Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program That Increases the Standard Position and Exercise Limits for Certain Options Traded on the Exchange, 48995-48996 [E5-4558]
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Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52262; File No. SR–CBOE–
2005–61]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Extension
of a Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded on the
Exchange
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 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 and II
below, which Items have been prepared
by the CBOE. The Exchange has filed
the proposal as a ‘‘non-controversial’’
rule change pursuant to Section
19(b)(3)(A) of the Act3 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 CBOE proposes to extend an
existing pilot program that increases the
standard position and exercise limits for
certain options traded on the Exchange
(‘‘Pilot Program’’). The text of the
proposed rule change is available on the
CBOE’s Web site (https://
www.cboe.com), at the CBOE’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
CBOE 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
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).
2 17
VerDate jul<14>2003
16:09 Aug 19, 2005
Jkt 205001
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 Pilot Program, as previously
approved by the Commission, provides
for an increase to the standard position
and exercise limits for equity option
contracts and for options on QQQQs for
a six month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ in
accordance with 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 purpose of the proposed rule
change is to extend the Pilot Program for
an additional six-month period. The
Exchange believes that extending the
Pilot Program for six months is
warranted due to the positive feedback
from members and for the reasons cited
in the original rule filing that proposed
the adoption of 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 that the
proposed rule change is consistent with
the requirements provided under
Section 6(b)(5) of the Act that the rules
of an exchange 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.
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 with respect to the proposed
rule change.
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 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.10 However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
the Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.12
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.
8 15
Pilot Program, which the Commission
approved on February 23, 2005, is set to expire on
August 23, 2005. See Securities Exchange Act
Release No. 51244 (February 23, 2005), 70 FR 10010
(March 1, 2005) (order approving SR–CBOE–2003–
30, as amended) (‘‘Pilot Program Order’’).
6 Except when the Pilot Program is in effect.
7 See Pilot Program Order, supra note 5.
PO 00000
5 The
Frm 00064
Fmt 4703
Sfmt 4703
48995
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 Id.
12 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).
9 17
E:\FR\FM\22AUN1.SGM
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48996
Federal Register / Vol. 70, No. 161 / Monday, August 22, 2005 / Notices
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–CBOE–2005–61 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–CBOE–2005–61. 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 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 No.
SR–CBOE–2005–61 and should be
submitted on or before September 12,
2005.
VerDate jul<14>2003
16:09 Aug 19, 2005
Jkt 205001
For the Commission, by the Division
of Market Regulation, pursuant to
delegated authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4558 Filed 8–19–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52265; File No. SR–ISE–
2005–39]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Extension of a
Pilot Period To Increase Position
Limits and Exercise Limits for Equity
Options and Options on the Nasdaq100 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
10, 2005, the International Securities
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
items I and II below, which items have
been prepared by the ISE. 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to extend the time
period for the ISE Rule 412 and ISE Rule
414 position and exercise limits pilot
program for equity option contracts and
options on the Nasdaq-100 Index
Tracking Stock (‘‘QQQQ’’) (‘‘Pilot
Program’’). The text of the proposed rule
change is available on the ISE’s Web site
(https://www.iseoptions.com), at the
ISE’s principal office, and at the
Commission’s Public Reference Room.
PO 00000
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
Frm 00065
Fmt 4703
Sfmt 4703
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
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 Pilot Program provides for an
increase to the standard position and
exercise limits for equity option
contracts and for options on QQQQs for
a six month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ 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 purpose of the proposed rule
change is to extend the Pilot Program for
an additional six month period. The
Exchange believes that extending the
Pilot Program for six months is
warranted due to the positive feedback
from members and for the reasons cited
in the original rule filing that proposed
the adoption of the Pilot Program.7
Additionally, the Exchange represents
that it has not experienced any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the Exchange requests
that the Commission extend the Pilot
5 The Pilot Program is set to expire on August 23,
2005. See Securities Exchange Act Release No.
51295 (March 2, 2005), 70 FR 11292 (March 8,
2005) (notice of filing and immediate effectiveness
of File No. SR–ISE–2005–14) (‘‘Pilot Program
Notice’’).
6 Except when the Pilot Program is in effect.
7 See Pilot Program Notice, supra note 5.
E:\FR\FM\22AUN1.SGM
22AUN1
]]>Agencies
[Federal Register Volume 70, Number 161 (Monday, August 22, 2005)]
[Notices]
[Pages 48995-48996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4558]
[[Page 48995]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52262; File No. SR-CBOE-2005-61]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Extension of a Pilot Program That Increases
the Standard Position and Exercise Limits for Certain Options Traded on
the Exchange
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 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 and II below, which Items have been prepared by the CBOE. 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 CBOE proposes to extend an existing pilot program that
increases the standard position and exercise limits for certain options
traded on the Exchange (``Pilot Program''). The text of the proposed
rule change is available on the CBOE's Web site (https://www.cboe.com),
at the CBOE'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 CBOE 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 Pilot Program, as previously approved by the Commission,
provides for an increase to the standard position and exercise limits
for equity option contracts and for options on QQQQs for a six month
period.\5\ Specifically, the Pilot Program increased the applicable
position and exercise limits for equity options and options on the QQQQ
in accordance with the following levels:\6\
---------------------------------------------------------------------------
\5\ The Pilot Program, which the Commission approved on February
23, 2005, is set to expire on August 23, 2005. See Securities
Exchange Act Release No. 51244 (February 23, 2005), 70 FR 10010
(March 1, 2005) (order approving SR-CBOE-2003-30, as amended)
(``Pilot Program Order'').
\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 purpose of the proposed rule change is to extend the Pilot
Program for an additional six-month period. The Exchange believes that
extending the Pilot Program for six months is warranted due to the
positive feedback from members and for the reasons cited in the
original rule filing that proposed the adoption of 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.
---------------------------------------------------------------------------
\7\ See Pilot Program Order, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements provided under Section 6(b)(5) of the Act that
the rules of an exchange 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.
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 with respect to the
proposed rule change.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing the proposed rule
change. In addition, the Exchange has requested that the Commission
waive the 30-day pre-operative delay. The Commission believes that
waiving the 30-day pre-operative delay is consistent with the
protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\12\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ Id.
\12\ 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.
[[Page 48996]]
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-CBOE-2005-61 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-CBOE-2005-61. 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 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 No. SR-CBOE-2005-61 and should be
submitted on or before September 12, 2005.
For the Commission, by the Division of Market Regulation, pursuant
to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4558 Filed 8-19-05; 8:45 am]
BILLING CODE 8010-01-P
