Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of a Pilot Program That Increases Position and Exercise Limits for Equity Options and Options on the Nasdaq-100 Tracking Stock, 52831-52833 [E6-14794]
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rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / Notices
Those who engage in contingent trades
can benefit the market as a whole by
studying the relationships between the
prices of such securities and executing
contingent trades when they believe
such relationships are out of line with
what they believe to be fair value.
Contingent trades therefore are one
example of a wide variety of trades that
contribute to the efficient functioning of
the securities markets and the price
discovery process. The Commission
believes that qualified contingent trades
potentially could become too risky and
costly to be employed successfully if
they were required to meet the tradethrough provisions of Rule 611. Absent
an exemption, participants in
contingent trades often would need to
use the Rule’s intermarket sweep order
exception and route orders to execute
against protected quotations with better
prices than an NMS stock component of
the contingent trade. Any executions of
these routed orders could throw the
participants ‘‘out of hedge’’ and
necessitate additional transactions in an
attempt to correct the imbalance. As a
practical matter, the difficulty of
maintaining a hedge, and the risk of
falling out of hedge, could dissuade
participants from engaging in contingent
trades, or at least raise the cost of such
trades. The elimination or reduction of
this trading strategy potentially could
remove liquidity from the market. The
Commission therefore has determined to
exempt qualified exempted trades from
Rule 611.
To minimize the effect of an
exemption on the objectives of Rule 611,
the exemption is narrowly drawn to
encompass only those trades most in
need of relief to remain part of a viable
trading strategy and where execution of
the NMS stock component at a tradethrough price is reasonably necessary to
effect the contingent trade. In particular,
elements (1) through (6) of the
exemption, as set forth above, require a
close connection between any Exempted
NMS Stock Transaction and the other
components of a qualified contingent
trade. This close connection should
both significantly limit the number of
Exempted NMS Stock Transactions and
help assure that the exemption applies
only to those trades most in need of
flexibility to be executed efficiently. For
example, the execution of one
component of the transaction must be
contingent upon the execution of all
other components at or near the same
time, and the Exempted NMS Stock
Transaction must be fully hedged
(without regard to any prior existing
position) as a result of the other
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18:11 Sep 06, 2006
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components of the contingent trade.23 In
addition, there must be a specified
relationship between the instruments
involved in the component orders. The
component orders must bear a
derivative relationship to one another,
represent different classes of shares of
the same issuer, or involve the securities
of participants in mergers or with
intentions to merge that have been
announced or since cancelled.24 The
exemption does not apply to contingent
trades, such as statistical arbitrage
transactions, if their components do not
involve instruments with a specified
relationship. Finally, the Exempted
NMS Stock Transaction must be of
block-size, involving at least 10,000
shares or having a market value of at
least $200,000. This element further
limits the exemption to those
transactions where an exemption is
likely to be most needed to facilitate the
trading strategies of informed
customers.
Accordingly, the exemption should
provide appropriate relief in those
circumstances where compliance with
Rule 611 could be most difficult as a
practical matter, but also is limited to a
small number of transactions that
should not unduly undermine the
objectives of Rule 611.25 In this regard,
the Commission notes that the
exception is premised on an expectation
that qualified contingent trades will
continue to be used for essentially the
same valid trading purposes as they are
currently and as described in the SIA
Exemption Request. A material change
in the nature or frequency of such trades
could cause the Commission to
reconsider the terms of the exemption.
For the foregoing reasons, the
Commission finds that granting an
exemption from Rule 611 for qualified
contingent trades, as defined above, is
necessary and appropriate in the public
interest, and is consistent with the
protection of investors.
23 The requirement that an Exempted NMS Stock
Transaction be fully hedged should significantly
limit the scope of the exemption. For example, a
contingent trade would not qualify for the
exemption if an NMS stock transaction was the
purchase or sale of 50,000 shares, and the only
other component was the purchase or sale of a
small quantity of options on the NMS stock. A
trading center may demonstrate that an Exempted
NMS Stock Transaction is fully hedged under the
circumstances based on the use of reasonable riskvaluation methodologies.
24 Transactions involving cancelled mergers
would be qualified contingent trades only to the
extent that they involve the unwinding of a preexisting position in the merger participants’ shares.
25 See SIA Exemption Request at 5–6
(representing that the number of qualified
contingent trades is small in comparison to the
overall number of trades executed in NMS stocks
and, therefore, the overall number of possible
exempted trade-throughs is similarly small).
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Fmt 4703
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52831
IV. Conclusion
It is hereby ordered, pursuant to Rule
611(d) of Regulation NMS, that each
NMS stock component of qualified
contingent trades, as defined above,
shall be exempt from Rule 611(a) of
Regulation NMS.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.26
Nancy M. Morris,
Secretary.
[FR Doc. E6–14806 Filed 9–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54386; File No. SR–Amex–
2006–75]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to
the Extension of a Pilot Program That
Increases Position and Exercise Limits
for Equity Options and Options on the
Nasdaq-100 Tracking Stock
August 30, 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 August
15, 2006, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Amex. The
Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange seeks a six-month
extension of its pilot program increasing
the standard position and exercise
limits for options on the QQQQ and
equity option classes traded on the
Exchange (‘‘Pilot Program’’). The text of
the proposed rule change is available on
the Amex’s Web site (https://
26 17
CFR 200.30–3(a)(82).
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).
1 15
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52832
Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / Notices
www.amex.com), at the Amex’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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
The Exchange is requesting to extend
its current Pilot Program increasing the
standard position and exercise limits for
options on the QQQQ and equity option
classes traded on the Exchange for a
time period of six months from
September 1, 2006, through and
including March 1, 2007.
In March 2005, the Exchange
established the Pilot Program for a sixmonth period.5 Under the Pilot
Program, position and exercise limits for
options on the QQQQ and equity
options classes traded on the Exchange
were increased to the following levels:
Current equity option contract limit 6
13,500
22,500
231,500
60,000
75,000
25,000
50,000
75,000
200,000
250,000
Current QQQQ option contract limit
Pilot program QQQQ option contract limit
300,000
6 Except
Pilot program equity option contract limit
900,000
when the Pilot Program is in effect.
rwilkins on PROD1PC63 with NOTICES
The standard position limits were last
increased on December 31, 1998.7 Since
that time there has been a steady
increase in the number of accounts that:
(a) Approach the position limit; (b)
exceed the position limit; and (c) are
granted an exemption to the standard
limit. Several member firms have
petitioned the options exchanges to
either eliminate position limits, or in
lieu of total elimination, increase the
current levels and expand the available
hedge exemptions. A review of available
data indicates that the majority of
accounts that maintain sizable positions
are in those option classes subject to the
60,000 and 75,000 tier limits. There also
has been an increase in the number of
accounts that maintain sizable positions
in the lower three tiers. In addition,
overall volume in the options market
has continually increased over the past
five years. The Exchange believes that
the increase in options volume and lack
of evidence of market manipulation
occurrences over the past twenty years
justifies the proposed increases in the
position and exercise limits.
The Exchange has not encountered
any problems or difficulties relating to
the Pilot Program since its inception.
The instant proposed rule change makes
no substantive change to the Pilot
Program other than to extend it for six
months through and including March 1,
2007.
5 See Securities Exchange Act Release No. 51316
(March 3, 2005), 70 FR 12251 (March 11, 2005)
(notice of filing and immediate effectiveness of File
No. SR–Amex–2005–029). The Pilot Program was
extended twice and is due to expire on September
1, 2006. See Securities Exchange Act Release Nos.
53349 (February 22, 2006), 71 FR 10571 (March 1,
2006) (notice of filing and immediate effectiveness
of File No. SR–Amex–2006–07); and 52260 (August
15, 2005), 70 FR 48991 (August 22, 2005) (notice
of filing and immediate effectiveness of File No.
SR–Amex–2005–082). Telephone conversation
between Nyieri Nazarian, Assistant General
Counsel, Amex, and Theodore S. Venuti, Attorney,
Division of Market Regulation, Commission, on
August 16, 2006.
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19:26 Sep 06, 2006
Jkt 208001
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 8 in general and furthers the
objective of Section 6(b)(5) of the Act 9
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 facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change would impose no
burden on competition that is not
PO 00000
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Fmt 4703
Sfmt 4703
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 on this
proposal.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days from the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
7 See Securities Exchange Act Release No. 40875
(December 31, 1998), 64 FR 1842 (January 12, 1999)
(File No. SR–Amex–98–22) (approval of increase in
position limits and exercise limits).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
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Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / Notices
the date of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
the proposed rule change. In addition,
the Exchange has requested that the
Commission waive the 30-day preoperative delay. The Commission
believes that waiving the 30-day preoperative delay is consistent with the
protection of investors and in the public
interest because it will allow the Pilot
Program to continue uninterrupted.14
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 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–Amex–2006–75 on the subject
line.
rwilkins on PROD1PC63 with NOTICES
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 No.
SR–Amex–2006–75. 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
12 17
CFR 240.19b–4(f)(6)(iii).
13 Id.
14 For purposes only of waiving the pre-operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
VerDate Aug<31>2005
18:11 Sep 06, 2006
Jkt 208001
52833
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 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 No.
SR–Amex–2006–75 and should be
submitted on or before September 28,
2006.
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.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Nancy M. Morris,
Secretary.
[FR Doc. E6–14794 Filed 9–6–06; 8:45 am]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54388; File No. SR–BSE–
2006–32]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to Its
Boston Options Exchange Trading
Rules Regarding the Extension of a
Pilot Program That Increases the
Standard Position and Exercise Limits
for Certain Options Traded
August 30, 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 August
18, 2006, the Boston Stock Exchange,
Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the BSE. The
Exchange has filed the proposal as a
‘‘non-controversial’’ rule change
pursuant to Section 19(b)(3)(A) of the
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The BSE proposes to amend the rules
of the Boston Options Exchange
(‘‘BOX’’), an options trading facility of
the BSE, to extend its current pilot
program to increase the standard
position and exercise limits for equity
option contracts and options on the
Nasdaq–100 Index Tracking Stock
(‘‘QQQQ’’) (‘‘Pilot Program’’). The text
of the proposed rule change is available
on the BSE’s Web site (https://
www.bostonstock.com), at the BSE’s
principal office, and at the
Commission’s Public Reference Room.
In its filing with the Commission, the
BSE 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 Pilot Program provides for an
increase to the standard position and
exercise limits for equity option
contracts and for options on QQQQs for
a six-month period.5 Specifically, the
Pilot Program increased the applicable
position and exercise limits for equity
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 The Pilot Program, which commenced on March
3, 2005, was extended on August 15, 2005 and
February 22, 2006, and is set to expire on
September 1, 2006. See Securities Exchange Act
Release Nos. 51317 (March 3, 2005), 70 FR 12254
(March 11, 2005) (notice of filing and immediate
effectiveness of File No. SR–BSE–2005–10) (‘‘Pilot
Program Notice’’); 52264 (August 15, 2005), 70 FR
48992 (August 22, 2005) (notice of filing and
immediate effectiveness of File No. SR–BSE–2005–
37, which extended the Pilot Program); and 53347
(February 22, 2006), 71 FR 10573 (March 1, 2006)
(notice of filing and immediate effectiveness of File
No. SR–BSE–2006–07, which extended the Pilot
Program).
4 17
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]]>Agencies
[Federal Register Volume 71, Number 173 (Thursday, September 7, 2006)]
[Notices]
[Pages 52831-52833]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14794]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54386; File No. SR-Amex-2006-75]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of a Pilot Program That Increases Position
and Exercise Limits for Equity Options and Options on the Nasdaq-100
Tracking Stock
August 30, 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 August 15, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Amex. The Exchange has
filed the proposal as a ``non-controversial'' rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders it effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange seeks a six-month extension of its pilot program
increasing the standard position and exercise limits for options on the
QQQQ and equity option classes traded on the Exchange (``Pilot
Program''). The text of the proposed rule change is available on the
Amex's Web site (https://
[[Page 52832]]
www.amex.com), at the Amex's principal office, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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
The Exchange is requesting to extend its current Pilot Program
increasing the standard position and exercise limits for options on the
QQQQ and equity option classes traded on the Exchange for a time period
of six months from September 1, 2006, through and including March 1,
2007.
In March 2005, the Exchange established the Pilot Program for a
six-month period.\5\ Under the Pilot Program, position and exercise
limits for options on the QQQQ and equity options classes traded on the
Exchange were increased to the following levels:
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51316 (March 3,
2005), 70FR 12251 (March 11, 2005) (notice of filing and immediate
effectiveness of File No. SR-Amex-2005-029). The Pilot Program was
extended twice and is due to expire on September 1, 2006. See
Securities Exchange Act Release Nos. 53349 (February 22, 2006), 71
FR 10571 (March 1, 2006) (notice of filing and immediate
effectiveness of File No. SR-Amex-2006-07); and 52260 (August 15,
2005), 70 FR 48991 (August 22, 2005) (notice of filing and immediate
effectiveness of File No. SR-Amex-2005-082). Telephone conversation
between Nyieri Nazarian, Assistant General Counsel, Amex, and
Theodore S. Venuti, Attorney, Division of Market Regulation,
Commission, on August 16, 2006.
------------------------------------------------------------------------
Current equity option contract Pilot program equity option
limit \6\ contract limit
------------------------------------------------------------------------
13,500 25,000
22,500 50,000
231,500 75,000
60,000 200,000
75,000 250,000
------------------------------------------------------------------------
CurrenPilot program QQQQ option contract
limit
------------------------------------------------------------------------
300,000 900,000
------------------------------------------------------------------------
\6\ Except when the Pilot Program is in effect.
The standard position limits were last increased on December 31,
1998.\7\ Since that time there has been a steady increase in the number
of accounts that: (a) Approach the position limit; (b) exceed the
position limit; and (c) are granted an exemption to the standard limit.
Several member firms have petitioned the options exchanges to either
eliminate position limits, or in lieu of total elimination, increase
the current levels and expand the available hedge exemptions. A review
of available data indicates that the majority of accounts that maintain
sizable positions are in those option classes subject to the 60,000 and
75,000 tier limits. There also has been an increase in the number of
accounts that maintain sizable positions in the lower three tiers. In
addition, overall volume in the options market has continually
increased over the past five years. The Exchange believes that the
increase in options volume and lack of evidence of market manipulation
occurrences over the past twenty years justifies the proposed increases
in the position and exercise limits.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 40875 (December 31,
1998), 64 FR 1842 (January 12, 1999) (File No. SR-Amex-98-22)
(approval of increase in position limits and exercise limits).
---------------------------------------------------------------------------
The Exchange has not encountered any problems or difficulties
relating to the Pilot Program since its inception. The instant proposed
rule change makes no substantive change to the Pilot Program other than
to extend it for six months through and including March 1, 2007.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general and furthers the objective of Section
6(b)(5) of the Act \9\ 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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 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 would impose no
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 on
this proposal.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days from the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after
[[Page 52833]]
the date of filing.\12\ However, Rule 19b-4(f)(6)(iii) \13\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
provided the Commission with written notice of its intent to file this
proposed rule change at least five business days prior to the date of
filing the proposed rule change. In addition, the Exchange has
requested that the Commission waive the 30-day pre-operative delay. The
Commission believes that waiving the 30-day pre-operative delay is
consistent with the protection of investors and in the public interest
because it will allow the Pilot Program to continue uninterrupted.\14\
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\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ Id.
\14\ For purposes only of waiving the pre-operative delay, the
Commissionhas considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days 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 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-Amex-2006-75 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 No. SR-Amex-2006-75. 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 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 No. SR-Amex-2006-75 and should be submitted on or before September
28, 2006.
For the Commission, by the Division of Market Regulation, pursuant
to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
Nancy M. Morris,
Secretary.
[FR Doc. E6-14794 Filed 9-6-06; 8:45 am]
BILLING CODE 8010-01-P
