Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change Relating to the Exchange's Calculation of the National Best Bid or Offer When Another Exchange Is Disconnected From the Intermarket Option Linkage, 32386 [E5-2808]

Download as PDF 32386 Federal Register / Vol. 70, No. 105 / Thursday, June 2, 2005 / Notices Act of 1934, that trading in the abovelisted company is suspended for the period from 9:30 a.m. e.d.t. May 27, 2005, through 11:59 p.m. e.d.t., on June 10, 2005. By the Commission. Jonathan G. Katz, Secretary. [FR Doc. E5–2807 Filed 6–1–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51743; File No. SR–CBOE– 2005–21] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Granting Approval of Proposed Rule Change Relating to the Exchange’s Calculation of the National Best Bid or Offer When Another Exchange Is Disconnected From the Intermarket Option Linkage May 25, 2005. On March 17, 2005, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’), filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to amend its rule regarding the calculation of the National Best Bid or Offer (‘‘NBBO’’) when another participant exchange in the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’) is disconnected from the Linkage.3 The proposed rule change was published for comment in the Federal Register on April 21, 2005.4 The Commission received no comments on the proposal. This order approves the proposed rule change. After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of Section 6 of the Act 5 and the rules and regulations thereunder applicable to a national securities exchange.6 In particular, the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 The term ‘‘Linkage’’ means the systems and data communications network that link electronically the options exchanges to one another for the purpose of sending and receiving Linkage Orders, related confirmations, order statuses and Administrative Messages. See Section 2(14) of the Linkage Plan. 4 See Securities Exchange Act Release No. 51540 (April 13, 2005), 70 FR 20780. 5 15 U.S.C. 78f. 6 In approving this proposal, the Commission has considered the proposed rule’s impact on 2 17 VerDate jul<14>2003 20:57 Jun 01, 2005 Jkt 205001 Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,7 which requires, among other things, that the rules of CBOE be designed to promote just and equitable principles of trade, 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 Commission believes that it is appropriate for CBOE to remove an exchange’s disseminated quote from CBOE’s determination of the NBBO when an exchange is disconnected from Linkage because access to that exchange’s quote is limited during such times. The Commission further believes that CBOE’s existing rules establish appropriate procedures to notify promptly the affected exchange and CBOE members of such removal and establish an appropriate standard for when to resume inclusion of the affected exchange’s quote in CBOE’s NBBO calculation.8 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–CBOE–2005– 21) is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2808 Filed 6–1–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51742: File No. SR–NASD– 2005–030] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to Proposed Uniform Branch Office Registration Form (‘‘Form BR’’) and Amendments to the Uniform Application for Securities Industry Registration or Transfer (‘‘Form U4’’) and the Uniform Termination Notice for Securities Industry Registration (‘‘Form U5’’) May 25, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 8 See CBOE Rule 6.13(e)(ii). 9 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(12). PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 11, 2005, the National Association of Securities Dealers, Inc. (‘‘NASD’’) 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 by NASD. On May 12, 2005, NASD amended the proposed rule change (‘‘Amendment No. 1’’). 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 NASD is proposing to adopt the Form BR and to make conforming changes to the Form U4 and Form U5 (‘‘Forms’’). The proposed Forms are available at NASD and at the Commission. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NASD included statements concerning the purpose of and basis for the proposed rule change, as amended, 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. NASD 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 purpose of this proposed rule change is to establish a uniform branch office registration form (‘‘Form BR’’) that would enable broker-dealers to register branch offices electronically with NASD, the New York Stock Exchange, Inc. (‘‘NYSE’’), other self-regulatory organizations (‘‘SROs’’), and states, (as applicable), through the Central Registration Depository (‘‘CRD(r)’’, the ‘‘CRD system’’, or ‘‘Web CRD’’) via a uniform form. The proposed Form BR would replace Schedule E of the Uniform Application for Broker-Dealer Registration (‘‘Form BD’’), the current NYSE Branch Office Application form, and certain state branch office forms. 1 15 2 17 E:\FR\FM\02JNN1.ROB U.S.C. 78s(b)(1). CFR 240.19b–4. 02JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 105 (Thursday, June 2, 2005)]
[Notices]
[Page 32386]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2808]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51743; File No. SR-CBOE-2005-21]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Order Granting Approval of Proposed Rule Change Relating 
to the Exchange's Calculation of the National Best Bid or Offer When 
Another Exchange Is Disconnected From the Intermarket Option Linkage

May 25, 2005.
    On March 17, 2005, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' or ``Exchange''), filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 
19b-4 thereunder,\2\ to amend its rule regarding the calculation of the 
National Best Bid or Offer (``NBBO'') when another participant exchange 
in the Plan for the Purpose of Creating and Operating an Intermarket 
Option Linkage (``Linkage Plan'') is disconnected from the Linkage.\3\ 
The proposed rule change was published for comment in the Federal 
Register on April 21, 2005.\4\ The Commission received no comments on 
the proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The term ``Linkage'' means the systems and data 
communications network that link electronically the options 
exchanges to one another for the purpose of sending and receiving 
Linkage Orders, related confirmations, order statuses and 
Administrative Messages. See Section 2(14) of the Linkage Plan.
    \4\ See Securities Exchange Act Release No. 51540 (April 13, 
2005), 70 FR 20780.
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    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of Section 6 of the Act 
\5\ and the rules and regulations thereunder applicable to a national 
securities exchange.\6\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\ 
which requires, among other things, that the rules of CBOE be designed 
to promote just and equitable principles of trade, 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 Commission believes that it is appropriate for CBOE to 
remove an exchange's disseminated quote from CBOE's determination of 
the NBBO when an exchange is disconnected from Linkage because access 
to that exchange's quote is limited during such times. The Commission 
further believes that CBOE's existing rules establish appropriate 
procedures to notify promptly the affected exchange and CBOE members of 
such removal and establish an appropriate standard for when to resume 
inclusion of the affected exchange's quote in CBOE's NBBO 
calculation.\8\
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    \5\ 15 U.S.C. 78f.
    \6\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See CBOE Rule 6.13(e)(ii).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (SR-CBOE-2005-21) is approved.
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    \9\ 15 U.S.C. 78s(b)(2).

    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)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2808 Filed 6-1-05; 8:45 am]
BILLING CODE 8010-01-P

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