Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Granting Approval of Proposed Rule Change Relating to Taping Rule “Opt Out” and Exemption Provisions, 24848-24849 [05-9388]
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24848
Federal Register / Vol. 70, No. 90 / Wednesday, May 11, 2005 / Notices
Dated: May 6, 2005.
Ethel D. Briggs,
Executive Director.
[FR Doc. 05–9473 Filed 5–9–05; 12:06 pm]
BILLING CODE 6820–MA–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51651; File No. SR–BSE–
2005–01]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Order Approving
Proposed Rule Change, and
Amendment No. 1 Thereto, Relating to
the Price Improvement Period Under
the Rules of the Boston Options
Exchange Facility
May 3, 2005.
On January 4, 2005, the Boston Stock
Exchange, Inc. (‘‘BSE’’ 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 modify the rules of the Boston
Options Exchange Facility (‘‘BOX’’)
relating to the BOX’s Price Improvement
Period (the ‘‘PIP’’). On March 22, 2005,
the BSE filed 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 29, 2005.4 The Commission
received no comments on the proposal.
This Order approves the proposed rule
change, as amended.
The BSE proposes to amend the BOX
Rules to eliminate certain restrictions on
the ability of Order Flow Providers,
Market Makers, and Public Customers to
participate in the PIP. The proposal
would allow Order Flow Providers to
submit ‘‘Improvement Orders’’ 5 to the
PIP on behalf of Public Customers
through any type of instruction they
wish to accept, so long as the
Improvement Order is identified as a
Public Customer Order when it is
submitted.6 The BSE also proposes to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 superseded and replaced the
original filing in its entirety.
4 See Securities Exchange Act Release No. 51418
(March 23, 2005), 70 FR 15955.
5 Generally, an ‘‘Improvement Order’’ is an order
submitted to the PIP to compete on the contra side
for a Customer Order entered into the PIP under the
procedures detailed in Section 18 of Chapter I of the
BOX Rules. Improvement Orders are submitted in
increments of one cent, as set forth with additional
clarity in the proposed rule change.
6 Currently, a public customer may participate in
a PIP only if it has provided an Order Flow Provider
with a ‘‘Customer PIP Order,’’ an order that
includes a specific order size; a price stated in
2 17
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eliminate the current requirement that
an Options Participant 7 that is not
assigned as a Market Maker in the
relevant class that wishes to participate
in a PIP must have an order on the BOX
Book for its proprietary account equal to
the best BOX price before the PIP
commences (unless the participant
submitted the Primary Improvement
Order 8 or holds a Customer PIP Order).
In addition, the BSE proposes to
eliminate all references to ‘‘PIP
Proprietary Orders’’ because, under the
proposal, all Options Participants
(except for the Order Flow Provider or
Market Maker that submits the relevant
Primary Improvement Order to the PIP)
would now be able to submit
Improvement Orders for their
proprietary accounts without the above
restrictions, and as such, this separate
order type would no longer be
necessary.
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 9 and, in particular,
the requirements of Section 6(b) of the
Act 10 and the rules and regulations
thereunder. The Commission finds
specifically that the proposed rule
change, as amended, is consistent with
Section 6(b)(5) of the Act,11 which
requires, among other things, that the
rules of an exchange be designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
rounded five cent or ten cent increments, as
appropriate, at which the order is to be placed in
the BOX Book (the ‘‘BOX Book Reference Price’’);
and a specific price stated in one cent increments
at which the Public Customer wishes to participate
in any PIP that may occur while his order is on the
BOX Book. A Customer PIP Order can participate
in a PIP only if the BOX Book Reference Price is
equal to the best BOX price at the time a PIP
commences. See further at Section 18(g) of Chapter
I of the BOX Rules.
7 An ‘‘Options Participant’’ is a firm or
organization that is registered with the Exchange for
purposes of participating in options trading on the
BOX as an Order Flow Provider or Market Maker.
See Section 1(40) of Chapter I of the BOX Rules.
8 When an Options Participant submits a
Customer Order to the PIP, the Options Participant
also submits a matching contra order, the ‘‘Primary
Improvement Order,’’ on the opposite side of the
market than that of the Customer Order, and at a
higher bid (lower offer) than that of the national
best bid or offer (NBBO) at the time of the
commencement of the PIP.
9 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).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
system, and, in general, to protect
investors and the public interest.
The Commission believes that the
proposed rule change will increase
opportunities for Public Customers and
BOX Options Participants to participate
in the PIP, and should thereby enhance
competition and the possibility of price
improvement for Customer Orders
submitted to the PIP.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–BSE–2005–
01), as amended, be, and hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2298 Filed 5–10–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Docket No. 34–51658; File No. SR–NASD–
2005–033]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Granting Approval
of Proposed Rule Change Relating to
Taping Rule ‘‘Opt Out’’ and Exemption
Provisions
May 5, 2005.
On March 22, 2005, the National
Association of Securities Dealers, Inc.
(‘‘NASD’’) 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
paragraph (L) of NASD Rule 3010(b)(2)
(‘‘Taping Rule’’). The proposed rule
change would (1) require member firms
that are seeking an exemption from the
Taping Rule to submit their exemption
requests to NASD within 30 days of
receiving notice from NASD or
obtaining actual knowledge that they are
subject to the provisions of the Taping
Rule and (2) clarify that firms that
trigger application of the Taping Rule
for the first time can elect to either
themselves of the one-time ‘‘opt out
provision’’ or seek an exemption from
the Taping Rule, but they may not seek
both options.3 The proposal also
12 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 According to the NASD, it will announce the
effective date of the proposed rule change in a
Notice to Members (‘‘NtM’’) to be published no later
13 17
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Federal Register / Vol. 70, No. 90 / Wednesday, May 11, 2005 / Notices
replaced, as a technical change, several
references to ‘‘Association’’ and ‘‘NASD
Regulation’’ in NASD Rule 3010(b)(2)
with ‘‘NASD.’’
The proposed rule change was
published for comment in the Federal
Register on April 4, 2005.4 The
Commission received no comments on
the proposed rule change.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
association,5 and, in particular, the
requirements of Section 15A of the Act 6
and the rules and regulations
thereunder. The Commission
specifically finds that the proposed rule
change is consistent with Section
15A(b)(6) of the Act 7 in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, and, in general, to protect
investors and the public interest. The
Commission believes that the proposed
rule change should ensure that members
use the opt and exemption provisions of
the Taping Rule consistent with the
investor protection concerns that the
Taping Rule is intended to address.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (File No. SR–
NASD–2005–033) be, and it hereby is,
approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–9388 Filed 5–10–05; 8:45 am]
BILLING CODE 8010–01–M
than 60 days following Commission approval. The
effective date would be 30 days following
publication of the NtM announcing Commission
approval.
4 See Securities Exchange Act Release No. 51434
(March 24, 2005), 70 FR 17134.
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. 78o–3.
7 15 U.S.C. 78o–3(b)(6).
8 15 U.S.C. 78s(b)(2).
9 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51661; File No. SR–NYSE–
2005–15]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change and
Amendment Nos. 1 and 2 Thereto by
the New York Stock Exchange, Inc.
Relating to Elimination of Exchange
Rules 499 and 501A
May 5, 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 February
9, 2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
proposed rule change has been filed by
the NYSE as a ‘‘non-controversial’’ rule
change pursuant to Rule 19b–4(f)(6)
under the Act.3 On March 16, 2005,
NYSE filed Amendment No. 1 to the
proposed rule change.4 On April 22,
2005, NYSE filed Amendment No. 2 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.
24849
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
Exchange 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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts 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 proposes to eliminate
NYSE Rules 499 and 501A. NYSE Rule
499 (Suspension from Dealings or
Removal from List by Action of the
Exchange) sets forth the requirements
for the continued listing of securities on
the NYSE, as well as the procedures for
delisting securities that do not meet the
continued listing criteria. These
requirements and procedures are also
set forth as NYSE Listed Company
Manual Sections 801.00 through 804.00,
although NYSE Rule 499 has not been
updated to reflect all of the current
requirements of Sections 801.00 through
804.00. For example, NYSE Rule 499
Supplementary Material .20, Numerical
I. Self-Regulatory Organization’s
and Other Criteria, Item 8—REITS sets
Statement of the Terms of Substance of
forth a quantitative continued listing
the Proposed Rule Change
standard for REITs of $30,000,000 in
The Exchange proposes to eliminate
both total market capitalization and
NYSE Rules 499 and 501A. NYSE Rule
stockholders’ equity. For purposes of
499 relates to the same requirements set the equivalent Listed Company Manual
out in Sections 801.00 to 804.00 of the
Section 802.01 requirement, this
Exchange’s Listed Company Manual
standard was amended in July 1999 7
(the ‘‘LCM’’) and NYSE Rule 501A
and June 2001 8 so that the current
restates Section 12(d) of the Act.6 The
continued financial listing standard for
Exchange also proposes to eliminate
REITs is average market capitalization
references to NYSE Rule 499 in Section
over 30 consecutive trading days of at
801.00 of the NYSE LCM. The text of the least $15,000,000. Another example of
proposed rule change is available on the the outdated nature of NYSE Rule 499
NYSE’s Web site (https://www.nyse.com), is Supplementary Material .20,
at the NYSE’s Office of the Secretary,
Numerical and Other Criteria, Item 17—
and at the Commission’s Public
‘‘A Class of Non-Voting Common Stock
Reference Room.
is Created.’’ This item was actually
eliminated from Section 802.01D of the
1 15 U.S.C. 78s(b)(1).
Listed Company Manual in 1996.9
CFR 240.19b–4.
CFR 240.19b–4(f)(6).
4 In Amendment No. 1, NYSE clarified that NYSE
Rule 499 has not been updated to reflect all of the
current requirements of Sections 801.00 through
804.00 of the NYSE Listed Company Manual.
5 Amendment No. 2 superseded the originallyfiled proposed rule change and Amendment No. 1
in their entirety.
6 15 U.S.C. 78l(d).
PO 00000
2 17
3 17
Frm 00085
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7 See Securities Exchange Act Release No. 42194
(December 1, 1999), 64 FR 69311 (December 10,
1999) (File No. SR–NYSE–99–29).
8 See Securities Exchange Act Release No. 44481
(June 27, 2001), 66 FR 35303 (July 3, 2001) (File No.
SR–NYSE–2001–02).
9 See Securities Exchange Act Release No. 37238
(May 22, 1996), 61 FR 27123 (May 30, 1996) (File
No. SR–NYSE–96–06).
E:\FR\FM\11MYN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 90 (Wednesday, May 11, 2005)]
[Notices]
[Pages 24848-24849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9388]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Docket No. 34-51658; File No. SR-NASD-2005-033]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Granting Approval of Proposed Rule Change Relating
to Taping Rule ``Opt Out'' and Exemption Provisions
May 5, 2005.
On March 22, 2005, the National Association of Securities Dealers,
Inc. (``NASD'') 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 paragraph (L) of NASD Rule 3010(b)(2)
(``Taping Rule''). The proposed rule change would (1) require member
firms that are seeking an exemption from the Taping Rule to submit
their exemption requests to NASD within 30 days of receiving notice
from NASD or obtaining actual knowledge that they are subject to the
provisions of the Taping Rule and (2) clarify that firms that trigger
application of the Taping Rule for the first time can elect to either
themselves of the one-time ``opt out provision'' or seek an exemption
from the Taping Rule, but they may not seek both options.\3\ The
proposal also
[[Page 24849]]
replaced, as a technical change, several references to ``Association''
and ``NASD Regulation'' in NASD Rule 3010(b)(2) with ``NASD.''
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ According to the NASD, it will announce the effective date
of the proposed rule change in a Notice to Members (``NtM'') to be
published no later than 60 days following Commission approval. The
effective date would be 30 days following publication of the NtM
announcing Commission approval.
---------------------------------------------------------------------------
The proposed rule change was published for comment in the Federal
Register on April 4, 2005.\4\ The Commission received no comments on
the proposed rule change.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 51434 (March 24,
2005), 70 FR 17134.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities association,\5\ and, in
particular, the requirements of Section 15A of the Act \6\ and the
rules and regulations thereunder. The Commission specifically finds
that the proposed rule change is consistent with Section 15A(b)(6) of
the Act \7\ in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. The Commission believes that the proposed rule change
should ensure that members use the opt and exemption provisions of the
Taping Rule consistent with the investor protection concerns that the
Taping Rule is intended to address.
---------------------------------------------------------------------------
\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. 78o-3.
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (File No. SR-NASD-2005-033) be,
and it hereby is, approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
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. 05-9388 Filed 5-10-05; 8:45 am]
BILLING CODE 8010-01-M
