Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to the Elimination of Commentary .01(5) to Amex Rule 916 and Amendment to Amex Rules Relating to the Definition of “NMS Stock”, 70901-70902 [E5-6448]
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Federal Register / Vol. 70, No. 225 / Wednesday, November 23, 2005 / Notices
Rule 901C should provide additional
flexibility to the Exchange in listing and
trading narrow-based index options and
reduce the instances in which the
addition of a new series is restricted.
The proposed rule change should also
reduce instances where an index option
listed on the Exchange is temporarily
out of compliance with the
concentration limits set forth under
Commentary .03 to Amex Rule 901C
because of changes in the market value
of the underlying index components.
Lastly, the Commission believes that
that the concentration limit listing
standards should continue to serve the
purpose for which they were originally
intended of not permitting a single
security or a small number of securities
to dominate an index.
The Commission finds good cause for
approving the proposed rule change, as
amended, prior to the 30th day after the
date of publication of the notice of filing
in the Federal Register. The Exchange
has requested accelerated approval of
the proposed rule change. The proposal
implements listing and maintenance
standards and position and exercise
limits for broad-based index options
substantially identical to those recently
approved for the ISE.22 In addition, the
proposal implements concentration
limits for narrow-based index options
substantially identical to those
previously approved for the
Philadelphia Stock Exchange, Inc.,
which were subject to the full comment
period with no comments received,23
and for the ISE, which were approved
by the Commission on an accelerated
basis.24
The Commission does not believe that
the Exchange’s proposal raises any
novel regulatory issues. Therefore, the
Commission finds good cause,
consistent with section 19(b)(2) of the
Act,25 to approve the proposed rule
change, as amended, on an accelerated
basis.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,26 that the
proposed rule change (SR–Amex–2005–
069), as amended, is hereby approved
on an accelerated basis.
22 See Securities Exchange Act Release No. 52578
(October 7, 2005); 70 FR 60590 (October 18, 2005).
23 See Securities Exchange Act Release No. 50945
(December 29, 2004), 70 FR 1498 (January 7, 2005).
24 See supra note 10.
25 15 U.S.C. 78s(b)(2).
26 Id.
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17:33 Nov 22, 2005
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For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.27
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6447 Filed 11–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52782; File No. SR–Amex–
2004–74]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Elimination of Commentary .01(5)
to Amex Rule 916 and Amendment to
Amex Rules Relating to the Definition
of ‘‘NMS Stock’’
November 16, 2005.
On August 27, 2004, the American
Stock Exchange LLC (‘‘Amex’’) 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 to eliminate Commentary .01(5)
to Amex Rule 916 (‘‘Commentary
.01(5)’’). The proposal would permit the
opening of new option series on an
underlying security previously
approved for Amex option transactions
when the issuer of the underlying
security has failed to timely file reports
required by the Act and has not
corrected such failure within 30 days
after the due date of the report. On
September 26, 2005, Amex amended the
proposal to replace the term ‘‘national
market system security’’ with the term
‘‘NMS stock’’ in its rules for consistency
with Regulation NMS.3
The proposed rule change, as
amended, was published for comment
in the Federal Register on October 12,
2005.4 The Commission received no
comments on the proposal.
After careful review of 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 applicable to a
27 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, Amex proposed to amend
Amex Rule 915(a) and Commentary .01(6) to Amex
Rule 916, in order to substitute the term ‘‘NMS
stock’’ for the term ‘‘national market system
security,’’ for consistency with Regulation NMS.
See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005).
4 See Securities Exchange Act Release No. 52563
(October 4, 2005), 70 FR 59380.
1 15
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
70901
national securities exchange.5 The
Commission believes that the
elimination of Commentary .01(5) is
consistent with section 6(b)(5) of the
Act,6 which requires that rules of a
national securities exchange be
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.
The Commission notes that currently,
when an issuer of a security has failed
to timely file its reports required under
the Act, the issuer’s security may
continue to trade on the primary market
for a period of time. Notwithstanding
the fact that the underlying security may
continue to trade, Commentary .01(5)
prevents Amex from opening new series
of options covering the underlying
security of the delinquent filer. This
treatment potentially denies investors
the opportunity to trade at strike prices
that may more accurately reflect the
current market in the underlying
security. Moreover, the Commission
believes that elimination of
Commentary .01(5) could help reduce
investor confusion arising from
inconsistent treatment of the underlying
security and options covering the
underlying security. Finally, the
Commission notes that pursuant to
Amex rule, the underlying security will
not be deemed to meet Amex’s
requirements for continued approval if
such underlying security is not subject
to an effective transaction reporting plan
and other requirements that address the
liquidity and pricing of the underlying
security.7 Amex has represented it has
procedures in place to monitor whether
the underlying security continues to
trade or is delisted from its primary
market and will cease opening new
series of options in such security and
allow the existing series of options to
expire. Amex has also represented that
if the underlying security has been
halted or suspended in its primary
market, Amex may halt trading in the
option class pursuant to Amex Rule
918(b) and shall halt trading pursuant to
5 The Commission 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)(5).
7 See proposed Commentary .01(5) to Amex Rule
916 (currently Commentary .01(6) to Amex Rule
916).
E:\FR\FM\23NON1.SGM
23NON1
70902
Federal Register / Vol. 70, No. 225 / Wednesday, November 23, 2005 / Notices
Amex Rule 117. The Commission
expects Amex to diligently execute its
oversight responsibilities with respect to
the listing status of the underlying
security, and, in the event of such a
delisting, to promptly take the
appropriate actions with respect to any
options covering such security.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,8 that the
proposed rule change (SR–Amex–2004–
74), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6448 Filed 11–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52779; File No. SR–CBOE–
2004–37]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Deletion of Interpretation and
Policy .01(e) to CBOE Rule 5.4
November 16, 2005.
On July 1, 2004, the Chicago Board
Options Exchange, Incorporated
(‘‘Exchange’’ or ‘‘CBOE’’) 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 to
delete Interpretation and Policy .01(e) to
CBOE Rule 5.4 (‘‘Interpretation .01(e)’’).
The proposal would permit the opening
of new option series on an underlying
security previously approved for CBOE
option transactions when the issuer of
the underlying security has failed to
timely file reports required by the Act
and has not corrected such failure
within 30 days after the due date of the
report. On September 21, 2005, CBOE
amended the proposal to replace the
term ‘‘national market system security’’
with the term ‘‘NMS stock’’ in its rules
for consistency with Regulation NMS.3
8 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, which replaced the
original filing in its entirety, the Exchange
conformed the definition of ‘‘NMS security’’ in
CBOE Rules 5.3(a)(1) and Interpretation .01(f) of
Rule 5.4 to that found in Regulation NMS. See
Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005).
9 17
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17:33 Nov 22, 2005
Jkt 208001
The proposed rule change, as amended,
was published for comment in the
Federal Register on October 12, 2005.4
The Commission received no comments
on the proposal.
After careful review of 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 applicable to a
national securities exchange.5 The
Commission believes that the
elimination of Interpretation .01(e) is
consistent with Section 6(b)(5) of the
Act,6 which requires that rules of a
national securities exchange be
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.
The Commission notes that currently,
when an issuer of a security has failed
to timely file its reports required under
the Act, the issuer’s security may
continue to trade on the primary market
for a period of time. Notwithstanding
the fact that the underlying security may
continue to trade, Interpretation .01(e)
prevents CBOE from opening new series
of options on the underlying security of
the delinquent filer. This treatment
potentially denies investors the
opportunity to trade at strike prices that
more accurately reflect the current
market in the underlying security.
Moreover, the Commission believes that
elimination Interpretation .01(e) could
help reduce investor confusion arising
from inconsistent treatment of the
underlying security and option. The
Commission notes that, pursuant to
CBOE rules, the underlying security will
not be deemed to meet CBOE’s
requirements for continued listing if
such underlying security is not subject
to an effective transaction reporting
plan, and other requirements that
address the liquidity and pricing of the
underlying security.7 Finally, the
Commission notes that CBOE has stated
that it will monitor the listing status of
the underlying security and, pursuant to
4 See Securities Exchange Act Release No. 52562
(October 4, 2005), 70 FR 59382.
5 The Commission 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)(5).
7 See Interpretation and Policy .01 to CBOE Rule
5.4.
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
Interpretation and Policy .01(f) to CBOE
Rule 5.4, no longer approve an
underlying security for the listing of
new option series when the issue is
delisted from trading. The Commission
expects CBOE to diligently execute its
oversight responsibilities with respect to
the listing status of the underlying
security, and, in the event of such a
delisting, to promptly take the
appropriate actions with respect to any
options on such security.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–CBOE–2004–
37), as amended, is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jonathan G. Katz,
Secretary.
[FR Doc. E5–6449 Filed 11–22–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52784; File No. SR–DTC–
2005–08]
Self-Regulatory Organizations; The
Depository Trust Company; Order
Granting Approval of a Proposed Rule
Change Relating to the New Canadian
Link Service
November 16, 2005.
I. Introduction
On July 27, 2005, The Depository
Trust Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) proposed rule change
SR–DTC–2005–08 pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’).1 On August 30, 2005,
DTC amended the proposed rule
change. Notice of the proposal was
published in the Federal Register on
September 26, 2005.2 No comment
letters were received. For the reasons
discussed below, the Commission is
granting approval of the proposed rule
change.
II. Description
The proposed rule change will allow
participants of DTC and participants of
The Canadian Depository for Securities
Limited (‘‘CDS’’) (i) to clear and settle
securities transactions in Canadian
dollars and (ii) to transfer or receive
Canadian dollars without any
8 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 52471,
(September 19, 2005), 70 FR 56196.
9 17
E:\FR\FM\23NON1.SGM
23NON1
]]>Agencies
[Federal Register Volume 70, Number 225 (Wednesday, November 23, 2005)]
[Notices]
[Pages 70901-70902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6448]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52782; File No. SR-Amex-2004-74]
Self-Regulatory Organizations; American Stock Exchange LLC; Order
Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to
the Elimination of Commentary .01(5) to Amex Rule 916 and Amendment to
Amex Rules Relating to the Definition of ``NMS Stock''
November 16, 2005.
On August 27, 2004, the American Stock Exchange LLC (``Amex'')
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 to
eliminate Commentary .01(5) to Amex Rule 916 (``Commentary .01(5)'').
The proposal would permit the opening of new option series on an
underlying security previously approved for Amex option transactions
when the issuer of the underlying security has failed to timely file
reports required by the Act and has not corrected such failure within
30 days after the due date of the report. On September 26, 2005, Amex
amended the proposal to replace the term ``national market system
security'' with the term ``NMS stock'' in its rules for consistency
with Regulation NMS.\3\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ In Amendment No. 1, Amex proposed to amend Amex Rule 915(a)
and Commentary .01(6) to Amex Rule 916, in order to substitute the
term ``NMS stock'' for the term ``national market system security,''
for consistency with Regulation NMS. See Securities Exchange Act
Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------
The proposed rule change, as amended, was published for comment in
the Federal Register on October 12, 2005.\4\ The Commission received no
comments on the proposal.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 52563 (October 4,
2005), 70 FR 59380.
---------------------------------------------------------------------------
After careful review of 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 applicable to a national
securities exchange.\5\ The Commission believes that the elimination of
Commentary .01(5) is consistent with section 6(b)(5) of the Act,\6\
which requires that rules of a national securities exchange be 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.
---------------------------------------------------------------------------
\5\ The Commission 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)(5).
---------------------------------------------------------------------------
The Commission notes that currently, when an issuer of a security
has failed to timely file its reports required under the Act, the
issuer's security may continue to trade on the primary market for a
period of time. Notwithstanding the fact that the underlying security
may continue to trade, Commentary .01(5) prevents Amex from opening new
series of options covering the underlying security of the delinquent
filer. This treatment potentially denies investors the opportunity to
trade at strike prices that may more accurately reflect the current
market in the underlying security. Moreover, the Commission believes
that elimination of Commentary .01(5) could help reduce investor
confusion arising from inconsistent treatment of the underlying
security and options covering the underlying security. Finally, the
Commission notes that pursuant to Amex rule, the underlying security
will not be deemed to meet Amex's requirements for continued approval
if such underlying security is not subject to an effective transaction
reporting plan and other requirements that address the liquidity and
pricing of the underlying security.\7\ Amex has represented it has
procedures in place to monitor whether the underlying security
continues to trade or is delisted from its primary market and will
cease opening new series of options in such security and allow the
existing series of options to expire. Amex has also represented that if
the underlying security has been halted or suspended in its primary
market, Amex may halt trading in the option class pursuant to Amex Rule
918(b) and shall halt trading pursuant to
[[Page 70902]]
Amex Rule 117. The Commission expects Amex to diligently execute its
oversight responsibilities with respect to the listing status of the
underlying security, and, in the event of such a delisting, to promptly
take the appropriate actions with respect to any options covering such
security.
---------------------------------------------------------------------------
\7\ See proposed Commentary .01(5) to Amex Rule 916 (currently
Commentary .01(6) to Amex Rule 916).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\8\ that the proposed rule change (SR-Amex-2004-74), as amended, is
approved.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(2).
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. E5-6448 Filed 11-22-05; 8:45 am]
BILLING CODE 8010-01-P
