Self-Regulatory Organizations; American Stock Exchange LLC; Order Approving Proposed Rule Change To Expand Its $2.50 Strike Price Interval Program, 73488-73489 [E5-7189]
Download as PDF
<![CDATA[
73488
Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices
and (10) permit consideration of the
scheduled matter at the closed meeting.
Commissioner Nazareth, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matter of the closed
meeting scheduled for Thursday,
December 15, 2005 will be:
Formal orders of investigations;
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings of an
enforcement nature; and
Amicus consideration.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact: The Office
of the Secretary at (202) 551–5400.
Dated: December 8, 2005.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 05–23963 Filed 12–8–05; 11:30 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 70 FR 72318, December
2, 2005.
Closed meeting.
100 F Street, NE., Washington,
STATUS:
PLACE:
DC.
ANNOUNCEMENT OF ADDITIONAL MEETING:
Additional meeting.
An additional closed meeting has
been scheduled for Thursday, December
8, 2005 at 11 a.m.
Commissioners and certain staff
members who have an interest in the
matter will attend the closed meeting.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(5), (7), (9)(B) and (10)
and 17 CFR 200.402(a)(5), (7), 9(ii) and
(10) permit consideration of the
scheduled matter at the closed meeting.
Commissioner Nazareth, as duty
officer, voted to consider the item listed
for the closed meeting in closed session
and that no earlier notice thereof was
possible.
The subject matter of the closed
meeting scheduled for Thursday,
December 8, 2005 will be:
Institution and settlement of injunctive
actions.
VerDate Aug<31>2005
17:51 Dec 09, 2005
Jkt 208001
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact: The Office
of the Secretary at (202) 551–5400.
Dated: December 8, 2005.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 05–23964 Filed 12–8–05; 11:30 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52893; File No. SR–Amex–
2005–067]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving Proposed Rule Change To
Expand Its $2.50 Strike Price Interval
Program
December 5, 2005.
I. Introduction
On June 17, 2005, the American Stock
Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’)
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 amend Commentary .06 to
Amex Rule 903 to expand the $2.50
Strike Price Interval Program for
individual equity options to allow the
listing of options with $2.50 strike price
intervals for strike prices between $50
and $75. The Commission published the
proposed rule change for comment in
the Federal Register on November 3,
2005.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The $2.50 Strike Price Interval
Program (‘‘Program’’) was initially
adopted in 1995 as a joint pilot program
of the options exchanges, which permits
them to list options with $2.50 strike
price intervals up to $50 on a total of up
to 100 option classes.4 The Program was
later expanded and permanently
approved in 1998 to allow the options
exchanges collectively to select up to
200 classes on which to list options
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 52690
(October 27, 2005), 70 FR 66869.
4 See Securities Exchange Act Release No. 35993
(July 19, 1995), 60 FR 38073 (July 25, 1995)
(approving File Nos. SR–Phlx–95–08, SR–Amex–
95–12, SR–PSE–95–07, SR–CBOE–95–19, and SR–
NYSE–95–12).
2 17
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
with $2.50 strike price intervals.5 Of
these 200 option classes eligible for the
Program, 51 classes were allocated to
Amex pursuant to a formula approved
by the Commission as part of the
permanent approval of the Program.
Each options exchange, in addition, is
permitted to list options with $2.50
strike price intervals on any option class
that another exchange selects as part of
its Program. Under the Program
currently, an option with a $2.50 strike
price interval may be listed only if the
strike price is between $25 and $50.6
The Exchange proposes to amend
Commentary .06 to Amex Rule 903 to
allow the listing of options with $2.50
strike price intervals for options with
strike prices between $50 and $75.
However, the $2.50 strike price intervals
between $50 and $75 must be no more
than $10 from the closing price of the
underlying stock in its primary market
on the preceding day. For example, and
as expressly described in the proposed
change to Commentary .06 to Amex
Rule 903, if an option class has been
selected as part of the Program, and the
underlying stock closes at $48.50 in its
primary market, Amex could list
options with strike prices of $52.50 and
$57.50 on the next business day. If the
underlying stock closes at $54, Amex
could list options with strike prices of
$52.50, $57.50, and $62.50 on the next
business day. The proposed rule change
does not increase the total number of
option classes that Amex may select for
the Program.
In addition, the Exchange has
proposed other technical changes to
Commentary .06 to Amex Rule 903,
including expressly noting in the rule
text that: (1) the total number of option
classes, i.e., 51, that the Amex has been
allocated of the 200 classes that are
eligible for the Program; and (2) an
option class shall remain in the Program
until otherwise designated by the
Exchange and a decertification notice is
sent to the Options Clearing
Corporation.
III. Discussion
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 national
securities exchange.7 In particular, the
5 See Securities Exchange Act Release No. 40662
(November 12, 1998), 63 FR 64297 (November 19,
1998) (approving File Nos. SR–Amex–98–21, SR–
CBOE–98–29, SR–PCX–98–31, and SR–Phlx–98–
26).
6 See, e.g., Amex Rule 903, Commentary .06.
7 In approving this rule proposal, 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).
E:\FR\FM\12DEN1.SGM
12DEN1
Federal Register / Vol. 70, No. 237 / Monday, December 12, 2005 / Notices
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act, which requires,
among other things, that the rules of a
national securities exchange be
designed 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.8 The
Commission believes that this proposal
is a reasonable means of providing
investors with greater flexibility to
establish equity options positions that
can be better tailored to meet their
investment objectives.
The Commission has previously noted
a concern with the pressures on system
capacity caused by the proliferation of
illiquid options series. However, this
proposal should not exacerbate the
problem of increased quote traffic. As a
result of this proposal, Amex will be
permitted to list options with $2.50
strike price intervals with strike prices
between $50 and $75, but the total
number of classes that Amex is
authorized to list pursuant to its $2.50
Strike Price Interval Program remains
unchanged.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–Amex–2005–
067) be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7189 Filed 12–9–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52881; File No. SR–Amex–
2005–119]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change to Make
Certain Changes Pertaining to the
Enforcement of Decorum Policies
December 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 November
18, 2005, the American Stock Exchange
8 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
10 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 15
VerDate Aug<31>2005
17:51 Dec 09, 2005
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 substantially prepared by the
Amex. The Exchange has filed the
proposed rule change pursuant to
section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(b) thereunder,4 which renders
the proposal effective upon filing with
the Commission. 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 Amex proposes to amend Amex
Rule 22 to authorize two Floor Officials,
in consultation with a designated senior
executive officer of the Exchange, to
summarily exclude a member or person
associated with a member or member
organization from the Exchange
premises for not longer than the
remainder of the trading day for
specified violations of the Exchange’s
decorum policies.
The text of the proposed rule change
is available on the Amex’s Web site at
https://www.amex.com, the Office of the
Secretary, the Amex, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Amex included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposal.
The text of these statements may be
examined at the places specified in Item
IV below. The Exchange has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change Purpose
1. Purpose
In 2002, the Commission approved a
Chicago Board Options Exchange, Inc.
(‘‘CBOE’’) rule change allowing two
CBOE Floor Officials, in consultation
with a designated senior executive
officer of that exchange, to summarily
exclude from the CBOE’s premises a
member or person associated with a
member for the following serious
3 15
4 17
Jkt 208001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00060
Fmt 4703
Sfmt 4703
73489
violations of floor decorum: physical
violence, unbusinesslike conduct,
harassment, failure to abide by a Floor
Official’s ruling, property damage,
enabling or assisting a suspended
member or associated person to gain
improper access to the floor, and failure
to supervise a visitor.5
The Exchange believes that it should
have similar explicit authority to
summarily exclude for short periods of
time members and associated persons
that commit serious breaches of floor
decorum. In this regard, the Amex
proposes to adopt a summary exclusion
rule similar CBOE Rule 6.20.
The proposed Amex rule, like CBOE’s
Rule 6.20, would permit the summary
suspension of a member or person
associated with a member or member
organization for the balance of a trading
day by two Floor Officials, acting in
consultation with a designated senior
executive officer of the Exchange.
Summary suspension from the Amex
floor would be permitted in situations
involving the following serious
violation of floor decorum: physical
violence, unbusinesslike conduct,6
harassment (as set forth in Amex Rule
16), failure to abide by a Floor Official’s
ruling, property damage, enabling or
assisting a suspended member or
associated person to gain improper
access to the floor, and failure to
supervise a visitor. The proposed Amex
rule also would permit an excluded
person to request reinstatement to the
trading floor from two Floor Officials
after a sufficient cooling-off period has
elapsed so that the excluded person no
longer poses an immediate threat to the
safety of persons or property or to the
orderly conduct of business. The
proposed rule requires that at least one
of the Floor Officials who considers a
request for reinstatement must have
participated in the initial suspension
decision to ensure that the persons
considering reinstatement are
adequately apprised of the
circumstances of the suspension.
The Amex believes that having the
authority to temporarily exclude
disruptive or potentially dangerous
persons from the Exchange’s premises
would assist the Exchange in defusing
volatile situations, safeguarding trading
floor personnel and facilities. The Amex
further believes that the proposal also
may benefit investors by minimizing
disruptions to the maintenance of a fair
and orderly market. The procedures for
5 See Securities Exchange Act Release No. 46823
(November 13, 2002), 67 FR 70275 (November 21,
2002).
6 In general, ‘‘unbusinesslike conduct’’ is
conduct, other than harassment, that disrupts
trading.
E:\FR\FM\12DEN1.SGM
12DEN1
]]>Agencies
[Federal Register Volume 70, Number 237 (Monday, December 12, 2005)]
[Notices]
[Pages 73488-73489]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7189]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52893; File No. SR-Amex-2005-067]
Self-Regulatory Organizations; American Stock Exchange LLC; Order
Approving Proposed Rule Change To Expand Its $2.50 Strike Price
Interval Program
December 5, 2005.
I. Introduction
On June 17, 2005, the American Stock Exchange LLC (``Amex'' or
``Exchange'') 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 amend Commentary .06 to Amex Rule 903 to expand
the $2.50 Strike Price Interval Program for individual equity options
to allow the listing of options with $2.50 strike price intervals for
strike prices between $50 and $75. The Commission published the
proposed rule change for comment in the Federal Register on November 3,
2005.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 52690 (October 27,
2005), 70 FR 66869.
---------------------------------------------------------------------------
II. Description of the Proposal
The $2.50 Strike Price Interval Program (``Program'') was initially
adopted in 1995 as a joint pilot program of the options exchanges,
which permits them to list options with $2.50 strike price intervals up
to $50 on a total of up to 100 option classes.\4\ The Program was later
expanded and permanently approved in 1998 to allow the options
exchanges collectively to select up to 200 classes on which to list
options with $2.50 strike price intervals.\5\ Of these 200 option
classes eligible for the Program, 51 classes were allocated to Amex
pursuant to a formula approved by the Commission as part of the
permanent approval of the Program. Each options exchange, in addition,
is permitted to list options with $2.50 strike price intervals on any
option class that another exchange selects as part of its Program.
Under the Program currently, an option with a $2.50 strike price
interval may be listed only if the strike price is between $25 and
$50.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 35993 (July 19,
1995), 60 FR 38073 (July 25, 1995) (approving File Nos. SR-Phlx-95-
08, SR-Amex-95-12, SR-PSE-95-07, SR-CBOE-95-19, and SR-NYSE-95-12).
\5\ See Securities Exchange Act Release No. 40662 (November 12,
1998), 63 FR 64297 (November 19, 1998) (approving File Nos. SR-Amex-
98-21, SR-CBOE-98-29, SR-PCX-98-31, and SR-Phlx-98-26).
\6\ See, e.g., Amex Rule 903, Commentary .06.
---------------------------------------------------------------------------
The Exchange proposes to amend Commentary .06 to Amex Rule 903 to
allow the listing of options with $2.50 strike price intervals for
options with strike prices between $50 and $75. However, the $2.50
strike price intervals between $50 and $75 must be no more than $10
from the closing price of the underlying stock in its primary market on
the preceding day. For example, and as expressly described in the
proposed change to Commentary .06 to Amex Rule 903, if an option class
has been selected as part of the Program, and the underlying stock
closes at $48.50 in its primary market, Amex could list options with
strike prices of $52.50 and $57.50 on the next business day. If the
underlying stock closes at $54, Amex could list options with strike
prices of $52.50, $57.50, and $62.50 on the next business day. The
proposed rule change does not increase the total number of option
classes that Amex may select for the Program.
In addition, the Exchange has proposed other technical changes to
Commentary .06 to Amex Rule 903, including expressly noting in the rule
text that: (1) the total number of option classes, i.e., 51, that the
Amex has been allocated of the 200 classes that are eligible for the
Program; and (2) an option class shall remain in the Program until
otherwise designated by the Exchange and a decertification notice is
sent to the Options Clearing Corporation.
III. Discussion
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 national securities exchange.\7\
In particular, the
[[Page 73489]]
Commission finds that the proposed rule change is consistent with
Section 6(b)(5) of the Act, which requires, among other things, that
the rules of a national securities exchange be designed 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.\8\ The Commission believes that this proposal is a
reasonable means of providing investors with greater flexibility to
establish equity options positions that can be better tailored to meet
their investment objectives.
---------------------------------------------------------------------------
\7\ In approving this rule proposal, 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).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission has previously noted a concern with the pressures on
system capacity caused by the proliferation of illiquid options series.
However, this proposal should not exacerbate the problem of increased
quote traffic. As a result of this proposal, Amex will be permitted to
list options with $2.50 strike price intervals with strike prices
between $50 and $75, but the total number of classes that Amex is
authorized to list pursuant to its $2.50 Strike Price Interval Program
remains unchanged.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (SR-Amex-2005-067) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7189 Filed 12-9-05; 8:45 am]
BILLING CODE 8010-01-P
