Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Permit Execution of Mixed Lot Cross and Cross With Size Orders in the Electronic Book, 68118-68120 [05-22334]
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68118
Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices
modified by the order to permit
Aggregate Fee Disclosure.
4. FRIMCo will not enter into a
Portfolio Management Agreement with
any Affiliated Money Manager without
that agreement, including the
compensation to be paid thereunder,
being approved by Fund shareholders.
5. The Board of each Fund will satisfy
the fund governance standards as
defined in rule 0–1(a)(7) under the Act
by the compliance date for the rule
(‘‘Compliance Date’’). Prior to the
Compliance Date, a majority of the
Board will be Independent Directors,
and the nomination of new or additional
Independent Directors will be at the
discretion of the then existing
Independent Directors.
6. When a Money Manager change is
proposed for a Fund with an Affiliated
Money Manager, the Board, including a
majority of the Independent Directors,
will make a separate finding, reflected
in the applicable Board minutes, that
such change is in the best interests of
the Fund and its shareholders and does
not involve a conflict of interest from
which FRIMCo or the Affiliated Money
Manager derives an inappropriate
advantage.
7. Independent legal counsel, as
defined in rule 0–1(a)(6) under the Act,
will be engaged to represent the
Independent Directors. The selection of
such counsel will be within the
discretion of the then existing
Independent Directors.
8. FRIMCo will provide the Board, no
less frequently than quarterly, with
information about the profitability of
FRIMCo on a per-Fund basis. The
information will reflect the impact on
profitability of the hiring or termination
of any Money Manager during the
applicable quarter.
9. Whenever a Money Manager is
hired or terminated, FRIMCo will
provide the Board with information
showing the expected impact on the
profitability of FRIMCo.
10. FRIMCo will provide general
investment management services to
each Fund, including overall
supervisory responsibility for the
general management and investment of
the Fund’s assets, and, subject to review
and approval of the Board, will: (i) Set
each Fund’s overall investment
strategies, (ii) evaluate, select and
recommend Money Managers to manage
all or a part of a Fund’s assets, (iii) when
appropriate, allocate and reallocate a
Fund’s assets among multiple Money
Managers, (iv) monitor and evaluate the
performance of Money Managers, and
(v) implement procedures reasonably
designed to ensure that the Money
Managers comply with each Fund’s
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16:18 Nov 08, 2005
Jkt 208001
investment objective, policies and
restrictions.
11. No director or officer of a Fund,
or director or officer of FRIMCo, will
own directly or indirectly (other than
through a pooled investment vehicle
that is not controlled by such person)
any interest in a Money Manager, except
for (a) ownership of interests in FRIMCo
or any entity that controls, is controlled
by, or is under common control with
FRIMCo, or (b) ownership of less than
1% of the outstanding securities of any
class of equity or debt of a publicly
traded company that is either a Money
Manager or an entity that controls, is
controlled by or is under common
control with a Money Manager.
12. Each Fund will disclose in its
registration statement the Aggregate Fee
Disclosure.
13. The requested order will expire on
the effective date of rule 15a–5 under
the Act, if adopted.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 05–22332 Filed 11–8–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Cameron International,
Inc.; Order of Suspension of Trading
November 7, 2005.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning a recent tender offer or other
possible change in ownership of
Cameron International, Inc.
(‘‘Cameron’’), quoted on the Over the
Counter Bulletin Board under the ticker
symbol CMRN. Also, questions have
arisen regarding a recent increase in the
share price from $.05 to $90 during a
period when no material information
about the company was made public.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. e.s.t. November 7,
2005, through 11:59 p.m. e.s.t., on
November 21, 2005.
PO 00000
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By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 05–22450 Filed 11–7–05; 11:57 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52724; File No. SR–CHX–
2005–26]
Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Permit
Execution of Mixed Lot Cross and
Cross With Size Orders in the
Electronic Book
November 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 October
11, 2005, the Chicago Stock Exchange,
Incorporated (‘‘CHX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange has designated the proposed
rule change as constituting a ‘‘noncontroversial’’ rule change pursuant to
section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposal effective upon
filing with the Commission.5 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 CHX proposes to amend CHX
Article XXA, Rule 2, to permit the
execution of mixed lot cross and cross
with size orders in the electronic book.
The text of the proposed rule change is
set forth below. Proposed new language
is italicized; proposed deletions are in
[brackets].
*
*
*
*
*
ARTICLE XXA
Operation of the Electronic Book
*
*
*
*
*
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 The Exchange has requested that the
Commission waive the 30-day operative delay, as
specified in Rule 19b–4(f)(6)(iii). 17 CFR 240.19b–
4(f)(6)(iii).
2 17
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Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices
Eligible Orders
RULE 2. (a) Except for cross and cross
with size orders, which may be sent to
the electronic book in mixed lot
increments, a[A]ll orders sent to the
electronic book must be round-lot limit
orders, specifically designated in the
manner specified by the Exchange to
confirm that they are eligible for trading
in the electronic book.
*
*
*
*
*
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
CHX included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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 recently implemented a
fully-automated electronic book for the
display and execution of orders in
securities that are not assigned to a
specialist.6 These new rules replace the
Exchange’s manual cabinet and lead
market maker trading procedures with a
new fully automated electronic book
that displays and matches eligible limit
orders in eligible securities, without the
participation of a specialist or lead
market maker.
The electronic book was originally
designed to accept only round lot
orders. The Exchange now believes that
it would be appropriate to allow CHX
participants to submit mixed lot cross
and cross with size orders for immediate
execution in the electronic book.
‘‘Cross’’ and ‘‘cross with size’’ orders
permit the handling of orders to buy and
sell the same security—within the
electronic book, these orders are
automatically executed if they meet the
requirements for these types of orders,
but are immediately cancelled if they do
6 See Securities Exchange Act Release No. 52094
(July 21, 2005), 70 FR 43913 (July 29, 2005). The
Exchange has rolled out this technology for the
trading of Nasdaq/NM securities and anticipates
implementing its use for the trading of listed
securities within the next two weeks. Telephone
call between Ellen Neely, President, CHX and Sara
Gillis, Attorney, Division of Market Regulation,
Commission on October 27, 2005.
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16:18 Nov 08, 2005
Jkt 208001
not meet applicable requirements.7 The
Exchange believes that some of its
participants would welcome the
opportunity to submit mixed lot cross
and cross with size orders to the
electronic book. The Exchange believes
that this relatively minor change to
Exchange systems will permit its
participants to execute additional
transactions in this automated trading
facility, but will not have any impact on
the protection of investors or the public
interest.
2. Statutory Basis
The CHX believes the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
section 6(b).8 The CHX believes the
proposal is consistent with section
6(b)(5) of the Act 9 in that it is designed
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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any 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
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days (or such shorter time as the
‘‘cross’’ order is an order to buy and sell the
same security at a specific price that is better than
the best bid and offer displayed in the electronic
book and, for listed securities, equal to or better
than the NBBO. A ‘‘cross with size’’ order is an
order to buy and sell at least 25,000 shares of the
same security (a) at a price equal to or better than
the best bid or offer displayed in the electronic book
and, for listed securities, equal to or better than the
NBBO; (b) where the size of the order is larger than
the aggregate size of all interest displayed in the
electronic book at that price; and (c) where neither
side of the order is for the account of the CHX
participant sending the order to the electronic book.
See CHX Rules, Article XXA, Rule 2(c) (3) and (4).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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68119
Commission may designate if consistent
with the protection of investors and the
public interest) after the date of the
filing, the proposed rule change has
become effective pursuant to section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11 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. As required
under Rule 19b–4(f)(6)(iii) under the
Act,12 the Exchange provided with the
Commission with written notice of its
intent to file the proposed rule change,
along with a brief description and text
of the proposed rule change, at least five
business days prior to the date of the
proposed rule change.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing.13 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay and
allow the proposed rule change to
become operative immediately. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Waiver of the 30-day
operative delay will allow Exchange
participants to make immediate use of
the electronic book functionality for
their mixed lot cross and cross with size
orders, which may permit Exchange
participants to access potentially larger
pools of liquidity located in the
electronic book. For the reasons stated
above, the Commission finds good cause
to designate that the proposal is
operative immediately.14
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:
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 Id.
14 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
11 17
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68120
Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices
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–CHX–2005–26 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
No. SR–CHX–2005–26. 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 No.
SR–CHX–2005–26 and should be
submitted on or before November 30,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. 05–22334 Filed 11–8–05; 8:45 am]
BILLING CODE 8010–01–P
15 17
CFR 200.30–3(a)(12).
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Jkt 208001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52722; File No. SR–NASD–
2005–124]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Repeal NASD Rule
6440(f)
November 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 October
24, 2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, and II below, which Items have
been prepared by NASD. NASD filed
this proposal as a ‘‘non-controversial’’
rule change pursuant to section
19(b)(3)(A)(i) 3 of the Act, and Rule 19b–
4(f)(6) 4 thereunder, which renders the
proposal effective upon filing with the
Commission.5 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
NASD is proposing to repeal NASD
Rule 6440(f) in light of proposed rule
changes that have recently been
approved by the Commission expanding
market order protection and limit order
protection to exchange-listed
securities.6 NASD proposes to make the
proposed rule change operative on
January 9, 2006. Below is the text of the
proposed rule change. Proposed
deletions are in brackets.
*
*
*
*
*
6440. Trading Practices
(a) through (e) No change.
[(f)(1) No member shall:]
[(A) personally buy or initiate the
purchase of an eligible security for its
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(6).
5 Rule 19b–4(f)(6) allows for a proposed rule
change to take effect upon filing with the
Commission provided that the self-regulatory
organization has given the Commission written
notice of its intent to file the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change. NASD complied with
this pre-filing requirement. See e-mail from
Stephanie Dumont, NASD to Katherine A. England,
Assistant Director, Division of Market Regulation,
dated October 11, 2005.
6 See footnotes 8 and 9, infra.
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2 217
Frm 00135
Fmt 4703
Sfmt 4703
own account or for any account in
which it or any person associated with
it is directly or indirectly interested,
while such member holds or has
knowledge that any person associated
with it holds an unexecuted market
order to buy such security in the unit of
trading for a customer; or]
[(B) sell or initiate the sale of any such
security for any such account, while it
personally holds or has knowledge that
any person associated with it holds an
unexecuted market order to sell such
security in the unit of trading for a
customer.]
[(2) No member shall:]
[(A) buy or initiate the purchase of
any such security for any such account,
at or below the price at which it
personally holds or has knowledge that
any person associated with it holds an
unexecuted limited price order to buy
such security in the unit of trading for
a customer; or]
[(B) sell or initiate the sale of any such
security for any such account at or
above the price at which it personally
holds or has knowledge that any person
associated with it holds an unexecuted
limited price order to sell such security
in the unit of trading for a customer.]
[(3) The provisions of this paragraph
shall not apply:]
[(A) to any purchase or sale of any
such security in an amount less than the
unit of trading made by a member to
offset odd-lot orders for customers,]
[(B) to any purchase or sale of any
such security upon terms for delivery
other than those specified in such
unexecuted market or limited price
order,]
[(C) to any unexecuted order that is
subject to a condition that has not been
satisfied.]
[(D) to any purchase or sale for which
a member has negotiated specific terms
and conditions applicable to the
acceptance of limit orders that are:]
[(i) for customer accounts that meet
the definition of an ‘‘institutional
account’’ as that term is defined in Rule
3110(c)(4); or]
[(ii) for 10,000 shares or more, unless
such orders are less than $100,000 in
value.]
(g) through (j) redesignated as (f)
through (i).
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASD included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
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]]>Agencies
[Federal Register Volume 70, Number 216 (Wednesday, November 9, 2005)]
[Notices]
[Pages 68118-68120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22334]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52724; File No. SR-CHX-2005-26]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Permit Execution of Mixed Lot Cross and Cross With Size Orders in the
Electronic Book
November 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 October 11, 2005, the Chicago Stock Exchange, Incorporated (``CHX''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated the proposed rule change as constituting a ``non-
controversial'' rule change pursuant to section 19(b)(3)(A)(iii) of the
Act,\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with the Commission.\5\ 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
\5\ The Exchange has requested that the Commission waive the 30-
day operative delay, as specified in Rule 19b-4(f)(6)(iii). 17 CFR
240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The CHX proposes to amend CHX Article XXA, Rule 2, to permit the
execution of mixed lot cross and cross with size orders in the
electronic book. The text of the proposed rule change is set forth
below. Proposed new language is italicized; proposed deletions are in
[brackets].
* * * * *
ARTICLE XXA
Operation of the Electronic Book
* * * * *
[[Page 68119]]
Eligible Orders
RULE 2. (a) Except for cross and cross with size orders, which may
be sent to the electronic book in mixed lot increments, a[A]ll orders
sent to the electronic book must be round-lot limit orders,
specifically designated in the manner specified by the Exchange to
confirm that they are eligible for trading in the electronic book.
* * * * *
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 CHX included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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 recently implemented a fully-automated electronic book
for the display and execution of orders in securities that are not
assigned to a specialist.\6\ These new rules replace the Exchange's
manual cabinet and lead market maker trading procedures with a new
fully automated electronic book that displays and matches eligible
limit orders in eligible securities, without the participation of a
specialist or lead market maker.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 52094 (July 21,
2005), 70 FR 43913 (July 29, 2005). The Exchange has rolled out this
technology for the trading of Nasdaq/NM securities and anticipates
implementing its use for the trading of listed securities within the
next two weeks. Telephone call between Ellen Neely, President, CHX
and Sara Gillis, Attorney, Division of Market Regulation, Commission
on October 27, 2005.
---------------------------------------------------------------------------
The electronic book was originally designed to accept only round
lot orders. The Exchange now believes that it would be appropriate to
allow CHX participants to submit mixed lot cross and cross with size
orders for immediate execution in the electronic book. ``Cross'' and
``cross with size'' orders permit the handling of orders to buy and
sell the same security--within the electronic book, these orders are
automatically executed if they meet the requirements for these types of
orders, but are immediately cancelled if they do not meet applicable
requirements.\7\ The Exchange believes that some of its participants
would welcome the opportunity to submit mixed lot cross and cross with
size orders to the electronic book. The Exchange believes that this
relatively minor change to Exchange systems will permit its
participants to execute additional transactions in this automated
trading facility, but will not have any impact on the protection of
investors or the public interest.
---------------------------------------------------------------------------
\7\ A ``cross'' order is an order to buy and sell the same
security at a specific price that is better than the best bid and
offer displayed in the electronic book and, for listed securities,
equal to or better than the NBBO. A ``cross with size'' order is an
order to buy and sell at least 25,000 shares of the same security
(a) at a price equal to or better than the best bid or offer
displayed in the electronic book and, for listed securities, equal
to or better than the NBBO; (b) where the size of the order is
larger than the aggregate size of all interest displayed in the
electronic book at that price; and (c) where neither side of the
order is for the account of the CHX participant sending the order to
the electronic book. See CHX Rules, Article XXA, Rule 2(c) (3) and
(4).
---------------------------------------------------------------------------
2. Statutory Basis
The CHX believes the proposal is consistent with the requirements
of the Act and the rules and regulations thereunder that are applicable
to a national securities exchange, and, in particular, with the
requirements of section 6(b).\8\ The CHX believes the proposal is
consistent with section 6(b)(5) of the Act \9\ in that it is designed
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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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 will
impose any 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
Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30 days (or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest) after the date of the filing, the proposed rule change has
become effective pursuant to section 19(b)(3)(A) of the Act \10\ and
Rule 19b-4(f)(6) thereunder.\11\ 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. As required under Rule 19b-4(f)(6)(iii) under the Act,\12\ the
Exchange provided with the Commission with written notice of its intent
to file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior to
the date of the proposed rule change.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing.\13\ However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
30-day operative delay and allow the proposed rule change to become
operative immediately. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Waiver of the 30-day operative delay will allow
Exchange participants to make immediate use of the electronic book
functionality for their mixed lot cross and cross with size orders,
which may permit Exchange participants to access potentially larger
pools of liquidity located in the electronic book. For the reasons
stated above, the Commission finds good cause to designate that the
proposal is operative immediately.\14\
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\13\ Id.
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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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:
[[Page 68120]]
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-CHX-2005-26 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 No. SR-CHX-2005-26. 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 No. SR-
CHX-2005-26 and should be submitted on or before November 30, 2005.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. 05-22334 Filed 11-8-05; 8:45 am]
BILLING CODE 8010-01-P
