Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program That Increases Position and Exercise Limits for Equity Options and Options on the Nasdaq-100 Tracking Stock, 48991-48992 [E5-4551]
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Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
meeting during the week of August 22,
2005:
A Closed Meeting will be held on
Wednesday, August 24, 2005 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters may also be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), (9)(B), and
(10) and 17 CFR 200.402(a)(3), (5), (7),
9(ii) and (10) permit consideration of
the scheduled matters at the Closed
Meeting.
Commissioner Campos, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matters of the Closed
Meeting scheduled for Wednesday,
August 24, 2005, will be:
Formal orders of investigations;
Institution and settlement of injunctive
actions; and
Institution and settlement of
administrative proceedings of an
enforcement nature.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: August 17, 2005.
Jonathan G. Katz,
Secretary.
[FR Doc. 05–16642 Filed 8–17–05; 4:57 pm]
BILLING CODE 8010–01–P
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
11, 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 prepared by the Amex. 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 Exchange seeks a six month
extension of its pilot program increasing
the standard position and exercise
limits for options on the QQQQ and
equity option classes traded on the
Exchange (‘‘Pilot Program’’). The text of
the proposed rule change is available on
the Amex’s Web site (https://
www.amex.com), at the 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, the
Amex 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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52260; File No. SR–Amex–
2005–082]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Extension of a Pilot Program That
Increases Position and Exercise Limits
for Equity Options and Options on the
Nasdaq-100 Tracking Stock
1. Purpose
The Exchange is requesting to extend
its current Pilot Program increasing the
standard position and exercise limits for
options on the QQQQ and equity option
classes traded on the Exchange for six
months, from August 24, 2005, through
and including February 23, 2006.
The Exchange previously filed a
proposed rule change, which was
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
August 15, 2005.
2 17
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
VerDate jul<14>2003
16:09 Aug 19, 2005
Jkt 205001
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
48991
effective upon filing with the
Commission, that increased standard
position and exercise limits for options
on the QQQQ and for equity option
classes traded on the exchange on a
pilot basis for a six month period.5
Under the Pilot Program, position and
exercise limits for options on the QQQQ
and equity options classes traded on the
Exchange were increased to the
following levels: 6
Current equity option contract limit
13,500
22,500
31,500
60,000
75,000
contracts
contracts
contracts
contracts
contracts
........
........
........
........
........
Pilot Program equity option contract
limit
25,000 contracts.
50,000 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.
The standard position limits were last
increased on December 31, 1998.7 Since
that time there has been a steady
increase in the number of accounts that:
(a) Approach the position limit; (b)
exceed the position limit; and (c) are
granted an exemption to the standard
limit. Several member firms have
petitioned the options exchanges to
either eliminate position limits, or in
lieu of total elimination, increase the
current levels and expand the available
hedge exemptions. A review of available
data indicates that the majority of
accounts that maintain sizable positions
are in those option classes subject to the
60,000 and 75,000 tier limits. There also
has been an increase in the number of
accounts that maintain sizable positions
in the lower three (3) tiers. In addition,
overall volume in the options market
has continually increased over the past
five (5) years. The Exchange believes
that the increase in options volume and
lack of evidence of market manipulation
occurrences over the past twenty years
justifies the proposed increases in the
position and exercise limits.
The Exchange has not encountered
any problems or difficulties relating to
the Pilot Program since its inception.
The instant proposed rule change makes
no substantive change to the Pilot
5 The Pilot Program is set to expire on August 23,
2005. See Securities Exchange Act Release No.
51316 (March 3, 2005), 70 FR 12251 (March 11,
2005) (notice of filing and immediate effectiveness
of File No. SR–Amex–2005–029).
6 Except when the Pilot Program is in effect.
7 See Securities Exchange Act Release No. 40875
(December 31, 1998), 64 FR 1842 (January 12, 1999)
(SR–Amex–98–22) (approval of increase in position
limits and exercise limits).
E:\FR\FM\22AUN1.SGM
22AUN1
48992
Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
Program other than to extend it for six
months through February 23, 2006.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act 8 in general and furthers the
objective of section 6(b)(5) of the Act 9
in particular, in that 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 believes that the
proposed rule change would impose no
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
No written comments were solicited
or received by the Exchange on this
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 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
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 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.
16:09 Aug 19, 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:
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–Amex–2005–082 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–Amex–2005–082. 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 Amex. 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–Amex–2005–082 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. E5–4551 Filed 8–19–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52264; File No. SR–BSE–
2005–37]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to Its
Boston Options Exchange Trading
Rules Regarding the Extension of a
Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded
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
11, 2005, the Boston Stock Exchange,
Inc. (‘‘BSE’’ 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 BSE. The Exchange
has filed the proposal as a ‘‘noncontroversial’’ 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.
15 17
9 15
VerDate jul<14>2003
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.
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).
Jkt 205001
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Frm 00061
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\22AUN1.SGM
22AUN1
]]>Agencies
[Federal Register Volume 70, Number 161 (Monday, August 22, 2005)]
[Notices]
[Pages 48991-48992]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4551]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52260; File No. SR-Amex-2005-082]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of a Pilot Program That Increases Position
and Exercise Limits for Equity Options and Options on the Nasdaq-100
Tracking Stock
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 11, 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 prepared by the Amex. 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange seeks a six month extension of its pilot program
increasing the standard position and exercise limits for options on the
QQQQ and equity option classes traded on the Exchange (``Pilot
Program''). The text of the proposed rule change is available on the
Amex's Web site (https://www.amex.com), at the 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, the Amex 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 Exchange is requesting to extend its current Pilot Program
increasing the standard position and exercise limits for options on the
QQQQ and equity option classes traded on the Exchange for six months,
from August 24, 2005, through and including February 23, 2006.
The Exchange previously filed a proposed rule change, which was
effective upon filing with the Commission, that increased standard
position and exercise limits for options on the QQQQ and for equity
option classes traded on the exchange on a pilot basis for a six month
period.\5\ Under the Pilot Program, position and exercise limits for
options on the QQQQ and equity options classes traded on the Exchange
were increased to the following levels: \6\
---------------------------------------------------------------------------
\5\ The Pilot Program is set to expire on August 23, 2005. See
Securities Exchange Act Release No. 51316 (March 3, 2005), 70 FR
12251 (March 11, 2005) (notice of filing and immediate effectiveness
of File No. SR-Amex-2005-029).
\6\ 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.
------------------------------------------------------------------------
The standard position limits were last increased on December 31,
1998.\7\ Since that time there has been a steady increase in the number
of accounts that: (a) Approach the position limit; (b) exceed the
position limit; and (c) are granted an exemption to the standard limit.
Several member firms have petitioned the options exchanges to either
eliminate position limits, or in lieu of total elimination, increase
the current levels and expand the available hedge exemptions. A review
of available data indicates that the majority of accounts that maintain
sizable positions are in those option classes subject to the 60,000 and
75,000 tier limits. There also has been an increase in the number of
accounts that maintain sizable positions in the lower three (3) tiers.
In addition, overall volume in the options market has continually
increased over the past five (5) years. The Exchange believes that the
increase in options volume and lack of evidence of market manipulation
occurrences over the past twenty years justifies the proposed increases
in the position and exercise limits.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 40875 (December 31,
1998), 64 FR 1842 (January 12, 1999) (SR-Amex-98-22) (approval of
increase in position limits and exercise limits).
---------------------------------------------------------------------------
The Exchange has not encountered any problems or difficulties
relating to the Pilot Program since its inception. The instant proposed
rule change makes no substantive change to the Pilot
[[Page 48992]]
Program other than to extend it for six months through February 23,
2006.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act \8\ in general and furthers the objective of section
6(b)(5) of the Act \9\ in particular, in that 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.
---------------------------------------------------------------------------
\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 Exchange believes that the proposed rule change would impose no
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
No written comments were solicited or received by the Exchange on
this proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 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.\14\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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-Amex-2005-082 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-Amex-2005-082. 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 Amex. 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-Amex-2005-082 and should be
submitted on or before September 12, 2005.
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4551 Filed 8-19-05; 8:45 am]
BILLING CODE 8010-01-P
