

[Federal Register: June 22, 2006 (Volume 71, Number 120)]
[Notices]               
[Page 35960-35961]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn06-124]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54001; File No. 4-429]

 
Joint Industry Plan; Notice of Filing of Joint Amendment No. 19 
to the Intermarket Option Linkage Plan To Modify the Manner in Which 
the Participation Fee Applicable to New Participants Is Calculated

June 15, 2006.
    Pursuant to section 11A of the Securities Exchange Act of 1934 (the 
``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given that on 
February 17, 2006, March 16, 2006, April 12, 2006, April 18, 2006, May 
2, 2006, and May 22, 2006, International Securities Exchange, Inc. 
(``ISE''), Philadelphia Stock Exchange, Inc. (``Phlx''), Chicago Board 
Options Exchange, Incorporated

[[Page 35961]]

(``CBOE''), Boston Stock Exchange, Inc. (``BSE''), American Stock 
Exchange LLC (``Amex''), and NYSE Arca, Inc. (``NYSE Arca'') 
(collectively, ``Participants'') respectively submitted to the 
Securities and Exchange Commission (``Commission'') Joint Amendment No. 
19 to the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage (the ``Linkage Plan'').\3\ The Joint Amendment proposes 
to modify the manner in which the participation fee applicable to new 
Participants is calculated.\4\ The Commission is publishing this notice 
to solicit comments from interested persons on the proposed Joint 
Amendment to the Linkage Plan.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ On July 28, 2000, the Commission approved a national market 
system plan for the purpose of creating and operating an intermarket 
options market linkage proposed by the Amex, CBOE, and ISE. See 
Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 
48023 (August 4, 2000). Subsequently, upon separate requests by the 
Phlx, Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.), and BSE, the 
Commission issued orders to permit these exchanges to participate in 
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).
    \4\ See Section 11(b) of the Linkage Plan.
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I. Description and Purpose of the Amendment

    The purpose of the Joint Amendment is to modify the manner in which 
the participation fee applicable to new Participants is calculated. The 
participation fee is determined by the Participants and is assessed in 
connection with an Eligible Exchange \5\ becoming a new Participant. 
The Joint Amendment provides that in determining the amount of the 
participation fee, the Participants shall consider one or both of the 
following: (i) The portion of costs previously paid by the Participants 
for the development, expansion, and maintenance of Linkage \6\ 
facilities which, under generally accepted accounting principles, could 
have been treated as capital expenditures and, if so treated, would 
have been amortized over the five years preceding the admission of the 
new Participant (and for this purpose all such capital expenditures 
shall be deemed to have a five-year amortizable life); and (ii) 
previous participation fees paid by other new Participants. These 
standards are consistent with the participation fee standards contained 
in the Consolidated Tape Plan (``CTA Plan'').\7\ Further, the 
Participants would no longer be required to calculate the participation 
fee at least once a year. Instead, the participation fee would be 
calculated at the time an Eligible Exchange seeks to become a 
Participant.
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    \5\ See Section 2(6) of the Linkage Plan.
    \6\ See Section 2(14) of the Linkage Plan.
    \7\ See Section III(c)(2) of the CTA Plan.
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II. Implementation of the Plan Amendment

    The Participants intend to make the proposed Joint Amendment to the 
Linkage Plan reflected in this filing effective when the Commission 
approves the Joint Amendment.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
Joint Amendment to 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 4-429 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number 4-429. 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 proposed Joint Amendment that are filed 
with the Commission, and all written communications relating to the 
proposed Joint Amendment 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 also will be available for inspection and copying at the 
principal offices of the Amex, BSE, CBOE, ISE, NYSE Arca, and Phlx. 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 4-429 and should be submitted 
on or before July 13, 2006. For the Commission, by the Division of 
Market Regulation, pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(29).

Nancy M. Morris,
Secretary.
[FR Doc. E6-9854 Filed 6-21-06; 8:45 am]

BILLING CODE 8010-01-P
