Federal Register: August 3, 2001 (Volume 66, Number 150)
DOCID: FR Doc 01-19382
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission
DOCUMENT ID: [Release No. 34-44601; File No. SR-Phlx-2001-64]
NOTICE: NOTICES
ACTION: Self-regulatory organizations; proposed rule changes:
SUBJECT CATEGORY:
Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Philadelphia Stock Exchange, Inc. Withdrawing From the Joint-Exchange Options Plan
DOCUMENT SUMMARY:
July 27, 2001.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on June 22, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Phlx. The Commission is publishing this notice to solicit comments on the proposed rule change from interest persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.1965.
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Phlx proposes to withdraw from the JointExchange Options PLan
(``JEOP'') \3\ upon the effectiveness of the proposed Options Listing Procedures Plan (``OLPP'').\4\
\3\ In September 1991, the Commission approved the JEOP for the
selecting, listing, challenging, and arbitrating the eligibility of
new standardized equity options filed by the American Stock Exchange
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE''), New
York Stock Exchange, Inc., Pacific Exchange, Inc. (``PCX''), and
Phlx. See Securities Exchange Act Release No. 29698 (September 17, 1991), 56 FR 48593/4 (September 25, 1991.)
\4\ The Commission directed the Phlx, Amex, CBOE, and PCX to
amend the JEOP to eliminate advance notice to other markets of the
intention to list a new or existing option; to eliminate any
provisions of the JEOP that prevent a market from commencing to list
or take any option listed on another market or an option that
another market has expressed an intent to list; and to eliminate any provisions of the JEOP that allow one market to delay the
commencement of trading of an option by another market. See Section
IV.B.a of the Order Instituting Public Administrative Proceedings
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934,
Making Findings and Imposing Sanctions, Securities Exchange Act
Release No. 43268 (September 11, 2000) (``Order''). Pursuant to the
Order, Amex, CBOE, PCX, and Phlx, along with the International
Securities Exchange LLC and the The Options Clearing Corporation,
proposed the OLPP, to replace the current JEOP. See Securities
Exchange Act Release No. 44287 (May 10, 2001), 66 FR 27184 (May 16, 2001).
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx 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 IV below. The Phlx has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to effect the Exchange's
withdrawal from the current JEOP. The Exchange proposes to make the
withdrawal operative upon the approval of the OLPP by the Commission. The Commission approved the OLPP on July 6, 2001.\5\
\5\ See Securities Exchange Act Release No. 44521 (July 6, 2001), 66 FR 36809 (July 13, 2001).
The Exchange believes that the OLPP satisfies the Commission's mandates concerning procedures for the certification and listing of options. Therefore, the parties no longer need to rely on the JEOP for such procedures, but rather will follow the new procedures set forth in the OLPP.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general and furthers the objectives
of Section 6(b)(5) \7\ in particular in that it is designed to promote
just and equitable principles of trade, remove impediments to a free
and open market and a national market system, and protect investors and
the public interest by withdrawing the Exchange from the JEOP upon the implementation of the OLPP.
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory Organization's Statement on Burden on Competition
The Phlx does not believe that the proposed rule change will impose any inappropriate burden on competition.
C. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate; and the Exchange has
given the Commission written notice of its intention to file the
proposed rule change at least five business days prior to filing, or
such shorter time as designated by the Commission, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b
4(f)(6) \9\ thereunder. At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.194(f)(6).
The Exchange has requested that the Commission acclerate the
operative date and to waive the five day prefiling requirement so that
the proposed rule change may take effect upon approval of the OLPP by
the Commission. The Commission believes that it is consistent with the
protection of investors and the public interest and therefore finds
good cause to accelerate the operative date of the proposed rule change
and to waive the five day prefiling requirement. Acceleration of the
operative date and waiving the prefiling requirement will permit the
Exchange to implement the OLPP without undue delay. For these reasons,
the Commission finds good cause to designate that the proposal became [[Page 40774]]
operative immediately upon Commission approval of the OLPP.\10\
\10\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
IV. Solicitation of Comments
Interested person are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change 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 205490609. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the Phlx. All submissions should refer to the File No. SRPhlx200164 and should be submitted by August 24, 2001.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\11\
\11\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0119382 Filed 8201; 8:45 am]
BILLING CODE 801001M
SUMMARY:
Philadelphia Stock Exchange, Inc.,
DOCUMENT BODY 2:
July 27, 2001.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b4 thereunder,\2\ notice is hereby given that
on June 22, 2001, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Phlx. The Commission is publishing this notice to solicit comments on the proposed rule change from interest persons.
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.1965.
I. SelfRegulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The Phlx proposes to withdraw from the JointExchange Options PLan
(``JEOP'') \3\ upon the effectiveness of the proposed Options Listing Procedures Plan (``OLPP'').\4\
\3\ In September 1991, the Commission approved the JEOP for the
selecting, listing, challenging, and arbitrating the eligibility of
new standardized equity options filed by the American Stock Exchange
LLC (``Amex''), Chicago Board Options Exchange, Inc. (``CBOE''), New
York Stock Exchange, Inc., Pacific Exchange, Inc. (``PCX''), and
Phlx. See Securities Exchange Act Release No. 29698 (September 17, 1991), 56 FR 48593/4 (September 25, 1991.)
\4\ The Commission directed the Phlx, Amex, CBOE, and PCX to
amend the JEOP to eliminate advance notice to other markets of the
intention to list a new or existing option; to eliminate any
provisions of the JEOP that prevent a market from commencing to list
or take any option listed on another market or an option that
another market has expressed an intent to list; and to eliminate any provisions of the JEOP that allow one market to delay the
commencement of trading of an option by another market. See Section
IV.B.a of the Order Instituting Public Administrative Proceedings
Pursuant to Section 19(h)(1) of the Securities Exchange Act of 1934,
Making Findings and Imposing Sanctions, Securities Exchange Act
Release No. 43268 (September 11, 2000) (``Order''). Pursuant to the
Order, Amex, CBOE, PCX, and Phlx, along with the International
Securities Exchange LLC and the The Options Clearing Corporation,
proposed the OLPP, to replace the current JEOP. See Securities
Exchange Act Release No. 44287 (May 10, 2001), 66 FR 27184 (May 16, 2001).
II. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Phlx 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 IV below. The Phlx has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. SelfRegulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to effect the Exchange's
withdrawal from the current JEOP. The Exchange proposes to make the
withdrawal operative upon the approval of the OLPP by the Commission. The Commission approved the OLPP on July 6, 2001.\5\
\5\ See Securities Exchange Act Release No. 44521 (July 6, 2001), 66 FR 36809 (July 13, 2001).
The Exchange believes that the OLPP satisfies the Commission's mandates concerning procedures for the certification and listing of options. Therefore, the parties no longer need to rely on the JEOP for such procedures, but rather will follow the new procedures set forth in the OLPP.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general and furthers the objectives
of Section 6(b)(5) \7\ in particular in that it is designed to promote
just and equitable principles of trade, remove impediments to a free
and open market and a national market system, and protect investors and
the public interest by withdrawing the Exchange from the JEOP upon the implementation of the OLPP.
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
B. SelfRegulatory Organization's Statement on Burden on Competition
The Phlx does not believe that the proposed rule change will impose any inappropriate burden on competition.
C. SelfRegulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate; and the Exchange has
given the Commission written notice of its intention to file the
proposed rule change at least five business days prior to filing, or
such shorter time as designated by the Commission, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b
4(f)(6) \9\ thereunder. At any time within 60 days of the filing of the
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.194(f)(6).
The Exchange has requested that the Commission acclerate the
operative date and to waive the five day prefiling requirement so that
the proposed rule change may take effect upon approval of the OLPP by
the Commission. The Commission believes that it is consistent with the
protection of investors and the public interest and therefore finds
good cause to accelerate the operative date of the proposed rule change
and to waive the five day prefiling requirement. Acceleration of the
operative date and waiving the prefiling requirement will permit the
Exchange to implement the OLPP without undue delay. For these reasons,
the Commission finds good cause to designate that the proposal became [[Page 40774]]
operative immediately upon Commission approval of the OLPP.\10\
\10\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
IV. Solicitation of Comments
Interested person are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change 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 205490609. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the Phlx. All submissions should refer to the File No. SRPhlx200164 and should be submitted by August 24, 2001.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\11\
\11\ 17 CFR 200.303(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 0119382 Filed 8201; 8:45 am]
BILLING CODE 801001M