Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change to Extend the Options Intermarket Linkage Fees Pilot Program, 38438-38439 [E6-10535]

Download as PDF 38438 Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.6 In III. Solicitation of Comments particular, the Commission finds that Interested persons are invited to the proposed rule change is consistent submit written data, views, and with the requirements of Section 6(b)(4) arguments concerning the foregoing, of the Act,7 in that, by retroactively including whether the proposed rule crediting DPMs for certain fees they change is consistent with the Act. incur in executing Linkage orders, the Comments may be submitted by any of proposed rule change should help to the following methods: ensure the equitable allocation of Electronic Comments reasonable dues, fees, and other charges among the Exchange’s members. As • Use the Commission’s Internet noted above, the Exchange recently comment form (https://www.sec.gov/ rules/sro.shtml); or established the proposed fees on a • Send an e-mail to rulegoing-forward basis.8 comments@sec.gov. Please include File The Commission finds good cause, No. SR–CBOE–2006–54 on the subject pursuant to section 19(b)(2) of the Act,9 line. for approving the proposed rule change Paper Comments prior to the thirtieth day after publication of the notice of filing thereof • Send paper comments in triplicate in the Federal Register. The proposal to Nancy M. Morris, Secretary, would allow the Exchange to apply the Securities and Exchange Commission, Program retroactively, for 13 additional 100 F Street, NE., Washington, DC business days. The Commission did not 20549–1090. receive any comments regarding the All submissions should refer to File Previous Filing, and therefore believes Number SR-CBOE–2006–54. This file that retroactively crediting DPMs for number should be included on the subject line if e-mail is used. To help the certain fees they incur in executing Commission process and review your Linkage orders would not raise any new comments more efficiently, please use or novel regulatory issues. only one method. The Commission will V. Conclusion post all comments on the Commissions Internet Web site (https://www.sec.gov/ It is therefore ordered, pursuant to rules/sro.shtml). Copies of the Section 19(b)(2) of the Act 10 that the submission, all subsequent proposed rule change (SR–CBOE–2006– amendments, all written statements 54) is approved on an accelerated basis. with respect to the proposed rule For the Commission, by the Division of change that are filed with the Market Regulation, pursuant to delegated Commission, and all written authority.11 communications relating to the proposed rule change between the J. Lynn Taylor, Commission and any person, other than Assistant Secretary. those that may be withheld from the [FR Doc. E6–10534 Filed 7–5–06; 8:45 am] public in accordance with the BILLING CODE 8010–01–P 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 6 In approving this proposed rule change, the Number SR–CBOE–2006–54 and should Commission notes that it has considered the be submitted by July 27, 2006. proposed rule’s impact on efficiency, competition, jlentini on PROD1PC65 with NOTICES with respect to the proposed rule change. IV. Commission Findings and Order Granting Accelerated Approval of a Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the VerDate Aug<31>2005 17:01 Jul 05, 2006 Jkt 208001 and capital formation. See U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(4). 8 See Securities Exchange Act Release No. 53866, supra at note 3. 9 15 U.S.C. 78s(b)(2). 10 Id. 11 17 CFR 200.30–3(a)(12). PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54064; File No. SR–CBOE– 2006–59] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change to Extend the Options Intermarket Linkage Fees Pilot Program June 28, 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 June 15, 2006, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ 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. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule to extend until July 31, 2007 the Options Intermarket Linkage (‘‘Linkage’’) fee pilot program. The text of the proposed rule change is available at the Commission’s Public Reference Room, at the Exchange’s Office of the Secretary, and at the Exchange’s Web site (https://www.cboe.com). 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. 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 Exchange’s fees for Principal (‘‘P’’) and Principal Acting as Agent (‘‘P/ 1 15 2 17 E:\FR\FM\06JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b-4. 06JYN1 Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Notices A’’) orders 3 are operating under a pilot program scheduled to expire on July 31, 2006.4 The Exchange proposes to amend its Fees Schedule to extend the pilot program until July 31, 2007.5 The Exchange assesses its members the following Linkage order transaction fees: (i) $.24 per contract for equity, QQQQ and SPDR options; (ii) $.26 per contract for DIA options; (iii) $.35 or $.20 per contract, depending on the premium, for OEF options and $.45 or $.25 per contract, depending on the premium, for other index options; (iv) $.30 per contract RAES access fee, if a Linkage order is executed in whole or in part on RAES; and (v) $.10 per contract license fee on transactions in MNX and NDX options.6 Satisfaction orders are not assessed Exchange fees. The Exchange believes that extension of the Linkage fee pilot program until July 31, 2007 will give the Exchange and the Commission further opportunity to evaluate the appropriateness of Linkage fees. 2. Statutory Basis The Exchange states that the proposed rule change is consistent with Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(4) of the Act 8 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and other persons using its facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition jlentini on PROD1PC65 with NOTICES The Exchange believes that the proposed rule change would not impose any burden on competition that is not 3 Under the Plan for the Purpose of Creating and Operating an Options Intermarket Linkage (‘‘Plan’’) and CBOE Rule 6.80(12), which tracks the language of the Plan, a ‘‘Linkage Order’’ means an Immediate or Cancel Order routed through the Linkage as permitted under the Plan. There are three types of Linkage Orders: (i) A ‘‘P/A Order,’’ which is an order for the principal account of a specialist (or equivalent entity an another Participant Exchange that is authorized to represent Public Customer orders), reflecting the terms of a related unexecuted Public Customer order for which the specialist is acting as agent; (ii) a ‘‘P Order,’’ which is an order for the principal account of an Eligible Market Maker and is not a P/A Order; and (iii) a ‘‘Satisfaction Order,’’ which is an order sent through the Linkage to notify a member of another Participant Exchange of a Trade-Through and to seek satisfaction of the liability arising from that Trade-Through. 4 See Securities Exchange Act Release No. 52073 (July 20, 2005), 70 FR 43474 (July 27, 2005), (SR– CBOE–2005–54). 5 The Exchange also proposes to amend Section 21 of the Fees Schedule to change the Linkage fees pilot expiration date included in that section. 6 See CBOE Fees Schedule, Footnote 15. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(4). VerDate Aug<31>2005 17:01 Jul 05, 2006 Jkt 208001 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 by the Exchange with respect to this proposed rule change. III. Date of Effectiveness of the Proposed Rule Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve such proposed rule change; or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–CBOE–2006–59 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–2006–59. 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 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 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 38439 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–2006–59 and should be submitted by July 27, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6–10535 Filed 7–5–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54058; File No. SR–NASD– 2006–073] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Amendment of NASD Interpretive Material 2210–4 To Require Certain Member Firms To Provide a Hyperlink to the NASD’s Internet Home Page June 28, 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 June 8, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) 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 NASD. On June 26, 2006, NASD filed with the Commission 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. 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment No. 1 replaced and superseded the original rule filing in its entirety. 1 15 E:\FR\FM\06JYN1.SGM 06JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Notices]
[Pages 38438-38439]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10535]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54064; File No. SR-CBOE-2006-59]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing of Proposed Rule Change to Extend the 
Options Intermarket Linkage Fees Pilot Program

June 28, 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 June 15, 2006, the Chicago Board Options Exchange, Incorporated 
(``CBOE'' 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. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule to extend until 
July 31, 2007 the Options Intermarket Linkage (``Linkage'') fee pilot 
program. The text of the proposed rule change is available at the 
Commission's Public Reference Room, at the Exchange's Office of the 
Secretary, and at the Exchange's Web site (https://www.cboe.com).

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. 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 Exchange's fees for Principal (``P'') and Principal Acting as 
Agent (``P/

[[Page 38439]]

A'') orders \3\ are operating under a pilot program scheduled to expire 
on July 31, 2006.\4\ The Exchange proposes to amend its Fees Schedule 
to extend the pilot program until July 31, 2007.\5\
---------------------------------------------------------------------------

    \3\ Under the Plan for the Purpose of Creating and Operating an 
Options Intermarket Linkage (``Plan'') and CBOE Rule 6.80(12), which 
tracks the language of the Plan, a ``Linkage Order'' means an 
Immediate or Cancel Order routed through the Linkage as permitted 
under the Plan. There are three types of Linkage Orders: (i) A ``P/A 
Order,'' which is an order for the principal account of a specialist 
(or equivalent entity an another Participant Exchange that is 
authorized to represent Public Customer orders), reflecting the 
terms of a related unexecuted Public Customer order for which the 
specialist is acting as agent; (ii) a ``P Order,'' which is an order 
for the principal account of an Eligible Market Maker and is not a 
P/A Order; and (iii) a ``Satisfaction Order,'' which is an order 
sent through the Linkage to notify a member of another Participant 
Exchange of a Trade-Through and to seek satisfaction of the 
liability arising from that Trade-Through.
    \4\ See Securities Exchange Act Release No. 52073 (July 20, 
2005), 70 FR 43474 (July 27, 2005), (SR-CBOE-2005-54).
    \5\ The Exchange also proposes to amend Section 21 of the Fees 
Schedule to change the Linkage fees pilot expiration date included 
in that section.
---------------------------------------------------------------------------

    The Exchange assesses its members the following Linkage order 
transaction fees: (i) $.24 per contract for equity, QQQQ and SPDR 
options; (ii) $.26 per contract for DIA options; (iii) $.35 or $.20 per 
contract, depending on the premium, for OEF options and $.45 or $.25 
per contract, depending on the premium, for other index options; (iv) 
$.30 per contract RAES access fee, if a Linkage order is executed in 
whole or in part on RAES; and (v) $.10 per contract license fee on 
transactions in MNX and NDX options.\6\ Satisfaction orders are not 
assessed Exchange fees.
---------------------------------------------------------------------------

    \6\ See CBOE Fees Schedule, Footnote 15.
---------------------------------------------------------------------------

    The Exchange believes that extension of the Linkage fee pilot 
program until July 31, 2007 will give the Exchange and the Commission 
further opportunity to evaluate the appropriateness of Linkage fees.
2. Statutory Basis
    The Exchange states that the proposed rule change is consistent 
with Section 6(b) of the Act \7\ in general, and furthers the 
objectives of Section 6(b)(4) of the Act \8\ in particular, in that it 
is designed to provide for the equitable allocation of reasonable dues, 
fees, and other charges among CBOE members and other persons using its 
facilities.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes that the proposed rule change would 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 by the Exchange with 
respect to this proposed rule change.

III. Date of Effectiveness of the Proposed Rule

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change; or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-CBOE-2006-59 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-2006-59. 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 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-2006-59 and should be submitted by July 27, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E6-10535 Filed 7-5-06; 8:45 am]
BILLING CODE 8010-01-P

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