Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program That Increases Position and Exercise Limits for Equity Options, 49344-49345 [E5-4585]
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49344
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
information with respect to, and
facilitating transactions in municipal
securities, to remove impediments to
and perfect the mechanism of a free and
open market in municipal securities,
and, in general, to protect investors and
the public interest.13 In particular, the
Commission finds that the proposed
rule change will further investor
protection and the public interest by
ensuring that solicitations of municipal
securities business are undertaken in a
manner consistent with standards of fair
practice and professionalism, thereby
helping to maintain public trust and
confidence in the integrity of the
municipal securities market.
IV. Accelerated Approval of
Amendment No. 1
The MSRB requested in Amendment
No. 1 that the Commission find good
cause, pursuant to Section 19(b)(2) of
the Act, for approving Amendment No.
1 (simultaneously with the proposed
rule change) prior to the thirtieth day
after publication of the notice of filing
of Amendment No. 1 in the Federal
Register. The Commission finds good
cause to approve Amendment No. 1 to
the proposal prior to the thirtieth day
after the date of publication of notice of
filing thereof in the Federal Register.
The MSRB believes, and the
Commission agrees, that (i) the new
effective date and modified transitional
payment provisions, as well as the
modification to Form G–38t, will
facilitate dealer compliance with
revised Rule G–38 in an orderly and
timely manner while reducing the
opportunity for circumvention of the
purposes of the proposed rule change,
and (ii) the modified definition of
‘‘affiliated person’’ would further
minimize the potential burden on
competition of the proposed rule change
in that it would treat dealer business
models using independent brokers
equally with dealer business models
using directly employed brokers
without reducing the effectiveness of
the proposed rule change.
For these reasons, the Commission
finds good cause, consistent with
Sections 15B(b)(2)(C) and 19(b)(2) of the
Act, to accelerate approval of
Amendment No. 1 to the proposed rule
change.
V. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning Amendment No.
1, including whether Amendment No. 1
is consistent with the Act. Comments
13 Id.
VerDate Aug<18>2005
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–MSRB–2005–04 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–MSRB–2005–04. 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 MSRB’s offices. All comments
received will be posted without change;
the Commission does not editpersonal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–MSRB–
2005–04 and should be submitted on or
before September 13, 2005.
VI. Conclusion
For the reasons discussed above, the
Commission finds that the proposal is
consistent with the Act and the rules
and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,14 that the
proposed rule change (SR–MSRB–2005–
04) be, and hereby is, approved.
14 15
15:03 Aug 22, 2005
Jkt 205001
PO 00000
U.S.C. 78s(b)(2).
Frm 00090
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4587 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURTITES AND EXCHANGE
COMMISSION
[Release No. 34–52271; File No. SR–NASD–
2005–097]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot
Program That Increases Position and
Exercise Limits for Equity Options
August 16, 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 National Association of
Securities Dealers, Inc. (‘‘NASD’’) 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 NASD. NASD 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
NASD proposes to amend NASD Rule
2860 to extend a pilot program
increasing certain options position and
exercise limits for a pilot period. The
text of the proposed rule change is
available on NASD’s Web site (https://
www.nasd.com), at NASD’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,
NASD included statements concerning
15 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
E:\FR\FM\23AUN1.SGM
23AUN1
Federal Register / Vol. 70, No. 162 / Tuesday, August 23, 2005 / Notices
49345
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. NASD has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
Comments may be submitted by any of
the following methods:
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
Electronic Comments
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, 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. NASD
has requested that the Commission
waive the five-day pre-filing notice
requirement and the 30-day preoperative 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.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.
1. Purpose
NASD is proposing to amend NASD
Rule 2860 to extend a pilot program
until March 3, 2006 (unless extended)
increasing position and exercise limits
for both standardized and conventional
options (‘‘Pilot Program’’).5 Unless
extended, the Pilot Program will expire
on September 2, 2005.6 NASD believes
that the Pilot Program should be
extended so that it may continue
without interruption for the same
reasons that are discussed in the Pilot
Program Notice.
2. Statutory Basis
NASD believes that the proposed rule
change is consistent with the provisions
of Section 15A(b)(6) of the Act,7 which
requires, among other things, that
NASD’s rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The proposed rule
change is being made so that the Pilot
Program, which achieves these goals as
discussed in the Pilot Program Notice,
may continue without interruption.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
burden on competition that is not
5 See Securities Exchange Act Release No. 51520
(April 11, 2005), 70 FR 19977 (April 15, 2005)
(notice of filing and immediate effectiveness of File
No. SR–NASD–2005–040) (‘‘Pilot Program Notice’’).
Under the Pilot Program as set forth in NASD Rule
2860(b)(3), standardized and conventional options
subject to a position limit of 13,500 contracts were
increased during the pilot period to 25,000
contracts; those subject to a position limit of 22,500
contracts were increased to 50,000 contracts; those
subject to a position limit of 31,500 contracts were
increased to 75,000 contracts; those subject to a
position limit of 60,000 contracts were increased to
200,000 contracts; and those subject to a position
limit of 75,000 contracts were increased to 250,000
contracts. Options exercise limits, which are set
forth in NASD Rule 2860(b)(4), and which
incorporate by reference the position limits in
NASD Rule 2860(b)(3), were also increased during
the Pilot Period.
6 See NASD Rule 2860(b)(3)(A)(i).
7 15 U.S.C. 78o–3(b)(6).
VerDate Aug<18>2005
15:03 Aug 22, 2005
Jkt 205001
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.
8 15
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
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
• 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–NASD–2005–097 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–NASD–2005–097. 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 NASD. 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–NASD–2005–097 and should be
submitted on or before September 13,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4585 Filed 8–22–05; 8:45 am]
BILLING CODE 8010–01–P
13 17
E:\FR\FM\23AUN1.SGM
CFR 200.30–3(a)(12).
23AUN1
]]>Agencies
[Federal Register Volume 70, Number 162 (Tuesday, August 23, 2005)]
[Notices]
[Pages 49344-49345]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4585]
-----------------------------------------------------------------------
SECURTITES AND EXCHANGE COMMISSION
[Release No. 34-52271; File No. SR-NASD-2005-097]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot Program That Increases Position and
Exercise Limits for Equity Options
August 16, 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 National Association of Securities Dealers,
Inc. (``NASD'') 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 NASD. NASD 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
NASD proposes to amend NASD Rule 2860 to extend a pilot program
increasing certain options position and exercise limits for a pilot
period. The text of the proposed rule change is available on NASD's Web
site (https://www.nasd.com), at NASD'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, NASD included statements
concerning
[[Page 49345]]
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.
NASD 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
NASD is proposing to amend NASD Rule 2860 to extend a pilot program
until March 3, 2006 (unless extended) increasing position and exercise
limits for both standardized and conventional options (``Pilot
Program'').\5\ Unless extended, the Pilot Program will expire on
September 2, 2005.\6\ NASD believes that the Pilot Program should be
extended so that it may continue without interruption for the same
reasons that are discussed in the Pilot Program Notice.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51520 (April 11,
2005), 70 FR 19977 (April 15, 2005) (notice of filing and immediate
effectiveness of File No. SR-NASD-2005-040) (``Pilot Program
Notice''). Under the Pilot Program as set forth in NASD Rule
2860(b)(3), standardized and conventional options subject to a
position limit of 13,500 contracts were increased during the pilot
period to 25,000 contracts; those subject to a position limit of
22,500 contracts were increased to 50,000 contracts; those subject
to a position limit of 31,500 contracts were increased to 75,000
contracts; those subject to a position limit of 60,000 contracts
were increased to 200,000 contracts; and those subject to a position
limit of 75,000 contracts were increased to 250,000 contracts.
Options exercise limits, which are set forth in NASD Rule
2860(b)(4), and which incorporate by reference the position limits
in NASD Rule 2860(b)(3), were also increased during the Pilot
Period.
\6\ See NASD Rule 2860(b)(3)(A)(i).
---------------------------------------------------------------------------
2. Statutory Basis
NASD believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that NASD's rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. The proposed rule change is being made so that the
Pilot Program, which achieves these goals as discussed in the Pilot
Program Notice, may continue without interruption.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
NASD does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments 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 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. NASD 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.\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.
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-NASD-2005-097 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-NASD-2005-097. 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 NASD. 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-NASD-2005-097 and should be
submitted on or before September 13, 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. E5-4585 Filed 8-22-05; 8:45 am]
BILLING CODE 8010-01-P
