Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Listing Standards of Security Futures Products, 55539-55540 [06-8002]
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Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / 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
Number SR–NYSEArca–2006–48. 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 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–NYSEArca–2006–48 and
should be submitted on or before
October 13, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06–8036 Filed 9–21–06; 8:45 am]
SECURITIES AND EXCHANGE
COMMISISON
sroberts on PROD1PC70 with NOTICES
[Release No. 34–54454; File No. SR–OC–
2006–02]
Self-Regulatory Organizations;
OneChicago, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Listing
Standards of Security Futures
Products
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
OneChicago proposes to amend its
listing standards for a security futures
product. The text of the proposed rule
change is available at the principal
office of the Exchange 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
Exchange 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
BILLING CODE 8010–01–P
September 15, 2006.
(‘‘Act’’) 1 and Rule 19b–7 thereunder,2
notice is hereby given that on
September 6, 2006, OneChicago, LLC
(‘‘OneChicago’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
OneChicago has also filed the
proposed rule change with the
Commodity Futures Trading
Commission (‘‘CFTC’’). OneChicago
filed a written certification with the
CFTC under Section 5c(c) of the
Commodity Exchange Act 3 on
September 5, 2006.
1. Purpose
Currently, under OneChicago Rule
906(b)(2), the Exchange will not open a
new delivery month for trading in a
security future unless the issuer of the
underlying security satisfies applicable
reporting requirements of the Act or
corrects any failure within 30 days after
the date the report was due to be filed,
and the underlying security is listed on
a national securities exchange or is
principally traded through the facilities
of a national securities association and
1 15
U.S.C. 78s(b)(7).
CFR 240.19b–7.
3 7 U.S.C. 7a–2(c).
2 17
8 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
20:37 Sep 21, 2006
Jkt 208001
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
55539
is designated as an NMS security. The
Exchange proposes to delete
OneChicago Rule 906(b)(2)(A), which
requires that the issuer of a security
underlying a single stock futures
(‘‘SSF’’) satisfy applicable reporting
requirements of the Act or correct any
failure within 30 days after the date the
report was due to be filed. OneChicago
believes that the proposed rule change
is consistent with listing standards in
the options market and in the best
interest of market participants.
The Exchange believes that the
current OneChicago Rule 906(b)(2)(A)
limits an investor’s ability to hedge her
underlying stock positions at a time
when she may be most in need to
protect her investment. The failure of a
public company to comply with its
reporting requirements under the Act
could cause a significant movement in
the price of that company’s stock. The
Exchange believes restricting the
Exchange from opening new contract
months may leave investors without the
means to hedge their positions with
SSFs.
The Exchange believes that the
proposed rule change is consistent with
options listing standards. In December
2005, the Commission approved a rule
change for the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’) that
deleted Interpretation and Policy .01(e)
to CBOE Rule 5.4, which contained
language similar to that in OneChicago
Rule 906(b)(2)(A).4 The Pacific
Exchange, Inc. (n/k/a NYSE Arca, Inc.)
(‘‘PCX’’) also filed a similar rule change
with the Commission, which was
effective immediately.5 Under Section
6(h)(3)(C) of the Act, listing standards
for security futures are to be no less
restrictive than comparable option
listing standards.6 Since a similar rule
change was made to the options listing
standards of CBOE and PCX,
OneChicago believes that the proposed
rule change is comparable to, and no
less restrictive than, option listing
standards.
The Exchange will monitor the listing
status of the security underlying a SSF
and, pursuant to OneChicago Rule
906(b), not open a new delivery month
for trading in a SSF when the
underlying security is delisted from
trading.
4 Securities Exchange Act Release No. 52779
(November 16, 2005), 70 FR 70902 (November 23,
2005).
5 Securities Exchange Act Release No. 52911
(December 7, 2005), 70 FR 74078 (December 14,
2005).
6 15 U.S.C. 78f(h)(3)(C).
E:\FR\FM\22SEN1.SGM
22SEN1
55540
Federal Register / Vol. 71, No. 184 / Friday, September 22, 2006 / Notices
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
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, and, in general, to
protect investors and the public interest.
The Exchange believes that the
proposed changes is designed to protect
investors and the public interest by
permitting investors to use SSFs based
on NMS securities trading on national
securities exchanges and a national
securities association for hedging
purposes.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
OneChicago 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
The Exchange has not solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective pursuant to
Section 19(b)(7) of the Act.9 Within 60
days of the date of effectiveness of the
proposed rule change, the Commission,
after consultation with the CFTC, may
summarily abrogate the proposed rule
change and require that the proposed
rule change be refiled in accordance
with the provisions of Section 19(b)(1)
of the Act.10
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:
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–OC–2006–02 on the subject
line.
Paper Comments
sroberts on PROD1PC70 with NOTICES
[Release No. 34–54452; File No. SR–OC–
2006–01]
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
Self-Regulatory Organization;
OneChicago, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to Block Trades
All submissions should refer to File
Number SR–OC–2006–02. 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 OneChicago. 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–OC–2006–02 and should be
submitted on or before October 13,
2006.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–7 thereunder,2
notice is hereby given that on
September 6, 2006, OneChicago, LLC
(‘‘OneChicago’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
OneChicago has also filed the
proposed rule change with the
Commodity Futures Trading
Commission (‘‘CFTC’’). OneChicago
filed a written certification with the
CFTC under Section 5c(c) of the
Commodity Exchange Act 3 on
September 5, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06–8002 Filed 9–21–06; 8:45 am]
BILLING CODE 8010–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 15 U.S.C. 78s(b)(7).
10 15 U.S.C. 78s(b)(1).
SECURITIES AND EXCHANGE
COMMISISON
September 15, 2006.
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
OneChicago proposes to amend its
policy regarding block trades. The text
of the proposed rule change is available
at the principal office of the Exchange
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
Exchange 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.
7 15
1 15
8 15
VerDate Aug<31>2005
20:37 Sep 21, 2006
U.S.C. 78s(b)(7).
CFR 240.19b–7.
3 7 U.S.C. 7a–2(c).
2 17
11 17
Jkt 208001
PO 00000
CFR 200.30–3(a)(73).
Frm 00125
Fmt 4703
Sfmt 4703
E:\FR\FM\22SEN1.SGM
22SEN1
Agencies
[Federal Register Volume 71, Number 184 (Friday, September 22, 2006)]
[Notices]
[Pages 55539-55540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8002]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISISON
[Release No. 34-54454; File No. SR-OC-2006-02]
Self-Regulatory Organizations; OneChicago, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Relating to
Listing Standards of Security Futures Products
September 15, 2006.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-7 thereunder,\2\ notice is hereby given that
on September 6, 2006, OneChicago, LLC (``OneChicago'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(7).
\2\ 17 CFR 240.19b-7.
---------------------------------------------------------------------------
OneChicago has also filed the proposed rule change with the
Commodity Futures Trading Commission (``CFTC''). OneChicago filed a
written certification with the CFTC under Section 5c(c) of the
Commodity Exchange Act \3\ on September 5, 2006.
---------------------------------------------------------------------------
\3\ 7 U.S.C. 7a-2(c).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Description of the Proposed Rule
Change
OneChicago proposes to amend its listing standards for a security
futures product. The text of the proposed rule change is available at
the principal office of the Exchange 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 Exchange 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
Currently, under OneChicago Rule 906(b)(2), the Exchange will not
open a new delivery month for trading in a security future unless the
issuer of the underlying security satisfies applicable reporting
requirements of the Act or corrects any failure within 30 days after
the date the report was due to be filed, and the underlying security is
listed on a national securities exchange or is principally traded
through the facilities of a national securities association and is
designated as an NMS security. The Exchange proposes to delete
OneChicago Rule 906(b)(2)(A), which requires that the issuer of a
security underlying a single stock futures (``SSF'') satisfy applicable
reporting requirements of the Act or correct any failure within 30 days
after the date the report was due to be filed. OneChicago believes that
the proposed rule change is consistent with listing standards in the
options market and in the best interest of market participants.
The Exchange believes that the current OneChicago Rule 906(b)(2)(A)
limits an investor's ability to hedge her underlying stock positions at
a time when she may be most in need to protect her investment. The
failure of a public company to comply with its reporting requirements
under the Act could cause a significant movement in the price of that
company's stock. The Exchange believes restricting the Exchange from
opening new contract months may leave investors without the means to
hedge their positions with SSFs.
The Exchange believes that the proposed rule change is consistent
with options listing standards. In December 2005, the Commission
approved a rule change for the Chicago Board Options Exchange,
Incorporated (``CBOE'') that deleted Interpretation and Policy .01(e)
to CBOE Rule 5.4, which contained language similar to that in
OneChicago Rule 906(b)(2)(A).\4\ The Pacific Exchange, Inc. (n/k/a NYSE
Arca, Inc.) (``PCX'') also filed a similar rule change with the
Commission, which was effective immediately.\5\ Under Section
6(h)(3)(C) of the Act, listing standards for security futures are to be
no less restrictive than comparable option listing standards.\6\ Since
a similar rule change was made to the options listing standards of CBOE
and PCX, OneChicago believes that the proposed rule change is
comparable to, and no less restrictive than, option listing standards.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 52779 (November 16,
2005), 70 FR 70902 (November 23, 2005).
\5\ Securities Exchange Act Release No. 52911 (December 7,
2005), 70 FR 74078 (December 14, 2005).
\6\ 15 U.S.C. 78f(h)(3)(C).
---------------------------------------------------------------------------
The Exchange will monitor the listing status of the security
underlying a SSF and, pursuant to OneChicago Rule 906(b), not open a
new delivery month for trading in a SSF when the underlying security is
delisted from trading.
[[Page 55540]]
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and 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, and, in general, to protect investors and the
public interest. The Exchange believes that the proposed changes is
designed to protect investors and the public interest by permitting
investors to use SSFs based on NMS securities trading on national
securities exchanges and a national securities association for hedging
purposes.
---------------------------------------------------------------------------
\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
OneChicago 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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
The Exchange has not solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective pursuant to
Section 19(b)(7) of the Act.\9\ Within 60 days of the date of
effectiveness of the proposed rule change, the Commission, after
consultation with the CFTC, may summarily abrogate the proposed rule
change and require that the proposed rule change be refiled in
accordance with the provisions of Section 19(b)(1) of the Act.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(7).
\10\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
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-OC-2006-02 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OC-2006-02. 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 OneChicago. 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-OC-2006-02 and should be submitted on or before October
13, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(73).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 06-8002 Filed 9-21-06; 8:45 am]
BILLING CODE 8010-01-P