Self-Regulatory Organizations; International Securities Exchange, Inc.; Order Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto Establishing a Directed Order Process, 51856-51857 [E5-4732]
Download as PDF
<![CDATA[
51856
Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Notices
only for transactions by NonCustomers 9 in options on IWM, SMH,
OIH, XLE, and TLT. The amount of the
execution fee and comparison fee for the
products covered by this filing shall be
the same for all order types on the
Exchange—that is, orders for Public
Customers and Non-Customers (which
include Market Makers and Firm
Proprietary)—and shall be equal to the
execution fee and comparison fee,
respectively, that are currently charged
by the Exchange for transactions by
Non-Customers in equity options.10
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with Section 6(b)(4) of the
Act,11 which requires that an exchange
have an equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change, as amended, does
not impose any burden on competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change, as
amended, establishes or changes a due,
fee, or other charge imposed by the
Exchange, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 12 and Rule 19b–4(f)(2) 13
thereunder. At any time within 60 days
of the filing of such amended 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
9 ISE Rule 100(22) defines ‘‘Non-Customer’’ as a
person or entity that is broker or dealer in
securities.
10 The execution fee is currently between $.21
and $.12 per contract side, depending on the
Exchange Average Daily Volume, and the
comparison fee is currently $.03 per contract per
side.
11 15 U.S.C. 78f(b)(4).
12 15 U.S.C. 78s(b)(3)(A).
13 17 CFR 19b–4(f)(2).
VerDate Aug<18>2005
16:33 Aug 30, 2005
Jkt 205001
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.14
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, 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–ISE–2005–38 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–ISE–2005–38. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the ISE. 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
14 The effective date of the original proposed rule
is August 1, 2005. The effective date of Amendment
No. 1 is August 22, 2005. For purposes of
calculating the 60-day period within which the
Commission may summarily abrogate the proposed
rule change under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
August 22, 2005, the date on which the ISE
submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
submissions should refer to File
Number SR–ISE–2005–38 and should be
submitted on or before September 21,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4731 Filed 8–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52331; File No. SR–ISE–
2004–16]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Order Granting Approval of Proposed
Rule Change and Amendment No. 1
Thereto Establishing a Directed Order
Process
August 24, 2005.
On May 20, 2004, the International
Securities Exchange, Inc. (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt new ISE Rule 811 to allow
Exchange market makers to receive
Public Customer Orders directed to
them from Electronic Access Members
(‘‘EAMs’’) through the Exchange’s
system (‘‘Directed Orders’’). On April
26, 2005, the ISE filed Amendment No.
1 to the proposed rule change.3 The
proposed rule change, as modified by
Amendment No. 1, was published for
comment in the Federal Register on
June 20, 2005.4 The Commission
received no comments on the proposed
rule change.
Under ISE’s proposal, a market maker
that wishes to accept Directed Orders
must systemically indicate that it
wishes to receive Directed Orders each
day, must be willing to accept Directed
Orders from all EAMs, may receive
Directed Orders only through the
Exchange’s system, and may not reject
Directed Orders. A market maker
receiving a Directed Order (‘‘Directed
Market Maker’’) would have to, within
three seconds of receipt of the order,
either submit the Directed Order to the
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 replaced and superseded the
original filing in its entirety.
4 Securities Exchange Act Release No. 51835
(June 13, 2005), 70 FR 35479.
1 15
E:\FR\FM\31AUN1.SGM
31AUN1
Federal Register / Vol. 70, No. 168 / Wednesday, August 31, 2005 / Notices
Price Improvement Mechanism (‘‘PIM’’),
or send the order to the Exchange’s limit
order book. If the market maker submits
the order to the PIM and is quoting at
the national best bid or offer (‘‘NBBO’’)
on the opposite side of the Directed
Order, it would be prohibited from
changing its quotation to a price less
favorable than the price available at the
NBBO or reducing the size of its
quotation prior to submitting the
Directed Order to the PIM, unless such
quotation change is the result of an
automated quotation system that
operates independently from the
existence or nonexistence of a pending
Directed Order. If the market maker
sends the order to the Exchange’s limit
order book (or the Exchange system
releases the order to the limit order book
after three seconds) certain restrictions
would apply to a market maker’s ability
to trade with the order depending on
whether the Directed Order is
marketable or not marketable, and
whether the Directed Market Maker is
quoting at the NBBO or not quoting at
the NBBO. In any case, the Directed
Market Maker would be last in priority
when the Directed Order is matched
against contra interest.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange.5 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,6 which requires
among other things, that an exchange
have rules that are designed to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transaction in
securities, 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.
The Commission notes that the
proposal is similar to the Directed Order
program currently in place on the
Boston Options Exchange facility
(‘‘BOX’’) of the Boston Stock Exchange,
Inc. (‘‘BSE’’).7 Similar to the program
currently in place on BOX, market
makers receiving Directed Orders must
accept all orders directed to them and
must send such orders only to the PIM
5 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 See BSE Rules Chapter VI, Section 5(b) and (c),
and Section 10.
VerDate Aug<18>2005
16:33 Aug 30, 2005
Jkt 205001
or to the Exchange’s limit order book. In
addition, a market maker that receives a
Directed Order when not quoting at the
NBBO as well as when quoting at the
NBBO, would have to wait three
seconds before trading with the Directed
Order. The Directed Order would be
exposed to other market participants to
give them the first opportunity to trade
with the Directed Order. Accordingly,
the Commission believes that the
proposal would not provide any
disincentive for market makers that
receive Directed Orders to quote
competitively.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–ISE–2004–16)
be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4732 Filed 8–30–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52333, File No. SR–MSRB–
2005–13]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Approving Proposed
Rule Change Relating to Official
Statement Delivery Requirements
Under Rule G–32, Rule G–36, and Rule
G–11
August 25, 2005.
On June 23, 2005, the Municipal
Securities Rulemaking Board (‘‘MSRB’’
or ‘‘Board’’), filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b-4
thereunder,2 a proposed rule change
consisting of amendments to Rule G–32
(on delivery of official statements to
new issue customers), Rule G–36 (on
delivery of official statements and
advance refunding documents to the
Board) and Rule G–11 (on new issue
municipal securities during the
underwriting period). The proposed rule
change is intended to improve the
efficiency of official statement
dissemination in the municipal
securities marketplace and the
timeliness of official statement
deliveries to customers. The proposed
8 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 17
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
51857
rule change was published for comment
in the Federal Register on July 25,
2005.3 The Commission received no
comment letters regarding the proposal.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to the MSRB 4 and, in
particular, the requirements of Section
15B(b)(2)(C) of the Act 5 and the rules
and regulations thereunder. Section
15B(b)(2)(C) of the Act requires, among
other things, that the MSRB’s rules be
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
regulating, clearing, settling, processing
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.6 In particular, the
Commission finds that the proposed
rule change will increase the efficiency
of official statement dissemination in
the marketplace and the timeliness of
official statement deliveries to
customers.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–MSRB–2005–
13) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4751 Filed 8–30–05; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
[Docket No. FMCSA–2005–22056]
Public Meeting To Discuss the
Implementation of the North American
Standard for Cargo Securement
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
AGENCY:
3 See Securities Exchange Act Release No. 52058
(July 19, 2005), 70 FR 42604 (July 25, 2005).
4 In approving this rule the Commission notes
that it has considered the proposed rule’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
5 15 U.S.C. 78o–4(b)(2)(C).
6 Id.
7 15 U.S.C. 78s(b)(2).
8 17 CFR 200.30–3(a)(12).
E:\FR\FM\31AUN1.SGM
31AUN1
]]>Agencies
[Federal Register Volume 70, Number 168 (Wednesday, August 31, 2005)]
[Notices]
[Pages 51856-51857]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4732]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52331; File No. SR-ISE-2004-16]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Order Granting Approval of Proposed Rule Change and Amendment No.
1 Thereto Establishing a Directed Order Process
August 24, 2005.
On May 20, 2004, the International Securities Exchange, Inc.
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt new ISE Rule 811 to
allow Exchange market makers to receive Public Customer Orders directed
to them from Electronic Access Members (``EAMs'') through the
Exchange's system (``Directed Orders''). On April 26, 2005, the ISE
filed Amendment No. 1 to the proposed rule change.\3\ The proposed rule
change, as modified by Amendment No. 1, was published for comment in
the Federal Register on June 20, 2005.\4\ The Commission received no
comments on the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 replaced and superseded the original filing
in its entirety.
\4\ Securities Exchange Act Release No. 51835 (June 13, 2005),
70 FR 35479.
---------------------------------------------------------------------------
Under ISE's proposal, a market maker that wishes to accept Directed
Orders must systemically indicate that it wishes to receive Directed
Orders each day, must be willing to accept Directed Orders from all
EAMs, may receive Directed Orders only through the Exchange's system,
and may not reject Directed Orders. A market maker receiving a Directed
Order (``Directed Market Maker'') would have to, within three seconds
of receipt of the order, either submit the Directed Order to the
[[Page 51857]]
Price Improvement Mechanism (``PIM''), or send the order to the
Exchange's limit order book. If the market maker submits the order to
the PIM and is quoting at the national best bid or offer (``NBBO'') on
the opposite side of the Directed Order, it would be prohibited from
changing its quotation to a price less favorable than the price
available at the NBBO or reducing the size of its quotation prior to
submitting the Directed Order to the PIM, unless such quotation change
is the result of an automated quotation system that operates
independently from the existence or nonexistence of a pending Directed
Order. If the market maker sends the order to the Exchange's limit
order book (or the Exchange system releases the order to the limit
order book after three seconds) certain restrictions would apply to a
market maker's ability to trade with the order depending on whether the
Directed Order is marketable or not marketable, and whether the
Directed Market Maker is quoting at the NBBO or not quoting at the
NBBO. In any case, the Directed Market Maker would be last in priority
when the Directed Order is matched against contra interest.
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder that are applicable to a national
securities exchange.\5\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\6\
which requires among other things, that an exchange have rules that are
designed to foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transaction in securities, 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.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission notes that the proposal is similar to the Directed
Order program currently in place on the Boston Options Exchange
facility (``BOX'') of the Boston Stock Exchange, Inc. (``BSE'').\7\
Similar to the program currently in place on BOX, market makers
receiving Directed Orders must accept all orders directed to them and
must send such orders only to the PIM or to the Exchange's limit order
book. In addition, a market maker that receives a Directed Order when
not quoting at the NBBO as well as when quoting at the NBBO, would have
to wait three seconds before trading with the Directed Order. The
Directed Order would be exposed to other market participants to give
them the first opportunity to trade with the Directed Order.
Accordingly, the Commission believes that the proposal would not
provide any disincentive for market makers that receive Directed Orders
to quote competitively.
---------------------------------------------------------------------------
\7\ See BSE Rules Chapter VI, Section 5(b) and (c), and Section
10.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-ISE-2004-16) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4732 Filed 8-30-05; 8:45 am]
BILLING CODE 8010-01-P
