Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange Fees and Charges, 75525-75526 [E5-7524]
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Federal Register / Vol. 70, No. 243 / Tuesday, December 20, 2005 / Notices
with the requirements of Section 6(b)(5)
because the amendments will allow the
Exchange to set levels of margin that
more precisely represent the actual net
risk of the option positions in the
account and enable customers to
implement these strategies more
efficiently.
The Commission further finds
elimination of the two-dollar standard
exercise price interval limitation for
listed options and elimination of the
definition of ‘‘in-or-at-the-money’’ are
consistent with the requirements of
Section 6(b)(5). The rules changes
should allow specialists and market
makers to hedge risk related to their
options positions while prohibiting
trading in an underlying security that is
not related to specialist or market
making option activities, or that does
not constitute a reasonable hedge.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (File No. SR–
NYSE–2004–39), as amended, be, and it
hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7525 Filed 12–19–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52935; File No. SR–PCX–
2005–127]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Exchange
Fees and Charges
December 9, 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
25, 2005, the Pacific Exchange, Inc.
(‘‘PCX’’ 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 Exchange. PCX has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by a self12 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.
regulatory organization pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(2) 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
PCX proposes to amend its Schedule
of Fees and Charges in order to include
a provision that deals with royalty, or
license fees, that are passed on to
market participants on options trades
that are part of an Option Strategy
Execution.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site (https://www.pacificex.com), at
the Exchange’s principal office, 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
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
PCX is proposing this change to the
PCX Schedule of Rates and Charges so
that the Exchange may continue to pass
on the full amount of any royalty or
license fees to trade participants, even
when total transaction fees are capped
in association with a defined Options
Strategy Execution. PCX has established
a cap on the transaction fees it charges
to market participants that engage in
certain strategy executions, as defined
in the PCX Schedule of Fees and
Charges. PCX represents that the cap
was established because the referenced
Options Strategy Executions are
generally large volume trades done by
professionals whose profit margins are
generally narrow. The Exchange caps
13 17
VerDate Aug<31>2005
19:23 Dec 19, 2005
the transaction fees associated with
such executions at $1,000 per strategy
execution, with a monthly cap of
$50,000 per initiating firm.
Certain classes of options listed on
PCX have as their underlying issue
licensed products that carry a royalty
fee on every contract traded. These fees
are assessed by the issuing agency, and
are not Exchange transaction fees.
License fees, or royalty fees, that are
charged to the Exchange are passed on
to the actual participants executing the
trade. Even though some of the fees are
passed on, the fee cap would prevent
PCX from recovering these fees in their
entirety if they were to be included as
transaction fees. If royalty fees are
included as transaction fees, PCX would
face the possibility of having to pay out
substantial fees while the fee cap would
limit the amount the Exchange would be
able to pass on to trade participants.
Because of the negative financial
implications to the Exchange, PCX will
not include license or royalty fees,
which are passed on to trade
participants in connection with trades
that are done as part of an Options
Strategy Execution, as part of the
transaction fees counting towards both
the $1,000 per trade transaction fee cap
and the $50,000 per month fee cap.
2. Statutory Basis
The Exchange believes that proposal
is consistent with Section 6(b) of the
Act,5 in general, and Section 6(b)(4) 6 in
particular, in that it provides for the
equitable allocation of dues, fees, and
other charges among its members.
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 that is 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
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 7 and
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
7 15 U.S.C. 78s(b)(3)(A)(ii).
3 15
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
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75525
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Federal Register / Vol. 70, No. 243 / Tuesday, December 20, 2005 / Notices
Rule 19b–4(f)(2) 8 thereunder because it
establishes or changes a due, fee, or
other charge imposed by the Exchange.
At any time within 60 days of the filing
of the 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.
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–PCX–2005–127 and should
be submitted on or before January 10,
2006.
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:
BILLING CODE 8010–01–P
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7524 Filed 12–19–05; 8:45 am]
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages that will require
clearance by the Office of Management
and Budget (OMB) in compliance with
Pub. L. 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. The information collection
packages that may be included in this
Paper Comments
notice are for new information
collections, approval of existing
• Send paper comments in triplicate
information collections, revisions to
to Jonathan G. Katz, Secretary,
OMB-approved information collections,
Securities and Exchange Commission,
and extensions (no change) of OMBStation Place, 100 F Street, NE.,
approved information collections.
Washington, DC 20549–9303.
SSA is soliciting comments on the
All submissions should refer to File
accuracy of the agency’s burden
Number SR–PCX–2005–127. This file
estimate; the need for the information;
number should be included on the
subject line if e-mail is used. To help the its practical utility; ways to enhance its
quality, utility, and clarity; and on ways
Commission process and review your
to minimize burden on respondents,
comments more efficiently, please use
only one method. The Commission will including the use of automated
collection techniques or other forms of
post all comments on the Commissions
information technology. Written
Internet Web site (https://www.sec.gov/
comments and recommendations
rules/sro.shtml). Copies of the
regarding the information collection(s)
submission, all subsequent
should be submitted to the OMB Desk
amendments, all written statements
Officer and the SSA Reports Clearance
with respect to the proposed rule
Officer. The information can be mailed
change that are filed with the
and/or faxed to the individuals at the
Commission, and all written
addresses and fax numbers listed below:
communications relating to the
(OMB), Office of Management and
proposed rule change between the
Budget, Attn: Desk Officer for SSA,
Commission and any person, other than
Fax: 202–395–6974.
those that may be withheld from the
(SSA), Social Security Administration,
public in accordance with the
DCFAM, Attn: Reports Clearance
provisions of 5 U.S.C. 552, will be
Officer, 1333 Annex Building, 6401
available for inspection and copying in
Security Blvd., Baltimore, MD 21235,
the Commission’s Public Reference
Fax: 410–965–6400.
Room. Copies of the filing also will be
I. The information collections listed
available for inspection and copying at
below are pending at SSA and will be
the principal office of PCX. All
submitted to OMB within 60 days from
comments received will be posted
the date of this notice. Therefore, your
without change; the Commission does
comments should be submitted to SSA
not edit personal identifying
within 60 days from the date of this
information from submissions. You
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
No. SR–PCX–2005–127 on the subject
line.
8 17
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
19:23 Dec 19, 2005
9 17
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CFR 200.30–3(a)(12).
Frm 00082
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publication. You can obtain copies of
the collection instruments by calling the
SSA Reports Clearance Officer at 410–
965–0454 or by writing to the address
listed above.
1. Reporting Changes that Affect Your
Social Security Payment—20 CFR
404.301–305, .310–311, .330–.333, .335–
.341, .350–.352, .370–.371, .401–.402,
.408(a), .421–.425, .428–.430, .434–.437,
.439–.441, .446–.447, .450–.455, .468—
0960–0073. SSA uses the information
collected on Form SSA–1425 to
determine continuing entitlement to
Title II Social Security benefits and to
determine the proper benefit amount.
The respondents are Title II
beneficiaries receiving SSA retirement,
disability or survivor’s auxiliary benefits
who need to report an event that could
affect payments.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 36,000.
Frequency of Response: 1.
Average Burden Per Response: 5
minutes.
Estimated Annual Burden: 3,000
hours.
2. Workers’ Compensation/Public
Disability Questionnaire—20 CFR
404.408—0960–0247. Section 224 of the
Social Security Act provides for the
reduction of disability insurance
benefits (DIB) when the combination of
DIB and any workers’ compensation
(WC) and/or certain Federal, State or
local public disability benefits (PDB)
exceeds 80% of the worker’s
predisability earnings. Form SSA–546 is
used to collect the data necessary to
determine whether or not the worker’s
receipt of WC/PDB payments will cause
a reduction of DIB. The respondents are
applicants for the Title II DIB.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 100,000.
Frequency of Response: 1.
Average Burden Per Response: 15
minutes.
Estimated Annual Burden: 25,000
hours.
3. Medicaid Use Report—20 CFR
416.268—0960–0267. The information
required by this regulation is used by
SSA to determine if an individual is
entitled to special Title XVI
Supplemental Security Income (SSI)
payments and, consequently, to
Medicaid benefits. The respondents are
SSI recipients whose payments were
stopped based on earnings.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 60,000.
Frequency of Response: 1.
Average Burden Per Response: 3
minutes.
E:\FR\FM\20DEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 243 (Tuesday, December 20, 2005)]
[Notices]
[Pages 75525-75526]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7524]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52935; File No. SR-PCX-2005-127]
Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Exchange Fees and Charges
December 9, 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 25, 2005, the Pacific Exchange, Inc. (``PCX'' 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 Exchange. PCX has
designated this proposal as one establishing or changing a due, fee, or
other charge imposed by a self-regulatory organization pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
PCX proposes to amend its Schedule of Fees and Charges in order to
include a provision that deals with royalty, or license fees, that are
passed on to market participants on options trades that are part of an
Option Strategy Execution.
The text of the proposed rule change is available on the Exchange's
Internet Web site (https://www.pacificex.com), at the Exchange's
principal office, 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 Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
PCX is proposing this change to the PCX Schedule of Rates and
Charges so that the Exchange may continue to pass on the full amount of
any royalty or license fees to trade participants, even when total
transaction fees are capped in association with a defined Options
Strategy Execution. PCX has established a cap on the transaction fees
it charges to market participants that engage in certain strategy
executions, as defined in the PCX Schedule of Fees and Charges. PCX
represents that the cap was established because the referenced Options
Strategy Executions are generally large volume trades done by
professionals whose profit margins are generally narrow. The Exchange
caps the transaction fees associated with such executions at $1,000 per
strategy execution, with a monthly cap of $50,000 per initiating firm.
Certain classes of options listed on PCX have as their underlying
issue licensed products that carry a royalty fee on every contract
traded. These fees are assessed by the issuing agency, and are not
Exchange transaction fees. License fees, or royalty fees, that are
charged to the Exchange are passed on to the actual participants
executing the trade. Even though some of the fees are passed on, the
fee cap would prevent PCX from recovering these fees in their entirety
if they were to be included as transaction fees. If royalty fees are
included as transaction fees, PCX would face the possibility of having
to pay out substantial fees while the fee cap would limit the amount
the Exchange would be able to pass on to trade participants. Because of
the negative financial implications to the Exchange, PCX will not
include license or royalty fees, which are passed on to trade
participants in connection with trades that are done as part of an
Options Strategy Execution, as part of the transaction fees counting
towards both the $1,000 per trade transaction fee cap and the $50,000
per month fee cap.
2. Statutory Basis
The Exchange believes that proposal is consistent with Section 6(b)
of the Act,\5\ in general, and Section 6(b)(4) \6\ in particular, in
that it provides for the equitable allocation of dues, fees, and other
charges among its members.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 that is 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
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act \7\ and
[[Page 75526]]
Rule 19b-4(f)(2) \8\ thereunder because it establishes or changes a
due, fee, or other charge imposed by the Exchange. At any time within
60 days of the filing of the 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 No. SR-PCX-2005-127 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-PCX-2005-127. 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 Commissions 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 PCX.
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 Number SR-PCX-2005-127
and should be submitted on or before January 10, 2006.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-7524 Filed 12-19-05; 8:45 am]
BILLING CODE 8010-01-P
