[Federal Register: October 2, 2006 (Volume 71, Number 190)]
[Notices]
[Page 58018-58019]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc06-129]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54510, File No. 4-518]
Joint Industry Plan; Notice of Filing and Order Granting
Temporary Effectiveness of Amendment To Plan Establishing Procedures
Under Rule 605 of Regulation NMS
September 26, 2006.
Pursuant to Section 11A(a)(3) of the Securities Exchange Act of
1934 (``Act'') \1\ and Rule 608 of Regulation NMS,\2\ notice is hereby
given that on September 14, 2006, the International Securities
Exchange, LLC (``ISE'') submitted to the Securities and Exchange
Commission (``SEC'' or ``Commission'') an amendment to the national
market system plan that establishes procedures under Rule 605 of
Regulation NMS (``Joint-SRO Plan'' or ``Plan'').\3\ The amendment
proposes to add ISE as a participant to the Joint-SRO Plan. The
Commission is publishing this notice and order to solicit comments from
interested persons on the proposed Joint-SRO Plan amendment, and to
grant temporary effectiveness to the proposed amendment through January
30, 2007.
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\1\ 15 U.S.C. 78k-1(a)(3).
\2\ 17 CFR 242.608.
\3\ 17 CFR 242.605. On April 12, 2001, the Commission approved a
national market system plan for the purpose of establishing
procedures for market centers to follow in making their monthly
reports available to the public under Rule 11Ac1-5 under the Act (n/
k/a Rule 605 of Regulation NMS). See Securities Exchange Act Release
No. 44177 (April 12, 2001), 66 FR 19814 (April 17, 2001).
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I. Description and Purpose of the Amendment
The current participants to the Joint-SRO Plan are the American
Stock Exchange LLC, Boston Stock Exchange, Inc., Chicago Board Options
Exchange, Incorporated, Chicago Stock Exchange, Inc., Cincinnati Stock
Exchange, Inc. (n/k/a National Stock Exchange SM), The
NASDAQ Stock Market LLC, National Association of Securities Dealers,
Inc., New York Stock Exchange, Inc. (n/k/a New York Stock Exchange
LLC), Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.), and Philadelphia
Stock Exchange, Inc. The proposed amendment would add ISE as a
participant to the Joint-SRO Plan.
ISE has submitted a signed copy of the Joint-SRO Plan to the
Commission in accordance with the procedures set forth in the Plan
regarding new participants. Section III(b) of the Joint-SRO Plan
provides that a national securities exchange or national securities
association may become a
[[Page 58019]]
party to the Plan by: (i) Executing a copy of the Plan, as then in
effect (with the only changes being the addition of the new
participant's name in Section 11(a) of the Plan and the new
participant's single-digit code in Section VI(a)(1) of the Plan) and
(ii) submitting such executed plan to the Commission for approval.
II. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed
Joint-SRO Plan amendment 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/nms.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
File Number 4-518 on the subject line.
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 4-518. 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/nms.shtml
). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed Joint-SRO Plan
amendment that are filed with the Commission, and all written
communications relating to the proposed Joint-SRO Plan 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 the filing also will be available for
inspection and copying at the principal office of ISE. 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 4-518 and should be submitted
on or before November 1, 2006.
III. Commission's Findings and Order Granting Accelerated Approval of
Proposed Plan Amendment
The Commission finds that the proposed Joint-SRO Plan amendment is
consistent with the requirements of the Act and the rules and
regulations thereunder.\4\ Specifically, the Commission believes that
the proposed amendment, which permits ISE to become a participant to
the Joint-SRO Plan, is consistent with the requirements of Section 11A
of the Act, and Rule 608 of Regulation NMS. The Plan establishes
appropriate procedures for market centers to follow in making their
monthly reports required pursuant to Rule 605 of Regulation NMS,
available to the public in a uniform, readily accessible, and usable
electronic format. The proposed amendment to include ISE as a
participant in the Joint-SRO Plan will contribute to the maintenance of
fair and orderly markets and remove impediments to and perfect the
mechanisms of a national market system by facilitating the uniform
public disclosure of order execution information by all market centers.
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\4\ In approving this proposed Joint-SRO Plan amendment, the
Commission has considered the proposal's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
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The Commission finds good cause to grant temporary effectiveness to
the proposed Joint-SRO Plan amendment, for 120 days, until January 30,
2007. The Commission believes that it is necessary and appropriate in
the public interest, for the maintenance of fair and orderly markets,
to remove impediments to, and perfect mechanisms of, a national market
system to allow ISE to become a participant in the Joint-SRO Plan. On
September 1, 2006, the Commission approved a proposed rule change by
the ISE to establish ISE Stock Exchange, LLC (``ISE Stock Exchange'')
as an equities trading facility of ISE.\5\ As a Plan participant, ISE
would have timely information on the Plan procedures as they are
formulated and modified by the participants. The Commission finds,
therefore, that granting temporary effectiveness of the proposed Joint-
SRO Plan amendment is appropriate and consistent with Section 11A of
the Act.\6\
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\5\ See Securities Exchange Act Release No. 54399 (September 1,
2006), 71 FR 53728 (September 12, 2006). The ISE Stock Exchange
consists of a new electronic trading system developed to trade
equities and will provide for the electronic execution and display
of orders as well as a midpoint matching system. The Commission has
published for comment a proposed rule change by ISE to adopt rules
and amend existing ISE rules to govern the ISE Stock Exchange. See
Securities Exchange Act Release No. 54287 (August 8, 2006), 71 FR
46947 (August 15, 1006).
\6\ 15 U.S.C. 78k-1.
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IV. Conclusion
It is therefore ordered, pursuant to Section 11A of the Act \7\ and
Rule 608 of Regulation NMS,\8\ that the proposed Joint-SRO Plan
amendment is approved for 120 days, through January 30, 2007.
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\7\ 15 U.S.C. 78k-1.
\8\ 17 CFR 242.608.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(29).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-16170 Filed 9-29-06; 8:45 am]
BILLING CODE 8010-01-P