Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend ISE Rule 803 To Provide for a Back-Up Primary Market Maker, 4949-4951 [E6-1087]
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Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices
of the Act,6 in general, and furthers the
objectives of Section 6(b)(4) of the Act,7
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
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 8 and Rule 19b–4(f)(2) 9 thereunder,
because it establishes or changes a due,
fee, or other charge imposed by the
Exchange. Accordingly, the proposal
will take effect upon filing with the
Commission. At any time within 60
days of the filing of such 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
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
cprice-sewell on PROD1PC66 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
Number SR–CBOE–2006–06 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–CBOE–2006–06. 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 CBOE. 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–2006–06 and should
be submitted on or before February 21,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–1089 Filed 1–27–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53164; File No. SR–ISE–
2005–50]
Self-Regulatory Organizations;
International Securities Exchange, Inc.;
Notice of Filing of a Proposed Rule
Change, and Amendment No. 1
Thereto, To Amend ISE Rule 803 To
Provide for a Back-Up Primary Market
Maker
January 20, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
4949
notice is hereby given that on October
14, 2005, the International Securities
Exchange, Inc. (‘‘Exchange’’ or ‘‘ISE’’)
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 ISE. On
January 12, 2006, the Exchange filed
Amendment No. 1 to the proposed rule
change.3 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
The Exchange is proposing to amend
ISE Rule 803 to provide for a Back-Up
Primary Market Maker and to correct an
inconsistency in the Exchange’s Rules.
The text of the proposed rule change, as
amended, is available on the ISE’s Web
site (https://www.iseoptions.com), at the
principal office of the ISE, 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, 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
ISE has prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to enhance
the ISE System to allow Competitive
Market Makers that are also Primary
Market Maker members on the Exchange
to voluntarily act as Back-Up Primary
Market Makers when the appointed
Primary Market Maker experiences
technical difficulties that interrupt its
participation in the market. According
to the Exchange, the ISE System will
automatically switch a Competitive
Market Maker quoting in the options
series to act as a Back-Up Primary
Market Maker when the appointed
Primary Market Maker stops quoting.
The ISE believes that this will reduce
6 15
7 15
VerDate Aug<31>2005
14:07 Jan 27, 2006
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Jkt 208001
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
3 Amendment No. 1, which replaced the original
filing in its entirety, made technical and clarifying
changes to the proposed rule change.
E:\FR\FM\30JAN1.SGM
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4950
Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices
cprice-sewell on PROD1PC66 with NOTICES
the number of non-firm quotes or ‘‘fast
market’’ states disseminated by the ISE
and allow for virtually seamless trading
even when a Primary Market Maker
experiences difficulties that cause it to
remove its quotes from the market.
Under the proposal, only Competitive
Market Maker members that are also
Primary Market Makers on the Exchange
will be eligible to be designated as a
Back-Up Primary Market Maker because
these members already have systems
built to assume all of the responsibilities
of a Primary Market Maker on the
Exchange, such as handling customer
orders when the away market has a
better price.4 The ISE System will
automatically switch back to the
appointed Primary Market Maker when
it re-establishes its quotes in the series,
but the Back-Up Primary Market Maker
will continue to be responsible for any
outstanding unexecuted orders it is
handling. A Back-Up Primary Market
Maker assumes all of the responsibilities
and privileges of a Primary Market
Maker under the ISE Rules with respect
to any series in which the appointed
Primary Market Maker fails to have a
quote in the ISE System.5
The Exchange also proposes to correct
an inconsistency in its rules. In April
2004, the Exchange received approval of
a rule change that allowed it to
disseminate a quotation for less than ten
contracts.6 Because the options
intermarket linkage plan and the
Exchange’s rules continued to require
the Exchange to guarantee that the Firm
Customer Quote Size (‘‘FCQS’’) and
Firm Principal Quote Size (‘‘FPQS’’)
would be at least 10 contracts, ISE Rule
803(c)(1) was amended to provide that
the Primary Market Maker had the
obligation to buy or sell the number of
contracts necessary to provide an
execution of at least 10 contracts to
incoming linkage orders when the
Exchange’s disseminated market
quotation was for less than 10 contracts.
In August 2004, the intermarket
linkage plan was amended to provide
that the 10 contract minimum FCQS and
FPQS does not apply when the
Exchange is disseminating a quotation
4 If there is more than one eligible member
quoting in the series, the ISE System will
automatically switch to the member with the largest
offer in the series.
5 A Competitive Market Maker does not become
subject to the requirement in ISE Rule 804(e)(1) to
enter continuous quotations in all of the series of
all of the options classes to which it is appointed,
as opposed to only 60% of the options classes
under ISE Rule 804(e)(2), by acting as a Back-Up
Primary Market Maker.
6 See Exchange Act Release No. 49602 (April 22,
2004), 69 FR 23841 (April 30, 2004) (the ‘‘Real Size
Filing’’).
VerDate Aug<31>2005
14:07 Jan 27, 2006
Jkt 208001
of fewer than 10 contracts.7 In October
2004, the Exchange, and all of the other
options exchanges, received approval
for changes to their linkage rules to
implement this change to the
intermarket linkage plan.8 Accordingly,
the Primary Market Maker no longer is
required to guarantee a minimum of 10
contracts to an incoming linkage order
when the Exchange’s disseminated
market quotation is for less than 10
contracts. However, the Exchange
neglected to remove the language in ISE
Rule 803(c)(1) at the time the changes to
the linkage rules were approved,
thereby creating an apparent
inconsistency in the ISE Rules. The
Exchange now proposes to delete the
language in ISE Rule 803(c)(1) as a
purely non-substantive clean-up to the
ISE Rules.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
consistent with section 6(b) of the Act,9
in general, and furthers the objectives of
section 6(b)(5) of the Act 10 in particular
because 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 in that it enhances the
Exchange’s ability to disseminate firm
quotes and removes an inconsistency
from its rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The ISE does not believe that the
proposed rule change, as amended, will
impose any 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
Written 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
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
7 See Exchange Act Release No. 50211 (Aug. 18,
2004), 69 FR 52050 (Aug. 24, 2004).
8 See Exchange Act Release Nos. 50562 (Oct. 19,
2004), 69 FR 62925 (Oct. 28, 2004) and 50587 (Oct.
25, 2004), 69 FR 63417 (Nov. 1, 2004).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00061
Fmt 4703
Sfmt 4703
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 Exchange 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.
Electronic Comments
• Use the Commission’s Internet
comment form at https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–ISE–2005–50 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–ISE–2005–50. 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 ISE. 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
E:\FR\FM\30JAN1.SGM
30JAN1
Federal Register / Vol. 71, No. 19 / Monday, January 30, 2006 / Notices
Number SR–ISE–2005–50 and should be
submitted by February 21, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–1087 Filed 1–27–06; 8:45 am]
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53151; File No. SR–OCC–
2005–21]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
Allocations Processing
January 19, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 13, 2004, The Options
Clearing Corporation (‘‘OCC’’) 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 primarily by OCC.
OCC filed the proposed rule change
pursuant to section 19(b)(3)(A) of the
Act 2 whereby the proposal was effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
cprice-sewell on PROD1PC66 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change adopts new
Rule 405, Allocations, to govern the
processing of post-trade allocation
instructions for commodity contracts
that are subject to the exclusive
jurisdiction of the Commodity Futures
Trading Commission (‘‘CFTC’’) that are
submitted by clearing members through
a new system OCC plans to install in
January 2006. The rule change also
makes conforming by-law and rule
changes, including the addition of
certain new definitions.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
OCC included statements concerning
the purpose of and basis for the
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(ii).
1 15
VerDate Aug<31>2005
14:07 Jan 27, 2006
Jkt 208001
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. OCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.3
OCC’s new allocation system will
permit the allocation of positions in
securities options, security futures,
commodity futures, and options on
futures. In order to permit use of the
allocation system, when installed, for
commodity contracts cleared by OCC
that are subject to the exclusive
jurisdiction of the CFTC, OCC is filing
the proposed rule change under section
19(b)(3)(A) for immediate effectiveness.
However, new Rule 405 includes
Interpretation and Policy .02 which
states that the system may not be used
for securities options or security futures
until the Commission has issued an
approval order with respect to Rule 405.
OCC filed a separate proposed rule
change under section 19(b)(2), File No.
SR–OCC–2005–22, that would adopt
Rule 405 for use in allocating positions
in contracts subject to the Commission’s
jurisdiction.4
OCC plans to provide clearing
members with a centralized system for
processing allocation or ‘‘give-up’’
instructions across all exchanges for
which OCC provides clearing services.
Allocations are post-trade instructions
entered by one clearing member (i.e., an
authorized ‘‘executing’’ or ‘‘giving-up’’
clearing member) that direct a
transaction or position to the account of
another clearing member (i.e., the
‘‘carrying’’ or ‘‘given-up’’ clearing
member). OCC’s centralized system will
enhance OCC’s service offerings and
will provide efficiencies to clearing
members.
Post-trade allocations of securities
options are currently processed through
OCC’s Clearing Member Trade
Assignment (‘‘CMTA’’) functionality,
which normally causes a transaction to
automatically be moved into an account
of the carrying clearing member so long
as the executing and carrying clearing
members have an effective CMTA
arrangement registered with OCC for the
exchange submitting the matching trade
3 The Commission has modified parts of these
statements.
4 If the Commission approves proposed rule
change SR–OCC–2005–22, OCC would delete
Interpretation and Policy .02.
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
4951
information for that transaction.5 Once
Rule 405 is approved by the
Commission for purposes of allocating
positions in securities options, clearing
members will be able to elect either to
continue to use the existing CMTA
system or to use the new allocation
system for securities options.
For most commodity futures cleared
through OCC, post-trade allocations are
currently processed through The
Clearing Corporation’s (‘‘CCorp’’) ‘‘giveup’’ system, which requires the givenup clearing member to affirmatively
accept a transaction.6 OCC’s allocation
system will enable clearing members to
process futures ‘‘give-ups’’ without
going through the CCorp system.
New Rule 405 will govern the
processing of allocation instructions and
will operate as follows. Transactions
will first clear in the designated account
of the giving-up clearing member.
Instructions to allocate positions may be
submitted either through an exchange’s
system for providing matching trade
information to OCC or through OCC’s
clearing system, ENCORE. In either
case, if the given-up and giving-up
clearing members are parties to an
allocation agreement that has been
registered with OCC, OCC will
automatically allocate the positions
resulting from an allocation instruction
to a designated account of the given-up
clearing member without further action
by the clearing members.7 If the clearing
members are not parties to a registered
allocation agreement, OCC will not
effect the allocation instruction until the
given-up clearing member gives OCC
notice of its affirmative acceptance of
the allocated positions. (In contrast, the
CMTA system does not allow for
acceptance of allocated positions
without a registered CMTA agreement.)
If the given-up clearing member does
not give OCC notice of such acceptance
by an OCC-specified deadline, the
allocation instruction will not be
processed, and the positions will remain
in the account of the giving-up clearing
member, which will remain obligated
on those positions.
A given-up clearing member will be
responsible for appropriately allocated
positions. Given-up positions are moved
to the given-up clearing member’s
account at the premium price in the
case of options or at the contract price
in the case of futures at which the
positions were established by the
executing clearing member. Positions
5 See
OCC Rule 403.
OCC Rule 404.
7 Unlike CMTAs, clearing members will not be
required to register their allocation arrangement by
exchange.
6 See
E:\FR\FM\30JAN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 19 (Monday, January 30, 2006)]
[Notices]
[Pages 4949-4951]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1087]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53164; File No. SR-ISE-2005-50]
Self-Regulatory Organizations; International Securities Exchange,
Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1
Thereto, To Amend ISE Rule 803 To Provide for a Back-Up Primary Market
Maker
January 20, 2006.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 14, 2005, the International Securities Exchange, Inc.
(``Exchange'' or ``ISE'') 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 ISE.
On January 12, 2006, the Exchange filed Amendment No. 1 to the proposed
rule change.\3\ 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, which replaced the original filing in its
entirety, made technical and clarifying changes to the proposed rule
change.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend ISE Rule 803 to provide for a
Back-Up Primary Market Maker and to correct an inconsistency in the
Exchange's Rules. The text of the proposed rule change, as amended, is
available on the ISE's Web site (https://www.iseoptions.com), at the
principal office of the ISE, 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, 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 ISE has prepared summaries, set forth in sections A,
B and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to enhance the ISE System to allow
Competitive Market Makers that are also Primary Market Maker members on
the Exchange to voluntarily act as Back-Up Primary Market Makers when
the appointed Primary Market Maker experiences technical difficulties
that interrupt its participation in the market. According to the
Exchange, the ISE System will automatically switch a Competitive Market
Maker quoting in the options series to act as a Back-Up Primary Market
Maker when the appointed Primary Market Maker stops quoting. The ISE
believes that this will reduce
[[Page 4950]]
the number of non-firm quotes or ``fast market'' states disseminated by
the ISE and allow for virtually seamless trading even when a Primary
Market Maker experiences difficulties that cause it to remove its
quotes from the market.
Under the proposal, only Competitive Market Maker members that are
also Primary Market Makers on the Exchange will be eligible to be
designated as a Back-Up Primary Market Maker because these members
already have systems built to assume all of the responsibilities of a
Primary Market Maker on the Exchange, such as handling customer orders
when the away market has a better price.\4\ The ISE System will
automatically switch back to the appointed Primary Market Maker when it
re-establishes its quotes in the series, but the Back-Up Primary Market
Maker will continue to be responsible for any outstanding unexecuted
orders it is handling. A Back-Up Primary Market Maker assumes all of
the responsibilities and privileges of a Primary Market Maker under the
ISE Rules with respect to any series in which the appointed Primary
Market Maker fails to have a quote in the ISE System.\5\
---------------------------------------------------------------------------
\4\ If there is more than one eligible member quoting in the
series, the ISE System will automatically switch to the member with
the largest offer in the series.
\5\ A Competitive Market Maker does not become subject to the
requirement in ISE Rule 804(e)(1) to enter continuous quotations in
all of the series of all of the options classes to which it is
appointed, as opposed to only 60% of the options classes under ISE
Rule 804(e)(2), by acting as a Back-Up Primary Market Maker.
---------------------------------------------------------------------------
The Exchange also proposes to correct an inconsistency in its
rules. In April 2004, the Exchange received approval of a rule change
that allowed it to disseminate a quotation for less than ten
contracts.\6\ Because the options intermarket linkage plan and the
Exchange's rules continued to require the Exchange to guarantee that
the Firm Customer Quote Size (``FCQS'') and Firm Principal Quote Size
(``FPQS'') would be at least 10 contracts, ISE Rule 803(c)(1) was
amended to provide that the Primary Market Maker had the obligation to
buy or sell the number of contracts necessary to provide an execution
of at least 10 contracts to incoming linkage orders when the Exchange's
disseminated market quotation was for less than 10 contracts.
---------------------------------------------------------------------------
\6\ See Exchange Act Release No. 49602 (April 22, 2004), 69 FR
23841 (April 30, 2004) (the ``Real Size Filing'').
---------------------------------------------------------------------------
In August 2004, the intermarket linkage plan was amended to provide
that the 10 contract minimum FCQS and FPQS does not apply when the
Exchange is disseminating a quotation of fewer than 10 contracts.\7\ In
October 2004, the Exchange, and all of the other options exchanges,
received approval for changes to their linkage rules to implement this
change to the intermarket linkage plan.\8\ Accordingly, the Primary
Market Maker no longer is required to guarantee a minimum of 10
contracts to an incoming linkage order when the Exchange's disseminated
market quotation is for less than 10 contracts. However, the Exchange
neglected to remove the language in ISE Rule 803(c)(1) at the time the
changes to the linkage rules were approved, thereby creating an
apparent inconsistency in the ISE Rules. The Exchange now proposes to
delete the language in ISE Rule 803(c)(1) as a purely non-substantive
clean-up to the ISE Rules.
---------------------------------------------------------------------------
\7\ See Exchange Act Release No. 50211 (Aug. 18, 2004), 69 FR
52050 (Aug. 24, 2004).
\8\ See Exchange Act Release Nos. 50562 (Oct. 19, 2004), 69 FR
62925 (Oct. 28, 2004) and 50587 (Oct. 25, 2004), 69 FR 63417 (Nov.
1, 2004).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change, as amended, is
consistent with section 6(b) of the Act,\9\ in general, and furthers
the objectives of section 6(b)(5) of the Act \10\ in particular because
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 in that it enhances the Exchange's
ability to disseminate firm quotes and removes an inconsistency from
its rules.
---------------------------------------------------------------------------
\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 ISE does not believe that the proposed rule change, as amended,
will impose any 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
Written 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
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 Exchange 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.
Electronic Comments
Use the Commission's Internet comment form at https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-ISE-2005-50 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-ISE-2005-50. 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 ISE. 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
[[Page 4951]]
Number SR-ISE-2005-50 and should be submitted by February 21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-1087 Filed 1-27-06; 8:45 am]
BILLING CODE 8010-01-P
