Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change and Amendment No. 1 Thereto To List and Trade Short Term Option Series, 41244-41246 [E5-3785]
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Federal Register / Vol. 70, No. 136 / Monday, July 18, 2005 / Notices
comments should be received within 60
days of this notice.
Charles Mierzwa,
Clearance Officer.
[FR Doc. 05–14008 Filed 7–15–05; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549.
Extension:
Rule 17a–10; SEC File No. 270–154; OMB
Control No. 3235–0122.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 17a–10 (17 CFR 240.17a–10)
requires broker-dealers that are
exempted from the filing requirements
of paragraph (a) of Rule 17a–5 (17 CFR
section 240.17a–5) to file with the
Commission an annual statement of
income (loss) and balance sheet. It is
anticipated that approximately 500
broker-dealers will spend 12 hours per
year complying with Rule 17a–10. The
total burden is estimated to be
approximately 6,000 hours. Each brokerdealer will spend approximately $880
per response 1 for a total annual expense
for all broker-dealers of $440,000.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
1 According to the Securities Industry
Association’s guide on management and
professional earnings, the median salary for a
financial reporting manager is $97,500. Assuming
that a financial reporting manager works 1800 hours
per year, he or she earns $54.17 per hour. Adding
in overhead costs of 35%, the hourly rate equals
$73.13 per hour, or $877.56 per 12-hour response.
VerDate jul<14>2003
15:11 Jul 15, 2005
Jkt 205001
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Direct your written comments to R.
Corey Booth, Director/Chief Information
Officer, Office of Information
Technology, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549.
Dated: July 6, 2005.
Jill M. Peterson.
Assistant Secretary.
[FR Doc. E5–3788 Filed 7–15–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52014; File No. SR–Amex–
2005–035]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Order Granting
Accelerated Approval to a Proposed
Rule Change and Amendment No. 1
Thereto To List and Trade Short Term
Option Series
July 12, 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 March 23,
2005, the American Stock Exchange LLC
(‘‘Amex’’ 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
substantially prepared by the Exchange.
Amex filed Amendment No. 1 with the
Commission on June 1, 2005.3 This
notice and order requests comment on
the proposal from interested persons
and approves the amended proposal on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
pilot program to list and trade option
series that expire one week after being
opened for trading (‘‘Short Term Option
Series’’). The Exchange proposed that
the pilot program extend one year from
the date of this approval. The text of the
proposed rule change, as amended, is
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 revised the settlement times
for the proposed Short Term Options Series.
PO 00000
1 15
2 17
Frm 00049
Fmt 4703
Sfmt 4703
available on Amex’s Web site (https://
www.amex.com), at Amex’s principal
office, 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,
Amex included statements concerning
the purpose of and basis for the
proposal and discussed any comments it
received on the proposal. The text of
these statements may be examined at
the places specified in item IV below.
Amex 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 Exchange proposes to establish a
pilot program to list and trade Short
Term Option Series, which would
expire one week after the date on which
a series is opened. Under the proposal,
the Exchange could select up to five
approved option classes 4 on which
Short Term Option Series could be
opened. A series could be opened on
any Friday that is a business day (‘‘Short
Term Option Opening Date’’) and would
expire at the close of business on the
next Friday that is a business day
(‘‘Short Term Option Expiration Date’’).
If a Friday were not a business day, the
series could be opened (or would
expire) on the first business day
immediately prior to that Friday.
The proposal would allow the
Exchange to open up to five Short Term
Option Series for each Short Term
Option Expiration Date. The strike price
for each series would be fixed at a price
per share, with at least two strike prices
above and two strike prices below the
approximate value of the underlying
security, or the calculated index value
in the case of an index class, at about
the time that Short Term Option Series
was opened for trading on the Exchange.
No Short Term Option Series on an
option class would be opened in the
same week in which a monthly option
series on the same class is expiring,
because the monthly option series in its
last week before expiration is
4 Short Term Option Series could be opened in
any option class that satisfied the applicable listing
criteria under Amex rules (i.e., stock options,
options on exchange traded funds (as defined under
Amex Rule 915, Commentary .06), or options on
indexes.)
E:\FR\FM\18JYN1.SGM
18JYN1
Federal Register / Vol. 70, No. 136 / Monday, July 18, 2005 / Notices
functionally equivalent to the Short
Term Option Series. The intervals
between strike prices on Short Term
Option Series would be the same as
with the corresponding monthly option
series.
The Exchange believes that Short
Term Option Series would provide
investors with a flexible and valuable
tool to manage risk exposure, minimize
capital outlays, and be more responsive
to the timing of events affecting the
securities that underlie option contracts.
At the same time, the Exchange is
cognizant of the need to be cautious in
introducing a product that can increase
the number of outstanding strike prices.
For that reason, the Exchange proposes
to employ a limited pilot program for
Short Term Option Series. Under the
terms of the pilot program, the Exchange
could select up to five options classes
on which Short Term Option Series may
be opened on any Short Term Option
Opening Date. The Exchange also could
list and trade any Short Term Option
Series on an option class that is selected
by another exchange with a similar pilot
program. The Exchange believes that
limiting the number of option classes on
which Short Term Option Series may be
opened would help ensure that the
addition of the new series through this
pilot program would have only a
negligible impact on the Exchange’s and
OPRA’s quoting capacity. Also, limiting
the term of the pilot program to a period
of one year would allow the Exchange
and the Commission to determine
whether the Short Term Option Series
program should be extended, expanded,
and/or made permanent.
As originally proposed, all Short
Term Option Series would be P.M.settled. However, in Amendment No. 1,
the Exchange revised the proposal to
provide that Short Term Option Series
would be P.M.-settled, except for Short
Term Option Series on indexes, which
would be A.M.-settled.
The Exchange represents that it has
the system capacity to adequately
handle the new option series
contemplated by this proposal. The
Exchange provided the Commission
information in a confidential
submission to support that
representation.
The Exchange proposed that the pilot
program extend one year from the date
of this approval.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 5 in general, and
furthers the objectives of section 6(b)(5)
5 15
U.S.C. 78f(b).
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15:11 Jul 15, 2005
Jkt 205001
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, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition 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 on the proposed
rule change were neither solicited nor
received.
III. Discussion
After careful review, the Commission
finds that the proposal, as amended, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.7 In particular, the
Commission believes that the proposal
is consistent with the requirements of
section 6(b)(5) of the Act,8 which
requires, among other things, that the
rules of a national securities exchange
be designed 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 Commission believes that listing
and trading Short Term Option Series,
under the terms described in the
Exchange’s proposal, will further the
public interest by allowing investors
new means of managing their risk
exposures and carrying out their
investment objectives. The Commission
also believes that the pilot program
strikes a reasonable balance between the
Exchange’s desire to offer a wider array
of investment opportunities and the
need to avoid unnecessary proliferation
of option series that could compromise
options quotation capacity. The
Commission expects the Exchange to
monitor the trading and quotation
volume associated with the additional
U.S.C. 78f(b)(5).
approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
PO 00000
6 15
41245
option series created under the pilot
program and the effect of these
additional series on the capacity of the
Exchange’s, the Options Price Reporting
Authority’s, and vendors’ systems.
The Commission finds good cause
pursuant to section 19(b)(2) of the Act 9
for approving the amended proposal
prior to the thirtieth day after its
publication in the Federal Register. The
Commission recently approved a rule
change proposed by the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’) to list and trade short-term
options series.10 Because the CBOE
proposal was open for a full comment
period and CBOE adequately responded
to the issues raised by commenters, the
Commission does not believe that an
additional comment period for Amex’s
substantially identical proposal is
necessary. The Commission believes
that accelerating approval of Amex’s
proposal will benefit investors by
furthering competition, without undue
delay, among the markets that wish to
trade these products.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–Amex–2005–035 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 20549–9303. All
submissions should refer to File
Number SR–Amex–2005–035. 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
7 In
Frm 00050
Fmt 4703
Sfmt 4703
9 15
U.S.C. 78s(b)(2).
Securities Exchange Act Release No. 52011
(July 12, 2005) (order approving SR–CBOE–2004–
63).
10 See
E:\FR\FM\18JYN1.SGM
18JYN1
41246
Federal Register / Vol. 70, No. 136 / Monday, July 18, 2005 / Notices
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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. 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–Amex–2005–035 and
should be submitted on or before
August 8, 2005.
V. Conclusion
For the foregoing reasons, the
Commission finds that the proposed
rule change, as amended, is consistent
with the requirements of the Act and the
rules and regulations thereunder.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,11 that the
proposed rule change, as amended (SR–
Amex–2005–035), is hereby approved
on an accelerated basis and as a pilot
program, through July 12, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3785 Filed 7–15–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52012; File No. SR–ISE–
2005–17]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Order Granting
Accelerated Approval to a Proposed
Rule Change and Amendment No. 1
Thereto to List and Trade Short Term
Option Series
July 12, 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 March 7,
2005, the International Securities
11 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.
12 17
VerDate jul<14>2003
15:11 Jul 15, 2005
Jkt 205001
Exchange, Inc. (‘‘ISE’’ 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 substantially prepared by the
Exchange. ISE filed Amendment No. 1
with the Commission on April 25,
2005.3 This notice and order requests
comment on the proposal from
interested persons and approves the
amended proposal on an accelerated
basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
pilot program to list and trade option
series that expire one week after being
opened for trading (‘‘Short Term Option
Series’’). The Exchange proposed that
the pilot program extend one year from
the date of this approval. The text of the
proposed rule change, as amended, is
available on ISE’s Web site (https://
www.iseoptions.com/legal/
proposed_rule_changes.asp), at ISE’s
principal office, 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, ISE
included statements concerning the
purpose of and basis for the proposal
and discussed any comments it received
on the proposal. The text of these
statements may be examined at the
places specified in Item IV below. ISE
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 Exchange proposes to establish a
pilot program to list and trade Short
Term Option Series, which would
expire one week after the date on which
a series is opened. Under the proposal,
the Exchange could select up to five
approved option classes 4 on which
Short Term Option Series could be
opened. A series could be opened on
any Friday that is a business day (‘‘Short
Term Option Opening Date’’) and would
3 Amendment No. 1 revised the settlement times
for the proposed Short Term Options Series.
4 Short Term Option Series could be opened in
any option class that satisfied the applicable listing
criteria under ISE rules (i.e., stock options, options
on exchange traded funds (as defined under ISE
Rule 502(h)), or options on indexes).
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
expire at the close of business on the
next Friday that is a business day
(‘‘Short Term Option Expiration Date’’).
If a Friday were not a business day, the
series could be opened (or would
expire) on the first business day
immediately prior to that Friday.
The proposal would allow the
Exchange to open up to five Short Term
Option Series for each Short Term
Option Expiration Date. The strike price
for each series would be fixed at a price
per share, with at least two strike prices
above and two strike prices below the
approximate value of the underlying
security, or the calculated index value
in the case of an index class, at about
the time that Short Term Option Series
was opened for trading on the Exchange.
No Short Term Option Series on an
option class would be opened in the
same week in which a monthly option
series on the same class is expiring,
because the monthly option series in its
last week before expiration is
functionally equivalent to the Short
Term Option Series. The intervals
between strike prices on Short Term
Option Series would be the same as
with the corresponding monthly option
series.
The Exchange believes that Short
Term Option Series would provide
investors with a flexible and valuable
tool to manage risk exposure, minimize
capital outlays, and be more responsive
to the timing of events affecting the
securities that underlie option contracts.
At the same time, the Exchange is
cognizant of the need to be cautious in
introducing a product that can increase
the number of outstanding strike prices.
For that reason, the Exchange proposes
to employ a limited pilot program for
Short Term Option Series. Under the
terms of the pilot program, the Exchange
could select up to five options classes
on which Short Term Option Series may
be opened on any Short Term Option
Opening Date. The Exchange also could
list and trade any Short Term Option
Series on an option class that is selected
by another exchange with a similar pilot
program. The Exchange believes that
limiting the number of option classes on
which Short Term Option Series may be
opened would help ensure that the
addition of the new series through this
pilot program would have only a
negligible impact on the Exchange’s and
OPRA’s quoting capacity. Also, limiting
the term of the pilot program to a period
of one year would allow the Exchange
and the Commission to determine
whether the Short Term Option Series
program should be extended, expanded,
and/or made permanent.
As originally proposed, all Short
Term Option Series would be p.m.-
E:\FR\FM\18JYN1.SGM
18JYN1
]]>Agencies
[Federal Register Volume 70, Number 136 (Monday, July 18, 2005)]
[Notices]
[Pages 41244-41246]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3785]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52014; File No. SR-Amex-2005-035]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval to a Proposed
Rule Change and Amendment No. 1 Thereto To List and Trade Short Term
Option Series
July 12, 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 March 23, 2005, the American Stock Exchange LLC (``Amex'' 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 substantially prepared by the Exchange.
Amex filed Amendment No. 1 with the Commission on June 1, 2005.\3\ This
notice and order requests comment on the proposal from interested
persons and approves the amended proposal on an accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 revised the settlement times for the
proposed Short Term Options Series.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish a pilot program to list and
trade option series that expire one week after being opened for trading
(``Short Term Option Series''). The Exchange proposed that the pilot
program extend one year from the date of this approval. The text of the
proposed rule change, as amended, is available on Amex's Web site
(https://www.amex.com), at Amex's principal office, 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, Amex included statements
concerning the purpose of and basis for the proposal and discussed any
comments it received on the proposal. The text of these statements may
be examined at the places specified in item IV below. Amex 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 Exchange proposes to establish a pilot program to list and
trade Short Term Option Series, which would expire one week after the
date on which a series is opened. Under the proposal, the Exchange
could select up to five approved option classes \4\ on which Short Term
Option Series could be opened. A series could be opened on any Friday
that is a business day (``Short Term Option Opening Date'') and would
expire at the close of business on the next Friday that is a business
day (``Short Term Option Expiration Date''). If a Friday were not a
business day, the series could be opened (or would expire) on the first
business day immediately prior to that Friday.
---------------------------------------------------------------------------
\4\ Short Term Option Series could be opened in any option class
that satisfied the applicable listing criteria under Amex rules
(i.e., stock options, options on exchange traded funds (as defined
under Amex Rule 915, Commentary .06), or options on indexes.)
---------------------------------------------------------------------------
The proposal would allow the Exchange to open up to five Short Term
Option Series for each Short Term Option Expiration Date. The strike
price for each series would be fixed at a price per share, with at
least two strike prices above and two strike prices below the
approximate value of the underlying security, or the calculated index
value in the case of an index class, at about the time that Short Term
Option Series was opened for trading on the Exchange. No Short Term
Option Series on an option class would be opened in the same week in
which a monthly option series on the same class is expiring, because
the monthly option series in its last week before expiration is
[[Page 41245]]
functionally equivalent to the Short Term Option Series. The intervals
between strike prices on Short Term Option Series would be the same as
with the corresponding monthly option series.
The Exchange believes that Short Term Option Series would provide
investors with a flexible and valuable tool to manage risk exposure,
minimize capital outlays, and be more responsive to the timing of
events affecting the securities that underlie option contracts. At the
same time, the Exchange is cognizant of the need to be cautious in
introducing a product that can increase the number of outstanding
strike prices. For that reason, the Exchange proposes to employ a
limited pilot program for Short Term Option Series. Under the terms of
the pilot program, the Exchange could select up to five options classes
on which Short Term Option Series may be opened on any Short Term
Option Opening Date. The Exchange also could list and trade any Short
Term Option Series on an option class that is selected by another
exchange with a similar pilot program. The Exchange believes that
limiting the number of option classes on which Short Term Option Series
may be opened would help ensure that the addition of the new series
through this pilot program would have only a negligible impact on the
Exchange's and OPRA's quoting capacity. Also, limiting the term of the
pilot program to a period of one year would allow the Exchange and the
Commission to determine whether the Short Term Option Series program
should be extended, expanded, and/or made permanent.
As originally proposed, all Short Term Option Series would be P.M.-
settled. However, in Amendment No. 1, the Exchange revised the proposal
to provide that Short Term Option Series would be P.M.-settled, except
for Short Term Option Series on indexes, which would be A.M.-settled.
The Exchange represents that it has the system capacity to
adequately handle the new option series contemplated by this proposal.
The Exchange provided the Commission information in a confidential
submission to support that representation.
The Exchange proposed that the pilot program extend one year from
the date of this approval.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \5\ in general, and furthers the
objectives of 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, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
---------------------------------------------------------------------------
\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
The Exchange does not believe that the proposed rule change would
impose any burden on competition 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 on the proposed rule change were neither solicited
nor received.
III. Discussion
After careful review, the Commission finds that the proposal, as
amended, is consistent with the requirements of the Act and the rules
and regulations thereunder applicable to a national securities
exchange.\7\ In particular, the Commission believes that the proposal
is consistent with the requirements of section 6(b)(5) of the Act,\8\
which requires, among other things, that the rules of a national
securities exchange be designed 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\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that listing and trading Short Term Option
Series, under the terms described in the Exchange's proposal, will
further the public interest by allowing investors new means of managing
their risk exposures and carrying out their investment objectives. The
Commission also believes that the pilot program strikes a reasonable
balance between the Exchange's desire to offer a wider array of
investment opportunities and the need to avoid unnecessary
proliferation of option series that could compromise options quotation
capacity. The Commission expects the Exchange to monitor the trading
and quotation volume associated with the additional option series
created under the pilot program and the effect of these additional
series on the capacity of the Exchange's, the Options Price Reporting
Authority's, and vendors' systems.
The Commission finds good cause pursuant to section 19(b)(2) of the
Act \9\ for approving the amended proposal prior to the thirtieth day
after its publication in the Federal Register. The Commission recently
approved a rule change proposed by the Chicago Board Options Exchange,
Incorporated (``CBOE'') to list and trade short-term options
series.\10\ Because the CBOE proposal was open for a full comment
period and CBOE adequately responded to the issues raised by
commenters, the Commission does not believe that an additional comment
period for Amex's substantially identical proposal is necessary. The
Commission believes that accelerating approval of Amex's proposal will
benefit investors by furthering competition, without undue delay, among
the markets that wish to trade these products.
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\9\ 15 U.S.C. 78s(b)(2).
\10\ See Securities Exchange Act Release No. 52011 (July 12,
2005) (order approving SR-CBOE-2004-63).
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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, as amended, 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-Amex-2005-035 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 20549-9303. All submissions should refer to
File Number SR-Amex-2005-035. 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
[[Page 41246]]
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 Room. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. 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-Amex-2005-035 and should be
submitted on or before August 8, 2005.
V. Conclusion
For the foregoing reasons, the Commission finds that the proposed
rule change, as amended, is consistent with the requirements of the Act
and the rules and regulations thereunder.
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\11\ that the proposed rule change, as amended (SR-Amex-2005-035),
is hereby approved on an accelerated basis and as a pilot program,
through July 12, 2006.
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\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3785 Filed 7-15-05; 8:45 am]
BILLING CODE 8010-01-P
