Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Increase the Options Marketing Fee Applicable to Certain Types of Equity Options, 10085-10086 [E6-2752]
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Federal Register / Vol. 71, No. 39 / Tuesday, February 28, 2006 / Notices
countries do not seem to have much
effect in developing countries. This
briefing will begin at 10 a.m. in the
Commission’s hearing room.
The second briefing will be presented
by Postal Service Headquarters
personnel. It will explain the impact of
extensive changes in the design of the
Service’s In-Office Cost System data
collection effort on the most recent
(fiscal year 2005) Cost and Revenue
Analysis. This briefing will begin at 2
p.m. in the Commission’s hearing room.
DATES: March 1, 2006.
ADDRESSES: Postal Rate Commission,
901 New York Ave., NW., Suite 200,
Washington, DC 20288–0001.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820.
Steven W. Williams,
Secretary.
[FR Doc. 06–1857 Filed 2–27–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
wwhite on PROD1PC65 with NOTICES
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Pub. L. 94–409, that the
Securities and Exchange Commission
will hold the following meeting during
the week of February 27, 2006:
A closed meeting will be held on
Thursday, March 2, 2006 at 2 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters may also be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (9)(B), and
(10) and 17 CFR 200.402(a)(3), (5), (6),
(7), 9(ii) and (10) permit consideration
of the scheduled matters at the closed
meeting.
Commissioner Atkins, as duty officer,
voted to consider the items listed for the
closed meeting in closed session.
The subject matter of the closed
meeting scheduled for Thursday, March
2, 2006 will be:
Formal orders of investigations;
Institution and settlement of injunctive
actions; and
Institution and settlement of
administrative proceedings of an
enforcement nature.
Jkt 208001
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53341; File No. SR–Amex–
2006–15]
February 21, 2006.
Notice of Meeting; Sunshine Act
17:06 Feb 27, 2006
Dated: February 23, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06–1906 Filed 2–24–06; 11:12 am]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change to Increase
the Options Marketing Fee Applicable
to Certain Types of Equity Options
BILLING CODE 7710–FW–M
VerDate Aug<31>2005
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
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 February
15, 2006, the American Stock Exchange
LLC (‘‘Amex’’ 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 Amex. The
Amex 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)(ii) of the Act 3 and
Rule 19–4(f)(2) 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 increase
the options marketing fee applicable to
certain equity options. The text of the
proposed rule change is available on the
Amex’s Web site at https://
www.amex.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
2 17
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
10085
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
Amex 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In June 2003, the Exchange re-instated
its options marketing fee of $0.40 per
contract on the transactions of
specialists and registered options
traders (‘‘ROTs’’) in equity options.5
Currently, the options marketing fee is
eligible to be assessed on all equity
options transactions (including options
on exchange-traded funds and trust
issued receipts). The Exchange now
proposes to amend the equity options
marketing fee to increase the fee from
the current level of $0.40 to $0.75 per
contract (except for SPDR options,
which will continue to remain subject to
the current fee level of $1.00 per
contract).6 The Exchange also proposes
to revise the equity options marketing
fee by limiting its assessment to
customer orders that are from payment
accepting firms with whom a specialist
has negotiated a payment for order flow
arrangement and that are executed
electronically (i.e., through the
Exchange’s ANTE system).7 The current
equity options marketing fee is assessed
on all executed customer orders
(whether electronically or manually
executed) of payment accepting firms.
This revision further limits the
assessment of the marketing fee to
electronic executions.
The Exchange represents that it has
no role with respect to the negotiations
between specialists and payment
accepting firms. The Exchange states
that it collects and administers the
payment of the fee collected on those
transactions for which the specialist has
5 See Securities Exchange Act Release No. 48053
(June 17, 2003), 68 FR 37880 (June 25, 2003).
6 See Securities Exchange Act Release No. 51685
(May 11, 2005), 70 FR 28587 (May 18, 2005).
7 Telephone conversation between Caroline
McCaffery, Assistant General Counsel, Amex, and
Hong Anh Tran, Special Counsel, Division of
Market Regulation, on February 17, 2006.
E:\FR\FM\28FEN1.SGM
28FEN1
10086
Federal Register / Vol. 71, No. 39 / Tuesday, February 28, 2006 / Notices
advised the Exchange that it has
negotiated with a payment accepting
firm to pay for the firm’s order flow.
Included in this general administrative
support, the Exchange tracks the
number of qualified orders sent by a
payment accepting firm, bills specialists
and ROTs through their clearing firms
and issues payments to payment
accepting firms to reflect the collection
and payment of the marketing fee. The
Exchange rebates to specialists and
ROTs, on a quarterly basis, the amount
of marketing fees collected that have not
been paid to order flow providers.
The Exchange further states that the
specialists are solely responsible, but
are not required, to negotiate payment
for order flow agreements with payment
accepting firms and are responsible for
any arrangements made with the
payment accepting firms. The
specialists will use the funds that are
collected from a particular post on the
Exchange to market for those specific
products traded at that particular post
on the Exchange. So long as it is within
the above described parameters, the
specific terms governing the orders that
qualify for payment and the amount of
any payments are determined by the
specialists in their discretion.
The Exchange asserts that the
proposal is equitable as required by
Section 6(b)(4) of the Act.8 In
connection with the revision to the
equity options marketing fee, the
Exchange notes that increasing the fee
from $0.40 to $0.75 per contract (except
for SPDR options, which will continue
to remain subject to the current fee level
of $1.00 per contract) and limiting
assessment to the electronic executions
of customer orders from payment
accepting firms is reasonable given the
competitive pressure to attract options
order flow. In addition, the Exchange
submits that those trading crowds that
benefit from a payment for order flow
arrangement negotiated by the specialist
should contribute to the success of the
particular products. Accordingly, the
Exchange believes that the proposal is
an equitable allocation of reasonable
fees among Exchange members.
2. Statutory Basis
wwhite on PROD1PC65 with NOTICES
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
8 Section 6(b)(4) of the Act, 15 U.S.C. 78f(b)(4),
states that the rules of a national securities
exchange provide for the equitable allocation of
reasonable dues, fees and other charges among its
members and issuers and other persons using its
facilities.
9 15 U.S.C. 78f(b).
VerDate Aug<31>2005
17:06 Feb 27, 2006
Jkt 208001
6(b)(4),10 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using
facilities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will not 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
The Exchange has neither solicited
nor received comments on the proposed
rule change. The Amex has not received
any unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,11 and
paragraph (f)(2) of Rule 19b–4
thereunder 12 because it establishes or
changes a due, fee, or other charge. 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
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:
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–Amex–2006–15 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A)(ii).
12 17 CFR 240.19b–4(f)(2).
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Amex–2006–15. 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 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–
2006–15 and should be submitted on or
before March 21, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–2752 Filed 2–27–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53342; File No. SR–CBOE–
2006–08]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Order Granting Accelerated Approval
of Proposed Rule Change Relating to
Volatility Indexes
February 21, 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
20, 2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
10 15
13 17
11 15
1 15
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
E:\FR\FM\28FEN1.SGM
28FEN1
]]>Agencies
[Federal Register Volume 71, Number 39 (Tuesday, February 28, 2006)]
[Notices]
[Pages 10085-10086]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2752]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53341; File No. SR-Amex-2006-15]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Increase the Options Marketing Fee Applicable to Certain Types of
Equity Options
February 21, 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 February 15, 2006, the American Stock Exchange LLC (``Amex'' 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 Amex. The Amex 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)(ii) of the Act \3\ and Rule 19-4(f)(2)
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to increase the options marketing fee
applicable to certain equity options. The text of the proposed rule
change is available on the Amex's Web site at https://www.amex.com, at
the principal office of the Exchange, 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 Amex 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
In June 2003, the Exchange re-instated its options marketing fee of
$0.40 per contract on the transactions of specialists and registered
options traders (``ROTs'') in equity options.\5\ Currently, the options
marketing fee is eligible to be assessed on all equity options
transactions (including options on exchange-traded funds and trust
issued receipts). The Exchange now proposes to amend the equity options
marketing fee to increase the fee from the current level of $0.40 to
$0.75 per contract (except for SPDR options, which will continue to
remain subject to the current fee level of $1.00 per contract).\6\ The
Exchange also proposes to revise the equity options marketing fee by
limiting its assessment to customer orders that are from payment
accepting firms with whom a specialist has negotiated a payment for
order flow arrangement and that are executed electronically (i.e.,
through the Exchange's ANTE system).\7\ The current equity options
marketing fee is assessed on all executed customer orders (whether
electronically or manually executed) of payment accepting firms. This
revision further limits the assessment of the marketing fee to
electronic executions.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 48053 (June 17,
2003), 68 FR 37880 (June 25, 2003).
\6\ See Securities Exchange Act Release No. 51685 (May 11,
2005), 70 FR 28587 (May 18, 2005).
\7\ Telephone conversation between Caroline McCaffery, Assistant
General Counsel, Amex, and Hong Anh Tran, Special Counsel, Division
of Market Regulation, on February 17, 2006.
---------------------------------------------------------------------------
The Exchange represents that it has no role with respect to the
negotiations between specialists and payment accepting firms. The
Exchange states that it collects and administers the payment of the fee
collected on those transactions for which the specialist has
[[Page 10086]]
advised the Exchange that it has negotiated with a payment accepting
firm to pay for the firm's order flow. Included in this general
administrative support, the Exchange tracks the number of qualified
orders sent by a payment accepting firm, bills specialists and ROTs
through their clearing firms and issues payments to payment accepting
firms to reflect the collection and payment of the marketing fee. The
Exchange rebates to specialists and ROTs, on a quarterly basis, the
amount of marketing fees collected that have not been paid to order
flow providers.
The Exchange further states that the specialists are solely
responsible, but are not required, to negotiate payment for order flow
agreements with payment accepting firms and are responsible for any
arrangements made with the payment accepting firms. The specialists
will use the funds that are collected from a particular post on the
Exchange to market for those specific products traded at that
particular post on the Exchange. So long as it is within the above
described parameters, the specific terms governing the orders that
qualify for payment and the amount of any payments are determined by
the specialists in their discretion.
The Exchange asserts that the proposal is equitable as required by
Section 6(b)(4) of the Act.\8\ In connection with the revision to the
equity options marketing fee, the Exchange notes that increasing the
fee from $0.40 to $0.75 per contract (except for SPDR options, which
will continue to remain subject to the current fee level of $1.00 per
contract) and limiting assessment to the electronic executions of
customer orders from payment accepting firms is reasonable given the
competitive pressure to attract options order flow. In addition, the
Exchange submits that those trading crowds that benefit from a payment
for order flow arrangement negotiated by the specialist should
contribute to the success of the particular products. Accordingly, the
Exchange believes that the proposal is an equitable allocation of
reasonable fees among Exchange members.
---------------------------------------------------------------------------
\8\ Section 6(b)(4) of the Act, 15 U.S.C. 78f(b)(4), states that
the rules of a national securities exchange provide for the
equitable allocation of reasonable dues, fees and other charges
among its members and issuers and other persons using its
facilities.
---------------------------------------------------------------------------
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),\10\ in particular, in that it is
designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and issuers and other persons
using facilities.
---------------------------------------------------------------------------
\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
The Exchange believes that the proposed rule change will not 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
The Exchange has neither solicited nor received comments on the
proposed rule change. The Amex has not received any unsolicited written
comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act,\11\ and paragraph (f)(2) of Rule
19b-4 thereunder \12\ because it establishes or changes a due, fee, or
other charge. 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 purposes of the Act.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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:
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-Amex-2006-15 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 20549-1090.
All submissions should refer to File Number SR-Amex-2006-15. 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 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-2006-15
and should be submitted on or before March 21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-2752 Filed 2-27-06; 8:45 am]
BILLING CODE 8010-01-P
