Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Expand Its $2.50 Strike Price Program, 66869-66870 [E5-6093]
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Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
in furtherance of the purposes of the
Act.12
III. 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
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2005–099 and
should be submitted on or before
November 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6084 Filed 11–2–05; 8:45 am]
• 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–Amex–2005–099 on the
subject line.
BILLING CODE 8010–01–P
Paper Comments
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of Proposed Rule Change To
Expand Its $2.50 Strike Price Program
• 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–Amex–2005–099. 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
12 The effective date of the original proposed rule
change is September 30, 2005, the effective date of
Amendment No. 1 is October 17, 2005, and the
effective date of Amendment No. 2 is October 21,
2005. For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change, as amended,
under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on
October 21, 2005, the date on which the Exchange
submitted Amendment No. 2. See 15 U.S.C.
78s(b)(3)(C).
VerDate Aug<31>2005
18:27 Nov 02, 2005
Jkt 208001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52690; File No. SR–Amex–
2005–067]
October 27, 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 June 17,
2005, the American Stock Exchange LLC
(‘‘Amex’’ 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 Amex. 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 proposes to amend
Commentary .06 to Amex Rule 903 to
expand the $2.50 Strike Price Program
(‘‘2.50 Strike Program’’) for individual
equity options to allow the listing of
2.50 point strike prices between $50 and
$75. Below is the text of the proposed
rule change. Proposed new language is
in italics; proposed deletions are in
[brackets].
*
*
*
*
*
Rule 903. Series of Options Open for
Trading
(a) through (d). No Change.
Commentary * * *
.01 through .05 No Change.
.06 (a) $2.50 Strike Price Program.
Pursuant to a program initially
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
66869
approved by the SEC in 1995, [The
options exchanges] the Exchange may
select up to [200] 51 options classes on
individual stocks for which the interval
of strike prices will be $2.50 where the
strike price is greater than $25 but less
than $50. [The 200 options classes are
selected by the various options
exchanges pursuant to any agreement
mutually agreed to by the individual
exchanges and approved by the
Commission.] In addition to those
options selected by the Exchange, the
strike price interval may be $2.50 in any
multiply-traded option once another
exchange trading that option selects
such option, as part of this program.
[The Exchange and any of the other
options exchanges may also list strike
prices of $2.50 on any option class that
was selected by the NYSE pursuant to
this program.]
(b) In addition, on any option class
that has been selected as part of the
$2.50 Strike Price Program pursuant to
paragraph (a) above, the Exchange may
list $2.50 strike prices between $50 and
$75, provided the $2.50 strike prices
between $50 and $75 are no more than
$10 from the closing price of the
underlying stock in its primary market
on the preceding day. For example, if an
option class has been selected as part of
the $2.50 Strike Price Program, and the
underlying stock closes at $48.50 in its
primary market, the Exchange may list
the $52.50 strike price and the $57.50
strike price on the next business day. If
an underlying security closes at $54, the
Exchange may list the $52.50 strike
price, the $57.50 strike price and the
$62.50 strike price on the next business
day.
(c) An option class shall remain in the
$2.50 Strike Price Program until
otherwise designated by the Exchange
and a decertification notice is sent to
the Options Clearing Corporation.
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
Amex included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it had received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Amex has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
E:\FR\FM\03NON1.SGM
03NON1
66870
Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposal is to
expand the current 2.50 Strike Program
for individual equity options to permit
the listing of 2.50 point strike prices
between $50 and $75, provided the 2.50
point strike prices are no more than $10
from the closing price of the underlying
stock in its primary market 3 on the
preceding day. In addition, the
proposed rule change clarifies that an
option class will remain in the 2.50
Strike Program until the Exchange
otherwise designates and sends a
decertification notice to the Options
Clearing Corporation.
The current 2.50 Strike Program is set
forth in Commentary .06 to Amex Rule
903. The 2.50 Strike Program permits
the Exchange to list 2.50 point strike
prices for selected options trading at
strike prices greater than $25 but less
than $50, excluding LEAPS. Initially
adopted in 1995 as a pilot program, the
options exchanges at that time were
permitted to list 2.50 point strike prices
up to $50 on a total of up to 100 option
classes.4 In 1998, the pilot was
permanently approved and expanded to
allow the options exchanges to select up
to 200 option classes for 2.50 point
strike prices up to $50.5 Of the current
200 options classes eligible for the 2.50
Strike Program, 51 have been allocated
to the Amex. In addition, each options
exchange is permitted to list 2.50 point
strike prices on any option class that
another options exchange selects under
the 2.50 Strike Program.
The Exchange believes that the 2.50
Strike Program has created additional
trading opportunities for customers
benefiting the marketplace. The
existence of 2.50 point strike prices
affords customers the ability to more
closely tailor investment strategies to
the precise movement of the underlying
3 The term ‘‘primary market’’ is defined in Amex
Rule 900(b)(26) to mean (a) in respect of an
underlying security that is principally traded on a
national securities exchange, the principal
exchange market in which the underlying security
is traded; and (b) in respect of an underlying
security which is principally traded in the over-thecounter market, in the case of equity securities, the
market reflected by Nasdaq, and in the case of all
other securities, the market reflected by any widely
recognized quotation dissemination system or
service.
4 See Securities Exchange Act Release No. 35993
(July 15, 1995), 60 FR 35993 (July 19, 1995).
5 See Securities Exchange Act Release No. 41662
(November 12, 1998), 63 FR 64297 (November 19,
1998).
VerDate Aug<31>2005
18:27 Nov 02, 2005
Jkt 208001
security. Accordingly, the Amex
believes that the proposal to expand the
2.50 Strike Program for 2.50 point strike
prices between $50 and $75 should
further benefit customers and the
market by providing greater trading
opportunities for those underlying
stocks that have low volatility and thus
trade in a narrow range.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section
6(b)(5),7 in particular, in that it is
designed to promote just and equitable
principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, protect investors and the public
interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Amex does not believe that the
proposed rule change would impose any
burden on competition 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
No written comments were solicited
or received with respect to the proposed
rule change.
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 Amex 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 rulecomments@sec.gov. Please include File
Number SR–Amex–2005–067 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–Amex–2005–067. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
at the principal office of the Amex. 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–Amex–2005–067 and
should be submitted on or before
November 25, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6093 Filed 11–2–05; 8:45 am]
BILLING CODE 8010–01–P
6 15
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00055
Fmt 4703
8 17
Sfmt 4703
CFR 200.30–3(a)(12).
E:\FR\FM\03NON1.SGM
03NON1
Agencies
[Federal Register Volume 70, Number 212 (Thursday, November 3, 2005)]
[Notices]
[Pages 66869-66870]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6093]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52690; File No. SR-Amex-2005-067]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Proposed Rule Change To Expand Its $2.50 Strike
Price Program
October 27, 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 June 17, 2005, the American Stock Exchange LLC (``Amex'' 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 Amex. 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 proposes to amend Commentary .06 to Amex Rule 903 to
expand the $2.50 Strike Price Program (``2.50 Strike Program'') for
individual equity options to allow the listing of 2.50 point strike
prices between $50 and $75. Below is the text of the proposed rule
change. Proposed new language is in italics; proposed deletions are in
[brackets].
* * * * *
Rule 903. Series of Options Open for Trading
(a) through (d). No Change.
Commentary * * *
.01 through .05 No Change.
.06 (a) $2.50 Strike Price Program. Pursuant to a program initially
approved by the SEC in 1995, [The options exchanges] the Exchange may
select up to [200] 51 options classes on individual stocks for which
the interval of strike prices will be $2.50 where the strike price is
greater than $25 but less than $50. [The 200 options classes are
selected by the various options exchanges pursuant to any agreement
mutually agreed to by the individual exchanges and approved by the
Commission.] In addition to those options selected by the Exchange, the
strike price interval may be $2.50 in any multiply-traded option once
another exchange trading that option selects such option, as part of
this program. [The Exchange and any of the other options exchanges may
also list strike prices of $2.50 on any option class that was selected
by the NYSE pursuant to this program.]
(b) In addition, on any option class that has been selected as part
of the $2.50 Strike Price Program pursuant to paragraph (a) above, the
Exchange may list $2.50 strike prices between $50 and $75, provided the
$2.50 strike prices between $50 and $75 are no more than $10 from the
closing price of the underlying stock in its primary market on the
preceding day. For example, if an option class has been selected as
part of the $2.50 Strike Price Program, and the underlying stock closes
at $48.50 in its primary market, the Exchange may list the $52.50
strike price and the $57.50 strike price on the next business day. If
an underlying security closes at $54, the Exchange may list the $52.50
strike price, the $57.50 strike price and the $62.50 strike price on
the next business day.
(c) An option class shall remain in the $2.50 Strike Price Program
until otherwise designated by the Exchange and a decertification notice
is sent to the Options Clearing Corporation.
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 Amex included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it had received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Amex has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
[[Page 66870]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposal is to expand the current 2.50 Strike
Program for individual equity options to permit the listing of 2.50
point strike prices between $50 and $75, provided the 2.50 point strike
prices are no more than $10 from the closing price of the underlying
stock in its primary market \3\ on the preceding day. In addition, the
proposed rule change clarifies that an option class will remain in the
2.50 Strike Program until the Exchange otherwise designates and sends a
decertification notice to the Options Clearing Corporation.
---------------------------------------------------------------------------
\3\ The term ``primary market'' is defined in Amex Rule
900(b)(26) to mean (a) in respect of an underlying security that is
principally traded on a national securities exchange, the principal
exchange market in which the underlying security is traded; and (b)
in respect of an underlying security which is principally traded in
the over-the-counter market, in the case of equity securities, the
market reflected by Nasdaq, and in the case of all other securities,
the market reflected by any widely recognized quotation
dissemination system or service.
---------------------------------------------------------------------------
The current 2.50 Strike Program is set forth in Commentary .06 to
Amex Rule 903. The 2.50 Strike Program permits the Exchange to list
2.50 point strike prices for selected options trading at strike prices
greater than $25 but less than $50, excluding LEAPS. Initially adopted
in 1995 as a pilot program, the options exchanges at that time were
permitted to list 2.50 point strike prices up to $50 on a total of up
to 100 option classes.\4\ In 1998, the pilot was permanently approved
and expanded to allow the options exchanges to select up to 200 option
classes for 2.50 point strike prices up to $50.\5\ Of the current 200
options classes eligible for the 2.50 Strike Program, 51 have been
allocated to the Amex. In addition, each options exchange is permitted
to list 2.50 point strike prices on any option class that another
options exchange selects under the 2.50 Strike Program.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 35993 (July 15,
1995), 60 FR 35993 (July 19, 1995).
\5\ See Securities Exchange Act Release No. 41662 (November 12,
1998), 63 FR 64297 (November 19, 1998).
---------------------------------------------------------------------------
The Exchange believes that the 2.50 Strike Program has created
additional trading opportunities for customers benefiting the
marketplace. The existence of 2.50 point strike prices affords
customers the ability to more closely tailor investment strategies to
the precise movement of the underlying security. Accordingly, the Amex
believes that the proposal to expand the 2.50 Strike Program for 2.50
point strike prices between $50 and $75 should further benefit
customers and the market by providing greater trading opportunities for
those underlying stocks that have low volatility and thus trade in a
narrow range.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5),\7\ in particular, in that it is designed
to promote just and equitable principles of trade, remove impediments
to and perfect the mechanisms of a free and open market and a national
market system, and, in general, protect investors and the public
interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Amex does not believe that the proposed rule change would
impose any burden on competition 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
No written comments were solicited or received with respect to the
proposed rule change.
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 Amex 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-Amex-2005-067 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-Amex-2005-067. 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, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Amex. 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-Amex-2005-067 and should be
submitted on or before November 25, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-6093 Filed 11-2-05; 8:45 am]
BILLING CODE 8010-01-P