Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Increasing the Class Quoting Limit in Options on DIAMONDS®, 41803-41804 [E5-3860]
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Federal Register / Vol. 70, No. 138 / Wednesday, July 20, 2005 / Notices
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above listed
company.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in the above
listed company is suspended for the
period from 9:30 a.m., e.d.t., July 15,
2005, through 11:59 p.m., e.d.t., on July
28, 2005.
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 05–14306 Filed 7–26–05; 4:26 pm]
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52028; File No. SR–CBOE–
2005–49]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Increasing the Class
Quoting Limit in Options on
DIAMONDS
July 13, 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 June 22,
2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ 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 CBOE. The CBOE has
designated this proposal as one
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) 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 CBOE proposes to increase the
class quoting limit in options on
DIAMONDS (‘‘DIA’’). The text of the
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
VerDate jul<14>2003
14:24 Jul 19, 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.
anticipates will increase as DIA options
are traded on the Hybrid Trading
System. Increasing the CQL in DIA
options will enable the Exchange to
enhance the liquidity offered, thereby
offering deeper and more liquid
markets. The Exchange represents that it
will comply with all of the requirements
of CBOE Rule 8.3A in increasing the
CQL in DIA options and, if it determines
subsequently to reduce such CQL, in
reducing the CQL in such options.7
Changes to the CQL will be announced
to the membership via Information
Circular.
2. Statutory Basis
proposed rule change is available on the
Exchange’s Internet Web site (https://
www.cboe.com), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE Rule 8.3A, Maximum Number
of Market Participants Quoting
Electronically per Product, establishes
class quoting limits (‘‘CQLs’’) for each
class traded on the Hybrid Trading
System.5 A CQL is the maximum
number of quoters that may quote
electronically in a given product and the
current levels are established from 25–
40, depending on the trading activity of
the particular product.
CBOE Rule 8.3A.01(c) provides a
procedure by which the President of the
Exchange may increase the CQL for a
particular product. In this regard, the
President of the Exchange may increase
the CQL in exceptional circumstances,
which are defined in the rule as
‘‘substantial trading volume, whether
actual or expected.’’ 6 The effect of an
increase in the CQL is procompetitive in
that it increases the number of market
participants that may quote
electronically in a product. The purpose
of this filing is to increase the CQL for
options on DIA, which CBOE added to
its Hybrid Trading System effective as of
June 23, 2005. Specifically, the
Exchange proposes to increase the CQL
in DIA options by 5, from 25 to 30.
DIA options are actively traded
Exchange-Traded Funds on the
Exchange, and there is substantial
trading volume in them, which CBOE
5 See
CBOE Rule 8.3A.01.
actions taken by the President of the
Exchange pursuant to this paragraph will be
submitted to the SEC in a rule filing pursuant to
Section 19(b)(3)(A) of the Exchange Act.’’ CBOE
Rule 8.3A.01(c).
6 ‘‘Any
1 15
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41803
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Fmt 4703
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The CBOE believes that the proposed
rule change is consistent with the Act
and the rules and regulations under the
Act applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes that
the proposed rule change is consistent
with the provisions of Section 6(b)(5),9
which require the rules of an exchange
to be designed to promote just and
equitable principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The CBOE 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange neither solicited nor
received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
will take effect upon filing with the
Commission pursuant to Section
7 The Exchange has represented that it will follow
the procedures outlined in CBOE Rule 8.3A.01(a)
for assigning a new CQL, based on revised trading
volume statistics, at the end of the calendar quarter,
and that if the new CQL is lower than the increased
CQL assigned as a result of this proposed rule
change, the procedures outlined in CBOE Rule
8.3A.01(a) will be followed. Telephone
conversation between Patrick Sexton, Assistant
General Counsel, CBOE and Edward Cho, Attorney,
Division of Market Regulation, Commission (July 6,
2005).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
E:\FR\FM\20JYN1.SGM
20JYN1
41804
Federal Register / Vol. 70, No. 138 / Wednesday, July 20, 2005 / Notices
19(b)(3)(A)(i) of the Act 10 and Rule 19b–
4(f)(1) thereunder,11 because it
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule.
At any time within 60 days of the
filing of the 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:
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–2005–49 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–CBOE–2005–49. 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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the CBOE. All
10 15
11 17
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
VerDate jul<14>2003
14:24 Jul 19, 2005
Jkt 205001
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–CBOE–2005–49 and should
be submitted on or before August 10,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–3860 Filed 7–19–05; 8:45 am]
BILLING CODE 8010–01–P
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 Exchange proposes to extend the
pilot periods contained in paragraphs
.03 and .05 of the Supplemental
Material to ISE Rule 723. Below is the
text of the proposed rule change, as
amended. Proposed new language is
italicized; proposed deletions are in
[brackets].
*
*
*
*
*
Rule 723. Price Improvement
Mechanism for Crossing Transactions
(a) through (d) no change.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52027; File No. SR–ISE–
2005–30]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change and Amendment No. 1 Thereto
Relating to a One-Year Pilot Extension
for the Price Improvement Mechanism
July 13, 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 July 8,
2005, the International Securities
Exchange, Inc. (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 ISE. On July
13, 2005, the ISE submitted Amendment
No. 1 to the proposed rule change.3 The
Exchange has designated the proposed
rule change as ‘‘non-controversial’’
under Section 19(b)(3)(A) of the Act 4
and Rule 19b–4(f)(6) thereunder,5 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange made
corrections to the proposal’s rule text. The effective
date of the original proposed rule change is July 8,
2005, and the effective date of Amendment No. 1
is July 13, 2005. For purposes of calculating the 60day period within which the Commission may
summarily abrogate the proposed rule change under
Section 19(b)(3)(C) of the Act, the Commission
considers the period to commence on July 13, 2005,
the date on which the ISE filed Amendment No. 1.
See 15 U.S.C. 78s(b)(3)(C).
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(6).
PO 00000
12 17
1 15
Frm 00126
Fmt 4703
Sfmt 4703
Supplementary Material to Rule 723
.01 through .02 no change.
.03 Initially, and for at least a Pilot
Period expiring on July 18, [2005] 2006,
there will be no minimum size
requirements for orders to be eligible for
the Price Improvement Mechanism.
During the Pilot Period, the Exchange
will submit certain data, periodically as
required by the Commission, to provide
supporting evidence that, among other
things, there is meaningful competition
for all size orders within the Price
Improvement Mechanism, that there is
significant price improvement for all
orders executed through the Price
Improvement Mechanism, and there is
an active and liquid market functioning
on the Exchange outside of the Price
Improvement Mechanism. Any data
which is submitted to the Commission
will be provided on a confidential basis.
.04 no change.
.05 Paragraphs (c)(5), (d)(5) and
(d)(6) will be effective for a Pilot Period
expiring on July 18, [2005] 2006. During
the Pilot Period, the Exchange will
submit certain data relating to the
frequency with which the exposure
period is terminated by unrelated
orders. Any data which is submitted to
the Commission will be provided on a
confidential basis.
*
*
*
*
*
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 Exchange has
prepared summaries, set forth in
E:\FR\FM\20JYN1.SGM
20JYN1
]]>Agencies
[Federal Register Volume 70, Number 138 (Wednesday, July 20, 2005)]
[Notices]
[Pages 41803-41804]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3860]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52028; File No. SR-CBOE-2005-49]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Increasing the Class Quoting Limit in Options on
DIAMONDS[supreg]
July 13, 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 June 22, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' 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 CBOE.
The CBOE has designated this proposal as one constituting a stated
policy, practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule under Section
19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1) 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)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CBOE proposes to increase the class quoting limit in options on
DIAMONDS[supreg] (``DIA''). The text of the proposed rule change is
available on the Exchange's Internet Web site (https://www.cboe.com), at
the Exchange's Office of the Secretary, 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
CBOE Rule 8.3A, Maximum Number of Market Participants Quoting
Electronically per Product, establishes class quoting limits (``CQLs'')
for each class traded on the Hybrid Trading System.\5\ A CQL is the
maximum number of quoters that may quote electronically in a given
product and the current levels are established from 25-40, depending on
the trading activity of the particular product.
---------------------------------------------------------------------------
\5\ See CBOE Rule 8.3A.01.
---------------------------------------------------------------------------
CBOE Rule 8.3A.01(c) provides a procedure by which the President of
the Exchange may increase the CQL for a particular product. In this
regard, the President of the Exchange may increase the CQL in
exceptional circumstances, which are defined in the rule as
``substantial trading volume, whether actual or expected.'' \6\ The
effect of an increase in the CQL is procompetitive in that it increases
the number of market participants that may quote electronically in a
product. The purpose of this filing is to increase the CQL for options
on DIA, which CBOE added to its Hybrid Trading System effective as of
June 23, 2005. Specifically, the Exchange proposes to increase the CQL
in DIA options by 5, from 25 to 30.
---------------------------------------------------------------------------
\6\ ``Any actions taken by the President of the Exchange
pursuant to this paragraph will be submitted to the SEC in a rule
filing pursuant to Section 19(b)(3)(A) of the Exchange Act.'' CBOE
Rule 8.3A.01(c).
---------------------------------------------------------------------------
DIA options are actively traded Exchange-Traded Funds on the
Exchange, and there is substantial trading volume in them, which CBOE
anticipates will increase as DIA options are traded on the Hybrid
Trading System. Increasing the CQL in DIA options will enable the
Exchange to enhance the liquidity offered, thereby offering deeper and
more liquid markets. The Exchange represents that it will comply with
all of the requirements of CBOE Rule 8.3A in increasing the CQL in DIA
options and, if it determines subsequently to reduce such CQL, in
reducing the CQL in such options.\7\ Changes to the CQL will be
announced to the membership via Information Circular.
---------------------------------------------------------------------------
\7\ The Exchange has represented that it will follow the
procedures outlined in CBOE Rule 8.3A.01(a) for assigning a new CQL,
based on revised trading volume statistics, at the end of the
calendar quarter, and that if the new CQL is lower than the
increased CQL assigned as a result of this proposed rule change, the
procedures outlined in CBOE Rule 8.3A.01(a) will be followed.
Telephone conversation between Patrick Sexton, Assistant General
Counsel, CBOE and Edward Cho, Attorney, Division of Market
Regulation, Commission (July 6, 2005).
---------------------------------------------------------------------------
2. Statutory Basis
The CBOE believes that the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\8\ Specifically, the Exchange believes that
the proposed rule change is consistent with the provisions of Section
6(b)(5),\9\ which require the rules of an exchange to be designed to
promote just and equitable principles of trade, to prevent fraudulent
and manipulative acts and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The CBOE 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change will take effect upon filing
with the Commission pursuant to Section
[[Page 41804]]
19(b)(3)(A)(i) of the Act \10\ and Rule 19b-4(f)(1) thereunder,\11\
because it constitutes a stated policy, practice, or interpretation
with respect to the meaning, administration, or enforcement of an
existing rule.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A)(i).
\11\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the 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:
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-CBOE-2005-49 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-CBOE-2005-49. 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 Room. 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 available publicly.
All submissions should refer to File Number SR-CBOE-2005-49 and
should be submitted on or before August 10, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-3860 Filed 7-19-05; 8:45 am]
BILLING CODE 8010-01-P
