Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Applying the Allocation Algorithm in Rule 935(a)(4)-ANTE to Supplemental Registered Options Traders, 42689-42690 [E6-11988]
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<![CDATA[
Federal Register / Vol. 71, No. 144 / Thursday, July 27, 2006 / Notices
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–2006–61 and should
be submitted on or before August 17,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.18
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–11986 Filed 7–26–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Release No. 34–54183; File No. SR–Amex–
2006–68]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Applying the
Allocation Algorithm in Rule
935(a)(4)—ANTE to Supplemental
Registered Options Traders
rwilkins on PROD1PC63 with NOTICES
July 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 July 13,
2006, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) submitted to
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
18 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Aug<31>2005
18:18 Jul 26, 2006
Jkt 208001
been substantially prepared by Amex.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) 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
Amex seeks to apply the allocation
algorithm in Amex Rule 935(a)(4)—
ANTE to a Supplemental Registered
Options Trader (‘‘SROT’’) interacting
with its own firm’s orders. The text of
the proposed rule change is available on
Amex’s Web site (https://
www.amex.com), at Amex’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
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 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
On March 14, 2006, the Exchange
submitted a proposal to amend Amex
Rule 935—ANTE to revise the manner
in which executed contracts are
allocated when more than one market
participant is either quoting, or has
orders, at the Amex best bid or offer at
the time the execution occurs. However,
by the time this filing was approved on
May 12, 2006,5 other changes to Amex
Rule 935—ANTE were approved.6
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 53798
(May 12, 2006), 71 FR 29193 (May 19, 2006) (SR–
Amex–2006–25).
6 See Securities Exchange Act Release Nos. 53635
(April 12, 2006), 71 FR 20144 (April 19, 2006) (SR–
Amex–2005–075) (establishing a new class of
registered options trader called an SROT) and
53652 (April 13, 2006), 71 FR 20422 (April 20,
2006) (SR–Amex–2005–100) (establishing a new
PO 00000
3 15
4 17
Frm 00065
Fmt 4703
Sfmt 4703
42689
The Exchange seeks to apply the
allocation algorithm set forth in Amex
Rule 935—ANTE to an SROT interacting
with its own firm’s orders. The
Exchange proposes that after non-broker
dealer customer orders are executed, the
ANTE system would allocate to SROTs
the greater of either 40% of the
contracts, or the amount the SROT
would be entitled to receive pursuant to
the allocation algorithm set forth in
Amex Rule 935(a)(4)—ANTE. The
balance of the contracts would be
allocated to the specialist, registered
options traders, RROTs, or other SROTs,
pursuant to Amex Rule 935(a)(4)—
ANTE.
If the SROT receives contracts
pursuant to proposed paragraph (a)(7)(i)
of Amex Rule 935—ANTE, then the
specialist, registered options trader,
RROT, or any other SROT would receive
contracts pursuant to the allocation
algorithm in Amex Rule 935(a)(4)—
ANTE. In particular, whenever an SROT
interacts with its own firm’s orders, the
specialist would not be entitled to the
specialist guarantee set forth in Amex
Rule 935(a)(5)—ANTE.
2. Statutory Basis
The Exchange believes 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)(5)
of the Act,8 in particular, in that 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
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; and is not designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will impose no
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
class of registered options trader called a Remote
Registered Options Trader (‘‘RROT’’)).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\27JYN1.SGM
27JYN1
42690
Federal Register / Vol. 71, No. 144 / Thursday, July 27, 2006 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received by the Exchange on
this proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4 10
thereunder because it does not: (i)
Significantly affect the protection of
investors or the public 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; and the
Exchange has given the Commission
written notice of its intention to file the
proposed rule change at least five
business days prior to filing. At any
time within 60 days of the filing of such
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.
Under Rule 19b–4(f)(6) of the Act,11
the proposal does not become operative
for 30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. Amex has requested that the
Commission waive the five-day prefiling requirement 12 and the 30-day
operative delay to allow for the
expeditious and accurate publication of
the rule change. The Commission
believes that because the proposal
would extend the current allocation
algorithm to the Exchange’s new class of
market participants, SROTs, the
proposal raises no new regulatory
concerns. Therefore, the Commission,
consistent with the protection of
investors and the public interest, has
determined to waive the five-day prefiling requirement and the 30-day
operative date so that the proposal may
take effect upon filing.13
rwilkins on PROD1PC63 with NOTICES
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 Id.
12 Amex provided the Commission with written
notice of its intent to file the proposed rule change
three days prior to the filing date.
13 For purposes only of waiving the operative
delay for this proposal, the Commission has
10 17
VerDate Aug<31>2005
16:46 Jul 26, 2006
Jkt 208001
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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6–11988 Filed 7–26–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2006–68 on the
subject line.
[Release No. 34–54184; File No. SR–CBOE–
2006–66]
Paper Comments
July 20, 2006.
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change Regarding
Market-Maker Appointments
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 July 11,
2006, the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’ or
‘‘Exchange’’) filed with the Securities
All submissions should refer to File
and Exchange Commission
Number SR–Amex–2006–68. This file
(‘‘Commission’’) the proposed rule
number should be included on the
subject line if e-mail is used. To help the change as described in Items I, II, and
III below, which Items have been
Commission process and review your
prepared by the Exchange. The
comments more efficiently, please use
only one method. The Commission will Commission is publishing this notice to
post all comments on the Commission’s solicit comments on the proposed rule
change from interested persons.
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
I. Self-Regulatory Organization’s
submission, all subsequent
Statement of the Terms of Substance of
amendments, all written statements
the Proposed Rule Change
with respect to the proposed rule
CBOE proposes to amend CBOE Rule
change that are filed with the
8.3 relating to Market-Maker
Commission, and all written
appointments. The text of the proposed
communications relating to the
rule change is available on the
proposed rule change between the
Exchange’s Web site (https://
Commission and any person, other than www.cboe.com), at the CBOE’s Office of
those that may be withheld from the
the Secretary, and at the Commission’s
public in accordance with the
Public Reference Room.
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for inspection and copying in
Statement of the Purpose of, and
the Commission’s Public Reference
Statutory Basis for, the Proposed Rule
Room. Copies of such filing also will be Change
available for inspection and copying at
In its filing with the Commission, the
the principal office of the Amex. All
Exchange included statements
comments received will be posted
concerning the purpose of and basis for
without change; the Commission does
the proposed rule change and discussed
not edit personal identifying
any comments it received on the
information from submissions. You
proposed rule change. The text of those
should submit only information that
statements may be examined at the
you wish to make available publicly. All places specified in Item IV below. The
submissions should refer to File
Exchange has prepared summaries, set
Number SR–Amex–2006–68 and should forth in sections A, B, and C below, of
be submitted on or before August 17,
the most significant parts of such
2006.
statements.
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\27JYN1.SGM
27JYN1
]]>Agencies
[Federal Register Volume 71, Number 144 (Thursday, July 27, 2006)]
[Notices]
[Pages 42689-42690]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11988]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-54183; File No. SR-Amex-2006-68]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Applying the Allocation Algorithm in Rule 935(a)(4)--ANTE to
Supplemental Registered Options Traders
July 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 July 13, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') submitted to 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 Amex. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) 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)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Amex seeks to apply the allocation algorithm in Amex Rule
935(a)(4)--ANTE to a Supplemental Registered Options Trader (``SROT'')
interacting with its own firm's orders. The text of the proposed rule
change is available on Amex's Web site (https://www.amex.com), at Amex's
Office of the Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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 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
On March 14, 2006, the Exchange submitted a proposal to amend Amex
Rule 935--ANTE to revise the manner in which executed contracts are
allocated when more than one market participant is either quoting, or
has orders, at the Amex best bid or offer at the time the execution
occurs. However, by the time this filing was approved on May 12,
2006,\5\ other changes to Amex Rule 935--ANTE were approved.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 53798 (May 12,
2006), 71 FR 29193 (May 19, 2006) (SR-Amex-2006-25).
\6\ See Securities Exchange Act Release Nos. 53635 (April 12,
2006), 71 FR 20144 (April 19, 2006) (SR-Amex-2005-075) (establishing
a new class of registered options trader called an SROT) and 53652
(April 13, 2006), 71 FR 20422 (April 20, 2006) (SR-Amex-2005-100)
(establishing a new class of registered options trader called a
Remote Registered Options Trader (``RROT'')).
---------------------------------------------------------------------------
The Exchange seeks to apply the allocation algorithm set forth in
Amex Rule 935--ANTE to an SROT interacting with its own firm's orders.
The Exchange proposes that after non-broker dealer customer orders are
executed, the ANTE system would allocate to SROTs the greater of either
40% of the contracts, or the amount the SROT would be entitled to
receive pursuant to the allocation algorithm set forth in Amex Rule
935(a)(4)--ANTE. The balance of the contracts would be allocated to the
specialist, registered options traders, RROTs, or other SROTs, pursuant
to Amex Rule 935(a)(4)--ANTE.
If the SROT receives contracts pursuant to proposed paragraph
(a)(7)(i) of Amex Rule 935--ANTE, then the specialist, registered
options trader, RROT, or any other SROT would receive contracts
pursuant to the allocation algorithm in Amex Rule 935(a)(4)--ANTE. In
particular, whenever an SROT interacts with its own firm's orders, the
specialist would not be entitled to the specialist guarantee set forth
in Amex Rule 935(a)(5)--ANTE.
2. Statutory Basis
The Exchange believes 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)(5) of the Act,\8\ in particular, in that 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 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;
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change will impose no
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
[[Page 42690]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received by the
Exchange on this proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
\10\ thereunder because it does not: (i) Significantly affect the
protection of investors or the public 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; and the Exchange has given the Commission
written notice of its intention to file the proposed rule change at
least five business days prior to filing. At any time within 60 days of
the filing of such 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Under Rule 19b-4(f)(6) of the Act,\11\ the proposal does not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. Amex has requested that the
Commission waive the five-day pre-filing requirement \12\ and the 30-
day operative delay to allow for the expeditious and accurate
publication of the rule change. The Commission believes that because
the proposal would extend the current allocation algorithm to the
Exchange's new class of market participants, SROTs, the proposal raises
no new regulatory concerns. Therefore, the Commission, consistent with
the protection of investors and the public interest, has determined to
waive the five-day pre-filing requirement and the 30-day operative date
so that the proposal may take effect upon filing.\13\
---------------------------------------------------------------------------
\11\ Id.
\12\ Amex provided the Commission with written notice of its
intent to file the proposed rule change three days prior to the
filing date.
\13\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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-2006-68 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2006-68. 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-2006-68 and should be submitted on or before August
17, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E6-11988 Filed 7-26-06; 8:45 am]
BILLING CODE 8010-01-P
