
[Federal Register: November 19, 2007 (Volume 72, Number 222)]
[Notices]               
[Page 65113]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19no07-108]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56780; File No. 4-429]

 
Joint Industry Plan; Order Approving Joint Amendment No. 23 to 
the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage To Permit the Use of Linkage Prior to the Opening of 
Trading

November 13, 2007.

I. Introduction

    On September 14, 2007, September 19, 2007, August 29, 2007, August 
30, 2007, August 29, 2007, and September 26, 2007, the American Stock 
Exchange LLC (``Amex''), the Boston Stock Exchange, Inc. (``BSE''), the 
Chicago Board Options Exchange, Incorporated (``CBOE''), the 
International Securities Exchange, LLC (``ISE''), the NYSE Arca, Inc. 
(``NYSE Arca''), and the Philadelphia Stock Exchange, Inc. (``Phlx'') 
(collectively, ``Participants''), respectively, filed with the 
Securities and Exchange Commission (``Commission'') pursuant to section 
11A of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 608 
thereunder \2\ an amendment (``Joint Amendment No. 23'') to the Plan 
for the Purpose of Creating and Operating an Intermarket Option Linkage 
(``Linkage Plan'').\3\ In Joint Amendment No. 23, the Participants 
propose to modify section 7(a)(i) of the Linkage Plan to permit trading 
on Linkage prior to the opening of trading. The proposed Joint 
Amendment No. 23 was published in the Federal Register on October 12, 
2007.\4\ The Commission received no comments on Joint Amendment No. 23. 
This order approves Joint Amendment No. 23.
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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, Phlx, Pacific Exchange, Inc. 
(n/k/a NYSE Arca, Inc.), 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).
    \4\ See Securities Exchange Act Release No. 56605 (October 3, 
2007), 72 FR 58134.
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II. Description of the Proposed Amendment

    The Linkage Plan currently does not permit use of Linkage before an 
exchange opens for trading and disseminates a quotation in an option 
series. In Joint Amendment No. 23, the Participants proposed to amend 
section 7(a)(i) of the Linkage Plan to permit the use of Linkage prior 
to the opening of trading. Specifically, Joint Amendment No. 23 would 
allow Participants to send Linkage P/A Orders \5\ to the Linkage prior 
to the exchange's opening.
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    \5\ See Section 2(16)(a) of the Linkage Plan.
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III. Discussion and Commission Findings

    After careful consideration of Joint Amendment No. 23, the 
Commission finds that approving Joint Amendment No. 23 is consistent 
with the requirements of the Act and the rules and regulations 
thereunder. Specifically, the Commission finds that Joint Amendment No. 
23 is consistent with section 11A of the Act \6\ and Rule 608 
thereunder \7\ in that it is appropriate in the public interest, for 
the protection of investors and the maintenance of fair and orderly 
markets. The Commission believes that allowing Participants to send 
Linkage P/A Orders to the Linkage prior to the exchange's opening 
should facilitate investors' intermarket access to superior prices 
disseminated by Participants other than the one to which the order was 
initially sent.
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    \6\ 15 U.S.C. 78k-1.
    \7\ 17 CFR 242.608.
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IV. Conclusion

    It is therefore ordered, pursuant to Section 11A of the Act \8\ and 
Rule 608 thereunder,\9\ that Joint Amendment No. 23 is approved.
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    \8\ 15 U.S.C. 78k-1.
    \9\ 17 CFR 242.608.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(29).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-22533 Filed 11-16-07; 8:45 am]

BILLING CODE 8011-01-P
