Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to the Definition of Firm Customer Quote Size and Limitations on Sending of Multiple P/A Orders on the Boston Options Exchange, 55191-55192 [05-18669]
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Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices
imposed by the BSE. At any time within
60 days of the filing of such 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 purposes of the Act.12
Number SR-BSE–2005–38 and should
be submitted on or before October 11,
2005.
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:
BILLING CODE 8010–01–P
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–BSE–2005–38 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-BSE–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 the 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
12 See
supra note 6.
VerDate Aug<31>2005
14:53 Sep 19, 2005
Jkt 205001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. 05–18619 Filed 9–19–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52429; File No. SR–BSE–
2005–39]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
of Proposed Rule Change Relating to
the Definition of Firm Customer Quote
Size and Limitations on Sending of
Multiple P/A Orders on the Boston
Options Exchange
September 14, 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
September 13, 2005, the Boston Stock
Exchange, Inc. (‘‘BSE’’ 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 the BSE. 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 Exchange is proposing to amend
its rules governing the operation of the
intermarket option linkage (‘‘Linkage’’)
on the Boston Options Exchange
(‘‘BOX’’) to conform with a proposed
amendment 3 to the Plan for the Purpose
of Creating and Operating an
Intermarket Option Linkage (‘‘Linkage
Plan’’).4 The Exchange is proposing: (i)
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 52401
(September 9, 2005) (File No. 4–429) (‘‘Amendment
No. 16’’).
4 On July 28, 2000, the Commission approved a
national market system plan for the purpose of
creating and operating an intermarket option market
linkage proposed by the American Stock Exchange,
LLC, Chicago Board Options Exchange,
Incorporated, and International Securities
Exchange, Inc. See Securities Exchange Act Release
No. 43086 (July 28, 2000), 65 FR 48023 (August 4,
2000). Subsequently, upon separate requests by the
Philadelphia Stock Exchange, Inc., Pacific
Exchange, Inc., and BSE, the Commission issued
1 15
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
55191
To amend the definition of ‘‘Firm
Customer Quote Size’’ (‘‘FCQS’’) 5 to
provide automatic executions for
Principal Acting as Agent Orders (‘‘P/A
Orders’’) 6 sent via Linkage up to the full
size of a Participant’s disseminated
quotation; and (ii) to eliminate a 15second waiting period between the
sending of P/A Orders.
The text of the proposed rule
amendment is available on BSE’s Web
site at https://www.bostonstock.com, at
the BSE’s Office of the Secretary, 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
Exchange 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 Exchange proposes to amend its
rules governing Linkage in two areas:
the definition of FCQS and limitations
on sending multiple P/A Orders.
The Linkage Plan participants
(‘‘Participants’’) provide automatic
execution to P/A Orders up to the
FCQS, if automatic execution is
available. At the time the Participants
adopted the Linkage Plan, options quote
sizes were not disseminated through the
Options Price Reporting Authority, and
the floor-based Participants employed
automatic execution systems that
guaranteed automatic fills on orders
under a certain contract size (which
generally was a static number). As such,
the FCQS was calculated based on the
number of contracts the sending and
receiving Participants guaranteed they
would automatically execute. Now that
orders to permit these exchanges to participate in
the Linkage Plan. See Securities Exchange Act
Release Nos. 43573 (November 16, 2000), 65 FR
70850 (November 28, 2000), 43574 (November 16,
2000), 65 FR 70851 (November 28, 2000) and 49198
(February 5, 2004), 69 FR 7029 (February 12, 2004).
5 See Section 2(11) of the Linkage Plan and
Chapter XII, Section 1(g) of BOX’s Rules.
6 See Section 2(16)(a) of the Linkage Plan and
Chapter XII, Section 1(j)(i) of BOX’s Rules.
E:\FR\FM\20SEN1.SGM
20SEN1
55192
Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices
all Participants disseminate dynamic
quotes with size, the Participants
believe that it is appropriate to calculate
the FCQS based on the size of the
disseminated quotation of the
Participant receiving the P/A Order.
Accordingly, the Participant Exchanges
submitted Amendment No. 16 to the
Linkage Plan, and the Exchange
proposes to amend the definition of
FCQS to Chapter XII, Section 1(g) of
BOX Rules. As such, upon
implementation of the proposed rule
change and Amendment No. 16, a
Participant will provide incoming P/A
Orders with executions up to the full
size of a Participant’s disseminated
quotation.
The proposed rule change will
eliminate a 15-second period
Participants must wait before sending a
second P/A Order. Specifically, Chapter
XII, Section 2(c) of BOX’s Rules governs
the manner in which P/A Orders larger
than the FCQS are handled. It provides
that an initial P/A Order may be sent to
a Participant for execution at the FCQS;
if the same Participant continues to
disseminate the same price 15 seconds
after the execution of the initial P/A
Order, the market maker can send a
second P/A Order, subject to certain
restrictions. The Exchange proposes to
eliminate the 15-second wait period
because the Participants now employ
dynamic quotes with size, obviating the
need for a manual quote refresh period
for P/A Orders.
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 7 in general, and furthers the
objectives of Section 6(b)(5) of the Act 8
in particular, in that it is 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 securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Specifically, the Exchange believes the
proposed rule change will help promote
the Linkage Plan by providing greater
automatic execution of Linkage orders.
• 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–BSE–2005–39 on the
subject line.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
7 15
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Aug<31>2005
14:53 Sep 19, 2005
Jkt 205001
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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding, or
(ii) as to which the BSE consents, the
Commission will:
A. By order approve such proposed
rule change; or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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
Section 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
publicly available. All submissions
should refer to File Number SR–BSE–
2005–39 and should be submitted on or
before October 11, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jonathan G. Katz,
Secretary.
[FR Doc. 05–18669 Filed 9–19–05; 8:45 am]
BILLING CODE 8010–01–P
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
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–BSE–2005–39. 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
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52419; File No. SR–CBOE–
2005–51]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving a
Proposed Rule Change and
Amendment No. 1 Thereto To Amend
the Exchange’s Trade-Through and
Locked Markets Rules
September 13, 2005.
On June 30, 2005, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
a proposed rule change pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 to implement
Amendment No. 15 to the Plan for the
Purpose of Creating and Operating an
Intermarket Option Linkage 3 by
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 On July 28, 2000, the Commission approved a
national market system plan for the purpose of
creating and operating an intermarket option
linkage proposed by the American Stock Exchange
LLC, the CBOE, and the International Securities
Exchange, Inc. See Securities Exchange Act Release
No. 43086 (July 28, 2000), 65 FR 48023 (August 4,
2000) (‘‘Linkage Plan’’). Subsequently, upon
separate requests by the Philadelphia Stock
Exchange, Inc., the Pacific Exchange, Inc., and the
Boston Stock Exchange, Inc., the Commission
issued orders to permit these exchanges to
participate in the Linkage Plan. See Securities
1 15
E:\FR\FM\20SEN1.SGM
20SEN1
]]>Agencies
[Federal Register Volume 70, Number 181 (Tuesday, September 20, 2005)]
[Notices]
[Pages 55191-55192]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-18669]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52429; File No. SR-BSE-2005-39]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing of Proposed Rule Change Relating to the Definition of
Firm Customer Quote Size and Limitations on Sending of Multiple P/A
Orders on the Boston Options Exchange
September 14, 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 September 13, 2005, the Boston Stock Exchange, Inc. (``BSE'' 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 the BSE. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its rules governing the
operation of the intermarket option linkage (``Linkage'') on the Boston
Options Exchange (``BOX'') to conform with a proposed amendment \3\ to
the Plan for the Purpose of Creating and Operating an Intermarket
Option Linkage (``Linkage Plan'').\4\ The Exchange is proposing: (i) To
amend the definition of ``Firm Customer Quote Size'' (``FCQS'') \5\ to
provide automatic executions for Principal Acting as Agent Orders (``P/
A Orders'') \6\ sent via Linkage up to the full size of a Participant's
disseminated quotation; and (ii) to eliminate a 15-second waiting
period between the sending of P/A Orders.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 52401 (September 9,
2005) (File No. 4-429) (``Amendment No. 16'').
\4\ On July 28, 2000, the Commission approved a national market
system plan for the purpose of creating and operating an intermarket
option market linkage proposed by the American Stock Exchange, LLC,
Chicago Board Options Exchange, Incorporated, and International
Securities Exchange, Inc. See Securities Exchange Act Release No.
43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently,
upon separate requests by the Philadelphia Stock Exchange, Inc.,
Pacific Exchange, Inc., and BSE, the Commission issued orders to
permit these exchanges to participate in the Linkage Plan. See
Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65
FR 70850 (November 28, 2000), 43574 (November 16, 2000), 65 FR 70851
(November 28, 2000) and 49198 (February 5, 2004), 69 FR 7029
(February 12, 2004).
\5\ See Section 2(11) of the Linkage Plan and Chapter XII,
Section 1(g) of BOX's Rules.
\6\ See Section 2(16)(a) of the Linkage Plan and Chapter XII,
Section 1(j)(i) of BOX's Rules.
---------------------------------------------------------------------------
The text of the proposed rule amendment is available on BSE's Web
site at https://www.bostonstock.com, at the BSE's Office of the
Secretary, 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 Exchange 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 Exchange proposes to amend its rules governing Linkage in two
areas: the definition of FCQS and limitations on sending multiple P/A
Orders.
The Linkage Plan participants (``Participants'') provide automatic
execution to P/A Orders up to the FCQS, if automatic execution is
available. At the time the Participants adopted the Linkage Plan,
options quote sizes were not disseminated through the Options Price
Reporting Authority, and the floor-based Participants employed
automatic execution systems that guaranteed automatic fills on orders
under a certain contract size (which generally was a static number). As
such, the FCQS was calculated based on the number of contracts the
sending and receiving Participants guaranteed they would automatically
execute. Now that
[[Page 55192]]
all Participants disseminate dynamic quotes with size, the Participants
believe that it is appropriate to calculate the FCQS based on the size
of the disseminated quotation of the Participant receiving the P/A
Order. Accordingly, the Participant Exchanges submitted Amendment No.
16 to the Linkage Plan, and the Exchange proposes to amend the
definition of FCQS to Chapter XII, Section 1(g) of BOX Rules. As such,
upon implementation of the proposed rule change and Amendment No. 16, a
Participant will provide incoming P/A Orders with executions up to the
full size of a Participant's disseminated quotation.
The proposed rule change will eliminate a 15-second period
Participants must wait before sending a second P/A Order. Specifically,
Chapter XII, Section 2(c) of BOX's Rules governs the manner in which P/
A Orders larger than the FCQS are handled. It provides that an initial
P/A Order may be sent to a Participant for execution at the FCQS; if
the same Participant continues to disseminate the same price 15 seconds
after the execution of the initial P/A Order, the market maker can send
a second P/A Order, subject to certain restrictions. The Exchange
proposes to eliminate the 15-second wait period because the
Participants now employ dynamic quotes with size, obviating the need
for a manual quote refresh period for P/A Orders.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \7\ in general, and furthers the objectives of Section
6(b)(5) of the Act \8\ in particular, in that it is 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
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Specifically, the Exchange
believes the proposed rule change will help promote the Linkage Plan by
providing greater automatic execution of Linkage orders.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
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
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding, or (ii) as to
which the BSE consents, the Commission will:
A. By order approve such proposed rule change; or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
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-BSE-2005-39 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-BSE-2005-39. 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 Section 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 publicly available. All submissions should refer to
File Number SR-BSE-2005-39 and should be submitted on or before October
11, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
Jonathan G. Katz,
Secretary.
[FR Doc. 05-18669 Filed 9-19-05; 8:45 am]
BILLING CODE 8010-01-P
