Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program Concerning Option Position Limits, 49004-49006 [E5-4549]
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49004
Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
Current equity option contract limit
Pilot Program equity option contract
limit
Current QQQQ OpPilot Program
tion Contract Limit.
QQQQ Option
Contract Limit
300,000 contracts ......
900,000 contracts.
The Exchange believes that extending
the Pilot Program for six months is
warranted due to the positive feedback
from OTP Holders and for the reasons
cited in the original rule filing that
proposed the Pilot Program.7 Also, the
Exchange has not encountered any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the Exchange requests
that the Commission extend the Pilot
Program for an additional six months.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder and, in particular, the
requirements of section 6(b) of the Act.8
Specifically, the Exchange believes the
proposed rule change is consistent with
section 6(b)(5) of the Act 9 that requires
that the rules of an exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
7 See
Pilot Program Notice, supra note 5.
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
8 15
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16:09 Aug 19, 2005
Jkt 205001
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii)13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the five-day prefiling notice requirement and the 30-day
pre-operative delay. The Commission is
exercising its authority to waive the
five-day pre-filing requirement and
believes that waiver of the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest. Waiving the five-day pre-filing
requirement and 30-day pre-operative
delay will allow the Pilot Program to
continue uninterrupted.14
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 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:
All submissions should refer to File
No. SR–PCX–2005–95. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
be available for inspection and copying
at the principal office of the PCX. 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 No.
SR–PCX–2005–95 and should be
submitted on or before September 12,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4548 Filed 8–19–05; 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
No. SR–PCX–2005–95 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.
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 Id.
14 For the purposes only of waiving 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).
PO 00000
10 15
Frm 00073
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52261; File No. SR–Phlx–
2005–51]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Extension of a
Pilot Program Concerning Option
Position Limits
August 15, 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 August
12, 2005, the Philadelphia Stock
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\22AUN1.SGM
22AUN1
49005
Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
Exchange, Inc. (‘‘Phlx’’ 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 Phlx. The
Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
pursuant to section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it 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 Phlx proposes to extend, for a sixmonth period, a pilot program
applicable to Exchange Rule 1001,
Position Limits, which increases the
standard position and exercise limits for
equity option contracts and options on
the Nasdaq-100 Index Tracking Stock 5
(‘‘QQQQ’’) (‘‘Pilot Program’’). The text
of the proposed rule change is available
on the Phlx’s Web site (https://
www.phlx.com), at the Phlx’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, the
Phlx 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.
3 15
U.S.C. 78s(b)(3)(A).
240.19b–4(f)(6).
5 The Nasdaq-100, Nasdaq-100 Index,
Nasdaq, The Nasdaq Stock Market, Nasdaq-100
Shares SM, Nasdaq-100 Trust SM, Nasdaq-100 Index
Tracking Stock SM, and QQQ SM are trademarks or
service marks of The Nasdaq Stock Market, Inc.
(‘‘Nasdaq’’) and have been licensed for use for
certain purposes by the Phlx pursuant to a License
Agreement (‘‘License’’) with Nasdaq. The Nasdaq100 Index (‘‘Index’’) is determined, composed,
and calculated by Nasdaq without regard to the
Licensee, the Nasdaq-100 Trust SM, or the beneficial
owners of Nasdaq-100 Shares SM. Nasdaq has
complete control and sole discretion in
determining, comprising, or calculating the Index or
in modifying in any way its method for
determining, comprising, or calculating the Index in
the future.
4 CFR
VerDate jul<14>2003
16:09 Aug 19, 2005
Jkt 205001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to extend the Pilot Program,
which is scheduled to expire September
2, 2005,6 for an additional six-month
period, through March 3, 2006. Position
limits impose a ceiling on the number
of option contracts in each class on the
same side of the market relating to the
same underlying security that can be
held or written by an investor or group
of investors acting in concert. Exchange
Rule 1002 (not proposed to be amended
herein) establishes corresponding
exercise limits. Exercise limits prohibit
an investor or group of investors acting
in concert from exercising more than a
specified number of puts or calls in a
particular class within five consecutive
business days.
Exchange Rule 1001 subjects equity
options to one of five different position
limits depending on the trading volume
and outstanding shares of the
underlying security. Exchange Rule
1002 establishes exercise limits for the
corresponding options at the same
levels as the corresponding security’s
position limits.7
Standard Position and Exercise Limit
The Pilot Program increases the
standard position and exercise limits for
equity options traded on the Exchange
and for options overlying QQQQ to the
following levels:8
Current equity option contract limit
13,500 contracts ........
22,500 contracts ........
Pilot Program equity option contract
limit
25,000 contracts.
50,000 contracts.
6 See Securities Exchange Act Release No. 51322
(March 4, 2005), 70 FR 12260 (March 11, 2005)
(notice of filing and immediate effectiveness of File
No. SR–Phlx–2005–17).
7 Exchange Rule 1002 states, in relevant part,
‘‘* * * no member or member organization shall
exercise, for any account in which such member or
member organization has an interest or for the
account of any partner, officer, director or employee
thereof or for the account of any customer, a long
position in any option contract of a class of options
dealt in on the Exchange (or, respecting an option
not dealt in on the Exchange, another exchange if
the member or member organization is not a
member of that exchange) if as a result thereof such
member or member organization, or partner, officer,
director or employee thereof or customer, acting
alone or in concert with others, directly or
indirectly, has or will have exercised within any
five (5) consecutive business days aggregate long
positions in that class (put or call) as set forth as
the position limit in Rule 1001, in the case of
options on a stock or on an Exchange-Traded Fund
Share * * *.’’
8 Except when the Pilot Program is in effect.
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
Pilot Program equity option contract
limit
Current equity option contract limit
31,500 contracts ........
60,000 contracts ........
75,000 contracts ........
75,000 contracts.
200,000 contracts.
250,000 contracts.
Current QQQQ OpPilot Program
tion Contract Limit.
QQQQ Option
Contract Limit
300,000 contracts ......
900,000 contracts.
To date, the Exchange believes that
there have been no adverse effects on
the market as a result of these increases
in the limits for equity option contracts
and options overlying QQQQ.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act 9 in general, and furthers the
objective of section 6(b)(5) of the Act 10
in particular, in that it is designed to
perfect the mechanisms of a free and
open market and the national market
system, protect investors and the public
interest and promote just and equitable
principles of trade, by extending the
pilot for an additional six months.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
10 15
E:\FR\FM\22AUN1.SGM
22AUN1
49006
Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
of filing.13 However, Rule 19b–
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the five-day prefiling notice requirement and the 30-day
pre-operative delay. The Commission is
exercising its authority to waive the
five-day pre-filing requirement and
believes that waiver of the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest. Waiving the five-day pre-filing
requirement and 30-day pre-operative
delay will allow the Pilot Program to
continue uninterrupted.15
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 Act.
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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
be available for inspection and copying
at the principal office of the Phlx. 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 No.
SR–Phlx–2005–51 and should be
submitted on or before September 12,
2005.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4549 Filed 8–19–05; 8:45 am]
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
No. SR–Phlx–2005–51 on the subject
line.
DEPARTMENT OF STATE
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
No. SR–Phlx–2005–51. 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
13 17
CFR 240.19b–4(f)(6)(iii).
14 Id.
15 For the purposes only of waiving 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).
VerDate jul<14>2003
16:09 Aug 19, 2005
Jkt 205001
exhibition or display of the exhibit
objects at the Portland Art Museum,
from on or about October 29, 2005, until
on or about March 19, 2006, and at
possible additional venues yet to be
determined, is in the national interest.
Public Notice of these Determinations is
ordered to be published in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Richard
Lahne, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: (202) 453–8058). The
address is U.S. Department of State, SA–
44, 301 4th Street, SW., Room 700,
Washington, DC 20547–0001.
Dated: August 11, 2005.
C. Miller Crouch,
Principal Deputy Assistant Secretary for
Educational and Cultural Affairs, Department
of State.
[FR Doc. 05–16603 Filed 8–19–05; 8:45 am]
BILLING CODE 4710–08–P
DEPARTMENT OF STATE
Bureau of Economic and Business
Affairs
[Public Notice 5160]
BILLING CODE 8010–01–P
[Public Notice 5161]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Hesse:
A Princely German Collection’’
Department of State.
Notice.
AGENCY:
ACTION:
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition ‘‘Hesse: A
Princely German Collection’’, imported
from abroad for temporary exhibition
within the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners. I also determine that the
PO 00000
16 17
CFR 200.30–3(a)(12).
Frm 00075
Fmt 4703
Sfmt 4703
List of August 15, 2005, of
Participating Countries and Entities
(Hereinafter Known as ‘‘Participants’’)
Under the Clean Diamond Trade Act of
2003 (Pub. L. 108–19) and Section 2 of
Executive Order 13312 of July 29, 2003
Department of State.
Notice.
AGENCY:
ACTION:
SUMMARY: In accordance with Sections 3
and 6 of the Clean Diamond Trade Act
of 2003 (Pub. L. 108–19) and Section 2
of Executive Order 13312 of July 29,
2003, the Department of State is
identifying all the Participants eligible
for trade in rough diamonds under the
Act, and their respective Importing and
Exporting Authorities, and revising the
previously published list of July 29,
2004 (69 FR 47977–47978, August 6,
2004).
FOR FURTHER INFORMATION CONTACT: Sue
Saarnio, Special Advisor for Conflict
Diamonds, Bureau of Economic and
Business Affairs, Department of State,
(202) 647–1713.
SUPPLEMENTARY INFORMATION: Section 4
of the Clean Diamond Trade Act (the
‘‘Act’’) requires the President to prohibit
the importation into, or the exportation
from, the United States of any rough
diamond, from whatever source, that
has not been controlled through the
Kimberley Process Certification Scheme
E:\FR\FM\22AUN1.SGM
22AUN1
]]>Agencies
[Federal Register Volume 70, Number 161 (Monday, August 22, 2005)]
[Notices]
[Pages 49004-49006]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4549]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52261; File No. SR-Phlx-2005-51]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of a Pilot Program Concerning Option Position
Limits
August 15, 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 August 12, 2005, the Philadelphia Stock
[[Page 49005]]
Exchange, Inc. (``Phlx'' 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 Phlx. The Exchange has filed the proposal as a ``non-
controversial'' rule change pursuant to section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it 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\ CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Phlx proposes to extend, for a six-month period, a pilot
program applicable to Exchange Rule 1001, Position Limits, which
increases the standard position and exercise limits for equity option
contracts and options on the Nasdaq-100 Index Tracking Stock \5\
(``QQQQ'') (``Pilot Program''). The text of the proposed rule change is
available on the Phlx's Web site (https://www.phlx.com), at the Phlx's
principal office, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ The Nasdaq-100[reg], Nasdaq-100 Index[reg], Nasdaq[reg], The
Nasdaq Stock Market[reg], Nasdaq-100 Shares SM, Nasdaq-
100 Trust SM, Nasdaq-100 Index Tracking Stock
SM, and QQQ SM are trademarks or service marks
of The Nasdaq Stock Market, Inc. (``Nasdaq'') and have been licensed
for use for certain purposes by the Phlx pursuant to a License
Agreement (``License'') with Nasdaq. The Nasdaq-100 Index[reg]
(``Index'') is determined, composed, and calculated by Nasdaq
without regard to the Licensee, the Nasdaq-100 Trust SM,
or the beneficial owners of Nasdaq-100 Shares SM. Nasdaq
has complete control and sole discretion in determining, comprising,
or calculating the Index or in modifying in any way its method for
determining, comprising, or calculating the Index in the future.
---------------------------------------------------------------------------
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 Phlx 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
The purpose of the proposed rule change is to extend the Pilot
Program, which is scheduled to expire September 2, 2005,\6\ for an
additional six-month period, through March 3, 2006. Position limits
impose a ceiling on the number of option contracts in each class on the
same side of the market relating to the same underlying security that
can be held or written by an investor or group of investors acting in
concert. Exchange Rule 1002 (not proposed to be amended herein)
establishes corresponding exercise limits. Exercise limits prohibit an
investor or group of investors acting in concert from exercising more
than a specified number of puts or calls in a particular class within
five consecutive business days.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 51322 (March 4,
2005), 70 FR 12260 (March 11, 2005) (notice of filing and immediate
effectiveness of File No. SR-Phlx-2005-17).
---------------------------------------------------------------------------
Exchange Rule 1001 subjects equity options to one of five different
position limits depending on the trading volume and outstanding shares
of the underlying security. Exchange Rule 1002 establishes exercise
limits for the corresponding options at the same levels as the
corresponding security's position limits.\7\
---------------------------------------------------------------------------
\7\ Exchange Rule 1002 states, in relevant part, `` * * * no
member or member organization shall exercise, for any account in
which such member or member organization has an interest or for the
account of any partner, officer, director or employee thereof or for
the account of any customer, a long position in any option contract
of a class of options dealt in on the Exchange (or, respecting an
option not dealt in on the Exchange, another exchange if the member
or member organization is not a member of that exchange) if as a
result thereof such member or member organization, or partner,
officer, director or employee thereof or customer, acting alone or
in concert with others, directly or indirectly, has or will have
exercised within any five (5) consecutive business days aggregate
long positions in that class (put or call) as set forth as the
position limit in Rule 1001, in the case of options on a stock or on
an Exchange-Traded Fund Share * * *.''
---------------------------------------------------------------------------
Standard Position and Exercise Limit
The Pilot Program increases the standard position and exercise
limits for equity options traded on the Exchange and for options
overlying QQQQ to the following levels:\8\
---------------------------------------------------------------------------
\8\ Except when the Pilot Program is in effect.
------------------------------------------------------------------------
Pilot Program equity option
Current equity option contract limit contract limit
------------------------------------------------------------------------
13,500 contracts.......................... 25,000 contracts.
22,500 contracts.......................... 50,000 contracts.
31,500 contracts.......................... 75,000 contracts.
60,000 contracts.......................... 200,000 contracts.
75,000 contracts.......................... 250,000 contracts.
-------------------------------------------
Current QQQQ Option Contract Limit........ Pilot Program QQQQ Option
Contract Limit
-------------------------------------------
300,000 contracts......................... 900,000 contracts.
------------------------------------------------------------------------
To date, the Exchange believes that there have been no adverse
effects on the market as a result of these increases in the limits for
equity option contracts and options overlying QQQQ.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act \9\ in general, and furthers the objective of section
6(b)(5) of the Act \10\ in particular, in that it is designed to
perfect the mechanisms of a free and open market and the national
market system, protect investors and the public interest and promote
just and equitable principles of trade, by extending the pilot for an
additional six months.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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 will
impose any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to section 19(b)(3)(A)
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date
[[Page 49006]]
of filing.\13\ However, Rule 19b-4(f)(6)(iii) \14\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the five-day pre-filing notice
requirement and the 30-day pre-operative delay. The Commission is
exercising its authority to waive the five-day pre-filing requirement
and believes that waiver of the 30-day pre-operative delay is
consistent with the protection of investors and in the public interest.
Waiving the five-day pre-filing requirement and 30-day pre-operative
delay will allow the Pilot Program to continue uninterrupted.\15\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ For the purposes only of waiving 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).
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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 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 No. SR-Phlx-2005-51 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 No. SR-Phlx-2005-51. 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, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the Phlx. 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 No. SR-Phlx-2005-51 and should be
submitted on or before September 12, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4549 Filed 8-19-05; 8:45 am]
BILLING CODE 8010-01-P
