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]
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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 (https://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 (https://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
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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)
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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
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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 (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
wwhite on PROD1PC65 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–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
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DEPARTMENT OF STATE
[Public Notice 5220]
Shipping Coordinating Committee;
Notice of Meetings
19 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00165
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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
https://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
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]]>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]
-----------------------------------------------------------------------
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\
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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.
[[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.
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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.\18\
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\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.
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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 (https://
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 (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 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
