Section 10(a)(iii)(A) relating to 
New Development Costs Sharing, the System shall accommodate additional 
order types to be utilized by such Participant or Participants. Orders 
must be sent to a Participant market through the auspices of a member 
of that Participant, known as a Sponsoring Member. Each market will 
maintain within SIAC a database of default Sponsoring Members (not to 
exceed 10) for after hours processing and billing for orders sent to a 
market where the originating firm is not a member of the destination 
market.
    (ii) Order Information. An order shall, at a minimum, specify the 
following:
    (A) The member of the destination market (either clearing member or 
Sponsoring Member); \8\
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    \8\ The member of the destination market will be identified by a 
unique clearing number. If the clearing number provided by the 
originating Participant Market does not identify a member of the 
destination market, SIAC will identify the default Sponsoring Member 
of the originating market at the destination market for the security 
in question and that Sponsoring Member's identification information 
will be included on the order to the destination market on all 
reports sent to the destination market, including any report for 
billing purposes. The member identified on the order will be 
responsible for any fees in the destination market. SIAC will 
provide to Participants a key to match the clearing number to the 
member's name.
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    (B) Original Clearing member or Omnibus clearing account of the 
originating Participant Market, commonly referred to as the Give-Up,

[[Page 44332]]

    (C) The receiving Participant Market,
    (D) The security that is the subject of the order,
    (E) Designation of the order as an order to buy or to sell,
    (F) The amount of the security to be bought or sold, which amount 
shall be for one unit of trading or any multiple thereof,
    (G) A price equal to the offer or bid price then being furnished by 
the destination Participant Market, which price shall represent the 
price at or below which the security is to be bought or the price at or 
above which the security is to be sold, respectively,
    (H) To facilitate application of the short sale rule in effect in 
the destination Participant Market, a designation of the order as 
``short'' or ``short exempt'' whenever it is a order to sell short, and
    (I) Time in force as 5, 15 or 120 seconds.\9\
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    \9\ A Participant Market may prevent the execution, through its 
facilities, of an otherwise marketable System order, prior to the 5, 
15 or 120 second time in force parameter assigned to that order, if 
the time in force parameter would result in the issuance of an 
expiration notice to the sending market before execution of such 
order could be reported to SIAC. Any such procedure must be 
effective pursuant to a filing with the SEC.
    No order with a time in force parameter of 5 or 15 seconds shall 
be sent to AMEX, CBOE or CHX prior to the earlier of (i) the date on 
which all automated trading centers intending to qualify their 
quotations for trade-through protection under Rule 611 of Regulation 
NMS must have achieved full operation of Regulation NMS-compliant 
trading systems or (ii) the date on which AMEX, CBOE or CHX, as the 
case may be, has notified the Supervisory Committee in writing that 
it is capable of accepting and executing such orders. If an order 
with either of these time in force parameters is sent to AMEX, CBOE 
or CHX prior to such time, it will not be executed due to system 
limitations.
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    (iii) Order Validation, Routing. At the time of transmission, each 
order undergoes validation procedures. If the order passes the 
validation procedures, the System assigns a unique order identifier 
number (a ``OID'') to the order, time stamps it and logs it on a mass 
storage device (the ``daily log''). The System also sends a 
transmission acceptance message to the Participant Market that 
originated the order. The order is then routed to the destination 
Participant Market. If the order is accepted, in whole or in part, in 
the destination Participant Market, the execution is reported back 
through the System to the originating and receiving Participant 
Markets.
    The System rejects the transmission of a response that fails the 
validation check and sends an appropriate error message to the 
Participant Market that originated the response. The validation of a 
response causes the System to retrieve the related order from the daily 
log and update it with appropriate response information. This log forms 
the basis from which the after-hours reports described in section 7(a) 
are produced. Validation also causes the System to send a transmission 
acceptance message to the Participant Market that originated the 
response. The System then sends the response to the Participant Market 
that originated the order. When an order is only partially executed, 
the unexecuted shares are not filled, and the System generates a 
cancellation for the unexecuted quantity and appends the cancellation 
to the execution report that it sends to the Participant Market that 
originated the order.
    (iv) Trade Adjustments. In accordance with section 5(a)(ii), 
supervisors monitoring the Participant Markets may request the LCC to 
enter adjustments to trades (i.e., to price, share size, buy or sell 
side, to cancel a trade or to insert a trade ``as-of'' a prior day). 
The following sets forth the procedures to facilitate trade adjustments 
and to authorize the LCC to make such adjustments. All requests among 
Participants and to the LCC for trade adjustments shall be in the form 
of administrative messages sent through the System. For the purposes of 
this section 6(a)(vi), administrative messages sent or received among 
Participant Markets, or sent to the LCC, shall be deemed to have been 
issued by supervisors of Participant Markets authorized by such 
Participant Markets to issue such administrative messages.
    (A) Adjustments on Trade Day. The LCC shall make an adjustment to a 
trade entered into that same day based upon an administrative message 
request made from a supervisor of the Participant Market that received 
and executed the order (``executing market supervisor''). Such request 
shall not be made to the LCC unless an executing market supervisor has 
received from a supervisor in the Participant Market that issued the 
order (``issuing market supervisor''), in the form of an administrative 
message sent through the System, agreement as to the terms of, and 
authorization to make, the adjustment. The administrative message 
request to the LCC by the executing market supervisor shall specify the 
terms of, and authorization to the LCC to make, the adjustment.
    In the event that, notwithstanding the provisions of the prior 
paragraph, an executing market supervisor requests the LCC to make a 
trade adjustment without having received an administrative message from 
an issuing market supervisor, and the LCC has made such requested 
adjustment, then the LCC shall, at the request and direction of an 
issuing market supervisor, made prior to the settlement for such trade, 
readjust such trade to its terms as they existed prior to such 
adjustment.
    (B) Adjustments for Prior Trade Day. Except as provided in the 
preceding paragraph, the LCC shall make an adjustment to a trade 
entered into on a prior day only upon administrative message requests 
made from both executing and issuing market supervisors, each message 
specifying the same terms of, and authorization to the LCC to make, the 
adjustment.
    (C) The provisions of paragraphs (A) and (B) of this section 
6(a)(iv) shall not restrict the ability of any Participant Market to 
unilaterally request the LCC to end adjustments to trades or to cancel 
or adjust any System trade executed in its market pursuant to its rules 
pertaining to clearly erroneous transactions or obvious errors, and 
system malfunctions. The sending market may invoke any appellate or 
review process provided by such rules on behalf of the Sponsoring 
Member. In the event of any cancellation or adjustment, the executing 
market shall notify the LCC and all affected Participants by 
administrative message specifying the terms of the cancellation or 
adjustment and authorizing the LCC to make the adjustments or cancel 
the trades.
    (D) LCC Confirmation. The LCC shall, after making a trade 
adjustment, send an administrative message to both the executing and 
sending market supervisors confirming that the adjustment has been made 
and specifying the terms of the adjustment.
    (v) Intermarket Sweep Orders. All routed limit orders shall be 
presumed by the executing market to be orders sent pursuant to the 
intermarket sweep order exception in SEC Rule 611(b).
    (vi) Other. Each Participant shall also determine how orders 
received in the market for which it has responsibility are to be 
handled therein and agrees that any procedures it may adopt in this 
regard shall be consistent with the provisions of the Linkage Plan and 
the efficient operation of the System. Participants are required to 
execute orders at a minimum at the size of their displayed quotes. Each 
Participant shall insure that no communication shall be entered into 
the System from its market except (A) on behalf of a member of such 
Participant who is permitted by the Linkage Plan and such Participant's 
rules to use the System with respect to the security or securities that 
are the subject of the communication or (B) by employees of such 
Participant in

[[Page 44333]]

performance of such Participant's obligations under the Linkage Plan.
    (b) Participant Trading Rules. The trading rules applicable in 
destination Participant Markets shall apply to orders received in such 
market and executions of orders therein. Each Participant shall 
determine the extent to which its trading rules shall apply to members 
within its market insofar as such members' issuance of orders from such 
market and resulting executions are concerned.

7. Comparison and Settlement

    Comparison of a side of a System trade furnished by a Participant 
shall be the responsibility of such Participant.
    (a) After Hours Functions. The functions of the System after the 
close of trading in all Participant Markets shall consist of the 
following:
    (i) The System's daily log of messages will be put on tape for 
retention;
    (ii) The System will generate four reports:
    (A) An order/response report that will match orders to trade with 
the appropriate responses,
    (B) An order/cancellation report that will list all orders to trade 
that were canceled,
    (C) A trade adjustment report that will list all adjustments made 
to previously executed System trades, and
    (D) A traffic summary report that will indicate the number of 
orders to trade, the number of responses and the number of 
administrative messages entered from each Participant Market during the 
trading day; and
    (iii) The System will generate the clearing tape referred to in 
section 7(b).
    (b) Clearing Tape. At the end of each trading day, the System 
generates a clearing tape as part of after-hours processing. This tape 
is in OID sequence, includes all of the day's System trades, and shows:
    (i) The OID,
    (ii) The originating Participant and clearing member(s), or the 
clearing corporation(s) through which such clearing member(s) shall 
settle the trade,
    (iii) The destination Participant and destination clearing 
member(s), or the clearing corporation(s) through which such clearing 
member(s) shall settle the trade,
    (iv) The type of trade action (buy or sell),
    (v) The security symbol,
    (vi) The executed quantity and price, and
    (vii) The date and time of trade.
    Adjustments to any System trade made by agreement between both 
sides of the trade are included in the tape and shown as a separate 
``trade adjustment record''. If a trade has been adjusted, the original 
trade record is followed by trade adjustment record(s). The trade 
adjustment record(s) carry the same OID as the original trade record. 
There are two types of trade adjustments, System trade cancellations 
and System trade changes. For System trade cancellations, the 
adjustment record negates the original trade record. For example, a 
cancellation of a trade to buy is reflected on the adjustment record as 
a ``negative buy''. For System trade changes, there are two adjustment 
records. The first adjustment record negates the original trade record. 
The second adjustment record logs the trade data as adjusted for, e.g., 
a change in action, security, quantity and/or price. The adjustment 
records are generated from the trade adjustment file that is created 
during trading hours and from inputs from the Linkage control center 
pursuant to requests from the Participants' supervisors.
    (c) Comparison of System Trades. The contra side of each System 
trade ultimately is the clearing interface account used to identify the 
clearing corporation through which the comparison of such side is 
completed. If both sides of a System trade are to settle through the 
same clearing corporation, the clearing corporation may, at its option, 
either book each side against the clearing member responsible for that 
side or offset each side against an internal omnibus account (in which 
case the omnibus account will net to zero).
    While sorting and format changes may be required, the various 
clearing corporations are able to use the System clearing tape as the 
basic input to their trade comparison operations. The clearing 
member(s) responsible for an Exchange-supplied side of a System trade 
shall follow routine comparison procedures. In instances where an 
uncompared transaction cannot be resolved through routine procedures, 
the Exchange-supplied side(s) of the trade discrepancy will be handled 
in accordance with the rules of the Participant(s) and clearing 
corporation(s) involved.
    Once comparison has been completed, clearance and settlement can 
proceed in a routine manner. System trades are processed with all other 
transactions through established clearing interfaces.
    (d) Participant Settlement Obligations. The rules of each 
Participant shall be designed to assure that if a System trade reported 
on the clearing tape (as adjusted) at the close of any trading day, as 
such trade relates to such Participant, cannot be compared 
notwithstanding the use of routine comparison procedures, such 
Participant shall on the scheduled settlement date honor such 
uncompared trade; provided, however, that, if such a System trade as it 
relates to such Participant is rejected or excluded from the settlement 
operation conducted by the clearing corporation to which it was 
reported for settlement either because of the insolvency of the 
member(s) for whose account(s) it was to be settled or for any other 
reason (other than failure to compare), such Participant shall not be 
obligated to honor such trade and such trade shall be returned to such 
member(s).
    In the event that a System trade as it relates to any Participant 
is rejected or excluded from the settlement operation conducted by the 
clearing corporation to which it was reported for settlement for any 
reason other than failure to compare, neither the Participant from 
whose market the side of the trade that is rejected or excluded was 
supplied, the Participant from whose market the contra side of such 
trade was supplied nor any clearing corporation to which either side of 
the trade was submitted shall be obligated to honor the trade. Instead, 
the member(s) constituting the contra side of the rejected or excluded 
trade (the ``contra party'') shall, without unnecessary delay after 
receipt of notice of such rejection or exclusion, close out such trade 
in the best available market, except insofar as the rules of the 
clearing corporation to which the contra side was submitted or of the 
Participant from whose market the contra side was supplied are 
applicable and provide an alternative method for closing. The rules of 
each Participant shall state the foregoing closing obligations of the 
contra party.

8. Pre-Opening Price Information

    The NYSE and AMEX will disseminate, through the System, pre-opening 
price information whenever a member in that Participant market, in 
arranging an opening transaction in his or her market in a System 
security, anticipates that the opening transaction will be at a price 
that represents a change from the ``previous day's consolidated closing 
price'' of more than the ``applicable price change.''
    The ``previous day's consolidated closing price'' is the last price 
at which a transaction in the security was reported by the CTA Plan 
Processor on the last previous day on which transactions in the 
security were

[[Page 44334]]

reported by the CTA Plan Processor. The ``applicable price changes'' 
are:
---------------------------------------------------------------------------

    \10\ If the previous day's consolidated closing price of a 
Network A Eligible Security exceeded $100 and the security does not 
underlie an individual stock option contract listed and currently 
trading on a national securities exchange, the ``applicable price 
change'' is one dollar.
    \11\ If the previous day's consolidated closing price of a 
Network B Eligible Security exceeded $75 and the security is not a 
Portfolio Depositary Receipt, Index Fund Share, or Trust Issued 
Receipt, or does not underlie an individual stock option contract 
listed and currently trading on a national securities exchange, the 
``applicable price change'' is one dollar.

------------------------------------------------------------------------
                                                            Applicable
                                    Consolidated closing   price change
             Security                      price             ($) (more
                                                               than)
------------------------------------------------------------------------
Network A........................  Under $15............            0.10
                                   $15 or over..........       \10\ 0.25
Network B........................  Under $5.............            0.10
                                   $5 or over...........       \11\ 0.25
------------------------------------------------------------------------

    Prior to the opening of trading in a System security for which the 
NYSE or AMEX has disseminated pre-opening price information, orders in 
that security shall be sent to that Participant through the 
Participant's order delivery system and not the NMS Linkage.

9. Operating Hours

    Regular trading hours are from 9:30 a.m. to 4 p.m. eastern time. 
The normal operating hours of the System are 9 a.m. to 6:30 p.m. 
eastern time or such other period as the Supervisory Committee, by 
affirmative vote of all its members, may specify. Any period outside 
the normal operating hours of the System is herein referred to as an 
``additional period''. The System shall be operable during any 
additional period requested in writing by any two or more Participants; 
provided that such Participants have agreed to pay all costs and 
expenses attributable to the operation of the System during such 
additional period as agreed to by those Participants.

10. Financial Matters

    (a) Costs. The Participants shall share the ``development costs'' 
and ``production costs'', in accordance with the provisions of this 
section 10(a).
    (i) Costs Definitions.
    (A) ``Computer software'' includes all programs or routines 
developed by or at the direction of the System's facilities manager 
(including such development in connection with the Intermarket Trading 
System) to cause computers to perform tasks required for any one or 
more Applications and the documentation required to describe and 
maintain those programs. Computer programs of all classes, for example, 
operating systems, execution systems, monitors, compilers and 
translators, assembly routines, and utility programs are included.
    (B) ``Development costs'' mean all costs incurred by the System's 
facilities manager in developing and improving the computer software 
and installing hardware as necessary to facilitate System functionality 
(including any testing conducted in connection with the System).
    (C) ``Installing hardware as necessary'' includes, but is not 
limited to, installation and maintenance of all installations and 
computer facilities required to support the System.
    (D) ``New Participant'' means any national securities exchange or 
national securities association that becomes a Participant in 
accordance with section 3(c) after SEC approval of this Linkage Plan.
    (E) ``Production costs'' mean all operating expenses associated 
with the operation of the System, including all costs and expenses 
(including appropriate overhead costs and all applicable taxes however 
designated, exclusive of net income taxes) of the System's facilities 
manager associated with, relating to, or resulting from its operation 
or maintenance of the System, but excluding any cost or expense 
associated with any Participant's self-regulatory function. Production 
costs also include the costs and expenses of the facilities manager: 
(i) In maintaining ``hot lines'' that permit conversations among 
broker-dealers and staff in different Participant Markets and with the 
Systems control center; and (ii) associated with reports rendered by a 
firm of independent accountants pursuant to paragraph (a)(vi) of this 
section 10.
    (F) ``Routed orders base'' for any calendar quarter means the total 
number of orders sent through the System.
    (G) ``Share of the routed orders base'' of any Participant as 
computed for any calendar quarter means a fraction, the numerator of 
which is the total number of orders sent through the System by that 
Participant during the calendar quarter and the denominator of which is 
the routed orders base for the calendar quarter.
    (H) ``Share of the transactions base'' for a calendar quarter 
means:
    (1) For any Participant other than AMEX or NYSE, a fraction, the 
numerator of which is the total number of transactions in Network A 
Eligible Securities that the Participant reports to the CTA Plan 
Processor during that quarter and the denominator of which is the 
quarter's transactions base;
    (2) For AMEX, a fraction, the numerator of which is the number of 
transactions in ``Top Ten Network B Eligible Securities'' (as clause 
(2) of section 10(a)(i)(I) defines that term) that AMEX reports to the 
CTA Plan Processor during that quarter and the denominator of which is 
the quarter's transactions base; and
    (3) For NYSE, the fraction derived by subtracting from 1 (one) the 
sum of all other Participants' shares of the transaction base for the 
quarter.
    (I) ``Transactions base'' for any calendar quarter means the sum of 
(1) the number of transaction reports in Network A Eligible Securities 
that the CTA Plan Processor disseminates during the quarter and (2) the 
number of transaction reports in the ``Top Ten Network B Eligible 
Securities'' that the CTA Plan Processor disseminates during the 
quarter. A quarter's ``Top Ten Network B Eligible Securities'' refers 
to the ten Network B Eligible securities for which the CTA Plan 
Processor disseminates the greatest number of transaction reports 
during that quarter.
    (ii) Dispute Costs Excluded. The development costs and production 
costs shall not include any cost or expense incurred by any Participant 
as a result of or in connection with the defense of any claim, suit or 
proceeding against the Supervisory Committee or any one or more of the 
Participants relating to the Linkage Plan or the operation of the 
System. All such costs and expenses incurred by any Participant shall 
be borne by such Participant without contribution or reimbursement.
    (iii) Development Costs.
    (A) New Development Costs Sharing. Development costs shall not be 
incurred except as agreed to by all Participants. Each Participant 
shall pay a fraction equal to its share of the transactions base for 
the calendar quarter preceding the calendar quarter during which the 
Participants agree to incur such cost. Any development costs that are 
incurred for the benefit of less than all Participants shall be shared 
by the Participant or Participants that benefit therefrom as they shall 
mutually agree.
    (B) Development Costs Payment. Development costs will be computed 
by the System's facilities manager as soon as practicable following the 
close of the calendar month or, if relatively small, the calendar 
quarter during which they were incurred. Each Participant's share shall 
be billed to, and payable by, such Participant promptly thereafter.
    (C) New Participant's Share of Development Costs. At the time any 
national securities exchange or national securities association applies 
to become a new Participant, such applicant shall

[[Page 44335]]

be charged by, and shall pay to, the System's facilities manager an 
amount estimated by the System's facilities manager to cover 
development costs to be incurred to accommodate such applicant's status 
as a Participant. Prior to the effective date of the SEC's approval of 
such Participant status, the applicant shall pay to the System's 
facility manager actual development costs in excess of estimated 
development costs, if any, or the System's facility manager shall 
reimburse to the applicant estimated development costs that were paid 
and that are in excess of actual development costs. Each new 
Participant shall share in development costs incurred after it becomes 
a Participant in accordance with section 10(a)(iii)(A).
    (D) Title to Software. The entire right, title and interest in and 
to all ``computer software'' (as defined in section 10(a)(i)(A)) 
developed prior to July 1, 1978 shall be vested in the Participants who 
share the cost of such computer software as joint owners. The entire 
right, title and interest in and to all computer software developed 
after June 30, 1978 shall be vested in the Participant who pays the 
cost thereof. If more than one Participant shares in the cost of 
computer software developed after June 30, 1978, then the entire right, 
title and interest in and to such computer software, the cost of which 
is so shared, shall be vested in the Participants who share such cost 
as joint owners. The System's facilities manager shall use computer 
software solely for the purpose of performing tasks required for the 
Applications as provided in the Linkage Plan.
    (iv) Production Costs.
    (A) Production Costs Sharing. The production costs attributable to 
any calendar quarter shall be shared by the markets that were 
Participants during any portion of the calendar quarter. Each such 
Participant, except the NYSE, shall pay 50% of the fraction of such 
production costs equal to its share of the routed orders base as 
computed for the calendar quarter. Notwithstanding the foregoing, the 
aggregate dollar amount of all of a Participant's quarterly payments 
shall not exceed its ``Production Costs Sharing Cap.'' A Participant's 
``Production Costs Sharing Cap'' means total production costs for 
calendar year 2005 multiplied by 50 percent of the Participant's 
percentage of the routed order base for the period commencing January 
1, 2005, and ending July 31, 2005. The NYSE shall pay those production 
costs that this Paragraph does not require the other Participants to 
pay.
    (B) Production Costs Payment. Production costs will be computed by 
the System's facilities manager as soon as practicable following the 
close of each calendar month. Each Participant's (or former 
Participant's) estimated share thereof shall be billed by the System's 
facilities manager and shall be payable to the System's facilities 
manager promptly following receipt. Any appropriate adjustment will be 
made between the System's facilities manager and each Participant 
promptly following the close of each calendar quarter.
    (v) Communications Connection Costs. Each Participant shall bear 
100% of the costs to provide communication connection from a 
Participant's facilities to the System's communications facilities 
maintained by the facilities manager.
    (vi) Accounts. The System's facilities manager and the independent 
public accountants hereinafter referred to shall furnish any 
information and/or documentation reasonably requested in writing by a 
majority of the Participants in support of or relating to any of the 
computations referred to in this section 10(a). All expenses, 
allocations and computations referred to or required by this section 
10(a) shall be reported at least annually to the Participants. For even 
numbered years, (or such other yearly interval as the Supervisory 
Committee, by affirmative vote of all its members, may specify), such 
reports shall be rendered by a firm of independent public accountants 
(which may be the firm regularly employed by the NYSE or the System's 
facilities manager), and such accountants shall render their opinion 
that such expenses, allocations and computations have been reported in 
accordance with the understanding among the Participants as set forth 
in this section 10(a). For those years when a firm of independent 
public accountants is not engaged to render a report, the facilities 
manager's internal auditor shall review all expenses, allocations and 
computations referred to or required by this section 10(a) and that 
internal auditor shall report that such expenses, allocations and 
computations have been reported in accordance with the understanding 
among the Participants as set forth in this section 10(a).
    (b) User Charges. Each Participant shall be free to determine 
whether or not to impose a fee or charge on some or all of its members 
in connection with use of its facilities to access the System and, if 
so, the amount of such fee or charge. Any fee or charge that may be 
imposed by any Participant shall not be of such size, and shall not be 
so structured, as to discourage use of the System.
    (c) Facilities Manager Liability Limits. The System's facilities 
manager shall not be liable to any Participant or to any member of any 
Participant using or having access to the System or to any other person 
for any loss or damage resulting from any non-performance, or 
interruption in the operation of the System, from any inaccuracies, 
errors or omissions in any of the information conveyed or received 
through the System, or from any delays or errors in the transmission of 
any such information, or for making trade adjustments.

11. Termination; Withdrawal

    The Linkage Plan will terminate on June 30, 2007. Participants that 
wish to extend the term may agree to do so, subject to filing with and 
approval by the SEC. During the term of the Plan a Participant may 
withdraw with 30 days notice if it continues to maintain connectivity 
to all other Participants and accept orders through the Linkage until 
June 30, 2007. A withdrawing Participant's right to send orders through 
the Linkage shall terminate on the date the withdrawal is effective. In 
addition, a withdrawing Participant's obligation to share development 
and production costs shall terminate on the date the withdrawal is 
effective, provided, however, that such Participant shall remain liable 
for, and shall pay upon demand, its portion of the costs of developing 
and operating the System and any other amounts payable by it as 
determined pursuant to sections 10 and 12 of the Linkage Plan.

12. System Inoperability

    (a) General. In the event of a disaster that renders the System 
inoperable, the NYSE has authorized the facilities manager to utilize a 
designated NYSE operating system (the ``NYSE System'') on a preemptive 
and priority basis to function as detailed in section (c)(i), below.
    (b) Participants' Implementation Obligations.
    (i) At any time the NYSE System assumes the functions of the 
System, all Plan provisions not inconsistent with this section 12, and 
Participant rules and policies governing use of the System will 
continue to apply.
    (ii) Each Participant's cost of maintaining communications 
connectivity to the NYSE System shall be borne by that Participant.
    (c) NYSE Implementation Obligations. In consideration of the fees 
to be paid to the NYSE as specified in paragraph (d) of this section 
12, the NYSE agrees:

[[Page 44336]]

    (i) To have and to make available the NYSE System to assume the 
functions of the System on a preemptive and priority basis in the event 
of a disaster which renders the System inoperable. Such system is 
composed of computers and peripheral equipment sufficient to operate 
the System at a minimum of 50% of the System's rated 150 messages per 
second capacity and 75% of the System's disk capacity.
    (ii) That the facilities manager is authorized to take the actions 
necessary to make the NYSE System available to assume the functions of 
the System within two hours in the event of a limited disaster and on 
the next day in the event of a full site disaster. The facilities 
manager is authorized to make the determinations that, in its good 
faith judgment, there has been a limited disaster or full site 
disaster, the System is inoperable, and the NYSE System will assume the 
functions of the System.
    (iii) That the NYSE System will be located at a site remote from 
the site where the System is located.
    (d) Implementation Obligations of Participants Other than NYSE 
(``Other Participants'').
    (i) Fees. In consideration of the NYSE's making available the NYSE 
System to assume the functions of the System in the event of a 
disaster, the Other Participants agree to pay to the NYSE: (A) A 
preemptive and priority reserve fee totaling $24,800 per calendar 
quarter (such reserve fee shall be adjusted each January by the same 
percentage change as in the Consumer Price Index as calculated by the 
U.S. Department of Commerce for the preceding calendar year); and (B) a 
per diem fee, if in the event of a disaster the NYSE System assumes the 
functions of the System, for each day in excess of five consecutive 
trading days that the NYSE System is so utilized. Such per diem fee 
shall equal \1/250\ of the yearly dollar amount the facilities manager 
charges the NYSE to operate the NYSE System.
    This subsection (d)(i) shall become effective on the date that the 
facilities manager confirms in writing to the Supervisory Committee 
that it has taken all actions necessary to make the NYSE System 
available to assume the functions of the System as specified in 
subsection (c) of this section 12. If such effective date is other than 
the first day of the calendar quarter, then the preemptive and priority 
reserve fee for such calendar quarter shall be calculated pro rata 
based upon the number of days in such calendar quarter that the NYSE 
System is so available.
    (ii) Fee Sharing. Each of the Other Participants agrees to pay a 
share of the preemptive and priority reserve and per diem fees based 
upon a proportional share of its production costs excluding the NYSE's 
share.
    (iii) Fee Payment. Fee payment will be computed by the System's 
facilities manager as soon as practicable following the close of each 
calendar month. Each Other Participant's (or former Participant's) 
estimated share thereof shall be billed by the System's facilities 
manager and shall be payable to the System's facilities manager 
promptly following receipt. Any appropriate adjustment will be made 
between the System's facilities manager and each Other Participant 
promptly following the close of each calendar quarter. The facilities 
manager shall forward such payments to the NYSE as the NYSE may from 
time to time instruct the facilities manager.
    (e) Liability Limits. Neither the NYSE nor the facilities manager 
shall be liable to any Participant, to any member of any Participant 
using or having access to the NYSE system, or to any other person for 
any loss or damage resulting from any non-performance or interruption 
in the operation of the NYSE System, from any inaccuracies, errors or 
omissions in any of the information conveyed or received through the 
NYSE System, or from any delays, omissions, or errors in the 
transmissions, or errors in the transmission of any such information.
    (f) Termination.
    (i) In the event that the NYSE determines to withdraw the NYSE 
System from use by the Linkage, it shall so notify the Supervisory 
Committee, in writing, a minimum of six months prior to such 
withdrawal.
    (ii) In the event of such withdrawal, this section 12 shall be 
terminated and the Participants must then determine whether they should 
provide for alternative procedures in the event of System 
inoperability.

13. Effective Date

    The Linkage Plan shall become operative on October 1, 2006.

14. Counterparts

    The Linkage Plan may be executed in any number of counterparts, no 
one of which need contain all signatures of all Participants, and as 
many of such counterparts as shall together contain all such signatures 
shall constitute one and the same instrument.

 By--------------------------------------------------------------------
American Stock Exchange LLC

 By--------------------------------------------------------------------
Boston Stock Exchange, Inc.

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Chicago Board Options Exchange, Inc.

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Chicago Stock Exchange, Inc.

 By--------------------------------------------------------------------
NASDAQ Stock Market LLC

 By--------------------------------------------------------------------
National Stock Exchange

 By--------------------------------------------------------------------
New York Stock Exchange LLC

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NYSE Arca, Inc.

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Philadelphia Stock Exchange, Inc.

 [FR Doc. E6-12638 Filed 8-3-06; 8:45 am]

BILLING CODE 8010-01-P