Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to an Extension of the Pilot Program on Dividend Spread and Merger Spread Fee Caps Until March 1, 2006, 53828-53829 [05-18005]
Download as PDF
<![CDATA[
53828
Federal Register / Vol. 70, No. 175 / Monday, September 12, 2005 / Notices
referenced above. For the reasons set
forth above, the Commission finds good
cause to accelerate approval of the
proposed rule change pursuant to
Section 19(b)(2) of the Act.15
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,16 that the
proposed rule change (SR–CHX–2005–
23) is hereby approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Jonathan G. Katz,
Secretary.
[FR Doc. E5–4948 Filed 9–9–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52380; File No. SR–Phlx–
2005–56]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to an Extension of the
Pilot Program on Dividend Spread and
Merger Spread Fee Caps Until March 1,
2006
September 2, 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
29, 2005, the Philadelphia Stock
Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III, below, which Items
have been prepared by Phlx. The
Exchange designated the proposed rule
change as establishing or changing a
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
15 15
U.S.C. 78s(b)(2).
16 Id.
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)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
VerDate Aug<18>2005
15:25 Sep 09, 2005
Jkt 205001
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Phlx proposes to extend for a period
of six months its fee caps on equity
option transaction and comparison
charges on dividend spread
transactions 5 and merger spread
transactions.6 The current fee caps are
in effect as a pilot program that expires
on September 1, 2005. The Exchange
proposes to extend the pilot program for
the fee caps for a six-month period until
March 1, 2006. The text of the proposed
rule change is available on the
Exchange’s Web site (https://
www.phlx.com), at the Office of the
Secretary, Phlx, and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Phlx 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. Phlx 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
Currently, the Exchange imposes a fee
cap on equity option transaction and
comparison charges on merger spread
transactions and dividend spread
transactions executed on the same
trading day in the same options class.
Specifically, ROTs’ and specialists’
equity option transaction and
comparison charges are capped at
$1,750 for transactions effected
pursuant to a merger spread strategy or
5 For purposes of this proposal, a ‘‘dividend
spread’’ transaction is any trade done within a
defined time frame pursuant to a strategy in which
a dividend arbitrage can be achieved between any
two deep-in-the-money options. See Securities
Exchange Act Release No. 48983 (December 23,
2003), 68 FR 75703 (December 31, 2003) (SR-Phlx2003–80).
6 For purposes of this proposal, the Exchange
defines a ‘‘merger spread’’ transaction as a
transaction executed pursuant to a merger spread
strategy involving the simultaneous purchase and
sale of options of the same class and expiration
date, but different strike prices, followed by the
exercise of the resulting long options position, each
executed prior to the date on which shareholders
of record are required to elect their respective form
of consideration, i.e., cash or stock. See Securities
Exchange Act Release No. 51596 (April 21, 2005),
70 FR 22381 (April 29, 2005) (SR–Phlx–2005–19).
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
dividend spread strategy when the
dividend is $0.25 or greater. However,
for dividend spread transactions for a
security with a declared dividend or
distribution of less than $0.25, the
ROTs’ and specialists’ equity option
transaction and comparison charges are
capped at $1,000 for transactions
effected pursuant to a dividend spread
strategy executed on the same trading
day in the same options class. The fee
caps are implemented after any
applicable rebates are applied to ROT
and specialist equity option transaction
and comparison charges.7 The purpose
of extending the pilot program for a sixmonth period is to continue to attract
additional liquidity to the Exchange and
to remain competitive.8
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 10 in particular, in that it is
an equitable allocation of reasonable
fees among Exchange members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate 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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and paragraph (f)(2) of Rule
19b–4 thereunder 12 because it is
establishing or changing a due, fee, or
other charge applicable only to the
Exchange’s members. 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
7 Currently, the Exchange provides a rebate for
certain contracts executed in connection with
transactions occurring as part of a dividend spread
strategy or merger spread strategy. See notes 5 and
6, supra.
8 Similar to the Exchange’s current rebate process,
members who wish to benefit from the fee cap are
required to submit to the Exchange a written rebate
request with supporting documentation.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(2).
E:\FR\FM\12SEN1.SGM
12SEN1
Federal Register / Vol. 70, No. 175 / Monday, September 12, 2005 / Notices
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
IV. Solicitation of Comments
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. 05–18005 Filed 9–9–05; 8:45 am]
BILLING CODE 8010–01–P
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
Number SR–Phlx–2005–56 on the
subject line.
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Public Notice for Waiver of
Aeronautical Land-Use Assurance
Bolton Field Airport, Columbus, OH
Federal Aviation
Administration, DOT.
ACTION: Notice of intent of waiver with
respect to land.
AGENCY:
SUMMARY: The Federal Aviation
Administration (FAA) is considering a
proposal to change a portion of the
airport designated aeronautical use to
Paper Comments
non-aeronautical use and to authorize
the release of 1.5411 acres of airport
• Send paper comments in triplicate
property for an exchange of property
to Jonathan G. Katz, Secretary,
between the Columbus Regional Airport
Securities and Exchange Commission,
Authority (CRAA) and the City of
100 F Street, NE., Washington, DC
Columbus. The land currently houses a
20549–9303.
fire station that will remain on the site.
All submissions should refer to File
The land was conveyed to the City of
Number SR–Phlx–2005–56. This file
Columbus in Deed Volume 2806, page
number should be included on the
644 of the Recorder’s Office, Franklin
subject line if e-mail is used. To help the County, Ohio. The land was acquired by
Commission process and review your
the City of Columbus with funding from
comments more efficiently, please use
Federal Grant 8–39–0026–01. There are
only one method. The Commission will no impacts to the airport by allowing
post all comments on the Commission’s the airport to dispose of the property.
Internet Web site (https://www.sec.gov/
Approval does not constitute a
rules/sro.shtml). Copies of the
commitment by the FAA to financially
submission, all subsequent
assist in the disposal of the subject
amendments, all written statements
airport property nor a determination of
with respect to the proposed rule
eligibility for grant-in-aid funding from
change that are filed with the
the FAA. In exchange, the CRAA will
Commission, and all written
receive a parcel of land (43.562 acres)
communications relating to the
currently being used as a golf course
proposed rule change between the
facility adjacent to Port Columbus
Commission and any person, other than International Airport. This parcel is
those that may be withheld from the
partially located in the existing Runway
public in accordance with the
Protection Zone for Runway 10R–28L
provisions of 5 U.S.C. 552, will be
and is partially located in the Runway
available for inspection and copying in
Protection Zone for future Runway 10R–
the Commission’s Public Reference
28L as indicated on the approved
Room. Copies of such filing also will be Airport Layout Plan (ALP) for Port
available for inspection and copying at
Columbus International Airport. In
the principal office of the Exchange. All accordance with section 47107(h) of
comments received will be posted
title 49, United States Code, this notice
without change; the Commission does
is required to be published in the
not edit personal identifying
Federal Register 30 days before
information from submissions. You
modifying the land-use assurance that
should submit only information that
requires the property to be used for an
you wish to make available publicly. All aeronautical purpose.
submissions should refer to File
DATES: Comments must be received on
Number SR–Phlx–2005–56 and should
or before October 12, 2005.
be submitted on or before October 3,
2005.
13 17 CFR 200.30–3(a)(12).
VerDate Aug<18>2005
15:25 Sep 09, 2005
Jkt 205001
PO 00000
Frm 00057
Fmt 4703
Sfmt 4703
53829
FOR FURTHER INFORMATION CONTACT:
Mary W. Jagiello, Program Manager,
Federal Aviation Administration, Great
Lakes Region, Detroit Airports District
Office, DET ADO–608, 11677 South
Wayne Road, Suite 107, Romulus,
Michigan 48174. Telephone Number
(734) 229–2956/FAX Number (734) 229–
2950. Documents reflecting this FAA
action may be reviewed at this same
location or at Bolton Field Airport,
Columbus, Ohio.
SUPPLEMENTARY INFORMATION: Following
is a legal description of the property
located in Columbus, Franklin County,
Ohio, and described as follows:
Beginning for reference at Franklin
County Monument #4448, located at the
intersection of Alkire Road and Bukey
Road (abandoned);
Thence north 87°12′49″ West along
the centerline of Alkire Road, a distance
of 1322.81 feet to a railroad spike set
and the true place of beginning;
Thence South 02°47′11″ West passing
a 3⁄4″ iron pipe and cap set at 30.00 feet,
a total distance of 274.25 feet to a 3⁄4″
iron pipe and cap set;
Thence North 87°12′49″ West, a
distance of 235.89 feet to a 3⁄4″ iron pipe
and cap set;
Thence North 00°55′14″ West passing
3⁄4″ iron pipes and caps at 88.48 feet and
244.77 feet, a total distance of 274.83
feet to a railroad spike set in the
centerline of Alkire Road;
Thence South 87°12′49″ East along
the centerline of said Alkire Road, a
distance of 253.66 feet to the place of
beginning, containing 1.5411 acres of
land and being subject to all legal
highways, easements and restrictions of
record.
Bearings are based on State Plane
Coordinates NAD 83. All 3⁄4″ iron pipes
and caps set has the logo S5669.
Issued in Romulus, Michigan on August 5,
2005.
Winsome A. Lenfert,
Acting Manager, Detroit Airports District
Office, FAA, Great Lakes Region.
[FR Doc. 05–17989 Filed 9–9–05; 8:45 am]
BILLING CODE 4910–13–M
DEPARTMENT OF TRANSPORTATION
Maritime Administration
Marine Transportation System National
Advisory Council
National Advisory Council
public meeting.
ACTION:
SUMMARY: The Maritime Administration
announces that the Marine
Transportation System National
Advisory Council (MTSNAC) will hold
E:\FR\FM\12SEN1.SGM
12SEN1
]]>Agencies
[Federal Register Volume 70, Number 175 (Monday, September 12, 2005)]
[Notices]
[Pages 53828-53829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-18005]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52380; File No. SR-Phlx-2005-56]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to an Extension of the Pilot Program on Dividend Spread and
Merger Spread Fee Caps Until March 1, 2006
September 2, 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 29, 2005, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by Phlx. The Exchange
designated the proposed rule change as establishing or changing a due,
fee, or other charge imposed by the Exchange under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Phlx proposes to extend for a period of six months its fee caps on
equity option transaction and comparison charges on dividend spread
transactions \5\ and merger spread transactions.\6\ The current fee
caps are in effect as a pilot program that expires on September 1,
2005. The Exchange proposes to extend the pilot program for the fee
caps for a six-month period until March 1, 2006. The text of the
proposed rule change is available on the Exchange's Web site (https://
www.phlx.com), at the Office of the Secretary, Phlx, and at the
Commission.
---------------------------------------------------------------------------
\5\ For purposes of this proposal, a ``dividend spread''
transaction is any trade done within a defined time frame pursuant
to a strategy in which a dividend arbitrage can be achieved between
any two deep-in-the-money options. See Securities Exchange Act
Release No. 48983 (December 23, 2003), 68 FR 75703 (December 31,
2003) (SR-Phlx-2003-80).
\6\ For purposes of this proposal, the Exchange defines a
``merger spread'' transaction as a transaction executed pursuant to
a merger spread strategy involving the simultaneous purchase and
sale of options of the same class and expiration date, but different
strike prices, followed by the exercise of the resulting long
options position, each executed prior to the date on which
shareholders of record are required to elect their respective form
of consideration, i.e., cash or stock. See Securities Exchange Act
Release No. 51596 (April 21, 2005), 70 FR 22381 (April 29, 2005)
(SR-Phlx-2005-19).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Phlx 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. Phlx 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
Currently, the Exchange imposes a fee cap on equity option
transaction and comparison charges on merger spread transactions and
dividend spread transactions executed on the same trading day in the
same options class. Specifically, ROTs' and specialists' equity option
transaction and comparison charges are capped at $1,750 for
transactions effected pursuant to a merger spread strategy or dividend
spread strategy when the dividend is $0.25 or greater. However, for
dividend spread transactions for a security with a declared dividend or
distribution of less than $0.25, the ROTs' and specialists' equity
option transaction and comparison charges are capped at $1,000 for
transactions effected pursuant to a dividend spread strategy executed
on the same trading day in the same options class. The fee caps are
implemented after any applicable rebates are applied to ROT and
specialist equity option transaction and comparison charges.\7\ The
purpose of extending the pilot program for a six-month period is to
continue to attract additional liquidity to the Exchange and to remain
competitive.\8\
2. Statutory Basis
---------------------------------------------------------------------------
\7\ Currently, the Exchange provides a rebate for certain
contracts executed in connection with transactions occurring as part
of a dividend spread strategy or merger spread strategy. See notes 5
and 6, supra.
\8\ Similar to the Exchange's current rebate process, members
who wish to benefit from the fee cap are required to submit to the
Exchange a written rebate request with supporting documentation.
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \10\ in particular, in that it
is an equitable allocation of reasonable fees among Exchange members.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f)(2) of Rule 19b-4
thereunder \12\ because it is establishing or changing a due, fee, or
other charge applicable only to the Exchange's members. 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
[[Page 53829]]
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 Number SR-Phlx-2005-56 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-Phlx-2005-56. 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 Exchange. 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 Number SR-Phlx-2005-56 and should be submitted on or before
October 3, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. 05-18005 Filed 9-9-05; 8:45 am]
BILLING CODE 8010-01-P
