Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Exchange's Standard Position and Exercise Limit Pilot Program, 53150-53151 [E6-14877]
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53150
Federal Register / Vol. 71, No. 174 / Friday, September 8, 2006 / Notices
LMM may count as two market
participants, are consistent with the Act.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Nancy M. Morris,
Secretary.
[FR Doc. E6–14855 Filed 9–7–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54385; File No. SR–
NYSEArca–2006–49]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Extend the Exchange’s
Standard Position and Exercise Limit
Pilot Program
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
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (SR–CBOE–2006–
58), as amended, is approved.
18, 2006, the NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
filed the proposal as a ‘‘noncontroversial’’ 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
NYSE Arca proposes to amend its
rules to extend the time period in NYSE
Arca Rule 6.8(a), which covers the
position limit and exercise limits pilot
program for equity option contracts and
options on the Nasdaq-100 Tracking
Stock (‘‘QQQQ’’) (‘‘Pilot Program’’). The
text of the proposed rule change is
available on the NYSE Arca’s Web site
(https://www.nysearca.com), at NYSE
Arca’s principal office, and at the
Commission’s Public Reference Room.
1. Purpose
In its filing with the Commission,
NYSE Arca 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. NYSE
Arca has prepared summaries, set forth
in Sections A, B, and C below, of the
most significant aspects of such
statements.
The purpose of this proposal is to
extend the period for the Exchange’s
Pilot Program relating to standard
position and exercise limits for equity
option contracts and for options on
QQQQs until March 1, 2007.5
Specifically, the Pilot Program increased
the applicable position and exercise
limits for equity options and options on
the QQQQ in accordance with the
following levels:
Current equity option contract limit 6
Pilot Program equity option contract limit
13,500
22,500
31,500
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
900,000
The Exchange believes that extending
the Pilot Program until March 1, 2007 is
warranted due to the positive feedback
from OTP Holders and for the reasons
cited in the original rule filing that
proposed the Pilot Program.7 The
Exchange has not encountered any
problems or difficulties relating to the
Pilot Program since its inception. For
these reasons, the Exchange requests
that the Commission extend the Pilot
Program until March 1, 2007.
sroberts on PROD1PC70 with NOTICES
9 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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).
5 The Pilot Program, which was effective upon
filing on February 25, 2005 and subsequently
10 17
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19:38 Sep 07, 2006
Jkt 208001
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder and, in particular, the
requirements of Section 6(b) of the Act.8
Specifically, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(5) of the Act 9 that requires
that the rules of an exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, to
extended twice, is set to expire on September 1,
2006. See Securities Exchange Act Release No.
51286 (March 1, 2005), 70 FR 11297 (March 8,
2005) (notice of filing and immediate effectiveness
of File No. SR–PCX–2003–55, as amended) (‘‘Pilot
Program Notice’’). See also Securities Exchange Act
Release Nos. 53350 (February 22, 2006), 71 FR
10582 (March 1, 2006) (notice of filing and
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
immediate effectiveness of File No. SR–PCX–2006–
08); and 52263 (August 15, 2005), 70 FR 49003
(August 22, 2005) (notice of filing and immediate
effectiveness of File No. SR–PCX–2005–95).
6 Except when the Pilot Program is in effect.
7 See Pilot Program Notice, supra note 5.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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08SEN1
Federal Register / Vol. 71, No. 174 / Friday, September 8, 2006 / Notices
Electronic comments
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
Written comments on the proposed
rule change were neither solicited nor
received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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
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:
15 U.S.C. 78s(b)(3)(A).
17 CFR 240.19b–4(f)(6).
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).
sroberts on PROD1PC70 with NOTICES
10
11
VerDate Aug<31>2005
19:38 Sep 07, 2006
Jkt 208001
• 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–NYSEArca–2006–49 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.
53151
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54382; File No. SR–OCC–
2005–23]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Granting Approval of a Proposed Rule
Change Relating to the Use of Margin
Deposit in the Event of a Clearing
Member Liquidation
August 29, 2006.
I. Introduction
On December 16, 2005, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
All submissions should refer to File No.
Commission (‘‘Commission’’) proposed
SR–NYSEArca–2006–49. This file
rule change SR–OCC–2005–23 pursuant
number should be included on the
to Section 19(b)(1) of the Securities
subject line if e-mail is used. To help the Exchange Act of 1934 (‘‘Act’’).1 Notice
Commission process and review your
of the proposal was published in the
comments more efficiently, please use
Federal Register on May 19, 2006.2 No
only one method. The Commission will comment letters were received. For the
post all comments on the Commission’s reasons discussed below, the
Internet Web site (https://www.sec.gov/
Commission is granting approval of the
rules/sro.shtml). Copies of the
proposed rule change.
submission, all subsequent
II. Description
amendments, all written statements
Currently, OCC’s By-Laws relating to
with respect to the proposed rule
the potential use of securities and other
change that are filed with the
margin assets in the event of a clearing
Commission, and all written
member’s liquidation restrict the use of
communications relating to the
such assets in ways not required under
proposed rule change between the
Commission and any person, other than applicable laws and regulations. In
addition, certain provisions of OCC’s
those that may be withheld from the
Rules applicable to clearing member
public in accordance with the
liquidations do not fully or clearly
provisions of 5 U.S.C. 552, will be
reflect limitations imposed by the Byavailable for inspection and copying in
Laws. The proposed rule change
the Commission’s Public Reference
amends Chapter XI of the Rules to more
Room. Copies of such filing will also be precisely reflect appropriate limitations
available for inspection and copying at
that are imposed by OCC’s By-Laws on
the principal office of NYSE Arca. All
the use of clearing member margin
comments received will be posted
deposits and amends provisions of the
without change; the Commission does
By-Laws to allow OCC to make use of
not edit personal identifying
those margin deposits to the fullest
information from submissions. You
extent consistent with (i) applicable
should submit only information that
customer protection provisions and (ii)
you wish to make available publicly. All the ability of OCC and clearing member
submissions should refer to File No.
systems to identify margin assets subject
SR–NYSEArca–2006–49 and should be
to those provisions.
Article VI, Section 3 of the By-Laws
submitted on or before September 29,
sets out a number of different types of
2006.
accounts that a clearing member may
For the Commission, by the Division of
establish and maintain on OCC’s books.
Market Regulation, pursuant to delegated
These accounts include firm accounts,
15
authority.
separate market-maker’s accounts,
Nancy M. Morris,
combined market-makers’ accounts,
Secretary.
customers’ accounts, and others. For
[FR Doc. E6–14877 Filed 9–7–06; 8:45 am]
each of these account types, Section 3
provides that OCC shall have a lien on
BILLING CODE 8010–01–P
property in the account and specifies
the extent of the obligations secured by
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 53794,
(May 11, 2006), 71 FR 29206.
2 Securities
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00076
Fmt 4703
Sfmt 4703
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]]>Agencies
[Federal Register Volume 71, Number 174 (Friday, September 8, 2006)]
[Notices]
[Pages 53150-53151]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14877]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54385; File No. SR-NYSEArca-2006-49]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to Extend the
Exchange's Standard Position and Exercise Limit Pilot Program
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 NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. 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
NYSE Arca proposes to amend its rules to extend the time period in
NYSE Arca Rule 6.8(a), which covers the position limit and exercise
limits pilot program for equity option contracts and options on the
Nasdaq-100 Tracking Stock (``QQQQ'') (``Pilot Program''). The text of
the proposed rule change is available on the NYSE Arca's Web site
(https://www.nysearca.com), at NYSE Arca's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NYSE Arca 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. NYSE Arca has prepared summaries, set forth in Sections
A, B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposal is to extend the period for the
Exchange's Pilot Program relating to standard position and exercise
limits for equity option contracts and for options on QQQQs until March
1, 2007.\5\ Specifically, the Pilot Program increased the applicable
position and exercise limits for equity options and options on the QQQQ
in accordance with the following levels:
---------------------------------------------------------------------------
\5\ The Pilot Program, which was effective upon filing on
February 25, 2005 and subsequently extended twice, is set to expire
on September 1, 2006. See Securities Exchange Act Release No. 51286
(March 1, 2005), 70 FR 11297 (March 8, 2005) (notice of filing and
immediate effectiveness of File No. SR-PCX-2003-55, as amended)
(``Pilot Program Notice''). See also Securities Exchange Act Release
Nos. 53350 (February 22, 2006), 71 FR 10582 (March 1, 2006) (notice
of filing and immediate effectiveness of File No. SR-PCX-2006-08);
and 52263 (August 15, 2005), 70 FR 49003 (August 22, 2005) (notice
of filing and immediate effectiveness of File No. SR-PCX-2005-95).
\6\ Except when the Pilot Program is in effect.
------------------------------------------------------------------------
Current equity option contract Pilot Program equity option
limit \6\ contract limit
------------------------------------------------------------------------
13,500 25,000
22,500 50,000
31,500 75,000
60,000 200,000
75,000 250,000
------------------------------------------------------------------------
Current QQQQ Option Contract Limit Pilot Program QQQQ Option Contract
Limit
------------------------------------------------------------------------
300,000 900,000
------------------------------------------------------------------------
The Exchange believes that extending the Pilot Program until March
1, 2007 is warranted due to the positive feedback from OTP Holders and
for the reasons cited in the original rule filing that proposed the
Pilot Program.\7\ The Exchange has not encountered any problems or
difficulties relating to the Pilot Program since its inception. For
these reasons, the Exchange requests that the Commission extend the
Pilot Program until March 1, 2007.
---------------------------------------------------------------------------
\7\ See Pilot Program Notice, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(5) of the Act \9\ that requires that the rules of an exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, to remove impediments to and perfect
the mechanism for a free and open market and a national market system,
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\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 does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
[[Page 53151]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
Written comments on the proposed rule change were neither solicited
nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 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\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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-NYSEArca-2006-49 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-NYSEArca-2006-49. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing will also be available for inspection and copying at the
principal office of NYSE Arca. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-NYSEArca-2006-49 and should be submitted on or before
September 29, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-14877 Filed 9-7-06; 8:45 am]
BILLING CODE 8010-01-P
