Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Its Boston Options Exchange Trading Rules Regarding the Extension of a Pilot Program That Increases the Standard Position and Exercise Limits for Certain Options Traded, 10573-10574 [E6-2817]
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Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53347; File No. SR–BSE–
2006–07]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to Its
Boston Options Exchange Trading
Rules Regarding the Extension of a
Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded
February 22, 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 Boston Stock Exchange,
Inc. (‘‘BSE’’ 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 BSE. The
Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
pursuant to section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it 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 BSE proposes to amend the rules
of the Boston Options Exchange
(‘‘BOX’’), an options trading facility of
the BSE, to extend its current pilot
program to increase the standard
position and exercise limits for equity
option contracts and options on the
Nasdaq-100 Index Tracking Stock
(‘‘QQQQ’’) (‘‘Pilot Program’’). The text
of the proposed rule change is available
on the BSE’s Web site (https://
www.bostonstock.com), at the BSE’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, the
BSE included statements concerning the
purpose of and basis for the proposed
rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The Exchange has
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Pilot Program provides for an
increase to the standard position and
exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
options and options on the QQQQ to the
following levels:
Current equity option contract limit 6
Pilot program equity option contract limit
13,500
22,500
31,500
160,000
75,000
25,000
50,000
75,000
200,000
250,000
Current QQQQ option contract limit
Pilot Program QQQQ option contract limit
300,000
900,000
The Exchange believes that extending
the Pilot Program for six months is
warranted due to positive feedback from
members and for the reasons cited in the
original rule filing that proposed the
adoption of the Pilot Program.7 In
addition, BOX has not encountered any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the BSE requests that the
Commission extend the Pilot Program
for an additional period of
approximately six months, through and
including September 1, 2006.
of the Act,8 in general, and furthers the
objective of section 6(b)(5) of the Act,9
in particular, in that it is designed to
promote just and equitable principles of
trade and to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition.
2. Statutory Basis
wwhite on PROD1PC61 with NOTICES
The Exchange believes that its
proposal is consistent with section 6(b)
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
5 The Pilot Program, which commenced on March
3, 2005, is set to expire on March 3, 2006. See
2 17
VerDate Aug<31>2005
10573
18:25 Feb 28, 2006
Jkt 208001
Securities Exchange Act Release Nos. 51317 (March
3, 2005), 70 FR 12254 (March 11, 2005) (notice of
filing and immediate effectiveness of File No. SR–
BSE–2005–10) (‘‘Pilot Program Notice’’). See also
Securities Exchange Act Release No. 52264 (August
15, 2005), 70 FR 48992 (August 22, 2005) (notice
of filing and immediate effectiveness of File No.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does
not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
SR–BSE–2005–37, which extended the Pilot
Program).
6 Except when the Pilot Program is in effect.
7 See Pilot Program Notice, supra note 5.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
E:\FR\FM\01MRN1.SGM
01MRN1
10574
Federal Register / Vol. 71, No. 40 / Wednesday, March 1, 2006 / Notices
Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
the Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the Act.
if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549. Copies of such filing will also
be available for inspection and copying
at the principal office of the BSE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File No.
SR–BSE–2006–07 and should be
submitted on or before March 22, 2006.
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Nancy M. Morris,
Secretary.
[FR Doc. E6–2817 Filed 2–28–06; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–BSE–2006–07 on the subject
line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BSE–2006–07. This file number
should be included on the subject line
wwhite on PROD1PC61 with NOTICES
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 Id.
14 For the purposes only of waiving the preoperative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
11 17
VerDate Aug<31>2005
18:25 Feb 28, 2006
Jkt 208001
BILLING CODE 8010–01–P
[Release No. 34–53348; File No. SR–CBOE–
2006–11]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to the Extension
of a Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded on the
Exchange
February 22, 2006.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00113
Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The CBOE proposes to extend an
existing pilot program that increases the
standard position and exercise limits for
certain options traded on the Exchange
(‘‘Pilot Program’’). The text of the
proposed rule change is available on the
CBOE’s Web site (https://
www.cboe.com), at the CBOE’s principal
office, and at the Commission’s Public
Reference Room.
Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
CBOE included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The Exchange has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Pilot Program, as previously
approved by the Commission, provides
for an increase to the standard position
and exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
3 15
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
31, 2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
PO 00000
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 as a ‘‘non-controversial’’
rule change pursuant to Section
19(b)(3)(A) of the Act 3 and Rule 19b–
4(f)(6) thereunder,4 which renders it
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Sfmt 4703
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The proposed extension is actually for six
months and ten days. The Pilot Program, which the
Commission approved for February 23, 2005, and
extended for an additional six months, is set to
expire on February 23, 2006. See Securities
Exchange Act Release No. 51244 (February 23,
2005) 70 FR 10010 (March 1, 2005) (order
approving SR–CBOE–2003–30, as amended) (‘‘Pilot
Program Order’’). See also Securities Exchange Act
Release No. 52262 (August 15, 2005), 70 FR 48995
(August 22, 2005) (order approving SR–CBOE–
2005–61).
4 17
E:\FR\FM\01MRN1.SGM
01MRN1
]]>Agencies
[Federal Register Volume 71, Number 40 (Wednesday, March 1, 2006)]
[Notices]
[Pages 10573-10574]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2817]
[[Page 10573]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53347; File No. SR-BSE-2006-07]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Its Boston Options Exchange Trading Rules Regarding the
Extension of a Pilot Program That Increases the Standard Position and
Exercise Limits for Certain Options Traded
February 22, 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 Boston Stock Exchange, Inc. (``BSE'' 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 BSE. The Exchange has
filed the proposal as a ``non-controversial'' rule change pursuant to
section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The BSE proposes to amend the rules of the Boston Options Exchange
(``BOX''), an options trading facility of the BSE, to extend its
current pilot program to increase the standard position and exercise
limits for equity option contracts and options on the Nasdaq-100 Index
Tracking Stock (``QQQQ'') (``Pilot Program''). The text of the proposed
rule change is available on the BSE's Web site (https://
www.bostonstock.com), at the BSE'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, the BSE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Pilot Program provides for an increase to the standard position
and exercise limits for equity option contracts and for options on
QQQQs for a six-month period.\5\ Specifically, the Pilot Program
increased the applicable position and exercise limits for equity
options and options on the QQQQ to the following levels:
---------------------------------------------------------------------------
\5\ The Pilot Program, which commenced on March 3, 2005, is set
to expire on March 3, 2006. See Securities Exchange Act Release Nos.
51317 (March 3, 2005), 70 FR 12254 (March 11, 2005) (notice of
filing and immediate effectiveness of File No. SR-BSE-2005-10)
(``Pilot Program Notice''). See also Securities Exchange Act Release
No. 52264 (August 15, 2005), 70 FR 48992 (August 22, 2005) (notice
of filing and immediate effectiveness of File No. SR-BSE-2005-37,
which extended the Pilot Program).
\6\ Except when the Pilot Program is in effect.
------------------------------------------------------------------------
Current equity option contract Pilot program equity option
limit \6\ contract limit
------------------------------------------------------------------------
13,500 25,000
22,500 50,000
31,500 75,000
160,000 200,000
75,000 250,000
------------------------------------------------------------------------
CurrenPilot Program QQQQ option contract
limit
------------------------------------------------------------------------
300,000 900,000
------------------------------------------------------------------------
The Exchange believes that extending the Pilot Program for six
months is warranted due to positive feedback from members and for the
reasons cited in the original rule filing that proposed the adoption of
the Pilot Program.\7\ In addition, BOX has not encountered any problems
or difficulties relating to the Pilot Program since its inception. For
these reasons, the BSE requests that the Commission extend the Pilot
Program for an additional period of approximately six months, through
and including September 1, 2006.
---------------------------------------------------------------------------
\7\ See Pilot Program Notice, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with section
6(b) of the Act,\8\ in general, and furthers the objective of section
6(b)(5) of the Act,\9\ in particular, in that it is designed to promote
just and equitable principles of trade and to protect investors and the
public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition.
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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the forgoing rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) become operative for 30 days
after the date of this filing, or such shorter time as the
[[Page 10574]]
Commission may designate, it has become effective pursuant to section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange provided the Commission
with written notice of its intent to file this proposed rule change at
least five business days prior to the date of filing the proposed rule
change. In addition, the Exchange has requested that the Commission
waive the 30-day pre-operative delay. The Commission believes that
waiving the 30-day pre-operative delay is consistent with the
protection of investors and in the public interest because it will
allow the Pilot Program to continue uninterrupted.\14\
---------------------------------------------------------------------------
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ Id.
\14\ For the purposes only of waiving the pre-operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the Act.
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 No. SR-BSE-2006-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BSE-2006-07. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing will also be available for
inspection and copying at the principal office of the BSE. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-BSE-2006-07 and should be
submitted on or before March 22, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-2817 Filed 2-28-06; 8:45 am]
BILLING CODE 8010-01-P
