Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Expand Its $2.50 Strike Price Program, 76897-76899 [E5-7895]

Download as PDF Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices notification requirement is redundant and proposes to eliminate it. Finally, while the current rule does not provide a deadline for holding the annual shareholder meeting, Nasdaq proposes that the annual shareholder meeting must be held within one year of the end of the issuer’s fiscal year. Nasdaq believes that codifying this time frame would provide additional transparency to the annual meeting requirement. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of section 15A of the Act,9 in general, and with section 15A(b)(6) 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 trade, to remove impediments to a free and open market and a national market system, and, in general, to protect investors and the public interest. Nasdaq asserts that the proposed rule change is consistent with these requirements in that it will provide transparency to its annual shareholder meeting rule and eliminate an unnecessary notification requirement. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. wwhite on PROD1PC65 with NOTICES 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 Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change, as amended, or (B) Institute proceedings to determine whether the proposed rule change, as amended, should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2005–073 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. BILLING CODE 8010–01–P [Release No. 34–52986; File No. SR–PCX– 2005–137] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Expand Its $2.50 Strike Price Program December 20, 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 Pacific Exchange, Inc. All submissions should refer to File (‘‘PCX’’ or ‘‘Exchange’’), filed with the Number SR–NASD–2005–073. This file Securities and Exchange Commission number should be included on the (‘‘Commission’’) the proposed rule subject line if e-mail is used. To help the change as described in Items I and II Commission process and review your below, which Items have been prepared by PCX. On December 16, 2005, PCX comments more efficiently, please use only one method. The Commission will filed Amendment No. 1 to the proposed post all comments on the Commission’s rule change.3 The Exchange has filed the proposal as a ‘‘non-controversial’’ Internet Web site (http://www.sec.gov/ rule change pursuant to Section rules/sro.shtml). Copies of the 19(b)(3)(A) of the Act 4 and Rule 19b– submission, all subsequent 4(f)(6) thereunder,5 which renders it amendments, all written statements effective upon filing with the with respect to the proposed rule Commission. The Commission is change that are filed with the publishing this notice to solicit Commission, and all written comments on the proposed rule change, communications relating to the as amended, from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the provisions of 5 U.S.C. 552, will be PCX proposes to amend PCX Rule 6.4 available for inspection and copying in Commentary .03 governing the listing of the Commission’s Public Reference options with strike price intervals of Section, 100 F Street, NE., Washington, $2.50. Below is the text of the proposed DC 20549. Copies of such filing also will rule change. Proposed new language is be available for inspection and copying in italics; proposed deletions are in at the principal offices of the Exchange. [brackets]. All comments received will be posted * * * * * without change; the Commission does Rule 6.4. Series of Options Open for not edit personal identifying Trading information from submissions. You (a)–(e)—No change. should submit only information that Commentary .01–.02—No change. you wish to make available publicly. All submissions should refer to File 11 17 CFR 200.30–3(a)(12). Number SR–NASD–2005–073 and 1 15 U.S.C. 78s(b)(1). should be submitted on or before 2 17 CFR 240.19b–4. January 18, 2006. 3 Amendment No. 1 corrected an omission in the proposed rule text. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(6). U.S.C. 78o–3. 10 15 U.S.C. 78o–3(b)(6). 18:24 Dec 27, 2005 For the Commission, by the Division of Market Regulation, pursuant to delegated authority.11 Jonathan G. Katz, Secretary. [FR Doc. E5–7896 Filed 12–27–05; 8:45 am] SECURITIES AND EXCHANGE COMMISSION Electronic Comments 9 15 VerDate Aug<31>2005 Jkt 208001 76897 PO 00000 Frm 00163 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1 76898 Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices .03 The Exchange may select [a limited number]up to 43 classes of its listed options on individual stocks or Exchange-Traded Fund Shares for which the interval of strike prices will be $2.50 where the strike price is greater than $25 but less than [$50.] $75. The Exchange will list $2.50 strikes 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 on its primary market on the preceding day. 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 options. 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. .04–.07—No change. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, PCX 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 2. Statutory Basis wwhite on PROD1PC65 with NOTICES 1. Purpose PCX proposes to amend PCX Rule 6.4 Commentary .03 to allow the listing of options with $2.50 strike price intervals for options with strike prices between $50 and $75 on those option classes that have been selected as part of the $2.50 Strike Price Program (‘‘Program’’). PCX proposes to list options with $2.50 strike price intervals above $50 only if the new strike price is within $10 of the closing price of the underlying security on the previous trading day. Under the Program, initially adopted in 1995 as a joint program of the options exchanges, exchanges were permitted to list options with $2.50 strikes price intervals up to $50 on a total of 100 option classes.6 The Program was later 6 See Securities Exchange Act Release No. 35993 (July 19, 1995), 60 FR 38073 (July 25, 1995) VerDate Aug<31>2005 17:37 Dec 27, 2005 Jkt 208001 expanded and permanently approved in 1998 to allow the exchanges collectively to select up to 200 issues on which to list options with $2.50 strike price intervals up to $50.7 Of the 200 available issues, PCX has been allocated 43 issues. This proposal does not increase the number of issues that the PCX will be allocated under the Program. In addition to an allocation from the 200 issues, each exchange is also permitted to list options with $2.50 strike price intervals on any option class that another exchange selects as part of its Program. In addition, the Exchange proposes to amend PCX Rule 6.4 Commentary .03 to note that 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. PCX believes that the experiences over the past ten years of listing options series with strike prices at $2.50 intervals up to $50 have produced positive results.8 Specifically, this has stimulated customer interest by creating additional trading opportunities, by creating more flexibility in trading decisions, and by affording customers the ability to more closely tailor investment strategies to the precise movement of the underlying security. The proposal to expand the listing of options with $2.50 strike price intervals is intended to provide customers with greater flexibility in their investment choices for those stocks priced between $50 and $75. PCX represents that Options Price Reporting Authority has the capacity to accommodate the increase of series added pursuant to this rule change. The Exchange believes the proposed rule change 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 promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market (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 Telephone conversation between Glenn Gsell, Director, Regulation, PCX, and Theodore S. Venuti, Attorney, Division of Market Regulation, Commission, on December 20, 2005. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00164 Fmt 4703 Sfmt 4703 system, and, in general, to protect investors and the public interest. 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 Comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing 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. 11 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). 12 17 E:\FR\FM\28DEN1.SGM 28DEN1 Federal Register / Vol. 70, No. 248 / Wednesday, December 28, 2005 / Notices 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-andcomment period, and no negative comments were submitted. The Commission does not believe that PCX’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.18 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: 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 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 No. SR–PCX–2005–137 and should be submitted on or before January 18, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.19 Jonathan G. Katz, Secretary. [FR Doc. E5–7895 Filed 12–27–05; 8:45 am] BILLING CODE 8010–01–P 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–PCX–2005–137. 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 (http://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 wwhite on PROD1PC65 with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–PCX–2005–137 on the subject line. The Working Group on Radio Communications and Search and Rescue of the Subcommittee on Safety of Life at Sea will conduct open meetings at 1 P.M. on Friday January 5, 2006, at the Radio Technical Commission for Maritime Services, 1800 North Kent Street, Suite 1060, Arlington, VA 22209. The purpose of this meeting is to prepare for the Tenth Session of the International Maritime Organization (IMO) Subcommittee on Radiocommunications and Search and Rescue, which is scheduled for the week of March 6–10, 2006, at IMO headquarters in London, England. The primary matters to be considered are: —Maritime Safety Information for GMDSS —Development of a procedure for recognition of mobile satellite systems —Large passenger ship safety —Emergency radiocommunications, including false alerts and interference —Issues related to maritime security —Matters concerning Search and Rescue —Developments in maritime radiocommunication systems and technology 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). 18 For purpose of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers that period to commence on December 16, 2005, the date that PCX filed Amendment No. 1. VerDate Aug<31>2005 17:37 Dec 27, 2005 Jkt 208001 DEPARTMENT OF STATE [Public Notice 5220] Shipping Coordinating Committee; Notice of Meetings 19 17 PO 00000 CFR 200.30–3(a)(12). Frm 00165 Fmt 4703 Sfmt 4703 76899 —Planning for the 11th session of COMSAR Members of the public may attend these meetings up to the seating capacity of the room. Interested persons may seek information or by writing: Mr. Russell S. Levin, U.S. Coast Guard Headquarters, Commandant (CG–622), Room 6611, 2100 Second Street, SW., Washington, DC 20593–0001, by calling: (202) 267–1389, or by sending Internet electronic mail to rlevin@comdt.uscg.mil and viewing http://www.navcen.uscg.gov/ marcomms/imo/meetings.htm. Dated: December 16, 2005. Clay Diamond, Executive Secretary, Shipping Coordinating Committee, Department of State. [FR Doc. 05–24522 Filed 12–27–05; 8:45 am] BILLING CODE 4710–09–P DEPARTMENT OF STATE [Public Notice 5221] Shipping Coordinating Committee; Notice of Meeting The Shipping Coordinating Committee (SHC) through the Subcommittee on Standards of Training, Certification and Watchkeeping will conduct an open meeting at 9:30 A.M. on January 17, 2006. The meeting will be held in Room 6103 of the United States Coast Guard Headquarters Building, 2100 Second Street, SW., Washington, DC 20593–0001. The purpose of the meeting is to prepare for the 37th session of the International Maritime Organization (IMO) SubCommittee on Standards of Training and Watchkeeping (STW 37) to be held on January 23–27, 2006, at the IMO Headquarters in London, England. The primary matters to be considered include: —Measures to enhance maritime security, training and certification for ship, company and port facility security officers; —Unlawful practices associated with certificates of competency; —Large passenger ship safety; —Measures to prevent accidents with lifeboats; —Education and training requirements for fatigue prevention, mitigation, and management; —Training requirements for the control and management of ship’s ballast water and sediments; and —Development of competences for ratings. Please note that hard copies of documents associated with STW 37 will not be available at this meeting, the E:\FR\FM\28DEN1.SGM 28DEN1

Agencies

[Federal Register Volume 70, Number 248 (Wednesday, December 28, 2005)]
[Notices]
[Pages 76897-76899]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7895]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52986; File No. SR-PCX-2005-137]


Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change and 
Amendment No. 1 Thereto To Expand Its $2.50 Strike Price Program

December 20, 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 Pacific Exchange, Inc. (``PCX'' 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 PCX. On December 16, 2005, 
PCX filed Amendment No. 1 to the proposed rule change.\3\ The Exchange 
has filed the proposal as a ``non-controversial'' rule change pursuant 
to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(6) 
thereunder,\5\ which renders it effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change, as amended, from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 corrected an omission in the proposed rule 
text.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PCX proposes to amend PCX Rule 6.4 Commentary .03 governing the 
listing of options with strike price intervals of $2.50. Below is the 
text of the proposed rule change. Proposed new language is in italics; 
proposed deletions are in [brackets].
* * * * *

Rule 6.4. Series of Options Open for Trading

    (a)-(e)--No change.
    Commentary .01-.02--No change.

[[Page 76898]]

    .03 The Exchange may select [a limited number]up to 43 classes of 
its listed options on individual stocks or Exchange-Traded Fund Shares 
for which the interval of strike prices will be $2.50 where the strike 
price is greater than $25 but less than [$50.] $75. The Exchange will 
list $2.50 strikes 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 on its primary market on the preceding day. 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 options. 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.
    .04-.07--No change.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, PCX 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 proposes to amend PCX Rule 6.4 Commentary .03 to allow the 
listing of options with $2.50 strike price intervals for options with 
strike prices between $50 and $75 on those option classes that have 
been selected as part of the $2.50 Strike Price Program (``Program''). 
PCX proposes to list options with $2.50 strike price intervals above 
$50 only if the new strike price is within $10 of the closing price of 
the underlying security on the previous trading day.
    Under the Program, initially adopted in 1995 as a joint program of 
the options exchanges, exchanges were permitted to list options with 
$2.50 strikes price intervals up to $50 on a total of 100 option 
classes.\6\ The Program was later expanded and permanently approved in 
1998 to allow the exchanges collectively to select up to 200 issues on 
which to list options with $2.50 strike price intervals up to $50.\7\ 
Of the 200 available issues, PCX has been allocated 43 issues. This 
proposal does not increase the number of issues that the PCX will be 
allocated under the Program. In addition to an allocation from the 200 
issues, each exchange is also permitted to list options with $2.50 
strike price intervals on any option class that another exchange 
selects as part of its Program. In addition, the Exchange proposes to 
amend PCX Rule 6.4 Commentary .03 to note that 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    PCX believes that the experiences over the past ten years of 
listing options series with strike prices at $2.50 intervals up to $50 
have produced positive results.\8\ Specifically, this has stimulated 
customer interest by creating additional trading opportunities, by 
creating more flexibility in trading decisions, and by affording 
customers the ability to more closely tailor investment strategies to 
the precise movement of the underlying security. The proposal to expand 
the listing of options with $2.50 strike price intervals is intended to 
provide customers with greater flexibility in their investment choices 
for those stocks priced between $50 and $75. PCX represents that 
Options Price Reporting Authority has the capacity to accommodate the 
increase of series added pursuant to this rule change.
---------------------------------------------------------------------------

    \8\ Telephone conversation between Glenn Gsell, Director, 
Regulation, PCX, and Theodore S. Venuti, Attorney, Division of 
Market Regulation, Commission, on December 20, 2005.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change 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 promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition 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

    Comments on the proposed rule change were neither solicited nor 
received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing 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\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

[[Page 76899]]

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-comment period, and no 
negative comments were submitted. The Commission does not believe that 
PCX's proposal raises any novel issues.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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.\18\
---------------------------------------------------------------------------

    \18\ For purpose of calculating the 60-day period within which 
the Commission may summarily abrogate the proposed rule change under 
Section 19(b)(3)(C) of the Act, the Commission considers that period 
to commence on December 16, 2005, the date that PCX filed Amendment 
No. 1.
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-PCX-2005-137 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-PCX-2005-137. 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 (http://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 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 No. SR-PCX-2005-137 and should be 
submitted on or before January 18, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-7895 Filed 12-27-05; 8:45 am]
BILLING CODE 8010-01-P