Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend Until June 5, 2007, a Pilot Program for Listing Options on Selected Stocks Trading Below $20 at One-Point Intervals, 29373-29375 [E6-7720]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 98 / Monday, May 22, 2006 / Notices
supply reports of cabinet transactions he
executes back to member firms. In
addition, the Order Book Official will
continue to report cabinet transactions
to the Exchange after the close of each
business day.
Finally, the rule change makes
various non-substantive changes to
reorganize and update the existing text
in CBOE Rule 6.54 and update
references in the heading of Chapter VII
of the CBOE rulebook and CBOE Rule
7.4.
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)(5)
of the Act 10 in particular in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
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
No written comments were solicited
or received with respect to the proposed
rule change.
cchase on PROD1PC60 with NOTICES
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) of the Act 11 and Rule 19b–
4(f)(6) 12 thereunder because it (i) does
not significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change at least five
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
10 15
VerDate Aug<31>2005
20:16 May 19, 2006
Jkt 208001
business days prior to the filing date of
the proposed rule change.13
The Exchange has requested that the
Commission waive the 30-day operative
delay of Rule 19b–4(f)(6)(iii) so that the
proposed rule change may become
effective immediately. The Commission
believes that waiving the pre-filing
requirement and the operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that the proposal
does not substantially change the
existing cabinet trading procedures, but
does provide market participants on the
Exchange with additional flexibility for
handling cabinet trades, which should
promote the fair, orderly and efficient
handling of these transactions.
Therefore, the Commission has
determined to waive the 30-day
operative delay and allow the proposed
rule change to become operative
immediately.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily abrogate
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 rulecomments@sec.gov. Please include File
No. SR–CBOE–2006–33 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–2006–33. This file
number should be included on the
13 As required under Rule 19b–4(f)(6)(iii), the
Exchange provided the Commission with written
notice of its attempt to file the proposed rule change
at least five days prior to the filing date.
14 For purposes only of waiving the operative
delay of this proposal, the Commission notes that
it has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
29373
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 Commissions
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 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–2006–33 and should
be submitted on or before June 12, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–7718 Filed 5–19–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53807; File No. SR–
NYSEArca–2006–14]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend Until June 5,
2007, a Pilot Program for Listing
Options on Selected Stocks Trading
Below $20 at One-Point Intervals
May 15, 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 May 8,
2006, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\22MYN1.SGM
22MYN1
29374
Federal Register / Vol. 71, No. 98 / Monday, May 22, 2006 / Notices
by the Exchange. The Exchange filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act,3 and Rule 19b–4(f)(6)
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
NYSE Arca proposes to amend
Commentary .04 to NYSE Arca Rule 6.4,
‘‘Series of Options Open for Trading,’’ to
extend until June 5, 2007, its pilot
program for listing options series on
selected stocks trading below $20 at
one-point intervals (‘‘Pilot Program’’).
The text of the proposed rule change is
available on NYSE Arca’s Web site
(https://www.nysearca.com), at NYSE
Arca’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
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.
cchase on PROD1PC60 with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
4 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
VerDate Aug<31>2005
20:16 May 19, 2006
2. Statutory Basis
The Exchange believes that the
continuation of $1 strike prices will
stimulate customer interest in options
overlying lower-priced stocks by
creating greater trading opportunities
and flexibility. The Exchange further
believes that continuation of $1 strike
prices will provide customers with the
ability to more closely tailor investment
strategies to the precise movement of
the underlying security. For these
reasons, the Exchange believes the
proposed rule change is consistent with
the Act and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.5
Specifically, the Exchange believes the
proposed rule change is consistent with
the requirements under Section 6(b)(5)
of the Act 6 that the rules of a national
securities exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, 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
1. Purpose
The purpose of this proposal is to
extend for one year the Exchange’s Pilot
Program. The current Pilot Program
expires on June 5, 2006. NYSE Arca
notes that OTP Firms have expressed a
continued interest in listing additional
strike prices on low-priced stocks so
that they can provide their customers
with greater flexibility in their
investment choices. For this reason, the
Exchange proposes to extend the Pilot
Program. The Exchange notes that all of
the issues eligible to be included in the
Pilot Program, the procedures for adding
$1 strike prices, the procedures for
phasing out $2.50 strike prices, the
prohibition against listing long-term
options (also known as ‘‘LEAPS’’) in
3 15
equity option classes at $1 strike
intervals, the procedures for adding
expiration months, and the procedures
for deleting $1 strike prices will remain
the same. In support of the Exchange’s
proposal to extend the Pilot Program
until June 5, 2007, the Exchange is
submitting to the Commission a report
(the ‘‘Pilot Program Report’’), attached
as Exhibit 3 to the proposal, that offers
detailed data from, and analysis of, the
Pilot Program.
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in the
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
NYSE Arca has filed the proposed
rule change pursuant to Section
5 15
6 15
Jkt 208001
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00088
Fmt 4703
Sfmt 4703
19(b)(3)(A) of the Act 7 and
subparagraph (f)(6) of Rule 19b–4
thereunder.8 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 of this filing, 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 and Rule 19b–4(f)(6)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 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. In
addition, Rule 19b–4(f)(6)(iii) requires a
self-regulatory organization to provide
the Commission with written notice of
its intent to file the proposed rule
change, along with a brief description
and text of the proposed rule change, at
least five business days prior to the date
of filing of the proposed rule change, or
such shorter time as designated by the
Commission. NYSE Arca has asked the
Commission to waive the five-day prefilling notice requirement 9 and the 30day operative delay to allow the
Exchange to continue to list the same
options series listed on other options
exchanges and to provide the public
with the benefits of price competition
and added liquidity in these series.
The Commission waives the five-day
pre-filing notice requirement. In
addition, the Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Pilot Program
to continue without interruption
through June 5, 2007.10 For this reason,
the Commission designates that the
proposal become operative on June 5,
2006.11
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
9 Telephone conversation between Glenn H.
Gsell, Director, NYSE Arca Regulation, and
Theodore S. Venuti, Attorney, Division of Market
Regulation, Commission, on May 10, 2006.
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
11 As set forth in the Commission’s initial
approval of the Pilot Program and in its order
extending the operation of the Pilot Program
through June 5, 2005, if NYSE Arca proposes to: (1)
Extend the Pilot Program; (2) expand the number
8 17
E:\FR\FM\22MYN1.SGM
22MYN1
Federal Register / Vol. 71, No. 98 / Monday, May 22, 2006 / Notices
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
No. SR–NYSEAcra–2006–14 on the
subject line.
cchase on PROD1PC60 with NOTICES
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 No.
SR–NYSEArca–2006–14. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
of options eligible for inclusion in the Pilot
Program; or (3) seek permanent approval of the Pilot
Program, it must submit a Pilot Program report to
the Commission along with the filing of its proposal
to extend, expand, or seek permanent approval of
the Pilot Program. NYSE Arca must file any such
proposal and the Pilot Program report with the
Commission at least 60 days prior to the expiration
of the Pilot Program. The Pilot Program report must
cover the entire time the Pilot Program was in effect
and must include: (1) Data and written analysis on
the open interest and trading volume for options (at
all strike price intervals) selected for the Pilot
Program; (2) delisted options series (for all strike
price intervals) for all options selected for the Pilot
Program; (3) an assessment of the appropriateness
of $1 strike price intervals for the options NYSE
Arca selected for the Pilot Program; (4) an
assessment of the impact of the Pilot Program on
the capacity of NYSE Arca’s, the Options Price
Reporting Authority’s, and vendors’ automated
systems; (5) any capacity problems or other
problems that arose during the operation of the
Pilot Program and how NYSE Arca addressed them;
(6) any complaints that NYSE Arca received during
the operation of the Pilot Program and how NYSE
Arca addressed them; and (7) any additional
information that would help to assess the operation
of the Pilot Program. See Securities Exchange Act
Release Nos. 48945 (June 17, 2003), 68 FR 37594
(June 24, 2003) (File No. SR–PCX–2003–28) (order
approving the Pilot Program through June 5, 2004);
and 50152 (August 5, 2004), 69 FR 49931 (August
12, 2004) (File No. SR–PCX–2004–61) (order
approving the extension of the Pilot Program
through June 5, 2005).
VerDate Aug<31>2005
20:16 May 19, 2006
Jkt 208001
29375
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 will also be
available for inspection and copying at
the principal office of NYSE Arca. 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–NYSEArca–2006–14 and should be
submitted on or before June 12, 2006.
contemplated for working capital and
general corporate purposes.
The financing is brought within the
purview of § 107.730(a)(1) of the
Regulations because Emergence Capital
Partners, L.P. and Emergence Capital
Associates, L.P., all Associates of
Emergence Capital Partners SBIC, L.P.,
own more than ten percent of Krugle,
Inc., and therefore Krugle, Inc. is
considered an Associate of Emergence
Capital Partners SBIC, L.P. as detailed in
§ 107.50 of the Regulations.
Notice is hereby given that any
interested person may submit written
comments on the transaction to the
Associate Administrator for Investment,
U.S. Small Business Administration,
409 Third Street, SW., Washington, DC
20416.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.12
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–7720 Filed 5–18–06; 8:45 am]
Culturally Significant Objects Imported
for Exhibition Determinations: The
Clark Brothers Collect: Impressionist
and Early Modern Paintings
BILLING CODE 8010–01–P
SMALL BUSINESS ADMINISTRATION
[License No. 09/79–0454]
Emergence Capital Partners SBIC,
L.P.; Notice Seeking Exemption Under
Section 312 of the Small Business
Investment Act, Conflicts of Interest
Notice is hereby given that Emergence
Capital Partners SBIC, L.P., 160 Bovet
Road, Suite 300, San Mateo, CA 94402,
a Federal Licensee under the Small
Business Investment Act of 1958, as
amended (‘‘the Act’’), in connection
with the financing of a small concern,
has sought an exemption under Section
312 of the Act and Section 107.730,
Financings which Constitute Conflicts
of Interest of the Small Business
Administration (‘‘SBA’’) Rules and
Regulations (13 CFR 107.730).
Emergence Capital Partners SBIC, L.P.
proposes to provide equity/debt security
financing to Krugle, Inc., 200
Middlefield Road, Suite 201, Menlo
Park, CA 94025. The financing is
12 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00089
Fmt 4703
Sfmt 4703
April 10, 2006.
´
Jaime Guzman-Fournier,
Associate Administrator for Investment.
[FR Doc. E6–7721 Filed 5–19–06; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice 5412]
SUMMARY: Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236 of October 19, 1999, as
amended, and Delegation of Authority
No. 257 of April 15, 2003 [68 FR 19875],
I hereby determine that the objects to be
included in the exhibition ‘‘The Clark
Brothers Collect: Impressionist and
Early Modern Paintings,’’ imported from
abroad for temporary exhibition within
the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the exhibit objects at The Sterling and
Francine Clark Art Institute, from on or
about June 4, 2006, until on or about
September 4, 2006, and at possible
additional venues yet to be determined,
is in the national interest. Public Notice
of these Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
E:\FR\FM\22MYN1.SGM
22MYN1
]]>Agencies
[Federal Register Volume 71, Number 98 (Monday, May 22, 2006)]
[Notices]
[Pages 29373-29375]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7720]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53807; File No. SR-NYSEArca-2006-14]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Extend Until
June 5, 2007, a Pilot Program for Listing Options on Selected Stocks
Trading Below $20 at One-Point Intervals
May 15, 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 May 8, 2006, NYSE Arca, Inc. (``NYSE Arca'' 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
[[Page 29374]]
by the Exchange. The Exchange filed the proposal pursuant to Section
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(6) 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).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca proposes to amend Commentary .04 to NYSE Arca Rule 6.4,
``Series of Options Open for Trading,'' to extend until June 5, 2007,
its pilot program for listing options series on selected stocks trading
below $20 at one-point intervals (``Pilot Program''). The text of the
proposed rule change is available on NYSE Arca's Web site (https://
www.nysearca.com), at NYSE Arca'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 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 purpose of this proposal is to extend for one year the
Exchange's Pilot Program. The current Pilot Program expires on June 5,
2006. NYSE Arca notes that OTP Firms have expressed a continued
interest in listing additional strike prices on low-priced stocks so
that they can provide their customers with greater flexibility in their
investment choices. For this reason, the Exchange proposes to extend
the Pilot Program. The Exchange notes that all of the issues eligible
to be included in the Pilot Program, the procedures for adding $1
strike prices, the procedures for phasing out $2.50 strike prices, the
prohibition against listing long-term options (also known as ``LEAPS'')
in equity option classes at $1 strike intervals, the procedures for
adding expiration months, and the procedures for deleting $1 strike
prices will remain the same. In support of the Exchange's proposal to
extend the Pilot Program until June 5, 2007, the Exchange is submitting
to the Commission a report (the ``Pilot Program Report''), attached as
Exhibit 3 to the proposal, that offers detailed data from, and analysis
of, the Pilot Program.
2. Statutory Basis
The Exchange believes that the continuation of $1 strike prices
will stimulate customer interest in options overlying lower-priced
stocks by creating greater trading opportunities and flexibility. The
Exchange further believes that continuation of $1 strike prices will
provide customers with the ability to more closely tailor investment
strategies to the precise movement of the underlying security. For
these reasons, the Exchange believes the proposed rule change is
consistent with the Act and the rules and regulations thereunder and,
in particular, the requirements of Section 6(b) of the Act.\5\
Specifically, the Exchange believes the proposed rule change is
consistent with the requirements under Section 6(b)(5) of the Act \6\
that the rules of a national securities exchange be designed to promote
just and equitable principles of trade, to prevent fraudulent and
manipulative acts, 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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 that is not necessary or appropriate
in the furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
NYSE Arca has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \7\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\8\ 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 of this filing, 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 and Rule 19b-4(f)(6) thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 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. In addition, Rule 19b-4(f)(6)(iii) requires a
self-regulatory organization to provide the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule change,
or such shorter time as designated by the Commission. NYSE Arca has
asked the Commission to waive the five-day pre-filling notice
requirement \9\ and the 30-day operative delay to allow the Exchange to
continue to list the same options series listed on other options
exchanges and to provide the public with the benefits of price
competition and added liquidity in these series.
---------------------------------------------------------------------------
\9\ Telephone conversation between Glenn H. Gsell, Director,
NYSE Arca Regulation, and Theodore S. Venuti, Attorney, Division of
Market Regulation, Commission, on May 10, 2006.
---------------------------------------------------------------------------
The Commission waives the five-day pre-filing notice requirement.
In addition, the Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest because it will allow the Pilot Program to continue without
interruption through June 5, 2007.\10\ For this reason, the Commission
designates that the proposal become operative on June 5, 2006.\11\
---------------------------------------------------------------------------
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
\11\ As set forth in the Commission's initial approval of the
Pilot Program and in its order extending the operation of the Pilot
Program through June 5, 2005, if NYSE Arca proposes to: (1) Extend
the Pilot Program; (2) expand the number of options eligible for
inclusion in the Pilot Program; or (3) seek permanent approval of
the Pilot Program, it must submit a Pilot Program report to the
Commission along with the filing of its proposal to extend, expand,
or seek permanent approval of the Pilot Program. NYSE Arca must file
any such proposal and the Pilot Program report with the Commission
at least 60 days prior to the expiration of the Pilot Program. The
Pilot Program report must cover the entire time the Pilot Program
was in effect and must include: (1) Data and written analysis on the
open interest and trading volume for options (at all strike price
intervals) selected for the Pilot Program; (2) delisted options
series (for all strike price intervals) for all options selected for
the Pilot Program; (3) an assessment of the appropriateness of $1
strike price intervals for the options NYSE Arca selected for the
Pilot Program; (4) an assessment of the impact of the Pilot Program
on the capacity of NYSE Arca's, the Options Price Reporting
Authority's, and vendors' automated systems; (5) any capacity
problems or other problems that arose during the operation of the
Pilot Program and how NYSE Arca addressed them; (6) any complaints
that NYSE Arca received during the operation of the Pilot Program
and how NYSE Arca addressed them; and (7) any additional information
that would help to assess the operation of the Pilot Program. See
Securities Exchange Act Release Nos. 48945 (June 17, 2003), 68 FR
37594 (June 24, 2003) (File No. SR-PCX-2003-28) (order approving the
Pilot Program through June 5, 2004); and 50152 (August 5, 2004), 69
FR 49931 (August 12, 2004) (File No. SR-PCX-2004-61) (order
approving the extension of the Pilot Program through June 5, 2005).
---------------------------------------------------------------------------
[[Page 29375]]
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 rule-comments@sec.gov. Please include
File No. SR-NYSEAcra-2006-14 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 No. SR-NYSEArca-2006-14. 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 will also be available for inspection and copying at the
principal office of NYSE Arca. 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-NYSEArca-2006-14 and should be submitted on or before June
12, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-7720 Filed 5-18-06; 8:45 am]
BILLING CODE 8010-01-P
