Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by the Chicago Stock Exchange, Incorporated Relating to Participant Fees and Credits., 17278-17279 [E5-1531]
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Federal Register / Vol. 70, No. 64 / Tuesday, April 5, 2005 / Notices
consistent with the Act.29 The
Commission presently is not aware of
any regulatory issue that should cause
the Commission to revisit that earlier
finding or preclude the trading of GLD
on the Exchange pursuant to UTP.
Therefore, accelerating approval of the
proposal should benefit investors by
creating, without undue delay,
additional competition in the market for
GLD.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,30 that the
proposed rule change (SR–Amex–2005–
032), is approved on an accelerated
basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.31
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1532 Filed 4–4–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51448; File No. SR–CHX–
2005–07]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
Chicago Stock Exchange, Incorporated
Relating to Participant Fees and
Credits.
March 30, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 16,
2005, the Chicago Stock Exchange,
Incorporated (‘‘CHX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the CHX. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
schedule of Participant Fees and Credits
(the ‘‘Fee Schedule’’) to confirm that
late fees will be assessed on a
participant’s bill ten (10) days from the
29 See
supra note 3.
U.S.C. 78s(b)(2).
31 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
30 15
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19:48 Apr 04, 2005
Jkt 205001
date on which payment of the bill is
due. The text of the proposed rule
change is available on CHX’s Web site
(https://www.chx.com), the CHX’s Office
of the Secretary, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange bills its participants
monthly for fees and other assessments
due to the Exchange. These bills
typically are distributed to participants
on the tenth day of the month following
the month in which the fees were
incurred and, by their terms, are due by
the end of the month.3 Under the
Exchange’s Fee Schedule, the Exchange
assesses a late fee on the outstanding
balance of any unpaid participant bills.
The current version of the Fee Schedule,
however, allows the Exchange to assess
this late fee only when a bill has
remained unpaid 60 days from the date
on which the fees were due.4
Through this proposal, the Exchange
seeks to amend the Fee Schedule to
permit an earlier assessment of the late
fee.5 The Exchange believes that this
change will encourage its participants to
pay their bills on time by assessing a
reasonable late fee in those instances in
which a participant does not do so.
2. Statutory Basis
The Exchange believes that proposed
rule change is consistent with Section
6(b)(4) of the Act 6 in that it provides for
the equitable allocation of reasonable
3 For example, the participant bills relating to the
month of March are distributed on or about April
10 and are due on April 30.
4 Using the same example as above, the Exchange
currently cannot assess a late fee unless a
participant’s March bill (due April 30) remains
unpaid on June 30.
5 Under the proposal, the Exchange could assess
a late fee if a participant has not paid its March bill
(due April 30) by May 10.
6 15 U.S.C. 78(f)(b)(4).
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
dues, fees and other charges among its
members.
B. Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory 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
The foregoing rule change establishes
or changes a due, fee or other charge
imposed by the Exchange and therefore
has become effective pursuant to
Section 19(B)(3)(A) of the Act 7 and
subparagraph (f)(2) of Rule 19b–4
thereunder.8 At any time within 60 days
of the filing of such 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
purpose of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–CHX–2005–07 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
No. SR–CHX–2005–07. 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
7 15
8 17
E:\FR\FM\05APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
05APN1
Federal Register / Vol. 70, No. 64 / Tuesday, April 5, 2005 / Notices
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). 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, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of the
filing will also be available for
inspection and copying at the principal
office of the CHX. 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 No. SR–CHX–2005–
07 and should be submitted on or before
April 26, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1531 Filed 4–4–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51443; File No. SR–ISE–
2004–40]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change and
Amendment Nos. 1, 2, and 3 Thereto
by the International Securities
Exchange, Inc. Relating to Procedures
for the Allocation of Market Maker
Appointments
March 29, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
14, 2004, the International Securities
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:48 Apr 04, 2005
Jkt 205001
have been prepared by the ISE. On
January 18, 2005, the ISE filed
Amendment No. 1 to the proposed rule
change.3 On March 2, 2005, the ISE filed
Amendment No. 2 to the proposed rule
change.4 On March 21, 2005, the ISE
filed Amendment No. 3 to the proposed
rule change.5 The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend ISE
Rule 802 to (1) specify that allocations
of market maker appointments must be
made in the best interest of the
Exchange and (2) add criteria specific to
the allocation of market maker
appointments in index options in
addition to the criteria currently
contained in the Rule.
The text of the proposed rule change
is available on the ISE’s Web site
(https://www.iseoptions.com), at the
ISE’s Office of the Secretary, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
ISE 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 ISE has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
When the Exchange lists new options
classes, it allocates them to one of its
Primary Market Makers under ISE Rule
3 See Form 19b–4, dated January 18, 2005, which
replaced the original filing in its entirety
(‘‘Amendment No. 1’’).
4 See Form 19b–4, dated March 2, 2005, which
replaced Amendment No. 1 in its entirety
(‘‘Amendment No. 2’’).
5 See Form 19b–4, dated March 21, 2005, which
replaced Amendment No. 2 in its entirety
(‘‘Amendment No. 3’’). Collectively, Amendment
Nos. 1, 2, and 3 clarified the following: (1) That
ISE’s Board or designated committee shall make
appointments in the best interest of the exchange
to provide competitive markets; (2) that changes to
the allocation requirements for index options will
be prospective only; and (3) that information
regarding order flow arrangements will not be used
as a basis for remedial action.
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
17279
802. Pursuant to power delegated by the
Exchange’s Board, an Allocation
Committee, which consists of
representatives of Electronic Access
Members, makes allocation decisions
according to the guidelines contained in
ISE Rule 802. ISE Rule 802 states,
among other things, that the Allocation
Committee should consider the
following in making its decisions: The
financial resources available to the
Primary Market Maker, the Primary
Market Maker’s experience and
expertise in market making or options
trading, and the maintenance and
enhancement of competition among
Primary Market Makers.
The Exchange believes that, as
competition among the options
exchanges continues to intensify, it is
increasingly important for the Exchange
to assure that products are allocated to
the Primary Market Makers that make
the best markets. While it is implied
that the Exchange’s Board and all
Exchange committees always must act
in the best interest of the Exchange to
provide competitive markets, because
allocation decisions have a direct
impact on the competitiveness of the
Exchange, the Exchange proposes to
specify this obligation to act in the best
interest of the Exchange in ISE Rule 802.
According to the Exchange, options
on index-based products can be among
the most actively traded listed options,
making them among the most important
products to the Exchange. While the
Exchange believes that the allocation
standards contained in ISE Rule 802
work reasonably well with respect to the
allocation of equity options, the
Exchange believes it is appropriate for
the Exchange to seek more specific
commitments from Primary Market
Makers as to the quality of the markets
they are prepared to make in certain
index-based products (i.e., options on
indices and exchange-traded funds).
Moreover, the Exchange believes it is
appropriate to have the ability to base
re-allocation decisions on the failure of
a Primary Market Maker to comply with
its market quality commitments. The
proposed rule change would not apply
to allocation decisions made prior to
approval of this proposed rule change
by the Commission.
The Exchange proposes to
supplement the current allocation
criteria to require Primary Market
Makers who ask for an allocation of an
index-based product to provide specific
quarterly spread and size commitments
for the first year of listing. The
Allocation Committee would consider
these commitments in making its
allocation decisions in addition to the
factors currently contained in ISE Rule
E:\FR\FM\05APN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 64 (Tuesday, April 5, 2005)]
[Notices]
[Pages 17278-17279]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1531]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51448; File No. SR-CHX-2005-07]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by the Chicago Stock Exchange,
Incorporated Relating to Participant Fees and Credits.
March 30, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 16, 2005, the Chicago Stock Exchange, Incorporated
(``CHX'' or ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
CHX. The Commission is publishing this notice to solicit comments on
the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its schedule of Participant Fees and
Credits (the ``Fee Schedule'') to confirm that late fees will be
assessed on a participant's bill ten (10) days from the date on which
payment of the bill is due. The text of the proposed rule change is
available on CHX's Web site (https://www.chx.com), the CHX's Office of
the Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX has prepared summaries, set forth in sections A, B, and
C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange bills its participants monthly for fees and other
assessments due to the Exchange. These bills typically are distributed
to participants on the tenth day of the month following the month in
which the fees were incurred and, by their terms, are due by the end of
the month.\3\ Under the Exchange's Fee Schedule, the Exchange assesses
a late fee on the outstanding balance of any unpaid participant bills.
The current version of the Fee Schedule, however, allows the Exchange
to assess this late fee only when a bill has remained unpaid 60 days
from the date on which the fees were due.\4\
---------------------------------------------------------------------------
\3\ For example, the participant bills relating to the month of
March are distributed on or about April 10 and are due on April 30.
\4\ Using the same example as above, the Exchange currently
cannot assess a late fee unless a participant's March bill (due
April 30) remains unpaid on June 30.
---------------------------------------------------------------------------
Through this proposal, the Exchange seeks to amend the Fee Schedule
to permit an earlier assessment of the late fee.\5\ The Exchange
believes that this change will encourage its participants to pay their
bills on time by assessing a reasonable late fee in those instances in
which a participant does not do so.
---------------------------------------------------------------------------
\5\ Under the proposal, the Exchange could assess a late fee if
a participant has not paid its March bill (due April 30) by May 10.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that proposed rule change is consistent with
Section 6(b)(4) of the Act \6\ in that it provides for the equitable
allocation of reasonable dues, fees and other charges among its
members.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78(f)(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement of Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
C. Self-Regulatory 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
The foregoing rule change establishes or changes a due, fee or
other charge imposed by the Exchange and therefore has become effective
pursuant to Section 19(B)(3)(A) of the Act \7\ and subparagraph (f)(2)
of Rule 19b-4 thereunder.\8\ At any time within 60 days of the filing
of such 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 purpose of the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Comments may be submitted by any of the
following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-CHX-2005-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File No. SR-CHX-2005-07. 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
[[Page 17279]]
only one method. The Commission will post all comments on the
Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml).
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, 450 Fifth Street, NW., Washington,
DC 20549. Copies of the filing will also be available for inspection
and copying at the principal office of the CHX. 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 No. SR-CHX-2005-07 and should be submitted on or
before April 26, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1531 Filed 4-4-05; 8:45 am]
BILLING CODE 8010-01-P
