Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of Time for Exercising Expiring Options and Submitting Contrary Exercise Advices, 15229-15231 [E6-4343]
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Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
License Nos. DPR–51 & NPF–6
1448 S. R. 333
Russellville, AR 72802
M. R. Blevins
Senior Vice President and Chief Nuclear
Officer
TXU Generation Company, LP
Comanche Peak Steam Electric Station,
Units 1 & 2
Docket Nos. 50–445 & 50–446
License Nos. NPF–87 & NPF–89
5 Miles North of Glen Rose
Glen Rose, TX 76043
Mr. Randall K. Edington
Vice President—Nuclear and CNO
Nebraska Public Power District
Cooper Nuclear Station
Docket No. 50–298
License No. DPR–46
1200 Prospect Road
Brownville, NE 68321
Mr. George A. Williams
GGNS Vice President, Operations
Entergy Operations, Inc.
Grand Gulf Nuclear Station, Unit 1
Docket No. 50–416
License No. NPF–29
7003 Bald Hill Road-Waterloo Road
Port Gibson, MS 39150
Mr. Paul D. Hinnenkamp
Vice President—Operations
Entergy Operations, Inc.
River Bend Station, Unit 1
Docket No. 50–458
License No. NPF–47
5485 U.S. Highway 61N
St. Francisville, LA 70775
Mr. James J. Sheppard
President & Chief Executive Officer
South Texas Nuclear Operating Company
South Texas Project, Units 1 & 2
Docket Nos. 50–498 & 50–499
License Nos. NPF–76 & NPF–80
8 Miles West of Wadsworth, on FM 521
Wadsworth, TX 77483
Mr. Joseph E. Venable
Vice President Operations
Entergy Operations, Inc.
Waterford Steam Electric Generating Station,
Unit 3
Docket No. 50–382
License No. NPF–38
17265 River Road
Killona, LA 70057–3093
Mr. Charles D. Naslund
Senior Vice President & Chief Nuclear Officer
Union Electric Company
Callaway Plant, Unit 1
Docket No. 50–483
License No. NPF–30
Junction Hwy CC & Hwy O: 5 Miles North
of Hwy 94
Portland, MO 65067
Mr. John S. Keenan
Senior Vice President, Generation and Chief
Nuclear Officer
Pacific Gas and Electric Company
Diablo Canyon Nuclear Power Plant,
Units 1 & 2
Docket Nos. 50–275 & 50–323
License Nos. DPR–80 & DPR–82
77 Beale Street, Mail Code B32
San Francisco, CA 94105
Mr. R. T. Ridenoure
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18:19 Mar 24, 2006
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Vice President—Chief Nuclear Officer
Omaha Public Power District
Fort Calhoun Station, Unit 1
Docket No. 50–285
License No. DPR–40
Fort Calhoun Station Administration
Building 9750 Power Lane
Blair, NE 68008
Mr. James M. Levine
Executive Vice President, Generation
Arizona Public Service Company
Palo Verde Nuclear Generating Station, Units
1, 2 and 3
Docket Nos. 50–528, 50–529 & 50–530
License Nos. NPF–41, NPF–51 & NPF–74
5801 S. Wintersburg Road
Tonopah, AZ 85354–7529
Mr. Richard M. Rosenblum
Chief Nuclear Officer
Southern California Edison Company
San Onofre Nuclear Station, Units 2 & 3
Docket Nos. 50–361 & 50–362
License Nos. NPF–10 & NPF–15
5000 Pacific Coast Highway
San Clemente, CA 92674
Mr. J. V. Parrish
Chief Executive Officer
Energy Northwest
Columbia Generating Station
Docket No. 50–397
License No. NPF–21
Snake River Warehouse
North Power Plant Loop
Richland, WA 99352
Mr. Rick A. Muench
President & Chief Executive Officer
Wolf Creek Nuclear Operating Corporation
Wolf Creek Generating Station, Unit 1
Docket No. 50–482
License No. NPF–42
1550 Oxen Lane, NE
Burlington, KS 66839
Mr. Jeffrey B. Archie
Vice President, Nuclear Operations
South Carolina Electric and Gas Company
Virgil C. Summer Nuclear Station
Docket No. 50–395
License No. NPF–12
Hwy 215N at O.S. Bradham Boulevard
Jenkinsville, SC 29065
[FR Doc. E6–4371 Filed 3–24–06; 8:45 am]
BILLING CODE 7590–01–P
POSTAL RATE COMMISSION
Sunshine Act; Notice of Meetings
NAME OF AGENCY:
Postal Rate
Commission.
10 a.m., Tuesday, March
28, 2006.
PLACE: Commission conference room,
901 New York Avenue, NW., Suite 200,
Washington, DC 20268–0001.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Personnel
issues.
FOR FURTHER INFORMATION CONTACT:
Steven W. Williams, Secretary, 202–
789–6842.
TIME AND DATE:
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Dated: March 23, 2006.
Steven W. Williams,
Secretary.
[FR Doc. 06–2963 Filed 3–23–06; 11:06 am]
BILLING CODE 7710–FW–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53519; File No. SR–Amex–
2006–26]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Extension of Time for Exercising
Expiring Options and Submitting
Contrary Exercise Advices
March 20, 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 March 14,
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 and II
below, which Items have been prepared
by the Exchange. The Amex filed the
proposal as a ‘‘non-controversial’’
proposed 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 Amex, pursuant to section
19(b)(1) of the Act 5 and Rule 19b–4
thereunder,6 proposes to amend Amex
Rule 980 ‘‘Exercise of Options
Contracts’’ to add two additional
minutes to the time frame within which
one may make a final decision to
exercise or not exercise an option, or to
deliver a contrary exercise advice
(‘‘CEA’’) 7 to the Exchange. The proposal
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 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4.
7 Amex Rule 980(b)(ii) defines a CEA as a
communication either: (A) To not exercise an
option that would be automatically exercised under
the Options Clearing Corporation’s (‘‘OCC’’) Ex-byEx procedure, or (B) to exercise an option that
would not be automatically exercised under the
OCC’s Ex-by-Ex procedure.
2 17
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Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
is intended to conform Amex Rule 980
to the recent industry-wide change in
the close of trading for equity options
and narrow-based index options from
4:02 p.m. to 4 p.m. (EST).8 The
Exchange further proposes to amend the
text of Amex Rule 980 to correspond to
the more appropriate classification of
Eastern Time (‘‘ET’’) rather than New
York Time (‘‘NY Time’’). The text of the
proposed rule change is available on the
Amex’s Web site at (https://
www.amex.com), at the Amex’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
Exchange 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 Amex 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
wwhite on PROD1PC65 with NOTICES
1. Purpose
The purpose of the proposed rule
change is to amend Amex Rule 980 to
add two additional minutes to the time
frame within which one may make a
final decision to exercise or not exercise
an option, or to deliver a CEA to the
Exchange. This proposal is intended to
conform Amex Rule 980 to the recent
industry-wide change to the close of
trading for equity and narrow-based
index options from 4:02 p.m. to 4 p.m.
(ET). The Exchange further proposes to
amend the text of Amex Rule 980 to
correspond to the more appropriate
classification of ET rather than NY
Time.
Currently, Amex Rule 980(c)
establishes that on the business day
immediately prior to an expiration date,
option holders may make final decisions
to exercise or not exercise options, and
members and member organizations
may accept exercise instructions and
submit a CEA to the Exchange as late as
5:30 p.m. or 6:30 p.m. NY Time,
8 See
Securities Exchange Act Release No. 53244
(February 7, 2006), 71 FR 8008 (February 15, 2006)
(approving SR–Amex–2006–003, which amended
Amex Rules 1,918—ANTE, 936C—ANTE and 903C
to adjust the close of normal trading hours in equity
options and narrow-based index options from 4:02
p.m. to 4:02 p.m. (ET)).
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18:19 Mar 24, 2006
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pursuant to the circumstances set forth
in Rule 980(c). Amex Rule 980(g)
establishes that where, on the last
business day before the day of
expiration, the Exchange provides
advance notice of a modified time for
the close of trading in equity options,
the deadline to make a final decision to
exercise or not exercise an expiring
option and to deliver a CEA to the
Exchange will be 1 hour 28 minutes or
2 hours 28 minutes after the announced
modified closing time, instead of the
5:30 p.m. or 6:30 p.m. (ET). The
Exchange proposes to add two minutes
to each of these timeframes to
correspond to the two-minute difference
in trading time created by the change in
the close of trading time from 4:02 p.m.
to 4 p.m. (ET).
This proposal seeks only to change
the exercise timeframes for equity
options, not index options, because
Amex Rule 980C governing index
options does not have pre-set times.9
According to the Exchange, the
proposed rule change is based on
similar rule changes submitted by the
Pacific Exchange, Inc., the Philadelphia
Stock Exchange, Inc., the International
Securities Exchange, Inc., and the
Chicago Board Options Exchange,
Incorporated.10
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act 11 in general, and
furthers the objectives of section 6(b)(5)
of the Act 12 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
9 Amex Rule 980C provides that a memorandum
to exercise any American-style index option must
be received or prepared by the member organization
no later than five (5) minutes after the close of
trading on that day and must be time stamped at
the time it is received or prepared.
10 See Securities Exchange Act Release Nos.
53249 (February 7, 2006), 71 FR 8035 (February 15,
2006) (SR–PCX–2005–138); 53407 (March 3, 2006),
71 FR 12764 (March 13, 2006) (SR–Phlx–2006–12);
53439 (March 7, 2006), 71 FR 13643 (March 16,
2006) (SR–ISE–2006–11); 53438 (March 7, 2006), 71
FR 13641 (March 16, 2006) (SR–CBOE–2006–19).
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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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 Amex 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 foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30-days after the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to section 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(6)
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30-days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Amex has asked the Commission to
waive the 30-day operative delay and
the 5-day pre-filing requirement. The
Commission believes that waiving the
30-day operative delay and the 5-day
pre-filing requirement is consistent with
the protection of investors and the
public interest because such waiver will
allow the Amex to immediately clarify
its rule and conform it to the industrywide close of trading times now in
effect. Accelerating the operative date
will allow for a more efficient and
effective market operation by offering
clarity and internal consistency with
existing Amex rules. For these reasons,
the Commission designates the
proposed rule change as effective and
operative immediately upon filing with
the Commission.16
At any time within 60-days after the
filing of the proposed rule change, the
Commission may summarily abrogate
13 15
14 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
15 Id.
16 For the purposes only of waiving the 30-day
operative date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
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Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
the 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.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Nancy M. Morris,
Secretary.
[FR Doc. E6–4343 Filed 3–24–06; 8:45 am]
IV. Solicitation of Comments
BILLING CODE 8010–01–P
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
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• 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–2006–26 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53525; File No. SR–Amex–
2005–117]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Approval of Proposed Rule
Change and Amendment Nos. 1 and 2
Thereto Relating to Amendments to
the Amex Membership Corporation’s
Certificate of Incorporation
March 21, 2006.
I. Introduction
On November 23, 2005, the American
Paper Comments
Stock Exchange LLC (‘‘Amex’’ or
‘‘Exchange’’) filed with the Securities
• Send paper comments in triplicate
and Exchange Commission
to Nancy M. Morris, Secretary,
(‘‘Commission’’), pursuant to section
Securities and Exchange Commission,
19(b)(1) of the Securities Exchange Act
100 F Street, NE., Washington, DC
of 1934 (‘‘Act’’) 1 andRule 19b–4
20549–1090.
thereunder,2 a proposed rule change to
All submissions should refer to File
amend the Amex Membership
Number SR–Amex–2006–26. This file
Corporation’s (‘‘AMC’’) 3 Restated
number should be included on the
Certificate of Incorporation (‘‘AMC
subject line if e-mail is used. To help the Certificate’’) and AMC Constitution. On
Commission process and review your
January 24, 2006, Amex filed
comments more efficiently, please use
Amendment No. 1 to the proposed rule
only one method. The Commission will change.4 On February 1, 2006, Amex
post all comments on the Commission’s filed Amendment No. 2 to the proposed
Internet Web site (https://www.sec.gov/
rule change.5 The proposed rule change,
rules/sro.shtml). Copies of the
as amended, was published for
submission, all subsequent
comment in the Federal Register on
amendments, all written statements
February 16, 2006.6 The Commission
with respect to the proposed rule
received no comments on the proposal.
change that are filed with the
This order approves the proposed rule
Commission, and all written
change, as amended.
communications relating to the
II. Description and Discussion
proposed rule change between the
Commission and any person, other than
Currently, section 6 of the AMC
those that may be withheld from the
Certificate provides that AMC shall
public in accordance with the
make available one Regular Trading
provisions of 5 U.S.C. 552, will be
Right for each Regular Member and one
available for inspection and copying in
Options Principal Trading Right for
the Commission’s Public Reference
each Options Principal Member and that
Room. Copies of such filing also will be such trading rights shall not be
available for inspection and copying at
17 17 CFR 200.30–3(a)(12).
the principal office of the Amex. All
1 15 U.S.C. 78s(b)(1).
comments received will be posted
2 17 CFR 240.19b–4.
without change; the Commission does
3 AMC is the sole owner of the Exchange. Amex
not edit personal identifying
members (Regular and Options Principal Members)
information from submissions. You
are members of AMC. See Securities Exchange Act
should submit only information that
Release No. 50927 (December 23, 2004), 69 FR
you wish to make available publicly. All 78486 (December 30, 2004).
4 Amendment No. 1 replaced the original filing in
submissions should refer to File
its entirety.
Number SR–Amex–2006–26 and should
5 See Partial Amendment No. 2.
be submitted on or before April 17,
6 See Securities Exchange Act Release No. 53264
2006.
(February 9, 2006), 71 FR 8320.
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18:19 Mar 24, 2006
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15231
transferred or leased apart from those
memberships. In addition, section
7(a)(ii) of the AMC Certificate requires
the consent of the AMC members (i.e.,
the Amex members) to authorize, grant,
or issue trading rights other than
Regular Trading Rights, Options
Principal Trading Rights, or Limited
Trading Permits.
The proposed rule change would
amend the AMC Certificate to: (i)
Eliminate the reference in section 6 to
one trading right, thus allowing the
issuance of more than one right to
Regular Members and Options Principal
Members; (ii) eliminate the prohibition
in section 6 on such trading rights being
transferred or leased apart from Regular
and Options Principal Memberships;
and (iii) eliminate the requirement that
a vote of the membership is required for
the authorization, grant, or issuance of
trading rights as described in section
7(a)(ii).7 The AMC Board determined to
make these changes to give flexibility to
Amex to take prompt action to
implement new forms of trading rights
designed to enhance Amex’s position in
an increasingly competitive and fast
moving marketplace. AMC
membership’s consent will still be
required for any action taken to increase
the number of memberships issued by
AMC. The proposed rule change, as
amended, also makes other nonsubstantive changes to the AMC
Certificate and the Amex Constitution.
The Commission finds that the
proposed rule change, as amended, is
consistent with the requirements of
section 6 of the Act,8 and the rules and
regulations thereunder applicable to a
national securities exchange.9 In
particular, the Commission finds that
the proposed rule change is consistent
with section 6(b)(5) of the Act,10 which
requires, among other things, that the
Exchange’s rules be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
and 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 notes that Amex will still
need to obtain AMC Board approval for
7 Amex will still need to obtain the consent of the
AMC Board to authorize, grant, or issue new trading
rights. See Amex Constitution Article 11, section 8.
8 15 U.S.C. 78f(b).
9 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).
10 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 71, Number 58 (Monday, March 27, 2006)]
[Notices]
[Pages 15229-15231]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4343]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53519; File No. SR-Amex-2006-26]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of Time for Exercising Expiring Options and
Submitting Contrary Exercise Advices
March 20, 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 March 14, 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 and
II below, which Items have been prepared by the Exchange. The Amex
filed the proposal as a ``non-controversial'' proposed 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 Amex, pursuant to section 19(b)(1) of the Act \5\ and Rule 19b-
4 thereunder,\6\ proposes to amend Amex Rule 980 ``Exercise of Options
Contracts'' to add two additional minutes to the time frame within
which one may make a final decision to exercise or not exercise an
option, or to deliver a contrary exercise advice (``CEA'') \7\ to the
Exchange. The proposal
[[Page 15230]]
is intended to conform Amex Rule 980 to the recent industry-wide change
in the close of trading for equity options and narrow-based index
options from 4:02 p.m. to 4 p.m. (EST).\8\ The Exchange further
proposes to amend the text of Amex Rule 980 to correspond to the more
appropriate classification of Eastern Time (``ET'') rather than New
York Time (``NY Time''). The text of the proposed rule change is
available on the Amex's Web site at (https://www.amex.com), at the
Amex's principal office, and at the Commission's Public Reference Room.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(1).
\6\ 17 CFR 240.19b-4.
\7\ Amex Rule 980(b)(ii) defines a CEA as a communication
either: (A) To not exercise an option that would be automatically
exercised under the Options Clearing Corporation's (``OCC'') Ex-by-
Ex procedure, or (B) to exercise an option that would not be
automatically exercised under the OCC's Ex-by-Ex procedure.
\8\ See Securities Exchange Act Release No. 53244 (February 7,
2006), 71 FR 8008 (February 15, 2006) (approving SR-Amex-2006-003,
which amended Amex Rules 1,918--ANTE, 936C--ANTE and 903C to adjust
the close of normal trading hours in equity options and narrow-based
index options from 4:02 p.m. to 4:02 p.m. (ET)).
---------------------------------------------------------------------------
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 proposal. The text of these
statements may be examined at the places specified in Item IV below.
The Amex 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 purpose of the proposed rule change is to amend Amex Rule 980
to add two additional minutes to the time frame within which one may
make a final decision to exercise or not exercise an option, or to
deliver a CEA to the Exchange. This proposal is intended to conform
Amex Rule 980 to the recent industry-wide change to the close of
trading for equity and narrow-based index options from 4:02 p.m. to 4
p.m. (ET). The Exchange further proposes to amend the text of Amex Rule
980 to correspond to the more appropriate classification of ET rather
than NY Time.
Currently, Amex Rule 980(c) establishes that on the business day
immediately prior to an expiration date, option holders may make final
decisions to exercise or not exercise options, and members and member
organizations may accept exercise instructions and submit a CEA to the
Exchange as late as 5:30 p.m. or 6:30 p.m. NY Time, pursuant to the
circumstances set forth in Rule 980(c). Amex Rule 980(g) establishes
that where, on the last business day before the day of expiration, the
Exchange provides advance notice of a modified time for the close of
trading in equity options, the deadline to make a final decision to
exercise or not exercise an expiring option and to deliver a CEA to the
Exchange will be 1 hour 28 minutes or 2 hours 28 minutes after the
announced modified closing time, instead of the 5:30 p.m. or 6:30 p.m.
(ET). The Exchange proposes to add two minutes to each of these
timeframes to correspond to the two-minute difference in trading time
created by the change in the close of trading time from 4:02 p.m. to 4
p.m. (ET).
This proposal seeks only to change the exercise timeframes for
equity options, not index options, because Amex Rule 980C governing
index options does not have pre-set times.\9\ According to the
Exchange, the proposed rule change is based on similar rule changes
submitted by the Pacific Exchange, Inc., the Philadelphia Stock
Exchange, Inc., the International Securities Exchange, Inc., and the
Chicago Board Options Exchange, Incorporated.\10\
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\9\ Amex Rule 980C provides that a memorandum to exercise any
American-style index option must be received or prepared by the
member organization no later than five (5) minutes after the close
of trading on that day and must be time stamped at the time it is
received or prepared.
\10\ See Securities Exchange Act Release Nos. 53249 (February 7,
2006), 71 FR 8035 (February 15, 2006) (SR-PCX-2005-138); 53407
(March 3, 2006), 71 FR 12764 (March 13, 2006) (SR-Phlx-2006-12);
53439 (March 7, 2006), 71 FR 13643 (March 16, 2006) (SR-ISE-2006-
11); 53438 (March 7, 2006), 71 FR 13641 (March 16, 2006) (SR-CBOE-
2006-19).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act \11\ in general, and furthers the
objectives of section 6(b)(5) of the Act \12\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, 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.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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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 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 Amex 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 foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30-days after the
date on which it was filed, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30-days after the date of filing.
However, Rule 19b-4(f)(6)(iii) permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Amex has asked the Commission to
waive the 30-day operative delay and the 5-day pre-filing requirement.
The Commission believes that waiving the 30-day operative delay and the
5-day pre-filing requirement is consistent with the protection of
investors and the public interest because such waiver will allow the
Amex to immediately clarify its rule and conform it to the industry-
wide close of trading times now in effect. Accelerating the operative
date will allow for a more efficient and effective market operation by
offering clarity and internal consistency with existing Amex rules. For
these reasons, the Commission designates the proposed rule change as
effective and operative immediately upon filing with the
Commission.\16\
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\15\ Id.
\16\ For the purposes only of waiving the 30-day operative date
of this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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At any time within 60-days after the filing of the proposed rule
change, the Commission may summarily abrogate
[[Page 15231]]
the 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 rule-comments@sec.gov. Please include
File Number SR-Amex-2006-26 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-2006-26. 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 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-2006-26 and should be submitted on or before April
17, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-4343 Filed 3-24-06; 8:45 am]
BILLING CODE 8010-01-P
