Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Regarding Options Quote Size Mitigation, 31234-31236 [E6-8477]
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Federal Register / Vol. 71, No. 105 / Thursday, June 1, 2006 / Notices
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.14 However, Rule 19b–
4(f)(6)(iii) 15 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 requested that the
Commission waive the 30-day operative
delay so that the proposed rule change
is operative on June 1, 2006. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposal
seeks to change the manner in which
futures contracts comprising the DBLCI
are replaced or ‘‘rolled’’ so that the
effects of contango are reduced while
the benefits of backwardation are
increased to the advantage of investors
and the marketplace. For this reason,
the Commission designates the proposal
to be operative on June 1, 2006, as
requested by the Exchange.16
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.17
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:
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii). As required by Rule
19b–4(f)(6)(iii), the Amex provided the Commission
with written notice of its intent to file this proposed
rule change, along with a brief description and text
of the proposed change, at least five business days
prior to the date of filing of the proposed rule
change.
15 Id.
16 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. See 15 U.S.C. 78c(f).
17 See Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
wwhite on PROD1PC61 with NOTICES
13 17
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19:10 May 31, 2006
Jkt 208001
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2006–53 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–2006–53. 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 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–Amex–2006–53 and should
be submitted on or before June 22, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8438 Filed 5–31–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53867; File No. SR–Amex–
2006–50]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Order Granting
Accelerated Approval of Proposed
Rule Change Regarding Options Quote
Size Mitigation
May 25, 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 18,
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
substantially prepared by the Amex.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons and to approve the proposal on
an accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
operation of the options market data
size mitigation pilot program (‘‘Options
Size Mitigation’’ or ‘‘Pilot Program’’)
from March 5, 2006 through March 5,
2007.
The text of the proposed rule change
is available on the Amex’s Web site
(https://www.amex.com), at the Office of
the Secretary, the Amex, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Amex included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item III below. The Exchange has
prepared summaries, set forth in
sections A, B, and C below, of the most
significant aspects of such statements.
1 15
18 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00093
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\01JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
01JNN1
Federal Register / Vol. 71, No. 105 / Thursday, June 1, 2006 / Notices
Based on the Exchange’s experience
to date, the Amex believes that
continuation of the Pilot Program from
March 5, 2006 through March 5, 2007 is
appropriate.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
wwhite on PROD1PC61 with NOTICES
1. Purpose
The Amex is proposing to extend the
operation of Options Size Mitigation
from March 5, 2006 through March 5,
2007. The Commission approved
Options Size Mitigation on a four (4)
month pilot basis on November 4,
2005.3 The Pilot Program terminated on
March 5, 2006 without extension.
The purpose of the proposal is to
continue the effectiveness of the Pilot
Program until March 5, 2007. According
to the Exchange, continuation of the
Pilot Program will benefit the Exchange
and the marketplace by helping to
enhance the Exchange’s ability to
process an ever increasing volume of
incoming options quotes. The Exchange
believes that the continuation of
Options Size Mitigation will help to
prevent potential data delays and
enhance the Exchange’s ability to
manage market data traffic.
Under Options Size Mitigation,
incoming market data is filtered prior to
being forwarded to Exchange floor
trading systems. When in effect, Options
Size Mitigation filters market data by
not processing incoming quotes (i.e.,
away market quotes) with size changes
below a variable percent. However,
Amex systems always maintain and
display Amex quotations with accurate
size regardless of whether Options Size
Mitigation is in effect.
The Exchange submits that the initial
Options Size Mitigation filtering level
was set at 10% and has remained the
same since the introduction of the Pilot
Program. As set forth in the Approval
Order, the Exchange has the ability to
increase the filtering level in 10% level
increments as warranted. The
appropriate filtering level is determined
by the head of the Exchange’s Floor
Operations (or his designee), in
conjunction with two (2) Senior Floor
Officials.
As was the case in the original Pilot
Program, the Exchange believes that
Options Size Mitigation offers greater
ability and flexibility to manage
inbound quote traffic. Given the
exponential increase in options quote
traffic rates in recent years, the
Exchange believes that the continuation
of Options Size Mitigation is a necessary
tool in connection with the processing
of quote traffic.
3See Securities Exchange Act Release No. 52741
(November 4, 2005), 70 FR 69369 (November 15,
2005).
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19:10 May 31, 2006
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with section
6(b) of the Act4 in general and furthers
the objectives of section 6(b)(5)5 in
particular in that it is 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. 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 at https://www.sec.gov/
rules/sro.shtml; or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–Amex–2006–50 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–Amex2006–50. 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
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00094
Fmt 4703
Sfmt 4703
31235
only one method. The Commission will
post all comments on the Commission’s
Internet Web site at https://www.sec.gov/
rules/sro.shtml. Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549. Copies of such filing 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 No.
SR–Amex–2006–50 and should be
submitted on or before June 22, 2006.
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the section 6 of the
Act 6 and the rules and regulations
thereunder applicable to a national
securities exchange.7 In particular, the
Commission believes that the proposed
rule change is consistent with section
6(b)(5) of the Act, 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 foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
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.8
The Commission believes that the
Options Size Mitigation should
continue to enhance the Amex’s ability
to process an increasing volume of
6 15
U.S.C. 78f.
approving this proposed rule change, the
Commission has considered its impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(5).
7 In
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Federal Register / Vol. 71, No. 105 / Thursday, June 1, 2006 / Notices
incoming options quotes during high
option quote volume periods and peaks.
The Commission notes that Options
Size Mitigation operated on a pilot basis
for four months and the Amex believes
it is functioning as intended.
The Amex has requested that the
Commission find good cause for
approving the proposed rule change
prior to the thirtieth day after
publication of the notice thereof in the
Federal Register. The Commission
believes that granting accelerated
approval of the proposal will allow the
Amex to continue to operate the
Options Size Mitigation program
without interruption and thus, should
facilitate the processing of incoming
options quotes. The Commission notes
that no comments were received in
connection with the approval of the
temporary Pilot Program and no
comments have been received during
the operation of the temporary Pilot
Program. Accordingly, the Commission
finds good cause, pursuant to section
19(b)(2) of the Act,9 for approving the
proposed rule change prior to the
thirtieth day after publication of the
notice thereof in the Federal Register.
V. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,10 that the
proposed rule change, as amended (SR–
Amex–2006–50), is hereby approved on
an accelerated basis for a period to
expire on March 5, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Nancy M. Morris,
Secretary.
[FR Doc. E6–8477 Filed 5–31–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53871; File No. SR–Amex–
2006–42]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing of Proposed Rule Change and
Amendment No. 1 Thereto Relating to
a Retroactive Suspension of
Transaction Charges for Specialist
Orders in the Nasdaq–100 Tracking
Stock (QQQQ)
wwhite on PROD1PC61 with NOTICES
May 25, 2006.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
9 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
10 15
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19:10 May 31, 2006
Jkt 208001
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 2,
2006, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On May 12,
2005, Amex filed Amendment No. 1 to
the proposed rule change.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to
retroactively apply a suspension of
transaction charges for specialist orders
in connection with the trading of the
Nasdaq–100 Index Tracking Stock
(Symbol: QQQQ) from March 1, 2006,
through April 5, 2006.
The text of the proposed rule change
is available on Amex’s Web site at
https://www.amex.com, at 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, as amended,
and discussed any comments it received
on the proposed rule change, as
amended. The text of these statements
may be examined at the places specified
in Item IV below, and is set forth in
Sections A, B, and C below.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange, in a companion filing
(File No. SR–Amex–2006–30), adopted a
suspension of transaction charges for
specialist orders in the Nasdaq–100
Tracking Stock (‘‘QQQQ’’) from April 6,
2006, through June 30, 2006.4 In order
1 15
U.S.C 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1, which replaced and
superseded the original filing in its entirety, is
incorporated in this notice.
4 See Securities Exchange Act Release No. 53701
(April 21, 2006), 71 FR 25253 (April 28, 2006). The
Exchange previously adopted the suspension of
specialist transaction charges in connection with
the QQQQ from July 1, 2005, through December 31,
2005. See Securities Exchange Act Release Nos.
2 17
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
to waive transaction fees for specialist
orders in the QQQQ from March 1,
2006, through June 30, 2006, the
Exchange has proposed to retroactively
suspend transaction fees for specialist
transactions from March 1, 2006,
through April 5, 2006.
Specialist orders currently are
charged $0.0034 ($0.34 per 100 shares),
capped at $300 per trade (88,235
shares). Effective December 1, 2004, the
Nasdaq–100 Index Tracking Stock
(formerly ‘‘QQQ’’) transferred its listing
from Amex to The Nasdaq Stock Market,
Inc (‘‘Nasdaq’’). It now trades on Nasdaq
under the symbol QQQQ. After the
transfer, Amex began trading QQQQ on
an unlisted trading privileges basis.
The Exchange believes that the
retroactive suspension of transaction
charges for specialist transactions in the
QQQQ from March 1, 2006, through
April 5, 2006, is consistent with the
adoption of the proposal to suspend
transaction charges for specialist orders
generally in the QQQQ through June 30,
2006. The Exchange further believes
that a retroactive suspension of
transaction fees on specialist orders in
the QQQQ is appropriate to enhance the
competitiveness of executions on Amex.
The Exchange proposes to amend the
Amex Fee Schedule to indicate that
transaction charges for specialist orders
in the QQQQ have been suspended from
March 1, 2006, through June 30, 2006.
As detailed in File No. SR–Amex–
2006–30, the Exchange submits that a
suspension of transaction fees for
specialist orders in connection with the
QQQQ is consistent with section 6(b)(4)
of the Act.5 Specifically, the Exchange
believes that suspending transaction
charges for QQQQ specialist orders is an
equitable allocation of reasonable fees
among Exchange members. The
Exchange believes that the fact that
specialists have greater obligations than
other members and are also subject to
other Exchange fees, in addition to
transaction fees, supports this proposal
52268 (August 15, 2005), 70 FR 49336 (August 23,
2005); 52267 (August 15, 2005), 70 FR 49338
(August 23, 2005); 52460 (September 16, 2005), 70
FR 55639 (September 22, 2005); 52516 (September
27, 2005), 70 FR 58247 (October 5, 2005); and 52736
(November 4, 2005), 70 FR 69171 (November 14,
2005) (proposals previously introducing and
extending this specialist transaction fee waiver).
However, from January 1, 2006, through April 5,
2006, the specialist fee suspension for the QQQQ
lapsed; therefore, the QQQQ specialists have been
subject to transaction fees in connection with
QQQQ executions during that time period.
5 Section 6(b)(4) states that the rules of a national
securities exchange must provide for the equitable
allocation of reasonable dues, fees, and other
charges among its members and issuers and other
persons using its facilities.
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]]>Agencies
[Federal Register Volume 71, Number 105 (Thursday, June 1, 2006)]
[Notices]
[Pages 31234-31236]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8477]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53867; File No. SR-Amex-2006-50]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change Regarding Options Quote Size Mitigation
May 25, 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 18, 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 substantially prepared by the Amex. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons and to approve the
proposal on an accelerated basis.
---------------------------------------------------------------------------
\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 extend the operation of the options market
data size mitigation pilot program (``Options Size Mitigation'' or
``Pilot Program'') from March 5, 2006 through March 5, 2007.
The text of the proposed rule change is available on the Amex's Web
site (https://www.amex.com), at the Office of the Secretary, the Amex,
and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Amex included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
[[Page 31235]]
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Amex is proposing to extend the operation of Options Size
Mitigation from March 5, 2006 through March 5, 2007. The Commission
approved Options Size Mitigation on a four (4) month pilot basis on
November 4, 2005.\3\ The Pilot Program terminated on March 5, 2006
without extension.
---------------------------------------------------------------------------
\3\See Securities Exchange Act Release No. 52741 (November 4,
2005), 70 FR 69369 (November 15, 2005).
---------------------------------------------------------------------------
The purpose of the proposal is to continue the effectiveness of the
Pilot Program until March 5, 2007. According to the Exchange,
continuation of the Pilot Program will benefit the Exchange and the
marketplace by helping to enhance the Exchange's ability to process an
ever increasing volume of incoming options quotes. The Exchange
believes that the continuation of Options Size Mitigation will help to
prevent potential data delays and enhance the Exchange's ability to
manage market data traffic.
Under Options Size Mitigation, incoming market data is filtered
prior to being forwarded to Exchange floor trading systems. When in
effect, Options Size Mitigation filters market data by not processing
incoming quotes (i.e., away market quotes) with size changes below a
variable percent. However, Amex systems always maintain and display
Amex quotations with accurate size regardless of whether Options Size
Mitigation is in effect.
The Exchange submits that the initial Options Size Mitigation
filtering level was set at 10% and has remained the same since the
introduction of the Pilot Program. As set forth in the Approval Order,
the Exchange has the ability to increase the filtering level in 10%
level increments as warranted. The appropriate filtering level is
determined by the head of the Exchange's Floor Operations (or his
designee), in conjunction with two (2) Senior Floor Officials.
As was the case in the original Pilot Program, the Exchange
believes that Options Size Mitigation offers greater ability and
flexibility to manage inbound quote traffic. Given the exponential
increase in options quote traffic rates in recent years, the Exchange
believes that the continuation of Options Size Mitigation is a
necessary tool in connection with the processing of quote traffic.
Based on the Exchange's experience to date, the Amex believes that
continuation of the Pilot Program from March 5, 2006 through March 5,
2007 is appropriate.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
section 6(b) of the Act\4\ in general and furthers the objectives of
section 6(b)(5)\5\ in particular in that it is 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. 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 at https://
www.sec.gov/rules/sro.shtml; or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-Amex-2006-50 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-Amex2006-50. 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 at https://www.sec.gov/rules/
sro.shtml. Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549. Copies of such filing 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 No. SR-Amex-2006-50 and should be
submitted on or before June 22, 2006.
IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change.
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the section 6 of the
Act \6\ and the rules and regulations thereunder applicable to a
national securities exchange.\7\ In particular, the Commission believes
that the proposed rule change is consistent with section 6(b)(5) of the
Act, 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 foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and 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.\8\
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\6\ 15 U.S.C. 78f.
\7\ In approving this proposed rule change, the Commission has
considered its impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78f(b)(5).
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The Commission believes that the Options Size Mitigation should
continue to enhance the Amex's ability to process an increasing volume
of
[[Page 31236]]
incoming options quotes during high option quote volume periods and
peaks. The Commission notes that Options Size Mitigation operated on a
pilot basis for four months and the Amex believes it is functioning as
intended.
The Amex has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after
publication of the notice thereof in the Federal Register. The
Commission believes that granting accelerated approval of the proposal
will allow the Amex to continue to operate the Options Size Mitigation
program without interruption and thus, should facilitate the processing
of incoming options quotes. The Commission notes that no comments were
received in connection with the approval of the temporary Pilot Program
and no comments have been received during the operation of the
temporary Pilot Program. Accordingly, the Commission finds good cause,
pursuant to section 19(b)(2) of the Act,\9\ for approving the proposed
rule change prior to the thirtieth day after publication of the notice
thereof in the Federal Register.
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\9\ 15 U.S.C. 78s(b)(2).
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V. Conclusion
It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\10\ that the proposed rule change, as amended (SR-Amex-2006-50),
is hereby approved on an accelerated basis for a period to expire on
March 5, 2007.
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\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-8477 Filed 5-31-06; 8:45 am]
BILLING CODE 8010-01-P
