Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest, 53036 [05-17581]

Download as PDF 53036 Federal Register / Vol. 70, No. 171 / Tuesday, September 6, 2005 / Notices imposed by the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’) 4 and related rules. The proposed rule change was noticed for comment in the Federal Register on July 26, 2005.5 The Commission received no comments on the proposed rule change. This order approves the proposed rule change. II. Description The purpose of this proposed rule change is to implement proposed Joint Amendment No. 17 to the Linkage Plan. Joint Amendment No. 17, together with this proposed rule change, would establish a de minimis exception to the ‘‘80/20 Test’’ set forth in Section 8(b)(iii) of the Linkage Plan and ISE Rule 1904. Section 8(b)(iii) of the Linkage Plan permits market makers to access away markets on a limited basis for their own principal trading. The Linkage Plan enforces this limitation via the 80/20 Test, which generally requires at least 80 percent of a market maker’s trading volume in an option class to be on its own exchange for the market maker to be able to use Linkage to send Principal Orders for its own account in that class. If a market maker ‘‘fails’’ the 80/20 Test in an option class during a calendar quarter, it cannot send Principal Orders through Linkage in that class during the next calendar quarter. The options exchanges have agreed to adopt a de minimis exception to the 80/ 20 Test. As proposed by the Exchange, the 80/20 Test would not apply to any market maker that has total volume of less than 1,000 contracts in an option during a calendar quarter. At this low volume, even a small number of Principal Orders could result in the market maker being disqualified from Linkage in that class for a calendar quarter. The Exchange believes that this proposed exception would address such concerns. III. Discussion After careful review, the Commission finds that the proposed rule change is 4 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating an intermarket options market linkage (‘‘Linkage’’) proposed by the American Stock Exchange, LLC, Chicago Board Options Exchange, Inc., and the ISE. See Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, the Philadelphia Stock Exchange, Inc., the Pacific Exchange, Inc. and the Boston Stock Exchange, Inc. joined the Linkage Plan. See Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). 5 See Securities Exchange Act Release No. 52069 (July 20, 2005), 70 FR 43203 (July 26, 2005). VerDate Aug<18>2005 13:21 Sep 02, 2005 Jkt 205001 consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.6 In particular, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act 7 which requires, among other things, that the rules of an exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market, and to protect investors and the public interest. The Commission believes that the proposed rule change will increase the availability of Linkage to members of the Participants by limiting the applicability of the 80/20 Test in situations where market makers have minimal trading volume in a particular options class. The Commission recognizes that the Exchange does not believe that it is necessary to bar market makers with limited volume from sending Principal Orders through the Linkage, as such trading does not raise concerns that a member is sending such orders as ‘‘a primary aspect of their business.’’ The Commission believes that the de minimis exemption from the 80/20 Test proposed by the Exchange for market makers that have a total contract volume of less than 1,000 contracts in an options class for a calendar quarter should ensure that members with relatively low volume in a particular options class can send a reasonable number of Principal Orders without being barred from using the Linkage by application of the 80/20 Test in the following calendar quarter. IV. Conclusion For the foregoing reasons, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (SR–ISE–2005–23) is approved. SMALL BUSINESS ADMINISTRATION Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Odyssey Venture Partners II, L.P. (‘‘Applicant’’), 610 Newport Center Drive, Suite 1400, Newport Beach, CA 92660, an SBIC Applicant under the Small Business Investment Act of 1958, as amended (‘‘the Act’’), in connection with the financing of a small concern, has sought an exemption under section 312 of the Act and section 107.730, Financings which Constitute Conflicts of Interest, of the Small Business Administration (‘‘SBA’’) rules and regulations (13 CFR 107.730 (2004)). Odyssey Venture Partners II, L.P. proposes to provide equity financing to Oryxe Energy International, Inc., 6 Thomas Avenue, Irvine, CA 92618. The financing is contemplated for working capital and research & development. A conflict of interest exemption is required because the Oryxe investment is considered financing of an Associate under 13 CFR 107.730(a). Oryxe is an Associate of the Applicant for two reasons: (1) Affiliates of Applicant, Odyssey Strategic Partners (OSP) and Odyssey Strategic Equity (OSE), had a greater than 10 percent fully diluted investment in Oryxe prior to Applicant’s initial investment; (2) Walter Schindler, one of Applicant’s principals, serves as chairman and CEO of Oryxe. Notice is hereby given that any interested person may submit written comments on the transaction to the Associate Administrator for Investment, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416. ´ Jaime Guzman-Fournier, Associate Administrator for Investment [FR Doc. 05–17581 Filed 9–2–05; 8:45 am] BILLING CODE 8625–01–M SMALL BUSINESS ADMINISTRATION For the Commission by the Division of Market Regulation, pursuant to delegated authority.9 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–4830 Filed 9–2–05; 8:45 am] [Disaster Declaration # 10167 and # 10168] BILLING CODE 8010–01–P SUMMARY: This is a notice of an Administrative declaration of a disaster for the State of Florida dated 08/25/ 2005. Incident: Severe Storms and Flooding. Incident Period: 07/29/2005 through 08/14/2005. DATES: Effective Date: 08/25/2005. 6 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5) 8 15 U.S.C. 78s(b)(2). 9 17 CFR 200.30–3(a)(12). PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 FLORIDA Disaster # FL–00007 Small Business Administration. Notice. AGENCY: ACTION: E:\FR\FM\06SEN1.SGM 06SEN1

Agencies

[Federal Register Volume 70, Number 171 (Tuesday, September 6, 2005)]
[Notices]
[Page 53036]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-17581]


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SMALL BUSINESS ADMINISTRATION


Notice Seeking Exemption Under Section 312 of the Small Business 
Investment Act, Conflicts of Interest

    Notice is hereby given that Odyssey Venture Partners II, L.P. 
(``Applicant''), 610 Newport Center Drive, Suite 1400, Newport Beach, 
CA 92660, an SBIC Applicant under the Small Business Investment Act of 
1958, as amended (``the Act''), in connection with the financing of a 
small concern, has sought an exemption under section 312 of the Act and 
section 107.730, Financings which Constitute Conflicts of Interest, of 
the Small Business Administration (``SBA'') rules and regulations (13 
CFR 107.730 (2004)). Odyssey Venture Partners II, L.P. proposes to 
provide equity financing to Oryxe Energy International, Inc., 6 Thomas 
Avenue, Irvine, CA 92618. The financing is contemplated for working 
capital and research & development.
    A conflict of interest exemption is required because the Oryxe 
investment is considered financing of an Associate under 13 CFR 
107.730(a). Oryxe is an Associate of the Applicant for two reasons: (1) 
Affiliates of Applicant, Odyssey Strategic Partners (OSP) and Odyssey 
Strategic Equity (OSE), had a greater than 10 percent fully diluted 
investment in Oryxe prior to Applicant's initial investment; (2) Walter 
Schindler, one of Applicant's principals, serves as chairman and CEO of 
Oryxe.
    Notice is hereby given that any interested person may submit 
written comments on the transaction to the Associate Administrator for 
Investment, U.S. Small Business Administration, 409 Third Street, SW., 
Washington, DC 20416.

Jaime Guzm[aacute]n-Fournier,
Associate Administrator for Investment
[FR Doc. 05-17581 Filed 9-2-05; 8:45 am]
BILLING CODE 8625-01-M
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