Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Extension of the Prospective Fee Reduction and DPM Linkage Fee Credit Programs, 957-958 [E6-22]
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Federal Register / Vol. 71, No. 4 / Friday, January 6, 2006 / Notices
proposed rule change is available on
CBOE’s Web site, https://www.cboe.com,
at CBOE’s principal office, and at the
Commission’s Public Reference Room.
should be submitted on or before
January 27, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jonathan G. Katz,
Secretary.
[FR Doc. E6–19 Filed 1–5–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53044; File No. SR–CBOE–
2005–114]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1
Thereto Relating to Extension of the
Prospective Fee Reduction and DPM
Linkage Fee Credit Programs
December 30, 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
16, 2005, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On December
22, 2005, CBOE filed Amendment No. 1
to the proposed rule change.3 CBOE has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A) of the Act,4 and Rule
19b–4(f)(2) thereunder,5 which renders
the proposal 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
cprice-sewell on PROD1PC66 with NOTICES
CBOE proposes to amend its Fees
Schedule to extend through January 31,
2006 the Prospective Fee Reduction
Program and the DPM Linkage Fees
Credit Program. The text of the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, CBOE deleted all
references to an extension of the Fixed Annual Fee
Program.
4 15 U.S.C. 78s(b)(3)(A).
5 17 CFR 240.19b–4(f)(2).
1 15
VerDate Aug<31>2005
15:23 Jan 05, 2006
Jkt 208001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposal.
The text of these statements may be
examined at the places specified in Item
IV below. The Exchange has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to extend two
Exchange-fee related programs through
the end of January 2006: The
Prospective Fee Reduction Program and
the DPM Linkage Fees Credit Program.6
Each program is currently due to expire
at the end of 2005. The Exchange has
determined to extend each of these
programs for an additional month
because the Exchange’s 2006 budget is
expected to be approved in January
2006.
Prospective Fee Reduction Program.
The Exchange proposes to continue the
Prospective Fee Reduction Program
(‘‘PFRP’’) through January 31, 2006. No
other changes to the PFRP are proposed.
The current PFRP took effect on August
1, 2004.7 The PFRP is intended to
reduce Market-Maker and DPM
transaction fees in periods of high
volume. The Exchange will determine
as part of its annual budget review
process whether the PFRP should be
continued, modified or eliminated in
the future. Any proposed changes to the
PFRP would be filed with the
Commission.
DPM Linkage Fees Credit Program.
The Exchange proposes to continue the
DPM Linkage Fees Credit Program
(‘‘Linkage Fees Credit’’) through January
31, 2006. No other changes to the
Linkage Fees Credit are proposed. The
Linkage Fees Credit took effect on
6 See Sections 19 and 21 of the CBOE Fees
Schedule, respectively.
7 See Securities Exchange Act Release No. 50175
(August 10, 2004), 69 FR 51129 (August 17, 2004)
(SR–CBOE–2004–38). See also Securities Exchange
Act Release No. 52111 (July 22, 2005), 70 FR 43729
(July 28, 2005) (SR–CBOE–2005–52) (extension of
PFRP through the end of 2005).
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
957
February 2, 2004 and was amended
twice.8 The Linkage Fees Credit is a
program that credits DPMs for
transaction fees they incur related to the
execution of outbound P/A orders, as
defined in the Plan for the Purpose of
Creating and Operating an Intermarket
Option Linkage, to assist DPMs in
offsetting the additional costs they incur
in routing orders to other exchanges in
order to obtain the National Best Bid or
Offer. The Exchange will determine as
part of its annual budget review process
whether the Linkage Fees Credit should
be continued, modified or eliminated in
the future. Any proposed changes to the
Linkage Fees Credit would be filed with
the Commission.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 9 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE believes that the proposed rule
change would impose no burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
CBOE did not solicit or receive any
written comments with respect to the
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 11 and Rule 19b–4(f)(2) 12
thereunder. Accordingly, the proposal is
effective upon filing with the
Commission. 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
8 See Securities Exchange Act Release Nos. 49341
(March 1, 2004), 69 FR 10492 (March 5, 2004) (SR–
CBOE–2004–08); 49769 (May 25, 2004), 69 FR
31145 (June 2, 2004) (SR–CBOE–2004–13); and
52660 (October 24, 2005), 70 FR 62355 (October 31,
2005) (SR–CBOE–2005–80).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
E:\FR\FM\06JAN1.SGM
06JAN1
958
Federal Register / Vol. 71, No. 4 / Friday, January 6, 2006 / Notices
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.13
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 rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–114 on the
subject line.
cprice-sewell on PROD1PC66 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–CBOE–2005–114. 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 Exchange. 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
13 The effective date of the original proposed rule
change is December 16, 2005, and the effective date
of Amendment No. 1 is December 22, 2005. For
purposes of calculating the 60-day period within
which the Commission may summarily abrogate the
proposed rule change, as amended, under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on December 22, 2005, the
date on which CBOE submitted Amendment No. 1.
See 15 U.S.C. 78s(b)(3)(C).
VerDate Aug<31>2005
15:23 Jan 05, 2006
Jkt 208001
submissions should refer to File
Number SR–CBOE–2005–114 and
should be submitted on or before
January 27, 2006.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jonathan G. Katz,
Secretary.
[FR Doc. E6–22 Filed 1–5–06; 8:45 am]
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53045; File No. SR–PCX–
2005–132]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Obligations of
Lead Market Makers
December 30, 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
30, 2005, the Pacific Exchange, Inc.
(‘‘Exchange’’ or ‘‘PCX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
The Exchange filed the proposed rule
change as a ‘‘non-controversial’’ rule
change under Rule 19b–4(f)(6) under the
Act,3 which rendered the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to delete PCX
Rule 6.82(c)(15) in its entirety. The
Exchange also proposes to amend
Commentary .02 to PCX Rule 6.82. The
text of the proposed rule change is
available on PCX’s Web site, https://
www.pacificex.com, at PCX’s Office of
the Secretary, and at the Commission’s
Public Reference Section.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00055
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to delete
PCX Rule 6.82(c)(15), a sub–paragraph
of Obligations of Lead Market Makers.
Along with the deletion of PCX Rule
6.82(c)(15), the PCX proposes to amend
Commentary .02 to PCX Rule 6.82,
which addresses PCX Rule 6.82(c)(15).
This rule, dealing with the handling of
public customer orders that are not
automatically executed on the PCX
because there is a better-displayed bid
or offer on another exchange, is
scheduled to be operative on January 1,
2006.
Under PCX Rule 6.82(c)(15), when a
public customer order is not
automatically executed on the PCX due
to a better bid or ask price being
displayed on another exchange, a Lead
Market Maker (‘‘LMM’’) is obligated, as
soon as practical, to address the order
by either executing the public customer
order at a price that matches the best
available price displayed at any other
exchange or by routing the public
customer order via intermarket linkage
(‘‘Linkage’’) for execution at any other
exchange displaying the best price in
the market at the time. Outbound
Linkage orders on the PCX are still
handled via manual interaction with the
Linkage system. Manual interaction
with the Linkage system can be a time
consuming process that potentially
could result in the delay of a public
customer order being executed at a
better price available at a competing
exchange. By deleting PCX Rule
6.82(c)(15), in the event that an LMM
does not execute the order at the better
price displayed on another exchange,
the LMM would not be required to send
the order to the competing exchange via
Linkage. Public customer orders that are
not executed on the PCX could still be
E:\FR\FM\06JAN1.SGM
06JAN1
]]>Agencies
[Federal Register Volume 71, Number 4 (Friday, January 6, 2006)]
[Notices]
[Pages 957-958]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53044; File No. SR-CBOE-2005-114]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto Relating to Extension of the
Prospective Fee Reduction and DPM Linkage Fee Credit Programs
December 30, 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 16, 2005, the Chicago Board Options Exchange, Incorporated
(``CBOE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. On December 22, 2005, CBOE filed Amendment No. 1 to the
proposed rule change.\3\ CBOE has designated this proposal as one
establishing or changing a due, fee, or other charge imposed by a self-
regulatory organization pursuant to Section 19(b)(3)(A) of the Act,\4\
and Rule 19b-4(f)(2) thereunder,\5\ which renders the proposal
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\ In Amendment No. 1, CBOE deleted all references to an
extension of the Fixed Annual Fee Program.
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to amend its Fees Schedule to extend through January
31, 2006 the Prospective Fee Reduction Program and the DPM Linkage Fees
Credit Program. The text of the proposed rule change is available on
CBOE's Web site, https://www.cboe.com, at CBOE's principal office, and
at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposal. The text of these
statements may be examined at the places specified in Item IV below.
The Exchange has prepared summaries, set forth in sections A, B, and C
below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to extend two Exchange-fee related programs
through the end of January 2006: The Prospective Fee Reduction Program
and the DPM Linkage Fees Credit Program.\6\ Each program is currently
due to expire at the end of 2005. The Exchange has determined to extend
each of these programs for an additional month because the Exchange's
2006 budget is expected to be approved in January 2006.
---------------------------------------------------------------------------
\6\ See Sections 19 and 21 of the CBOE Fees Schedule,
respectively.
---------------------------------------------------------------------------
Prospective Fee Reduction Program. The Exchange proposes to
continue the Prospective Fee Reduction Program (``PFRP'') through
January 31, 2006. No other changes to the PFRP are proposed. The
current PFRP took effect on August 1, 2004.\7\ The PFRP is intended to
reduce Market-Maker and DPM transaction fees in periods of high volume.
The Exchange will determine as part of its annual budget review process
whether the PFRP should be continued, modified or eliminated in the
future. Any proposed changes to the PFRP would be filed with the
Commission.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 50175 (August 10,
2004), 69 FR 51129 (August 17, 2004) (SR-CBOE-2004-38). See also
Securities Exchange Act Release No. 52111 (July 22, 2005), 70 FR
43729 (July 28, 2005) (SR-CBOE-2005-52) (extension of PFRP through
the end of 2005).
---------------------------------------------------------------------------
DPM Linkage Fees Credit Program. The Exchange proposes to continue
the DPM Linkage Fees Credit Program (``Linkage Fees Credit'') through
January 31, 2006. No other changes to the Linkage Fees Credit are
proposed. The Linkage Fees Credit took effect on February 2, 2004 and
was amended twice.\8\ The Linkage Fees Credit is a program that credits
DPMs for transaction fees they incur related to the execution of
outbound P/A orders, as defined in the Plan for the Purpose of Creating
and Operating an Intermarket Option Linkage, to assist DPMs in
offsetting the additional costs they incur in routing orders to other
exchanges in order to obtain the National Best Bid or Offer. The
Exchange will determine as part of its annual budget review process
whether the Linkage Fees Credit should be continued, modified or
eliminated in the future. Any proposed changes to the Linkage Fees
Credit would be filed with the Commission.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release Nos. 49341 (March 1,
2004), 69 FR 10492 (March 5, 2004) (SR-CBOE-2004-08); 49769 (May 25,
2004), 69 FR 31145 (June 2, 2004) (SR-CBOE-2004-13); and 52660
(October 24, 2005), 70 FR 62355 (October 31, 2005) (SR-CBOE-2005-
80).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \9\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \10\ in particular, in that it
is designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE believes that the proposed rule change would impose no burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
CBOE did not solicit or receive any written comments with respect
to the proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \11\ and Rule
19b-4(f)(2) \12\ thereunder. Accordingly, the proposal is effective
upon filing with the Commission. 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
[[Page 958]]
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the Act.\13\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
\13\ The effective date of the original proposed rule change is
December 16, 2005, and the effective date of Amendment No. 1 is
December 22, 2005. For purposes of calculating the 60-day period
within which the Commission may summarily abrogate the proposed rule
change, as amended, under Section 19(b)(3)(C) of the Act, the
Commission considers the period to commence on December 22, 2005,
the date on which CBOE submitted Amendment No. 1. See 15 U.S.C.
78s(b)(3)(C).
---------------------------------------------------------------------------
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 Number SR-CBOE-2005-114 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street NE., Washington, DC 20549-9303.
All submissions should refer to File Number SR-CBOE-2005-114. 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 Exchange. 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-CBOE-2005-114 and should be submitted on or before
January 27, 2006.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
Jonathan G. Katz,
Secretary.
[FR Doc. E6-22 Filed 1-5-06; 8:45 am]
BILLING CODE 8010-01-P
