Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change and Amendment No. 1 Thereto Requiring Exchange Members To Provide Electronic Mail Addresses to the Exchange, 3137-3138 [E6-516]

Download as PDF Federal Register / Vol. 71, No. 12 / Thursday, January 19, 2006 / Notices C. Listing and Trading The Commission finds that the Exchange’s proposed rules and procedures for the listing and trading of the proposed Shares are consistent with the Act. Shares will trade as equity securities subject to Amex rules including, among others, rules governing priority, parity and precedence of orders, specialist responsibilities, account opening and customer suitability requirements. The Commission believes that the listing and delisting criteria for the Shares should help to maintain a minimum level of liquidity and therefore minimize the potential for manipulation of the Shares. Finally, the Commission notes that the Information Circular the Exchange will distribute will inform members and member organizations about the terms, characteristics and risks in trading the Shares, including their prospectus delivery obligations. sroberts on PROD1PC70 with NOTICES D. Accelerated Approval of the Proposed Rule Change, as Amended by Amendment Nos. 1 and 2 Thereto, and Accelerated Approval of Amendment Nos. 3 and 4 Thereto The Commission finds good cause for approving the proposed rule change, as amended by Amendment Nos. 1 and 2, prior to the 30th day after the date of publication of the notice of filing thereof in the Federal Register. The Exchange has requested the Commission to approve the proposal, as amended by Amendment Nos. 1 and 2, on an accelerated basis, after a 15-day comment period, to enable investors to begin trading the Shares promptly. The Commission notes that the proposed rule change, as amended by Amendment Nos. 1 and 2, was noticed for a 15-day comment period and no comments were received. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,35 to approve the proposal, as amended by Amendment Nos. 1 and 2, on an accelerated basis. The Commission finds good cause for approving Amendment Nos. 3 and 4 to the proposed rule change prior to the 30th day after the date of publication of the notice of filing thereof in the Federal Register. The Exchange has requested the Commission to approve Amendment Nos. 3 and 4 36 on an accelerated basis so that approval of the proposal is not unnecessarily delayed. 35 15 U.S.C. 78s(b)(2). conversation between Jeffrey Burns, Associate General Counsel, Amex, and Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on January 11, 2006 (requested accelerated approval of Amendment No. 4). 36 Telephone VerDate Aug<31>2005 16:38 Jan 18, 2006 Jkt 208001 In Amendment No. 3, the Exchange made clarifying changes to the purpose section regarding adjustments to the Index, specifically indicating the Index Sponsor will use the prior day’s futures price or, in exceptional cases, the ‘‘fair value’’ price if futures prices are not available. In addition, the Exchange stated that it would submit a rule filing pursuant to Section 19(b) of the Exchange Act if the use of a prior day’s price or ‘‘fair value’’ pricing for an Index commodity or commodities is more than of a temporary nature or if a successor or substitute Index is used by the Managing Owner. Amendment No. 4 clarifies that the Index value will be disseminated through one or more major market data vendors at least every 15 seconds during the time the Shares trade on Amex. The Commission notes that the changes contained in Amendment Nos. 3 and 4 are necessary to clarify the proposal. Accordingly, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,37 to approve Amendment Nos. 3 and 4 on an accelerated basis. XIV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether Amendment Nos. 3 and 4 are 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 rulecomments@sec.gov. Please include File Number SR–Amex–2005–059 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–Amex–2005–059. 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. Copies of such filing also will be available for inspection and copying at the principal office of the Amex. 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–Amex–2005–059 and should be submitted on or before February 9, 2006. XV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act that the proposed rule change (SR–Amex–2005– 059), as amended by Amendment Nos. 1 and 2, is approved on an accelerated basis and that Amendment Nos. 3 and 4 thereto are approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.38 Nancy M. Morris, Secretary. [FR Doc. E6–515 Filed 1–18–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53102; File No. SR–BSE– 2005–48] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order Granting Approval of a Proposed Rule Change and Amendment No. 1 Thereto Requiring Exchange Members To Provide Electronic Mail Addresses to the Exchange January 11, 2006. On October 28, 2005, the Boston Stock Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to require its members to provide 38 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 37 Id. PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 3137 E:\FR\FM\19JAN1.SGM 19JAN1 3138 Federal Register / Vol. 71, No. 12 / Thursday, January 19, 2006 / Notices sroberts on PROD1PC70 with NOTICES electronic mail addresses to the Exchange. On November 23, 2005, the Exchange filed Amendment No. 1 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on December 12, 2005.4 The Commission received no comments on the proposal. This order approves the proposed rule change, as amended. Proposed Section 1(o) of Chapter XXV of BSE’s rules provides that every member and member organization shall designate one or more electronic mail addresses for the purpose of receiving Exchange notices and communications and shall promptly update those electronic mail addresses when those addresses change or are no longer valid. In addition, proposed Section 1(o) of Chapter XXV provides that an authorized representative of the Exchange may elect to transmit notices or other communications to members and member organizations electronically, but that nothing in Section 1(o) of Chapter XXV shall be construed to supersede or modify either the method for service of process or other materials in any disciplinary proceeding or any other provisions of the Exchange rules setting out a specific method for the receipt of information from the Exchange. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.5 The Commission believes that the proposed rule change, as amended, is consistent with Section 6(b) of the Act,6 in general, and furthers the objectives of Section 6(b)(5) of the Act,7 in particular, in that it promotes just and equitable principles of trade, serves to remove impediments to and perfect the mechanism of a free and open market and a national market system, and protects investors and the public interest by allowing the Exchange to take advantage of available technology to communicate with its members in an efficient and cost-effective manner. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,8 that the 3 In Amendment No. 1, BSE made clarifying changes to its statement of purpose for the proposed rule change. 4 Securities Exchange Act Release No. 52895 (December 5, 2005), 70 FR 73490 (December 12, 2005) (SR–BSE–2005–48). 5 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(2). VerDate Aug<31>2005 16:38 Jan 18, 2006 Jkt 208001 proposed rule change (SR–BSE–2005– 48), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Nancy M. Morris, Secretary. [FR Doc. E6–516 Filed 1–18–06; 8:45 am] BILLING CODE 8010–01–P office of the Exchange, and at the Commission’s Public Reference Room. The text of the proposed rule change is also set forth below. Proposed new language is italicized; deletions are in [brackets]. Rule 6.45A. Priority and Allocation of Equity Option Trades on the CBOE Hybrid System * SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53101; File No. SR–CBOE– 2006–03] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Matching Algorithm Possibilities for Equity Options To Match Those Available for Index Options January 11, 2006. 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 January 9, 2006, 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 and II below, which Items have been prepared by the CBOE. The Exchange has filed the proposal pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b– 4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to expand the matching algorithm possibilities for equity options to match those available for index options. The Exchange has designated this proposal as noncontroversial and has requested that the Commission waive the 30-day preoperative waiting period contained in Rule 19b–4(f)(6)(iii) under the Act.5 The text of the proposed rule change is available on the Exchange’s Web site (http://www.cboe.com), at the principal 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 5 17 CFR 240.19b–4(f)(6)(iii). 1 15 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 * * * * (a) Allocation of Incoming Electronic Orders: [The Exchange shall apply, for each class of options, the following rules of trading priority.] The appropriate Exchange procedures committee will determine to apply, for each class of options, one of the following rules of trading priority described in paragraphs (i) or (ii). The Exchange will issue a Regulatory Circular periodically specifying which priority rules will govern which classes of options any time the appropriate Exchange committee changes the priority. (i) Ultimate Matching Algorithm (‘‘UMA’’): No change. (A) Priority of Orders in the Electronic Book—No Change. (ii) Price-Time or Pro-Rata Priority Price-Time Priority: Under this method, resting quotes and orders in the book are prioritized according to price and time. If there are two or more quotes or orders at the best price then priority is afforded among these quotes or orders in the order in which they were received by the Hybrid System; or Pro-Rata Priority: Under this method, resting quotes and orders in the book are prioritized according to price. If there are two or more quotes or orders at the best price then trades are allocated proportionally according to size (in a pro-rata fashion). The executable quantity is allocated to the nearest whole number, with fractions 1⁄2 or greater rounded up and fractions less than 1⁄2 rounded down. If there are two market participants that both are entitled to an additional 1⁄2 contract and there is only one contract remaining to be distributed, the additional contract will be distributed to the market participant whose quote or order has time priority. Additional Priority Overlays Applicable to Price-Time or Pro-Rata Priority Methods In addition to the base allocation methodologies set forth above, the appropriate Exchange procedures committee may determine to apply, on a class-by-class basis, one or more of the following designated market participant overlay priorities in a sequence determined by the appropriate Exchange procedures committee. The E:\FR\FM\19JAN1.SGM 19JAN1

Agencies

[Federal Register Volume 71, Number 12 (Thursday, January 19, 2006)]
[Notices]
[Pages 3137-3138]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-516]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53102; File No. SR-BSE-2005-48]


Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Order 
Granting Approval of a Proposed Rule Change and Amendment No. 1 Thereto 
Requiring Exchange Members To Provide Electronic Mail Addresses to the 
Exchange

 January 11, 2006.
    On October 28, 2005, the Boston Stock Exchange, Inc. (``BSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to require its members to provide

[[Page 3138]]

electronic mail addresses to the Exchange. On November 23, 2005, the 
Exchange filed Amendment No. 1 to the proposed rule change.\3\ The 
proposed rule change, as amended, was published for comment in the 
Federal Register on December 12, 2005.\4\ The Commission received no 
comments on the proposal. This order approves the proposed rule change, 
as amended.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, BSE made clarifying changes to its 
statement of purpose for the proposed rule change.
    \4\ Securities Exchange Act Release No. 52895 (December 5, 
2005), 70 FR 73490 (December 12, 2005) (SR-BSE-2005-48).
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    Proposed Section 1(o) of Chapter XXV of BSE's rules provides that 
every member and member organization shall designate one or more 
electronic mail addresses for the purpose of receiving Exchange notices 
and communications and shall promptly update those electronic mail 
addresses when those addresses change or are no longer valid. In 
addition, proposed Section 1(o) of Chapter XXV provides that an 
authorized representative of the Exchange may elect to transmit notices 
or other communications to members and member organizations 
electronically, but that nothing in Section 1(o) of Chapter XXV shall 
be construed to supersede or modify either the method for service of 
process or other materials in any disciplinary proceeding or any other 
provisions of the Exchange rules setting out a specific method for the 
receipt of information from the Exchange.
    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\5\ The 
Commission believes that the proposed rule change, as amended, is 
consistent with Section 6(b) of the Act,\6\ in general, and furthers 
the objectives of Section 6(b)(5) of the Act,\7\ in particular, in that 
it promotes just and equitable principles of trade, serves to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and protects investors and the public 
interest by allowing the Exchange to take advantage of available 
technology to communicate with its members in an efficient and cost-
effective manner.
---------------------------------------------------------------------------

    \5\ In approving this proposal, the Commission has considered 
the proposed rule's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-BSE-2005-48), as amended, is 
approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
 [FR Doc. E6-516 Filed 1-18-06; 8:45 am]
BILLING CODE 8010-01-P