Self-Regulatory Organizations; Order Approving Proposed Rule Change and Amendment No. 1 Thereto by the New York Stock Exchange, Inc. To Amend NYSE Rule 104 Regarding the Requirement That Specialists Obtain Floor Official Approval for Destabilizing Dealer Account Transactions in ETFs, 21484-21485 [E5-1965]
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21484
Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
2. Statutory Basis
IV. Solicitation of Comments
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 15A of the Act,9 in
general, and Section 15A(b)(5) 10 of the
Act, in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which the
NASD operates or controls. Nasdaq also
believes that the proposed rule change
will result in subscribers being eligible
to receive the new Nasdaq Workstation
at a price that, when added to the price
for the TotalView and UQDF/UTDF data
feeds, is identical to the current price
for the NWII. Because the new
Workstation will allow the elimination
of SDPs supporting the NWII, however,
Nasdaq believes the proposed rule
change would result in substantial cost
savings for subscribers that opt to
receive the new Workstation service.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and subparagraphs (f)(1),
(2), and (5) of Rule 19b–4 thereunder,
because it constitutes a stated policy,
practice, or interpretation with respect
to the meaning, administration, or
enforcement of an existing rule,
establishes or changes a due, fee, or
other charge, and effects a change in an
existing order-entry or trading system.12
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.
9 15
U.S.C. 78o–3.
U.S.C. 78o–3(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(1), (2), and (5).
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• 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
Number SR–NASD–2005–041 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
Number SR–NASD–2005–041. 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 (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
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of the NASD. 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 SR–NASD–
2005–041 and should be submitted on
or before May 17, 2005.
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BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
10 15
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1975 Filed 4–25–05; 8:45 am]
[Release No. 34–51573; File No. SR–NYSE–
2004–71]
Self-Regulatory Organizations; Order
Approving Proposed Rule Change and
Amendment No. 1 Thereto by the New
York Stock Exchange, Inc. To Amend
NYSE Rule 104 Regarding the
Requirement That Specialists Obtain
Floor Official Approval for
Destabilizing Dealer Account
Transactions in ETFs
April 19, 2005.
On December 15, 2004, the New York
Stock Exchange, Inc. (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend NYSE Rule 104 regarding the
requirement that specialists obtain floor
official approval for destabilizing dealer
account transactions in ETFs. On
February 28, 2005, the NYSE submitted
Amendment No. 1 to the proposed rule
change.3 The proposed rule change, as
amended, was published for comment
in the Federal Register on March 15,
2005.4 The Commission received no
comments on the proposal.
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.5 In particular, the
Commission believes that the proposed
rule change is consistent with section
6(b)(5) of the Act,6 which requires that
the rules of an exchange be designed,
among other things, to prevent
fraudulent and manipulative practices,
to promote just and equitable principles
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 superseded the originally
filed proposed rule change in its entirety.
4 See Securities Exchange Act Release No. 51329
(March 8, 2005), 70 FR 12769.
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
1 15
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Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
of trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Exchange has proposed to remove
the current restriction on the ability of
specialists to buy on plus ticks or sell
on minus ticks without Floor Official
approval, as set forth in NYSE Rules
104.10(5) and (6), for transactions in
investment company units and Trust
Issued Receipts (collectively referred to
as ‘‘Exchange Traded Funds,’’ or
‘‘ETFs’’). The Commission believes that,
because ETFs are priced derivatively,
based on the value of an underlying
basket of securities, the removal of this
restriction is warranted, and notes that
it has previously approved a similar rule
change adopted by the American Stock
Exchange LLC (‘‘Amex’’).7 In approving
the proposed rule change, the
Commission notes that an Exchange
specialist must continue to engage in
dealings for his or her own account to
assist in the maintenance of a fair and
orderly market.8
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
NYSE–2004–71), as amended, be, and
hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1965 Filed 4–25–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51586; File No. SR–OCC–
2005–05]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Technical Changes That Add or
Correct Cross-References in Article
VIII, Section 5 of the By-Laws and in
Rule 910
April 20, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 13, 2005, The Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which items have been
prepared primarily by OCC. 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 proposed rule change adds or
corrects cross-references by making
technical changes to Article VIII,
Section 5 of OCC’s By-Laws and to OCC
Rule 910, respectively.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC 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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.2
BILLING CODE 8010–01–P
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
7 See
Securities Exchange Act Release No. 49087
(January 15, 2004), 69 FR 3622 (January 26, 2004)
(order approving, among other things, the removal
of the restriction on Amex specialists from buying
on plus ticks and selling on minus ticks without
Floor Official approval for transactions in Exchange
Traded Funds).
8 See NYSE Rule 104 and Rule 11b–1 under the
Act, 17 CFR 240.11b–1.
9 15 U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
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The purpose of the proposed rule
change is to correct technical errors in
Article VIII, Section 5(e) of OCC’s ByLaws and in Rules 910(c) and (d).
In October 2004, the Commission
approved a proposed rule change that
revised Section 5(e) of Article VIII of
U.S.C. 78s(b)(1).
Commission has modified parts of these
statements.
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1 15
2 The
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21485
OCC’s By-Laws.3 Article VIII of OCC’s
By-Laws pertains to the application of
OCC’s clearing fund. In its filing, OCC
mistakenly deleted the designation of
clause (i) of Section 5(e). The proposed
rule change reinserts it.
In March 2004, the Commission
approved a proposed rule change that
significantly restructured and revised
Chapter IX of OCC’s Rules.4 Chapter IX
of OCC’s Rules pertains to delivery
settlement of exercised equity options
and matured stock futures. In its filing,
OCC neglected to change crossreferences in Rules 910 (c) and (d) to
paragraph (b). (Paragraph (d) was
redesignated as paragraph (b) in that
filing). The proposed rule change
corrects those cross-references.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change, and none
have been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 5 and Rule
19b–4(f)(4) 6 thereunder because it
effects a change that (i) does not
adversely affect the safeguarding of
securities or funds in the custody or
control of the clearing agency or for
which it is responsible and (ii) does not
significantly affect the respective rights
or obligations of the clearing agency or
persons using the service. At any time
within sixty days of the filing of the
proposed rule change, the Commission
may summarily abrogate the 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.
3 Securities Exchange Act Release No. 50526
(October 13, 2004), 69 FR 61701 (October 20, 2004)
[File No. SR–OCC–2004–13].
4 Securities Exchange Act Release No. 49420
(March 16, 2004), 69 FR 13345 (March 22, 2004)
[File No. SR–OCC–2003–08].
5 15 U.S.C. 78s(b)(3)(A)(iii).
6 17 CFR 240.19b–4(f)(4).
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]]>Agencies
[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21484-21485]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1965]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51573; File No. SR-NYSE-2004-71]
Self-Regulatory Organizations; Order Approving Proposed Rule
Change and Amendment No. 1 Thereto by the New York Stock Exchange, Inc.
To Amend NYSE Rule 104 Regarding the Requirement That Specialists
Obtain Floor Official Approval for Destabilizing Dealer Account
Transactions in ETFs
April 19, 2005.
On December 15, 2004, the New York Stock Exchange, Inc. (``NYSE''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend NYSE Rule 104 regarding the requirement
that specialists obtain floor official approval for destabilizing
dealer account transactions in ETFs. On February 28, 2005, the NYSE
submitted Amendment No. 1 to the proposed rule change.\3\ The proposed
rule change, as amended, was published for comment in the Federal
Register on March 15, 2005.\4\ The Commission received no comments on
the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 superseded the originally filed proposed
rule change in its entirety.
\4\ See Securities Exchange Act Release No. 51329 (March 8,
2005), 70 FR 12769.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\5\
In particular, the Commission believes that the proposed rule change is
consistent with section 6(b)(5) of the Act,\6\ which requires that the
rules of an exchange be designed, among other things, to prevent
fraudulent and manipulative practices, to promote just and equitable
principles
[[Page 21485]]
of trade, to remove impediments to and perfect the mechanism of a free
and open market and a national market system, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange has proposed to remove the current restriction on the
ability of specialists to buy on plus ticks or sell on minus ticks
without Floor Official approval, as set forth in NYSE Rules 104.10(5)
and (6), for transactions in investment company units and Trust Issued
Receipts (collectively referred to as ``Exchange Traded Funds,'' or
``ETFs''). The Commission believes that, because ETFs are priced
derivatively, based on the value of an underlying basket of securities,
the removal of this restriction is warranted, and notes that it has
previously approved a similar rule change adopted by the American Stock
Exchange LLC (``Amex'').\7\ In approving the proposed rule change, the
Commission notes that an Exchange specialist must continue to engage in
dealings for his or her own account to assist in the maintenance of a
fair and orderly market.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 49087 (January 15,
2004), 69 FR 3622 (January 26, 2004) (order approving, among other
things, the removal of the restriction on Amex specialists from
buying on plus ticks and selling on minus ticks without Floor
Official approval for transactions in Exchange Traded Funds).
\8\ See NYSE Rule 104 and Rule 11b-1 under the Act, 17 CFR
240.11b-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-NYSE-2004-71), as
amended, be, and hereby is, approved.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1965 Filed 4-25-05; 8:45 am]
BILLING CODE 8010-01-P
