Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Rule Change Relating to Transactions in Certain Odd-Lot Orders, 33567-33569 [E5-2936]
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33567
Federal Register / Vol. 70, No. 109 / Wednesday, June 8, 2005 / Notices
good cause for approving Amendment
No. 1 to the proposal, prior to the 30th
day after publishing notice of
Amendment No. 1 in the Federal
Register.
The Commission believes that it has
received and fully considered
meaningful comments with respect to
the proposal, and that Amendment No.
1 does not raise any new regulatory
issues that warrant further delay. In
Amendment No. 1, the CBOE added
language to the proposed rule text to
clarify that if an e-DPM is the Preferred
DPM for an order and the DPM is not
also quoting at the NBBO, the remainder
of the participation entitlement that is
not allocated to the Preferred DPM is
divided evenly among the remaining eDPMs on the Exchange quote. The
Commission believes that the addition
of the clarifying language is appropriate
to provide for foreseeable scenarios
regarding allocation of the participation
entitlement for a Preferred DPM.
V. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment No.
1, including whether Amendment No. 1
is consistent with the Act. Comments
may be submitted by any of the
following methods:
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, 100 F Street, NE, Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of the CBOE. 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 publicly available. All
submissions should refer to File
Number SR–CBOE–2004–71 and should
be submitted on or before June 29, 2005.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,37 that the
proposed rule change (SR–CBOE–2004–
71) be, and hereby is, approved, and
that Amendment No. 1 to the proposed
rule change be, and hereby is, approved
on an accelerated basis, for a pilot
period to expire on June 2, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.38
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2939 Filed 6–7–05; 8:45 am]
BILLING CODE 8010–01–P
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–CBOE–2004–71 on the
subject line.
Paper comments:
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE,
Washington, DC 20549–0609.
All submissions should refer to File
Number SR–CBOE–2004–71. 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
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to clarify that
odd lot orders executed by CHX
specialists shall be executed in
accordance with CHX Article XX, Rule
37(a)(2), which governs execution of
round lot orders by CHX specialists. The
CHX has designated this proposal as
non-controversial and has requested
that the Commission waive the 30-day
pre-operative waiting period contained
in Rule 19b–4(f)(6)(iii) under the Act.5
The text of the proposed rule change is
below. Proposed new language is
italicized.
*
*
*
*
*
Article XXXI
Odd Lots and Odd-Lot Dealers, Dual
System
*
*
[Release No. 34–51776; File No. SR–CHX–
2005–11]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Rule Change Relating to
Transactions in Certain Odd-Lot
Orders
June 2, 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 6,
2005, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ 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 CHX. The Exchange has filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)
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 15 U.S.C. 78s(b)(3)(A).
*
*
*
*
*
*
Rule 9.
*
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
*
Interpretations and Policies
.01 No change to text.
.02 Notwithstanding paragraph (b) of
this Rule, if a CHX specialist is the
registered odd-lot dealer for an issue,
orders in such issue shall be executed in
accordance with Article XX, Rule
37(a)(2).
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CHX 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.
37 15
38 17
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Fmt 4703
Sfmt 4703
4 17
5 17
E:\FR\FM\08JNN1.SGM
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
08JNN1
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Federal Register / Vol. 70, No. 109 / Wednesday, June 8, 2005 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
remote pricing facilities, which take into
account current market information, to
help them price such orders.
1. Purpose
Odd-lot orders (i.e., orders of less than
100 shares) are traded on the CHX by
registered odd-lot dealers, and are
governed by Article XXXI of the CHX
Rules. According to the CHX, in many
cases, the registered odd-lot dealer for
an issue is the specialist who has been
assigned the issue by the CHX
Committee on Specialist Assignment
and Evaluation. In other cases, the
registered odd-lot dealer is a member
firm that operates as an odd-lot
execution service.
CHX Article XXXI, Rule 9 governs the
execution prices that are due odd-lot
orders. The CHX states that this rule
obligates an odd-lot dealer to execute an
odd-lot order at the ‘‘adjusted BBO,’’
which is predicated on the national best
bid or offer but excludes certain
quotations, including 100-share
quotations of other market centers.
According to the CHX, in cases where
a CHX specialist is the registered oddlot dealer, however, the Exchange’s
systems execute odd-lot orders at the
national best bid or offer (which most
often is superior to the adjusted BBO),
so that the execution price of the oddlot orders will be consistent with the
execution price of round-lot orders. The
Exchange believes that this consistency
is appropriate and benefits investors.
To codify the Exchange’s
interpretation, and to preclude any
inconsistency between a specialist’s
pricing of odd-lot orders and round lot
orders, the proposed rule change would
add an Interpretation and Policy
providing that, for issues where a CHX
specialist is the registered odd-lot
dealer, the provisions of CHX Article
XX, Rule 37(a)(2), i.e., the Exchange’s
‘‘Best Rule,’’ would govern the
execution price due an odd-lot order.
The Exchange believes that this
interpretation would help avoid
customer confusion.
The proposed rule change would also
permit CHX specialists to elect to act as
agent for odd-lot orders, in accordance
with CHX Article XX, Rule 37(a)(2), to
obtain the best available price in the
national marketplace.6 According to the
Exchange, many CHX specialists utilize
The CHX believes that the proposed
rule change is consistent with the
provisions of Section 6(b) of the Act,7 in
general, and with Section 6(b)(5) of the
Act,8 in particular, in that it is 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
system, and, in general, to protect
investors and the public interest.
6 The Exchange states that CHX systems do not
currently permit CHX specialists to act as agent for
odd-lot orders—the systems simply execute such
orders automatically against the CHX specialist as
principal, priced at the NBBO. The CHX believes
that modification of its systems to permit agency
execution of odd-lot orders is amply warranted
because it is consistent with the execution rules
applicable to round-lot orders.
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2. Statutory Basis
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The CHX 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 proposed rule change is
subject to Section 19(b)(3)(A)(iii) of the
Act 9 and Rule 19b–4(f)(6) thereunder 10
because the proposal: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative prior to 30 days after the date
of filing or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest; provided that the CHX
has given the Commission notice of its
intent to file the proposed rule change,
along with a brief description and text
of the proposed rule change, at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.
CHX satisfied the five-day pre-filing
requirement. In addition, CHX has
requested that the Commission waive
the 30-day operative delay. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver will
PO 00000
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
8 15
Frm 00128
Fmt 4703
Sfmt 4703
ensure consistency in specialist pricing
of odd-lot orders and round lot orders.
For these reasons, the Commission
designates the proposal to be effective
and operative upon filing with the
Commission.11 At any time within 60
days of the filing of such 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.12
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–CHX–2005–11 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–CHX–2005–11. 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
11 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
12 See Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
E:\FR\FM\08JNN1.SGM
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Federal Register / Vol. 70, No. 109 / Wednesday, June 8, 2005 / Notices
Room. Copies of the filing also will 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
Number SR–CHX–2005–11 and should
be submitted on or before June 29, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2936 Filed 6–7–05; 8:45 am]
BILLING CODE 8010–01–P
proposed_rule_changes.asp), at the
principal office of the ISE, 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.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–51775; File No. SR–ISE–
2005–24]
1. Purpose
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
June 2, 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 May 16,
2005, 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
have been prepared by the ISE. The ISE
has designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the ISE under
Section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. 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 ISE is proposing to amend its
Schedule of Fees to extend two fee
waivers. The text of the proposed rule
change is available on the ISE’s Web site
(https://www.iseoptions.com/legal/
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
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Jkt 205001
The ISE states that the purpose of this
proposed rule change is to amend the
ISE’s Schedule of Fees to extend two fee
waivers. First, the ISE’s current waivers
on certain customer transaction fees are
set to expire on June 30, 2005.5
According to the ISE, in order for it to
remain competitive in the market place,
the ISE is proposing to extend these
waivers for an additional year, through
June 30, 2006. Second, the ISE is
proposing to extend a fee waiver
regarding its CLICK terminal, which is
the front-end order-entry terminal the
ISE provides to its members. Currently,
the ISE waives software license and
maintenance fees, as well as API/
Session fees (based on member log-ins),
for an ISE member’s second and
subsequent CLICK terminals. This
waiver also is scheduled to expire on
June 30, 2005. The ISE believes that this
waiver program encourages firms to
install and use multiple CLICKs, and
therefore it proposes to extend this
waiver for an additional year.
5 The Commission notes that the ISE’s Schedule
of Fees provides for, among other things: (1)
Execution Fees on certain customer orders (other
than options on certain indices listed in the ISE’s
Schedule of Fees) of $0.05 per contract/side per
transaction, and (2) Comparison Fees of $0.03 per
contract/side per transaction. The Execution Fees
are currently waived except for transactions in
options on certain indices listed in the ISE’s
Schedule of Fees. The Commission further notes
that the Comparison Fee applies to P Orders and P/
A Orders for a pilot period expiring on July 31,
2005, and is subject to a fee waiver for Public
Customer Orders except for transactions in options
on certain indices listed in the ISE’s Schedule of
Fees. See ISE Rule 100(32) (defining ‘‘Public
Customer’’ as a person who is not a broker or dealer
in securities); and ISE Rule 1900(10) (for a
definition of P Orders and P/A Orders).
PO 00000
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33569
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section
6(b)(4),7 in particular, in that it will
permit the Exchange to maintain an
equitable allocation of reasonable dues,
fees and other charges among its
members and other persons using its
facilities. In particular, the ISE states
that this proposed rule change would
extend current waivers, thus effectively
maintaining low fees.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change does not impose
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 8 and
Rule 19b–4(f)(2) 9 thereunder. At any
time within 60 days of the filing of such
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.
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:
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 19b–4(f)(2).
7 15
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]]>Agencies
[Federal Register Volume 70, Number 109 (Wednesday, June 8, 2005)]
[Notices]
[Pages 33567-33569]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2936]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51776; File No. SR-CHX-2005-11]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Rule Change Relating to
Transactions in Certain Odd-Lot Orders
June 2, 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 6, 2005, the Chicago Stock Exchange, Inc. (``CHX'' 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 CHX. The Exchange has
filed the proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal effective
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to clarify that odd lot orders executed by
CHX specialists shall be executed in accordance with CHX Article XX,
Rule 37(a)(2), which governs execution of round lot orders by CHX
specialists. The CHX has designated this proposal as non-controversial
and has requested that the Commission waive the 30-day pre-operative
waiting period contained in Rule 19b-4(f)(6)(iii) under the Act.\5\ The
text of the proposed rule change is below. Proposed new language is
italicized.
---------------------------------------------------------------------------
\5\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
* * * * *
Article XXXI
Odd Lots and Odd-Lot Dealers, Dual System
* * * * *
Rule 9.
* * * * *
Interpretations and Policies
.01 No change to text.
.02 Notwithstanding paragraph (b) of this Rule, if a CHX specialist
is the registered odd-lot dealer for an issue, orders in such issue
shall be executed in accordance with Article XX, Rule 37(a)(2).
* * * * *
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CHX 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.
[[Page 33568]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Odd-lot orders (i.e., orders of less than 100 shares) are traded on
the CHX by registered odd-lot dealers, and are governed by Article XXXI
of the CHX Rules. According to the CHX, in many cases, the registered
odd-lot dealer for an issue is the specialist who has been assigned the
issue by the CHX Committee on Specialist Assignment and Evaluation. In
other cases, the registered odd-lot dealer is a member firm that
operates as an odd-lot execution service.
CHX Article XXXI, Rule 9 governs the execution prices that are due
odd-lot orders. The CHX states that this rule obligates an odd-lot
dealer to execute an odd-lot order at the ``adjusted BBO,'' which is
predicated on the national best bid or offer but excludes certain
quotations, including 100-share quotations of other market centers.
According to the CHX, in cases where a CHX specialist is the registered
odd-lot dealer, however, the Exchange's systems execute odd-lot orders
at the national best bid or offer (which most often is superior to the
adjusted BBO), so that the execution price of the odd-lot orders will
be consistent with the execution price of round-lot orders. The
Exchange believes that this consistency is appropriate and benefits
investors.
To codify the Exchange's interpretation, and to preclude any
inconsistency between a specialist's pricing of odd-lot orders and
round lot orders, the proposed rule change would add an Interpretation
and Policy providing that, for issues where a CHX specialist is the
registered odd-lot dealer, the provisions of CHX Article XX, Rule
37(a)(2), i.e., the Exchange's ``Best Rule,'' would govern the
execution price due an odd-lot order. The Exchange believes that this
interpretation would help avoid customer confusion.
The proposed rule change would also permit CHX specialists to elect
to act as agent for odd-lot orders, in accordance with CHX Article XX,
Rule 37(a)(2), to obtain the best available price in the national
marketplace.\6\ According to the Exchange, many CHX specialists utilize
remote pricing facilities, which take into account current market
information, to help them price such orders.
---------------------------------------------------------------------------
\6\ The Exchange states that CHX systems do not currently permit
CHX specialists to act as agent for odd-lot orders--the systems
simply execute such orders automatically against the CHX specialist
as principal, priced at the NBBO. The CHX believes that modification
of its systems to permit agency execution of odd-lot orders is amply
warranted because it is consistent with the execution rules
applicable to round-lot orders.
---------------------------------------------------------------------------
2. Statutory Basis
The CHX believes that the proposed rule change is consistent with
the provisions of Section 6(b) of the Act,\7\ in general, and with
Section 6(b)(5) of the Act,\8\ in particular, in that it is 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 system, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The CHX 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 proposed rule change is subject to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder \10\
because the proposal: (i) Does not significantly affect the protection
of investors or the public interest; (ii) does not impose any
significant burden on competition; and (iii) does not become operative
prior to 30 days after the date of filing or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest; provided that the CHX has given the Commission
notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule change,
or such shorter time as designated by the Commission.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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CHX satisfied the five-day pre-filing requirement. In addition, CHX
has requested that the Commission waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because such waiver will ensure consistency in specialist pricing of
odd-lot orders and round lot orders. For these reasons, the Commission
designates the proposal to be effective and operative upon filing with
the Commission.\11\ At any time within 60 days of the filing of such
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.\12\
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\11\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
\12\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
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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-CHX-2005-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-CHX-2005-11. 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
[[Page 33569]]
Room. Copies of the filing also will 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 Number SR-CHX-2005-11 and should be submitted on
or before June 29, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2936 Filed 6-7-05; 8:45 am]
BILLING CODE 8010-01-P
