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]

Download as PDF 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 (http://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 VerDate Aug<31>2005 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). E:\FR\FM\08SEN1.SGM 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 (http://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 (http://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 E:\FR\FM\08SEN1.SGM 08SEN1

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[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]


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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.
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    \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).
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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 
(http://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.
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    \7\ See Pilot Program Notice, supra note 5.
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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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    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\
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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 
Commission has 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 (http://
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 (http://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\
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    \15\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-14877 Filed 9-7-06; 8:45 am]
BILLING CODE 8010-01-P