Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change Seeking Permanent Approval of a Pilot Program Relating to Market-Maker Access to the Exchange's Hybrid Automatic Execution System, 11250-11251 [E6-3092]
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11250
Federal Register / Vol. 71, No. 43 / Monday, March 6, 2006 / Notices
Dated: March 1, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06–2122 Filed 3–2–06; 11:16 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53386; File No. SR–Amex–
2005–110]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Approving a Proposed Rule Change
Relating to Specialist Clerks
February 28, 2006.
On October 31, 2005, the American
Stock Exchange LLC (‘‘Amex’’ 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 proposal to amend Amex
Rule 184 to require specialists and
specialist units to employ an adequate
number of clerks to enable the specialist
unit to efficiently handle actual and
reasonably anticipated trading volume
in the specialist unit’s registered
securities. The proposed rule change
was published for comment in the
Federal Register on January 23, 2006.3
The Commission received no comments
regarding the proposal. This order
approves the proposed rule change.
After careful consideration, 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.4 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,5 which
requires, among other things, that the
rules of a national securities exchange
be designed to prevent fraudulent and
manipulative acts and practices, 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.
The Commission believes that the
proposed rule change, by requiring
specialists and specialist units to
hsrobinson on PROD1PC70 with NOTICES
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 53123
(January 13, 2006), 71 FR 3567.
4 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
5 15 U.S.C. 78f(b)(5).
2 17
VerDate Aug<31>2005
14:30 Mar 03, 2006
Jkt 208001
employ an adequate number of clerks, is
designed to help enable Exchange
specialists and specialist units to handle
efficiently the trading volume in the
specialist unit’s registered securities and
to meet their regulatory responsibilities
with respect to their specialist activities.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,6 that the
proposed rule change (SR–Amex–2005–
110) is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.7
Nancy M. Morris,
Secretary.
[FR Doc. E6–3112 Filed 3–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53377; File No. SR–CBOE–
2005–112]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Seeking
Permanent Approval of a Pilot Program
Relating to Market-Maker Access to the
Exchange’s Hybrid Automatic
Execution System
February 27, 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 December
30, 2005, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
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 make
permanent its pilot program in CBOE
Rule 6.13 relating to market-maker
(‘‘MM’’) access to the Exchange’s
automatic execution system. The text of
the proposed rule change is available on
the Exchange’s Web site (https://
www.cboe.com), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
6 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 17
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
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 those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
In July 2004, the Exchange
implemented on a pilot basis CBOE
Rule 6.13(b)(i)(C)(iii), which relates to
the frequency with which certain
market participants may submit orders
for automatic execution through the
Exchange’s Hybrid Trading System
(‘‘Hybrid’’).3 The Exchange has
subsequently extended the pilot
program, which expires on October 12,
2006, on two occasions.4 CBOE Rule
6.13(b)(i)(C)(iii) currently provides in
relevant part:
(iii) 15-Second Limitation: With
respect to orders eligible for submission
pursuant to paragraph (b)(i)(C)(ii),
members shall neither enter nor permit
the entry of multiple orders on the same
side of the market in an option class
within any 15-second period for an
account or accounts of the same
beneficial owner. The appropriate FPC
may shorten the duration of this 15second period by providing notice to the
membership via a Regulatory Circular
that is issued at least one day prior to
implementation. The effectiveness of
this rule shall terminate on October 12,
2006.
Upon approval of the pilot program,
the Exchange began allowing orders
from options exchange MMs to be
eligible for automatic execution, subject
to the 15-second limitation described
above.5 The Exchange believes that the
3 See Securities Exchange Act Release No. 50005
(July 12, 2004), 69 FR 43032 (July 19, 2004) (SR–
CBOE–2004–33) (approving the pilot program).
4 See Securities Exchange Act Release Nos. 51030
(January 12, 2005), 70 FR 3404 (January 24, 2005)
(SR–CBOE–2004–91) (extending the pilot program
until October 12, 2005); and 52494 (September 22,
2005), 70 FR 56943 (September 29, 2005) (SR–
CBOE–2005–70) (extending the pilot program until
October 12, 2006).
5 CBOE Rule 6.13(b)(i)(C)(ii) governs the
submission of orders from MMs (paragraph
E:\FR\FM\06MRN1.SGM
06MRN1
Federal Register / Vol. 71, No. 43 / Monday, March 6, 2006 / Notices
pilot program has been successful and
has helped to contribute to the
maintenance of efficient markets and to
attract MM volume to the Exchange.
Given this success, the Exchange is
requesting permanent approval of the
pilot program.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act 6
and the rules and regulations under the
Act applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 8 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and practices 9 and, in
general, 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 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 solicited
or received with respect to the proposed
rule change.
hsrobinson on PROD1PC70 with NOTICES
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
(C)(ii)(A)) and stock exchange specialists (paragraph
(C)(ii)(B)). It should be noted that, pursuant CBOE
Rule 6.13(b)(i)(C)(iii), the floor procedures
committees (‘‘FPCs’’) determined to shorten to 5
seconds (from 15 seconds) the period required
between entry of multiple market-maker orders
(including non-CBOE MM orders) on the same side
of the market in an option class for an account or
accounts of the same beneficial owner using
Hybrid. This change went into effect on July 18,
2005 and was announced to the membership via
Regulatory Circular RG05–61.
6 15 U.S.C. 78a et seq.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 At the request of the Exchange, the Commission
staff has added ‘‘and practices,’’ which was
inadvertently omitted from the proposed rule
change. Telephone conversation between Jennifer
M. Lamie, Managing Senior Attorney, CBOE, and
Kim M. Allen, Special Counsel, Division of Market
Regulation, Commission, on February 23, 2006.
VerDate Aug<31>2005
14:30 Mar 03, 2006
Jkt 208001
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, or
(B) Institute proceedings to determine
whether the proposed rule change
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 is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2005–112 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–CBOE–2005–112. 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.
Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–CBOE–2005–112 and
should be submitted on or before March
27, 2006.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
11251
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–3092 Filed 3–3–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53382; File No. SR–NYSE–
2005–77]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Order
Granting Approval of Proposed Rule
Change and Amendment Nos. 1, 3, and
5 Thereto and Notice of Filing and
Order Granting Accelerated Approval
to Amendment Nos. 6 and 8 Relating
to the NYSE’s Business Combination
With Archipelago Holdings, Inc.
February 27, 2006.
I. Introduction
On November 3, 2005, the New York
Stock Exchange, Inc. (‘‘NYSE’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934, as amended
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 a
proposed rule change relating to the
NYSE’s business combination with
Archipelago Holdings, Inc.
(‘‘Archipelago’’). On December 1, 2005,
the NYSE filed Amendment No. 1 to the
proposed rule change. The NYSE filed
Amendment No. 2 to the proposed rule
change on December 12, 2005, and
withdrew Amendment No. 2 on
December 12, 2005. On December 12,
2005, the NYSE filed Amendment No.
3.3 The NYSE filed Amendment No. 4
to the proposed rule change on
December 21, 2005, and withdrew
Amendment No. 4 on December 21,
2005. On December 21, 2005, the NYSE
filed Amendment No. 5.4 The proposed
rule change, as amended, was published
for comment in the Federal Register on
January 12, 2006.5 The Commission has
received 17 comments on the proposal.6
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(l).
2 17 CFR 240.19b–4.
3 See Form 19b–4 dated December 12, 2005
(‘‘Amendment No. 3’’). Amendment No. 3 replaced
Amendment No. 1 in its entirety.
4 See Partial Amendment dated December 21,
2005 (‘‘Amendment No. 5’’).
5 See Securities Exchange Act Release No. 53073
(January 6, 2006), 71 FR 2080 (‘‘Notice’’).
6 See letter from Michael Kanovitz, Attorney,
Loevy & Loevy, to Nancy Morris, Secretary,
Commission, dated February 2, 2006, with
attachments, including a statement from Lewis J.
1 15
E:\FR\FM\06MRN1.SGM
Continued
06MRN1
]]>Agencies
[Federal Register Volume 71, Number 43 (Monday, March 6, 2006)]
[Notices]
[Pages 11250-11251]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3092]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53377; File No. SR-CBOE-2005-112]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change Seeking
Permanent Approval of a Pilot Program Relating to Market-Maker Access
to the Exchange's Hybrid Automatic Execution System
February 27, 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 December 30, 2005, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to make permanent its pilot program in CBOE
Rule 6.13 relating to market-maker (``MM'') access to the Exchange's
automatic execution system. The text of the proposed rule change is
available on the Exchange's Web site (https://www.cboe.com), at the
Exchange's Office of the Secretary, 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 those 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 parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In July 2004, the Exchange implemented on a pilot basis CBOE Rule
6.13(b)(i)(C)(iii), which relates to the frequency with which certain
market participants may submit orders for automatic execution through
the Exchange's Hybrid Trading System (``Hybrid'').\3\ The Exchange has
subsequently extended the pilot program, which expires on October 12,
2006, on two occasions.\4\ CBOE Rule 6.13(b)(i)(C)(iii) currently
provides in relevant part:
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 50005 (July 12,
2004), 69 FR 43032 (July 19, 2004) (SR-CBOE-2004-33) (approving the
pilot program).
\4\ See Securities Exchange Act Release Nos. 51030 (January 12,
2005), 70 FR 3404 (January 24, 2005) (SR-CBOE-2004-91) (extending
the pilot program until October 12, 2005); and 52494 (September 22,
2005), 70 FR 56943 (September 29, 2005) (SR-CBOE-2005-70) (extending
the pilot program until October 12, 2006).
---------------------------------------------------------------------------
(iii) 15-Second Limitation: With respect to orders eligible for
submission pursuant to paragraph (b)(i)(C)(ii), members shall neither
enter nor permit the entry of multiple orders on the same side of the
market in an option class within any 15-second period for an account or
accounts of the same beneficial owner. The appropriate FPC may shorten
the duration of this 15-second period by providing notice to the
membership via a Regulatory Circular that is issued at least one day
prior to implementation. The effectiveness of this rule shall terminate
on October 12, 2006.
Upon approval of the pilot program, the Exchange began allowing
orders from options exchange MMs to be eligible for automatic
execution, subject to the 15-second limitation described above.\5\ The
Exchange believes that the
[[Page 11251]]
pilot program has been successful and has helped to contribute to the
maintenance of efficient markets and to attract MM volume to the
Exchange. Given this success, the Exchange is requesting permanent
approval of the pilot program.
---------------------------------------------------------------------------
\5\ CBOE Rule 6.13(b)(i)(C)(ii) governs the submission of orders
from MMs (paragraph (C)(ii)(A)) and stock exchange specialists
(paragraph (C)(ii)(B)). It should be noted that, pursuant CBOE Rule
6.13(b)(i)(C)(iii), the floor procedures committees (``FPCs'')
determined to shorten to 5 seconds (from 15 seconds) the period
required between entry of multiple market-maker orders (including
non-CBOE MM orders) on the same side of the market in an option
class for an account or accounts of the same beneficial owner using
Hybrid. This change went into effect on July 18, 2005 and was
announced to the membership via Regulatory Circular RG05-61.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act \6\ and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act.\7\ Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) \8\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and practices \9\ and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78a et seq.
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ At the request of the Exchange, the Commission staff has
added ``and practices,'' which was inadvertently omitted from the
proposed rule change. Telephone conversation between Jennifer M.
Lamie, Managing Senior Attorney, CBOE, and Kim M. Allen, Special
Counsel, Division of Market Regulation, Commission, on February 23,
2006.
---------------------------------------------------------------------------
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 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 solicited or received with respect to the
proposed rule change.
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, or
(B) Institute proceedings to determine whether the proposed rule
change 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 is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-CBOE-2005-112 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-CBOE-2005-112. 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. Copies of such filing
also will be available for inspection and copying at the principal
office of the Exchange. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-CBOE-2005-112 and should be submitted on or before March 27, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-3092 Filed 3-3-06; 8:45 am]
BILLING CODE 8010-01-P
