Self-Regulatory Organizations; American Stock Exchange LLC; Order Granting Approval to a Proposed Rule Change and Amendment No. 1 Thereto To Temporarily Suspend Specialist Transaction Charges for the Nasdaq-100 Index Tracking Stock® (QQQQ), 58247-58248 [E5-5454]

Download as PDF Federal Register / Vol. 70, No. 192 / Wednesday, October 5, 2005 / Notices 115, 958A(d), 958A–ANTE(d), 118(n), 135A and Amex Rule 155, Commentary .05 to integrate regulatory staff into Floor Official rulings and the review of Floor Official rulings; and (2) amend Amex Rule 22(d) to expedite the process for appealing a Floor Official’s ruling. On August 12, 2005, the Amex filed Amendment No. 1 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on August 30, 2005.4 The Commission received no comments on the proposal, as amended. This order approves the proposed rule change, as amended. II. Description of the Proposal The Exchange proposes to amend Amex Rule 22(c) to require that a member of the regulatory staff participate in an advisory capacity in the following categories of Floor Official rulings: 5 (i) Unusual market exception to the Commission’s Firm Quote Rule; (ii) Intermarket Trading System disputes; (iii) member disputes; and (iv) cancellations or revisions to trades. In particular, the Exchange’s proposal would require a member of the regulatory staff to be present during a Floor Official’s ruling on an advisory basis. This member of the regulatory staff would give his or her opinion on the matter and, although the Floor Official would be required to take this opinion into consideration, the Floor Official would not be required to rule according to the regulatory staff member’s opinion. Once a Floor Official’s decision is documented by the Floor Official, the participating regulatory staff person will also sign the form, indicating whether he or she disagrees with the ruling.6 To conform the remainder of the Exchange’s rules with this proposed modification to Amex Rule 22(c), the proposed rule change also makes corresponding amendments to Amex Rules 115, 958A(d), 958A–ANTE(d), 118(n), 135A 3 In Amendment No. 1 Amex made minor revisions to the proposed rule text and clarified certain details of its proposal. Amendment No. 1 replaced and superseded Amex’s original filing in its entirety. 4 See Securities Exchange Act Release No. 52325 (August 23, 2005), 70 FR 51392. 5 Floor Officials are officers of the Exchange, who are authorized to (1) make rulings on behalf of the Exchange with respect to certain matters that require a decision by the Exchange, and (2) resolve trading disputes submitted to them by members. Floor Official decisions are currently subject to same day, on-floor appeal at the request of an aggrieved member, first by an Exchange Official, then by a Governor and finally by a panel of three Governors. 6 The regulatory staff person will be responsible for maintaining the documentation related to Floor Official rulings and reviews that require the participation of a regulatory staff person. VerDate Aug<31>2005 16:03 Oct 04, 2005 Jkt 208001 and 155, Commentary .05, which are the existing rules governing the application of the unusual market exception to the Commission’s Firm Quote Rule and the Amex rules governing cancellation or revisions to trades.7 Amex has indicated that at the present time, regulatory staff would not be required to participate in Floor Official rulings relating to trading halts, indications and reopenings, nonregular way trades, turning Auto-Ex off, voluntary publication of imbalances, and enforcing standards of floor decorum. The Amex also is proposing to amend Amex Rule 22(d) in two respects.8 First, the Exchange is proposing to amend Amex Rule 22(d) to clarify that Senior Floor Officials have the same authority as Governors with respect to matters arising on the Floor that require review or action by Governors.9 The amendment will replace each reference to ‘‘Governor’’ with ‘‘Senior Floor Official.’’ The Exchange also proposes to make conforming changes to Amex Rule 118(n)(iii) 10 and Amex 135A(c) 11 to replace ‘‘governor’’ and ‘‘Floor Governor,’’ as applicable, with ‘‘Senior Floor Official.’’ 12 Second, the Exchange proposes to amend Amex Rule 22(d) to eliminate the second tier in the current review process of Floor Official decisions. Amex Rule 22(d) currently provides for three tiers of review in the appeal of a Floor Official’s initial ruling.13 The proposed rule will provide two levels of review to a Floor Official’s initial decision, first by an Exchange Official, and then by a panel of three Senior Floor Officials. In addition, under the proposal, regulatory staff would advise and participate in each level of review of a Floor Official decision or ruling that required the advice and participation of a member of the regulatory staff in the initial Floor Official ruling. 7 Amex Rules 936, 936C, 936–ANTE, 936C– ANTE, governing the cancellation and adjustment to equity and index option transactions, are not being amended because regulatory staff is already required to participate in such rulings. 8 Amex Rule 22(d) relates to the procedures for reviewing a Floor Official’s initial ruling. 9 These changes are based on a recent amendment to Amex Rule 21 approved by the Commission. See Securities Exchange Act Release No. 51503 (April 7, 2005), 70 FR 19534 (April 13, 2005). 10 Amex Rule 118 relates to trading in Nasdaq National Market securities. 11 Amex 135A relates to cancellations of, and revisions in, transactions where both the buying and selling members do not agree to the cancellation or revision. 12 Amex Rules 118(n)(iii) and 135A(c) address the process for review of transactions, and the ability of a Floor Governor to declare a transaction null or void, in the event of an operational malfunction or ‘‘extraordinary market conditions.’’ 13 See supra note 5. PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 58247 III. Discussion The Commission has carefully reviewed the proposed rule change, as amended, and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 14 and, in particular, the requirements of Section 6 of the Act 15 and the rules and regulations thereunder. Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act 16 because it is 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. In particular, the Commission believes that the proposal is reasonably designed to (1) ensure a more consistent application of Amex’s rules in Floor Official rulings and that such rulings are in accordance with applicable rules, and (2) increase the efficiency in reviewing such rulings, while continuing to provide for two levels of on-floor review. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,17 that the proposed rule change (SR–Amex–2005– 052), as amended, be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.18 Jonathan G. Katz, Secretary. [FR Doc. E5–5449 Filed 10–4–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52516; File No. SR–Amex– 2005–078] Self-Regulatory Organizations; American Stock Exchange LLC; Order Granting Approval to a Proposed Rule Change and Amendment No. 1 Thereto To Temporarily Suspend Specialist Transaction Charges for the Nasdaq100 Index Tracking Stock (QQQQ) September 27, 2005. On July 15, 2005, the American Stock Exchange LLC (‘‘Amex’’) filed with the 14 In approving this proposed rule change, as amended, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 15 15 U.S.C. 78f. 16 15 U.S.C. 78f(b)(5). 17 15 U.S.C. 78s(b)(2). 18 17 CFR 200.30–3(a)(12). E:\FR\FM\05OCN1.SGM 05OCN1 58248 Federal Register / Vol. 70, No. 192 / Wednesday, October 5, 2005 / Notices 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 amend its Participant Fee Schedule to suspend specialist transaction charges for the trading of Nasdaq-100 Index Tracking Stock (‘‘QQQQ’’), retroactively from July 1, 2005 through July 17, 2005. On August 12, 2005, the Exchange filed Amendment No. 1 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on August 23, 2005.4 The Commission received no comments on the proposal. The Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.5 In particular, the Commission believes that the proposal is consistent with Section 6(b)(4) of the Act 6 in that it provides for the equitable allocation of reasonable dues, fees, and other charges among its members. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (File No. SR– Amex–2005–078), as amended, be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Jonathan G. Katz, Secretary. [FR Doc. E5–5454 Filed 10–4–05; 8:45 am] BILLING CODE 8010–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 In Amendment No. 1, Amex made minor technical changes to the proposed rule text and provided further discussion on how the proposal is consistent with the requirement under Section 6(b)(4) of the Act to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. See 15 U.S.C. 78f(b)(4). 4 See Securities Exchange Act Release No. 52273 (August 16, 2005), 70 FR 49339. 5 In approving this proposed rule change, the Commission notes that it 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)(4). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). 2 17 VerDate Aug<31>2005 16:03 Oct 04, 2005 Jkt 208001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52526; File No. SR–NASD– 2005–057 Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Approving Proposed Rule Change Relating to Summary Orders in the Nasdaq Market Center September 29, 2005. On April 22, 2005, the National Association of Securities Dealers, Inc. (‘‘NASD’’), through its subsidiary, The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), 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 relating to Summary Orders in the Nasdaq Market Center. Nasdaq has proposed to allow all participants in the Nasdaq Market Center to enter attributable and non-attributable Summary Orders, and to make Summary Orders available for transactions in exchange-listed securities. Currently, the use of Summary Orders is restricted to Nasdaq Order-Delivery ECNs for transactions in Nasdaq-listed securities. The proposed rule change was published for comment in the Federal Register on August 25, 2005.3 The Commission received no comments on the proposal. After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a selfregulatory organization.4 In particular, the Commission believes that the proposed rule change is consistent with Section 15A(b)(6) of the Act 5 in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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. The Commission notes that Summary Orders permit an order entering party to receive a warning if the price of the order would lock or cross the best prices then displayed in the Nasdaq Market 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 52303 (August 18, 2005), 70 FR 49957 (‘‘Notice’’). 4 The Commission 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–3(b)(6). Center by rejecting the order back to such order entering party.6 The Commission notes that Summary Orders give the order entering party the choice of either immediately executing against the available trading interest or providing liquidity through a posted order. The Commission notes that Nasdaq has stated that the significance of having such a choice lies in the potential for having reduced transaction costs as a liquidity provider.7 The Commission notes that Summary Orders are currently only available to Nasdaq Order-Delivery ECNs. The Commission notes that the proposal would extend the ability to enter Summary Orders, on either an attributable or non-attributable basis, to all Nasdaq Market Center participants. The Commission also notes that the proposal would extend the usage of Summary Orders to transactions in exchange-listed securities, in addition to Nasdaq-listed securities. The Commission believes that the proposal, by extending the availability of Summary Orders to all participants in the Nasdaq Market Center entering into transactions in Nasdaq-listed or exchange-listed securities, should increase the level of control Nasdaq Market Center participants have over the processing of their orders and allow them potentially to enter into more economically efficient transactions. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the proposed rule change (File No. SR– NASD–2005–057) be, and hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Jonathan G. Katz, Secretary. [FR Doc. E5–5450 Filed 10–4–05; 8:45 am] BILLING CODE 8010–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this notice announces the Small Business Administration’s intentions to request 2 17 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 6 If the order does not lock or cross the best price, the system retains it for normal processing. 7 Nasdaq has stated that liquidity providers may, in some cases, receive an execution fee rebate, thus reducing their transaction costs. See Notice. 8 15 U.S.C. 78s(b)(2). E:\FR\FM\05OCN1.SGM 05OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 192 (Wednesday, October 5, 2005)]
[Notices]
[Pages 58247-58248]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5454]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52516; File No. SR-Amex-2005-078]


Self-Regulatory Organizations; American Stock Exchange LLC; Order 
Granting Approval to a Proposed Rule Change and Amendment No. 1 Thereto 
To Temporarily Suspend Specialist Transaction Charges for the Nasdaq-
100 Index Tracking Stock[supreg] (QQQQ)

September 27, 2005.
    On July 15, 2005, the American Stock Exchange LLC (``Amex'') filed 
with the

[[Page 58248]]

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 amend its 
Participant Fee Schedule to suspend specialist transaction charges for 
the trading of Nasdaq-100 Index Tracking Stock[supreg] (``QQQQ''), 
retroactively from July 1, 2005 through July 17, 2005. On August 12, 
2005, the Exchange filed Amendment No. 1 to the proposed rule 
change.\3\ The proposed rule change, as amended, was published for 
comment in the Federal Register on August 23, 2005.\4\ The Commission 
received no comments on the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, Amex made minor technical changes to the 
proposed rule text and provided further discussion on how the 
proposal is consistent with the requirement under Section 6(b)(4) of 
the Act to provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members and issuers and other 
persons using its facilities. See 15 U.S.C. 78f(b)(4).
    \4\ See Securities Exchange Act Release No. 52273 (August 16, 
2005), 70 FR 49339.
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    The Commission finds that the proposed rule change, as amended, is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange.\5\ 
In particular, the Commission believes that the proposal is consistent 
with Section 6(b)(4) of the Act \6\ in that it provides for the 
equitable allocation of reasonable dues, fees, and other charges among 
its members.
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    \5\ In approving this proposed rule change, the Commission notes 
that it 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)(4).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (File No. SR-Amex-2005-078), as 
amended, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-5454 Filed 10-4-05; 8:45 am]
BILLING CODE 8010-01-P

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