Self-Regulatory Organization; OneChicago, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to EFP Transaction Reporting Procedures, 32685-32686 [E5-2833]

Download as PDF Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices indexes underlying PDRs and Index Fund Shares. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (SR–NASD–2005– 024), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2829 Filed 6–2–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISISON [Release No. 34–51732; File No. SR–OC– 2005–01] Self-Regulatory Organization; OneChicago, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to EFP Transaction Reporting Procedures May 24, 2005. Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–7 under the Act,2 notice is hereby given that on May 9, 2005, OneChicago, LLC (‘‘OneChicago’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. On May 6, 2005, OneChicago filed the proposed rule change with the Commodity Futures Trading Commission (‘‘CFTC’’), together with a written certification under section 5c(c) of the Commodity Exchange Act 3 in which OneChicago indicated that the effective date of the proposed rule change would be May 9, 2005. I. Self-Regulatory Organization’s Description of the Proposed Rule Change OneChicago proposes to amend its policy regarding the reporting of exchange of futures for physical (‘‘EFP’’) transactions. The text of the proposed rule change is available at the principal office of the Exchange and at the Commission’s Public Reference Room. 9 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(7). 2 17 CFR 240.19b–7. 3 7 U.S.C. 7a–2(c). 10 17 VerDate jul<14>2003 18:03 Jun 02, 2005 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 aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose OneChicago proposes to amend its current EFP Transactions: Guidelines and Reporting Procedures (‘‘Procedures’’) to permit Exchange members to report their proprietary EFP transactions, to permit authorized parties to report EFP transactions on a form and in a manner approved by OneChicago, and to make other nonsubstantive changes. The proposed rule change would permit OneChicago members with a reporting ID to report proprietary EFP transactions to OneChicago. In order to facilitate this amendment, the proposed rule change would also permit OneChicago members to directly contact OneChicago to request a reporting ID. The granting of a reporting ID would be at the discretion of OneChicago. Currently, only persons authorized by a clearing member firm may report EFP transactions. OneChicago believes that it would be more efficient to permit Exchange members that enter into EFP transactions for their proprietary account(s) to report those transactions to the Exchange. The proposed rule change would also permit authorized parties to submit an EFP Transaction Report in a form and manner approved by OneChicago. Under the current Procedures, the parties to an EFP transaction must deliver OneChicago’s EFP Transaction Report. OneChicago believes that the proposed rule change would permit flexibility to accommodate new types and forms for reporting EFP transactions. Finally, the proposed rule change would also make other conforming and non-substantive changes.4 4 Since the proposed rule change would permit reporting parties to submit an EFP Transaction Jkt 205001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 32685 2. Statutory Basis OneChicago believes that the proposed rule change is consistent with section 6(b) of the Act 5 in general, and section 6(b)(5) of the Act 6 in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to protect investors and the public interest by amending the reporting requirements. OneChicago believes that expanding persons who are eligible to report EFP transactions to those members who are conducting EFP transactions for their proprietary account(s) promotes just and equitable principles of trade and prevents fraudulent and manipulative acts. Furthermore, OneChicago believes that the proposed rule change also promotes just and equitable principles of trade by permitting flexibility for the changing trading environment by permitting reporting parties to submit an Exchange approved EFP Transaction Report in a manner authorized by the Exchange. B. Self-Regulatory Organization’s Statement on Burden on Competition OneChicago does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, because the proposed rule change only clarifies reporting requirements for EFP transactions. 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 with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change became effective on May 9, 2005. Within 60 days of the date of effectiveness of the proposed rule change, the Commission, after consultation with the CFTC, may summarily abrogate the proposed rule change and require that the proposed rule change be refiled in accordance Report in a manner approved by the Exchange, the Exchange proposes to delete the language requiring reporting parties to e-mail or fax the EFP Transaction Report. Furthermore, the Exchange proposes to make other non-substantive changes by adding the word ‘‘of’’ in the first sentence of the Procedures and adding to ‘‘OneChicago’’ to Procedure No. 2. 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). E:\FR\FM\03JNN1.SGM 03JNN1 32686 Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Notices with the provisions of Section 19(b)(1) of the Act.7 IV. Solicitation of Comments 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: 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 Number SR–OC–2005–01 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–OC–2005–01. 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 20549–0609. Copies of such filing also will be available for inspection and copying at the principal office of OneChicago. 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–OC– 2005–01 and should be submitted on or before June 24, 2005. 7 15 U.S.C. 78s(b)(1). VerDate jul<14>2003 18:03 Jun 02, 2005 Jkt 205001 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–2833 Filed 6–2–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51740; File No. SR–PCX– 2005–64] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment Nos. 1, 2, 3, and 4 Thereto Relating to the Market Maker Risk Limitation Mechanism May 25, 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 May 2, 2005, the Pacific Exchange, Inc. (‘‘PCX’’ 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. On May 19, 2005, the PCX filed Amendment No. 1 to the proposed rule change.3 On May 23, 2005 the PCX filed Amendment No. 2 to the proposed rule change.4 On May 24, 2005 the PCX filed Amendment No. 3 to the proposed rule change.5 On May 24, 2005 the PCX filed Amendment No. 4 to the proposed rule change.6 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change, as amended. CFR 200.30–3(a)(75). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 In Amendment No. 1, the PCX (a) added language to establish certain criteria regarding the use of the Market Maker Risk Limitation Mechanism and (b) added language to PCX Rule 6.37(g)(1), which governs quoting obligations of Lead Market Makers (‘‘LMMs’’). 4 In Amendment No. 2, the PCX corrected certain typographical errors in the rule text and amended the proposed rule text of Rule 6.37(g)(1) to delete an incorrect reference to proposed PCX Rule 6.40(e). 5 In Amendment No. 3, the PCX corrected certain typographical errors in the rule text. 6 In Amendment No. 4, the PCX corrected certain typographical errors in Amendment No. 2. PO 00000 8 17 1 15 Frm 00123 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt PCX Rule 6.40 to provide PCX Market Makers protection from the unreasonable risk associated with an excessive number of near simultaneous executions in a single options class through the implementation of a Market Maker Risk Limitation Mechanism. The text of the proposed rule change, as amended, is below. Proposed new language is in italics; proposed deletions are in [brackets]. Rule 6 Market Maker Risk Limitation Mechanism Rule 6.40 [Reserved.] (a) Trade Counter. The trading engine will maintain a ‘‘trade counter’’ for each Market Maker on each class to which the Market Maker is appointed. This trade counter will be incremented by one every time the Market Maker executes a trade on any series in the appointed class. The trade counter will automatically reset itself every ‘‘n’’ seconds. (b) Market Maker Risk Limitation Mechanism. The trading engine will activate the Market Maker Risk Limitation Mechanism on an appointed class whenever the following conditions are met: The trade counter has reached ‘‘n’’ executions against the quotes of the Market Maker in the Market Maker’s appointed class during a period of ‘‘n’’ seconds. When the above conditions are met, the trading engine will automatically cancel all quotes posted by the Market Maker on that class by generating a ‘‘bulk cancel’’ message. (c) The bulk cancel message will be processed in time priority with any other quote or order message received by the trading engine. Any orders or quotes that matched with the Market Maker’s quote and were received in the trading engine prior to the receipt of the bulk cancel message will be automatically executed. Orders or quotes received in the trading engine after receipt of the bulk cancel message will not be executed against the Market Maker. (d) Once the Market Maker Risk Limitation Mechanism has been activated for an options class, any bulk quote messages sent by the Market Maker on that class would continue to be rejected until the Market Maker submits a message to the trading engine to enable new quotes. (e) In the event that a Lead Market Maker’s (‘‘LMM’’) quotes are cancelled and there are no other Market Makers E:\FR\FM\03JNN1.SGM 03JNN1

Agencies

[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Notices]
[Pages 32685-32686]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2833]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISISON

[Release No. 34-51732; File No. SR-OC-2005-01]


Self-Regulatory Organization; OneChicago, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change Relating to EFP 
Transaction Reporting Procedures

May 24, 2005.
    Pursuant to section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on May 9, 2005, OneChicago, LLC (``OneChicago'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I, II, and III below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons. On May 6, 2005, OneChicago filed the proposed rule 
change with the Commodity Futures Trading Commission (``CFTC''), 
together with a written certification under section 5c(c) of the 
Commodity Exchange Act \3\ in which OneChicago indicated that the 
effective date of the proposed rule change would be May 9, 2005.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Description of the Proposed Rule 
Change

    OneChicago proposes to amend its policy regarding the reporting of 
exchange of futures for physical (``EFP'') transactions. The text of 
the proposed rule change is available at the principal office of the 
Exchange 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 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 aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    OneChicago proposes to amend its current EFP Transactions: 
Guidelines and Reporting Procedures (``Procedures'') to permit Exchange 
members to report their proprietary EFP transactions, to permit 
authorized parties to report EFP transactions on a form and in a manner 
approved by OneChicago, and to make other non-substantive changes. The 
proposed rule change would permit OneChicago members with a reporting 
ID to report proprietary EFP transactions to OneChicago. In order to 
facilitate this amendment, the proposed rule change would also permit 
OneChicago members to directly contact OneChicago to request a 
reporting ID. The granting of a reporting ID would be at the discretion 
of OneChicago. Currently, only persons authorized by a clearing member 
firm may report EFP transactions. OneChicago believes that it would be 
more efficient to permit Exchange members that enter into EFP 
transactions for their proprietary account(s) to report those 
transactions to the Exchange.
    The proposed rule change would also permit authorized parties to 
submit an EFP Transaction Report in a form and manner approved by 
OneChicago. Under the current Procedures, the parties to an EFP 
transaction must deliver OneChicago's EFP Transaction Report. 
OneChicago believes that the proposed rule change would permit 
flexibility to accommodate new types and forms for reporting EFP 
transactions. Finally, the proposed rule change would also make other 
conforming and non-substantive changes.\4\
---------------------------------------------------------------------------

    \4\ Since the proposed rule change would permit reporting 
parties to submit an EFP Transaction Report in a manner approved by 
the Exchange, the Exchange proposes to delete the language requiring 
reporting parties to e-mail or fax the EFP Transaction Report. 
Furthermore, the Exchange proposes to make other non-substantive 
changes by adding the word ``of'' in the first sentence of the 
Procedures and adding to ``OneChicago'' to Procedure No. 2.
---------------------------------------------------------------------------

2. Statutory Basis
    OneChicago believes that the proposed rule change is consistent 
with section 6(b) of the Act \5\ in general, and section 6(b)(5) of the 
Act \6\ in particular, because it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, and to protect investors and the public interest 
by amending the reporting requirements. OneChicago believes that 
expanding persons who are eligible to report EFP transactions to those 
members who are conducting EFP transactions for their proprietary 
account(s) promotes just and equitable principles of trade and prevents 
fraudulent and manipulative acts. Furthermore, OneChicago believes that 
the proposed rule change also promotes just and equitable principles of 
trade by permitting flexibility for the changing trading environment by 
permitting reporting parties to submit an Exchange approved EFP 
Transaction Report in a manner authorized by the Exchange.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    OneChicago does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act, because the proposed rule 
change only clarifies reporting requirements for EFP transactions.

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 with respect 
to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change became effective on May 9, 2005. Within 60 
days of the date of effectiveness of the proposed rule change, the 
Commission, after consultation with the CFTC, may summarily abrogate 
the proposed rule change and require that the proposed rule change be 
refiled in accordance

[[Page 32686]]

with the provisions of Section 19(b)(1) of the Act.\7\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    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:

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 Number SR-OC-2005-01 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-OC-2005-01. 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 20549-0609. Copies of such filing also will 
be available for inspection and copying at the principal office of 
OneChicago. 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-OC-
2005-01 and should be submitted on or before June 24, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(75).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2833 Filed 6-2-05; 8:45 am]
BILLING CODE 8010-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.