Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Expand Its $2.50 Strike Price Program, 76095-76097 [E5-7691]
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Federal Register / Vol. 70, No. 245 / Thursday, December 22, 2005 / Notices
the Commission believes that permitting
the Exchange to rescind Rule 600(g) will
alleviate any confusion by California
claimants as to whether the California
Standards are applicable to their claims.
The Commission finds good cause for
approving the proposed rule change
prior to the thirtieth day after the date
of publication of the notice thereof in
the Federal Register. Although
California claimants are no longer
required to waive the California
Standards, Rule 600(g) might lead
California claimants to believe that the
California Standards conflict with the
NASD Code of Arbitration. Accordingly,
the Commission believes that it is
consistent with sections 6(b)(5) 12 and
19(b)(2) 13 of the Act to approve the
proposed rule change on an accelerated
basis.
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:
cchase on PROD1PC60 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–73 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
Number SR–NYSE–2005–73. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the NYSE. 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–NYSE–2005–73 and should
be submitted on or before January 12,
2006.
V. Conclusion
It is Therefore Ordered, pursuant to
section 19(b)(2) of the Act 14 that the
proposed rule change (SR–NYSE–2005–
73) be, and hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7674 Filed 12–21–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52961; File No. SR–Phlx–
2005–77]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change to Expand Its $2.50 Strike
Price Program
December 15, 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 December
14, 2005, the Philadelphia Stock
Exchange, Inc. (‘‘Phlx’’ 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 Phlx. The Exchange
has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to
section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
it effective upon filing with the
14 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 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
15 17
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
13 15 U.S.C. 78s(b)(2).
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16:55 Dec 21, 2005
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76095
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
Phlx proposes to amend Commentary
.05 to Phlx Rule 1012 (Series of Options
Open for Trading) to allow the Exchange
to list options with $2.50 strike price
intervals for options with strike prices
between $50 and $75. Below is the text
of the proposed rule change. Proposed
new language is in italics; proposed
deletions are in [brackets].
*
*
*
*
*
Rule 1012.
Trading
Series of Options Open for
(a)—(d) No Change.
Commentary:
.01 through .04—No Change.
.05
(a)—No Change.
(b) Pursuant to a program initially
approved by the SEC in 1995, [T]the
Exchange may select up to [a specified
number of its listed] 46 options classes
on individual stocks for which the
interval of strike prices will be $2.50
where the strike price is greater than
$25 but less than $50 (the ‘‘$2.50 Strike
Price Program’’). In addition to those
options selected by the Exchange, the
strike price interval may be $2.50 in any
multiply-traded option once another
exchange trading that option selects
such option, as part of this program.
(i) In addition, on any option class
that has been selected as part of the
$2.50 Strike Price Program pursuant to
paragraph (b) above, the Exchange may
list $2.50 strike prices between $50 and
$75, provided the $2.50 strike prices
between $50 and $75 are no more than
$10 from the closing price of the
underlying stock in its primary market
on the preceding day. For example, if an
option class has been selected as part of
the $2.50 Strike Price Program, and the
underlying stock closes at $48.50 in its
primary market, the Exchange may list
the $52.50 strike price and the $57.50
strike price on the next business day. If
an underlying security closes at $54, the
Exchange may list the $52.50 strike
price, the $57.50 strike price and the
$62.50 strike price on the next business
day.
(ii) An option class shall remain in
the $2.50 Strike Price Program until
otherwise designated by the Exchange
and a decertification notice is sent to
the Options Clearing Corporation.
*
*
*
*
*
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Federal Register / Vol. 70, No. 245 / Thursday, December 22, 2005 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Phlx 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
cchase on PROD1PC60 with NOTICES
1. Purpose
The purpose of the proposal is to
amend Commentary .05 to Phlx Rule
1012 to expand the current $2.50 Strike
Price Program (‘‘Program’’) for
individual equity options to permit the
listing of options with $2.50 strike price
intervals for options with strike prices
between $50 and $75, provided the
$2.50 strike price intervals are no more
than $10 from the closing price of the
underlying stock in its primary market 5
on the preceding day. In addition, the
proposed rule change clarifies that an
option class will remain in the Program
until the Exchange otherwise designates
and sends a decertification notice to the
Options Clearing Corporation.
Pursuant to the proposed rule change,
for example, if an option class has been
selected as part of the Program, and the
underlying stock closed at $48.50 in its
primary market, the Exchange may list
options with strike prices of $52.50 and
$57.50 on the next business day; and if
an underlying security closed at $54, the
Exchange may list options with strike
prices of $52.50, $57.50, and $62.50 on
the next business day.
The current Program is set forth in
Commentary .05 to Phlx Rule 1012. The
Program permits the Exchange to list
options with $2.50 strike price intervals
for selected options trading at strike
prices greater than $25 but less than
$50, excluding LEAPS. Initially adopted
in 1995 as a pilot program, the options
exchanges at that time were permitted to
list options with $2.50 strike price
intervals up to $50 on a total of up to
100 option classes.6 In 1998, the pilot
5 The term ‘‘primary market’’ is defined in Phlx
Rule 1000 in respect of an underlying stock or
exchange-traded fund share as the principal market
in which the underlying stock or exchange-traded
fund share is traded.
6 See Securities Exchange Act Release No. 35993
(July 19, 1995), 60 FR 38073 (July 25, 1995)
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16:55 Dec 21, 2005
Jkt 208001
program was expanded and
permanently approved to allow the
options exchanges collectively to select
up to 200 option classes on which to list
options with $2.50 strike price intervals
up to $50.7 Of the current 200 options
classes eligible for the Program, 46 have
been allocated to Phlx.8 In addition,
each options exchange is permitted to
list options with $2.50 strike price
intervals on any option class that
another options exchange selects under
its Program.
The Exchange believes that the
Program has created additional trading
opportunities for customers benefiting
the marketplace. The existence of $2.50
strike price intervals affords customers
the ability to more closely tailor
investment strategies to the precise
movement of the underlying security.
Accordingly, Phlx believes that the
proposal to expand the Program to allow
the listing of options with $2.50 strike
price intervals for options with strike
prices between $50 and $75 should
further benefit customers and the
market by providing greater trading
opportunities for those underlying
stocks that have low volatility and thus
trade in a narrow range.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act,9 in general, and furthers the
objective of section 6(b)(5) of the Act,10
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of change, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
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 not
necessary or appropriate in furtherance
of the purposes of the Act.
(approving File Nos. SR–Phlx–95–08, SR–Amex–
95–12, SR–PSE–95–07, SR–CBOE–95–19, and SR–
NYSE–95–12).
7 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).
8 The Exchange notes that the allocation is not
changed by this proposal.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00078
Fmt 4703
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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 forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.13 However, Rule 19b–
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.15 The
Exchange has requested that the
Commission waive the 30-day preoperative delay, and the Commission
hereby grants that request.16 The
Commission believes that waiving the
30-day pre-operative delay is consistent
with the protection of investors and in
the public interest. This action will
allow the Exchange to immediately
expand its Program to list options with
$2.50 strike price intervals for options
with strike prices between $50 and $75.
The Commission notes that it recently
approved similar expansions to the
$2.50 Strike Price Programs of the
Chicago Board Options Exchange
(‘‘CBOE’’) and the American Stock
Exchange (‘‘Amex’’).17 These proposals
were subject to a full notice-and11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 Id.
15 In addition, Rule 19b–4(f)(6)(iii) requires that
the Exchange give the Commission 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 filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Commission has decided to waive the five-day prefiling notice requirement.
16 For the purposes only of waiving the 30-day
pre-operative delay, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
17 See Securities Exchange Act Release Nos.
52892 (December 5, 2005), 70 FR 73492 (December
12, 2005) (approving SR–CBOE–2005–39) and
52893 (December 5, 2005), 70 FR 73488 (December
12, 2005) (approving SR–Amex–2005–067).
12 17
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Federal Register / Vol. 70, No. 245 / Thursday, December 22, 2005 / Notices
comment period, and no negative
comments were submitted. The
Commission does not believe that Phlx’s
proposal raises any novel issues.
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 Act.
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:
cchase on PROD1PC60 with 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
No. SR–Phlx–2005–77 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 No.
SR–Phlx–2005–77. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
be available for inspection and copying
at the principal office of Phlx. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
VerDate Aug<31>2005
16:55 Dec 21, 2005
Jkt 208001
you wish to make available publicly. All
submissions should refer to File No.
SR–Phlx–005–77 and should be
submitted on or before January 12, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Jonathan G. Katz,
Secretary.
[FR Doc. E5–7691 Filed 12–21–05; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 5253]
Bureau of Educational and Cultural
Affairs; Request for Grant Proposals:
Summer Institute for English as a
Foreign Language Administrator from
Francophone and Lusophone SubSaharan Africa
Announcement Type: New
Cooperative Agreement.
Funding Opportunity Number: ECA/
A/E/AF–06–01.
Catalog of Federal Domestic
Assistance Number: 00.000.
Key Dates: June 1, 2006–December 15,
2006.
Application Deadline: February 13,
2006.
SUMMARY: The African Programs Branch
(ECA/A/E/AF), Office of Academic
Exchange Programs of the Bureau of
Educational and Cultural Affairs
announces an open competition for the
2006 Summer Institute for English as a
Foreign Language (EFL) Administrators
from Francophone and Lusophone SubSaharan Africa.
Accredited, post-secondary U.S.
educational institutions may submit
proposals to administer a U.S.-based
six-week program in educational
management, teacher-training, materials
development and organizational skills
for 16 secondary school EFL
supervisors/inspectors and school
administrators with strong EFL
backgrounds selected from French and
Portuguese-speaking countries of SubSaharan Africa. The Bureau anticipates
providing one assistance award to
support this program.
I. Funding Opportunity Description
Authority: Overall grant making
authority for this program is contained
in the Mutual Educational and Cultural
Exchange Act of 1961, Public Law 87–
256, as amended, also known as the
Fulbright-Hays Act. The purpose of the
Act is ‘‘to enable the Government of the
United States to increase mutual
18 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00079
Fmt 4703
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76097
understanding between the people of
the United States and the people of
other countries * * *; to strengthen the
ties which unite us with other nations
by demonstrating the educational and
cultural interests, developments, and
achievements of the people of the
United States and other nations * * *
and thus to assist in the development of
friendly, sympathetic and peaceful
relations between the United States and
the other countries of the world.’’ The
funding authority for the program above
is provided through legislation.
Purpose: The general objective of the
Institute is to support and encourage the
upgrading of English language programs
in secondary schools in French and
Portuguese-speaking African countries
by enhancing participants’ educational
management, teacher-training, EFL
materials development and
organizational skills as well as
broadening their understanding of U.S.
institutions and culture. American
institutions of higher education having
experience in the field of English as a
Second Language (ESL) or English as a
Foreign Language (EFL), ESL/EFL
materials development and teacher
training/assessment may apply to
develop, administer, and provide
follow-up to the six-week summer
program.
Guidelines: The proposal should be
designed to support the following
specific activities:
(a) A five-week academic program
with emphasis on developing the
capacities of 16 Sub-Saharan African
secondary school supervisors/
inspectors/administrators to strengthen
EFL programs through the design and
delivery of more effective teachertraining, use of technology to access and
develop teaching materials, and
conducting teacher assessment.
(b) Structured cultural activities
planned within the five-week academic
program to facilitate interaction among
the African participants, American
students, faculty, administrators, and
the local community to promote mutual
understanding between the people of
the United States and the people of
African countries.
(c) One-week of escorted, cultural and
educational meetings and site visits in
Washington, DC, complementing and
reinforcing the academic program. The
site visits will include a meeting at the
Bureau of Educational and Cultural
Affairs.
(d) The creation of a website and a
listserv to facilitate follow-on
mentoring/participant networking
concerning final project implementation
and to continue a dialog on ideas
developed during the Institute.
E:\FR\FM\22DEN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 245 (Thursday, December 22, 2005)]
[Notices]
[Pages 76095-76097]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7691]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52961; File No. SR-Phlx-2005-77]
Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Expand Its $2.50 Strike Price Program
December 15, 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 December 14, 2005, the Philadelphia Stock Exchange, Inc. (``Phlx''
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 Phlx. The Exchange has
filed the proposal as a ``non-controversial'' rule change pursuant to
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it 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)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Phlx proposes to amend Commentary .05 to Phlx Rule 1012 (Series of
Options Open for Trading) to allow the Exchange to list options with
$2.50 strike price intervals for options with strike prices between $50
and $75. Below is the text of the proposed rule change. Proposed new
language is in italics; proposed deletions are in [brackets].
* * * * *
Rule 1012. Series of Options Open for Trading
(a)--(d) No Change.
Commentary:
.01 through .04--No Change.
.05
(a)--No Change.
(b) Pursuant to a program initially approved by the SEC in 1995,
[T]the Exchange may select up to [a specified number of its listed] 46
options classes on individual stocks for which the interval of strike
prices will be $2.50 where the strike price is greater than $25 but
less than $50 (the ``$2.50 Strike Price Program''). In addition to
those options selected by the Exchange, the strike price interval may
be $2.50 in any multiply-traded option once another exchange trading
that option selects such option, as part of this program.
(i) In addition, on any option class that has been selected as part
of the $2.50 Strike Price Program pursuant to paragraph (b) above, the
Exchange may list $2.50 strike prices between $50 and $75, provided the
$2.50 strike prices between $50 and $75 are no more than $10 from the
closing price of the underlying stock in its primary market on the
preceding day. For example, if an option class has been selected as
part of the $2.50 Strike Price Program, and the underlying stock closes
at $48.50 in its primary market, the Exchange may list the $52.50
strike price and the $57.50 strike price on the next business day. If
an underlying security closes at $54, the Exchange may list the $52.50
strike price, the $57.50 strike price and the $62.50 strike price on
the next business day.
(ii) An option class shall remain in the $2.50 Strike Price Program
until otherwise designated by the Exchange and a decertification notice
is sent to the Options Clearing Corporation.
* * * * *
[[Page 76096]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Phlx 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
The purpose of the proposal is to amend Commentary .05 to Phlx Rule
1012 to expand the current $2.50 Strike Price Program (``Program'') for
individual equity options to permit the listing of options with $2.50
strike price intervals for options with strike prices between $50 and
$75, provided the $2.50 strike price intervals are no more than $10
from the closing price of the underlying stock in its primary market
\5\ on the preceding day. In addition, the proposed rule change
clarifies that an option class will remain in the Program until the
Exchange otherwise designates and sends a decertification notice to the
Options Clearing Corporation.
---------------------------------------------------------------------------
\5\ The term ``primary market'' is defined in Phlx Rule 1000 in
respect of an underlying stock or exchange-traded fund share as the
principal market in which the underlying stock or exchange-traded
fund share is traded.
---------------------------------------------------------------------------
Pursuant to the proposed rule change, for example, if an option
class has been selected as part of the Program, and the underlying
stock closed at $48.50 in its primary market, the Exchange may list
options with strike prices of $52.50 and $57.50 on the next business
day; and if an underlying security closed at $54, the Exchange may list
options with strike prices of $52.50, $57.50, and $62.50 on the next
business day.
The current Program is set forth in Commentary .05 to Phlx Rule
1012. The Program permits the Exchange to list options with $2.50
strike price intervals for selected options trading at strike prices
greater than $25 but less than $50, excluding LEAPS. Initially adopted
in 1995 as a pilot program, the options exchanges at that time were
permitted to list options with $2.50 strike price intervals up to $50
on a total of up to 100 option classes.\6\ In 1998, the pilot program
was expanded and permanently approved to allow the options exchanges
collectively to select up to 200 option classes on which to list
options with $2.50 strike price intervals up to $50.\7\ Of the current
200 options classes eligible for the Program, 46 have been allocated to
Phlx.\8\ In addition, each options exchange is permitted to list
options with $2.50 strike price intervals on any option class that
another options exchange selects under its Program.
---------------------------------------------------------------------------
\6\ 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).
\7\ 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).
\8\ The Exchange notes that the allocation is not changed by
this proposal.
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The Exchange believes that the Program has created additional
trading opportunities for customers benefiting the marketplace. The
existence of $2.50 strike price intervals affords customers the ability
to more closely tailor investment strategies to the precise movement of
the underlying security. Accordingly, Phlx believes that the proposal
to expand the Program to allow the listing of options with $2.50 strike
price intervals for options with strike prices between $50 and $75
should further benefit customers and the market by providing greater
trading opportunities for those underlying stocks that have low
volatility and thus trade in a narrow range.
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act,\9\ in general, and furthers the objective of section
6(b)(5) of the Act,\10\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of change, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanism of a
free and open market and a national market system.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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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 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the Commission
may designate, it has become effective pursuant to section 19(b)(3)(A)
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\13\
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest.\15\ The Exchange has requested that
the Commission waive the 30-day pre-operative delay, and the Commission
hereby grants that request.\16\ The Commission believes that waiving
the 30-day pre-operative delay is consistent with the protection of
investors and in the public interest. This action will allow the
Exchange to immediately expand its Program to list options with $2.50
strike price intervals for options with strike prices between $50 and
$75. The Commission notes that it recently approved similar expansions
to the $2.50 Strike Price Programs of the Chicago Board Options
Exchange (``CBOE'') and the American Stock Exchange (``Amex'').\17\
These proposals were subject to a full notice-and-
[[Page 76097]]
comment period, and no negative comments were submitted. The Commission
does not believe that Phlx's proposal raises any novel issues.
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ In addition, Rule 19b-4(f)(6)(iii) requires that the
Exchange give the Commission 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 filing of the proposed rule change, or such shorter time as
designated by the Commission. The Commission has decided to waive
the five-day pre-filing notice requirement.
\16\ For the purposes only of waiving the 30-day pre-operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\17\ See Securities Exchange Act Release Nos. 52892 (December 5,
2005), 70 FR 73492 (December 12, 2005) (approving SR-CBOE-2005-39)
and 52893 (December 5, 2005), 70 FR 73488 (December 12, 2005)
(approving SR-Amex-2005-067).
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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 Act.
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-Phlx-2005-77 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 No. SR-Phlx-2005-77. 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, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of Phlx. 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-Phlx-005-77 and should be
submitted on or before January 12, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-7691 Filed 12-21-05; 8:45 am]
BILLING CODE 8010-01-P
