Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Exercise Deadline for Quarterly Options Series, 59157-59159 [E6-16547]
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59157
Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices
contain all signatures of all Participants,
and as many of such counterparts as
shall together contain all such
signatures shall constitute one and the
same instrument.
By lllllllllllllllll
AMERICAN STOCK EXCHANGE LLC.
By lllllllllllllllll
NATIONAL STOCK EXCHANGE.
By lllllllllllllllll
BOSTON STOCK EXCHANGE, INC.
By lllllllllllllllll
NEW YORK STOCK EXCHANGE LLC.
By lllllllllllllllll
CHICAGO BOARD OPTIONS
EXCHANGE, INC.
By lllllllllllllllll
NYSE ARCA, INC.
By lllllllllllllllll
CHICAGO STOCK EXCHANGE, INC.
By lllllllllllllllll
PHILADELPHIA STOCK EXCHANGE,
INC.
By lllllllllllllllll
NASDAQ STOCK MARKET LLC.
[FR Doc. 06–8543 Filed 10–5–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
cprice-sewell on PROD1PC66 with NOTICES
Sunshine Act Meetings
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Pub. L. 94–409, that the
Securities and Exchange Commission
will hold the following meetings during
the week of October 9, 2006: An Open
Meeting will be held on Wednesday,
October 11, 2006 at 10 a.m. in the
Auditorium, Room LL–002, and Closed
Meetings will be held on Wednesday,
October 11, 2006 at 11 a.m. and
Thursday, October 12, 2006 at 2 p.m.
Commissioners, Counsels to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meetings. Certain
staff members who have an interest in
the matters may also be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), (9)(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), (9)(ii),
and (10) permit consideration of the
scheduled matters at the Closed
Meetings.
Commissioner Atkins, as duty officer,
voted to consider the items listed for the
closed meeting in closed session.
The subject matter of the Open
Meeting on Wednesday, October 11,
2006 will be:
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14:52 Oct 05, 2006
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The Commission will hear oral argument
in an appeal by James T. Patten from the
decision of an administrative law judge. The
law judge found that, during two separate
periods in 2002 and 2003, Patten
manipulated, and aided and abetted the
manipulation of, the common stock price of
Initio, Inc., formerly traded on the Nasdaq
Small Cap Market. The law judge found that,
through his conduct in placing orders to buy
Initio shares for himself and on behalf of a
customer, Patten violated Section 10(b) of the
Securities Exchange Act of 1934 and Rule
10b–5 thereunder. The law judge ordered
Patten to cease and desist from committing,
causing, and aiding and abetting violations of
Section 10(b) and Rule 10b–5, ordered him
to pay a $60,000 civil penalty, and barred
him from association with any broker or
dealer. Among the issues likely to be argued
are whether Patten violated Section 10(b) of
the Exchange Act and Rule 10b–5 thereunder
in entering orders to buy Initio shares, and,
if so, whether and to what extent sanctions
should be imposed on him.
The subject matter of the Closed
Meeting scheduled for Wednesday,
October 11, 2006 will be: Post-argument
discussion.
The subject matters of the Closed
Meeting scheduled for Thursday,
October 12, 2006 will be: Formal orders
of investigation; institution and
settlement of injunctive actions;
institution and settlement of
administrative proceedings of an
enforcement nature; and an adjudicatory
matter.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact: The Office of the Secretary at
(202) 551–5400.
Dated: October 4, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06–8580 Filed 10–4–06; 3:55 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54543; File No. SR–Amex–
2006–92]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
the Exercise Deadline for Quarterly
Options Series
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Frm 00088
Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Amex Rule 980(c) to provide that
options holders of quarterly options
have until the expiration date to make
a decision to exercise or not exercise an
expiring option. The text of the
proposed rule change is set forth below.
Proposed new language is italicized.
*
*
*
*
*
American Stock Exchange LLC
*
*
*
Sfmt 4703
*
*
Rule 980. Exercise of Option Contracts
(a)–(b) No change.
(c) Exercise cut-off time. Option
holders have until 5:30 p.m. Eastern
time (‘‘ET’’) on the business day
immediately prior to the expiration date
or, in the case of a Quarterly Options
Series, on the expiration date, to make
a final decision to exercise or not
exercise an expiring option. For
customer accounts, members and
member organizations may not accept
exercise instructions after 5:30 p.m. ET
but have until 6:30 p.m. ET to submit
a Contrary Exercise Advice. For noncustomer accounts, members and
member organizations may not accept
exercise instructions after 5:30 p.m. ET
but have until 6:30 p.m. ET to submit
a Contrary Exercise Advice if such
member or member organization
employs an electronic submission
procedure with time stamp for the
submission of exercise instructions by
option holders. Consistent with
Commentary .04, members and member
organizations are required to submit a
Contrary Exercise Advice by 5:30 p.m.
1 15
September 29, 2006.
PO 00000
(‘‘Act’’),1 and Rule 19(b)(4) thereunder,2
notice is hereby given that on
September 25, 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
substantially been prepared by the
Exchange. The Commission has
designated this proposed rule change as
non-controversial under Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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06OCN1
59158
Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices
ET for non-customer accounts if such
Members and/or member organization
do not employ an electronic submission
procedure with time stamp for the
submission of exercise instructions by
option holders.
(d)–(h) No change
*
*
*
*
*
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 the
Statutory Basis for, the Proposed Rule
Change
cprice-sewell on PROD1PC66 with NOTICES
1. Purpose
The Amex proposes to amend Amex
Rule 980(c) to provide that holders of a
Quarterly Options Series 5 have until
5:30 p.m. Eastern Time (‘‘ET’’) on the
expiration date to make a final decision
to exercise or not exercise an expiring
option.
Amex Rule 980(c) states that option
holders have until 5:30 p.m. ET on the
business day immediately prior to the
expiration date to make a final decision
to exercise or not exercise any expiring
option. Because Quarterly Options
Series continue to trade on the
expiration date, the rule in its current
form would require the holder of a
Quarterly Option to decide whether to
exercise or not exercise and expiring
option without the knowledge of what
the closing price of the underlying
security would be on expiration. Thus,
the Exchange proposes to amend Rule
980(c) to permit holders of Quarterly
Options Series to make their final
decision regarding exercise of such
options at any time before 5:30 p.m. ET
on the expiration date.
The Exchange believes that changing
the exercise cut-off time for Quarterly
Options Series is beneficial to the
5 See Amex Rule 900(b)(45) which defines
Quarterly Options Series to mean a series in an
options class that is approved for listing and trading
on the Exchange in which the series is opened for
trading on any business day and that expires at the
close of business on the last business day of a
calendar quarter.
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14:52 Oct 05, 2006
Jkt 211001
Exchange and the marketplace because
doing so will allow holders of contracts
in Quarterly Options Series to take into
account trading activity on the
expiration day when making a final
decision whether to exercise the
options.
The Exchange believes that it is
appropriate for the Exchange to adopt
the proposed rule change, as proposed,
in order to permit exercise of a quarterly
options series at any time until the close
of business on its expiration date.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
Section 6(b)(5) of the Act 7 specifically,
in that it is designed to promote just and
equitable principles of trade, to prevent
fraudulent and manipulative acts and
practices, and, in general, to protect
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change will not 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
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(6) of Rule 19b–4
thereunder.9 Because the foregoing
proposed rule change (i) does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) does not become
operative for 30 days from the date of
the filing, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.10
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. Section 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
10 Rule 19b–4(f)(6)(iii) requires the Exchange to
give written notice to the Commission of its intent
7 15
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
waive the operative delay if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the operative delay to permit the
proposed rule change to become
effective prior to the 30th day after
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Waiving the operative delay will allow
the Exchange to permit exercise of a
Quarterly Options Series at any time
until the close of business on its
expiration date starting with the third
quarter 2006 expirations on Friday,
September 29, 2006, and consequently
will benefit investors. Therefore the
Commission has determined to waive
the 30-day delay and allow the
proposed rule change to become
operative immediately.11
At any time within sixty (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
purposes 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
Number SR–Amex–2006–92 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
to file the proposed rule change five business days
prior to filing. The Commission has determined to
waive the five-day pre-filing requirement for this
proposal.
11 For purposes only of waiving the operative
delay of this proposal, the Commission notes that
it has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
E:\FR\FM\06OCN1.SGM
06OCN1
Federal Register / Vol. 71, No. 194 / Friday, October 6, 2006 / Notices
100 F Street, NE., Washington, DC
20549–1090.
SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–Amex–2006–92. 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
Section. Copies of such filing also will
be available for inspection and copying
at the principal office of the Amex. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2006–92 and should
be submitted on or before October 27,
2006.
[Release No. 34–54548; File Nos. SR–Amex–
2006–85; SR–BSE–2006–41; SR–CBOE–
2006–80; SR–CHX–2006–28; SR–NASDAQ–
2006–038; SR–NSX–2006–11; SR–
NYSEArca–2006–69; SR–Phlx–2006–58]
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.12
Nancy M. Morris,
Secretary.
[FR Doc. E6–16547 Filed 10–5–06; 8:45 am]
cprice-sewell on PROD1PC66 with NOTICES
BILLING CODE 8011–01–P
Self-Regulatory Organizations;
American Stock Exchange LLC;
Boston Stock Exchange, Inc.; Chicago
Board Options Exchange,
Incorporated; Chicago Stock
Exchange, Inc.; NASDAQ Stock Market
LLC; National Stock Exchange, Inc.;
NYSE Arca, Inc., and Philadelphia
Stock Exchange, Inc.; Notice of Filing
and Order Granting Accelerated
Approval to Proposed Rule Changes
Relating to Exchange to Exchange
Billing Under the Linkage Plan
September 29, 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
September 12, 2006, September 22,
2006, September 27, 2006, September
26, 2006, September 27, 2006,
September 22, 2006, September 29,
2006, and September 18, 2006 the
American Stock Exchange LLC
(‘‘Amex’’), the Boston Stock Exchange,
Inc. (‘‘BSE’’), the Chicago Board Options
Exchange, Incorporated (‘‘CBOE’’), the
Chicago Stock Exchange, Inc. (‘‘CHX’’),
the NASDAQ Stock Market LLC
(‘‘Nasdaq’’), the National Stock
Exchange, Inc. (‘‘NSX’’), NYSE Arca,
Inc. (‘‘NYSE Arca’’), and the
Philadelphia Stock Exchange, Inc.
(‘‘Phlx’’) (collectively, the ‘‘Exchanges’’
and ‘‘Nasdaq’’), respectively, filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule changes as described in
Items I and II below. The Commission
is publishing this notice to solicit
comments on the proposed rule
changes, from interested persons, and is
approving the proposals on an
accelerated basis.
I. Self-Regulatory Organizations’
Statement of the Terms of Substance of
the Proposed Rule Changes
The Exchanges and Nasdaq each
propose to permit themselves to bill
directly, and to accept direct billing
from, other participants in the proposed
‘‘Plan for the Purpose of Creating and
Operating an Intermarket
Communications Linkage Pursuant to
Section 11A(a)(3)(B) of the Securities
Exchange Act of 1934’’ (‘‘Linkage Plan’’)
1 15
12 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
14:52 Oct 05, 2006
2 17
Jkt 211001
PO 00000
U.S.C. 78s(b)(1).
CFR 240. 19b–4.
Frm 00090
Fmt 4703
Sfmt 4703
59159
that are unable to implement
Sponsoring Member billing, as
described herein, on October 1, 2006.
These proposals do not require
changes to the Exchanges’ or Nasdaq’s
respective rule texts.
II. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
In their filings with the Commission,
each Exchange and Nasdaq included
statements concerning the purpose of,
and basis for, the proposed rule changes
and discussed any comments it received
on the proposed rule changes. The text
of these statements may be examined at
the places specified in Item III below.
The Exchanges and Nasdaq have
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organizations’
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Changes
1. Purpose
On July 17, 2006, the Amex, the BSE,
Inc., the CBOE, the CHX, Inc., Nasdaq,
the NSX, the NYSE, and the NYSE Arca,
executed and filed with the Commission
the Linkage Plan. Phlx subsequently
executed the Linkage Plan on August 1,
2006.3 The Linkage Plan was filed with
the Commission pursuant to Rule 608 of
Regulation NMS under the Act.4 The
purpose of the proposed Linkage Plan is
to enable the Linkage Plan participants
to act jointly in planning, developing,
operating and regulating the NMS
Linkage System (‘‘Linkage’’) that will
electronically link the Linkage Plan
Participant Markets to one another, as
described in the Linkage Plan.5 The
Plan would run concurrently with the
ITS Plan from October 1, 2006 until
February 5, 2007.
The Linkage Plan provides that orders
must be sent to a Participant Market
through the auspices of a member of
that Participant Market (‘‘Sponsoring
Member’’). An order entered through the
Linkage must specify the member of the
destination market (either clearing
member or default Sponsoring Member).
3 See Securities Exchange Act Release No. 54239
(July 28, 2006); 71 FR 44328 (August 4, 2006). A
Linkage Plan, dated August 1, 2006, reflecting
Phlx’s inclusion as a Linkage Plan participant, was
received by the Commission on August 9, 2006.
4 17 CFR 242.608.
5 The Commission approved the Linkage Plan
today. See Securities Exchange Act No. (Sept. 29,
2006). Upon implementation of Rule 611 on
February 5, 2007, the ITS Plan Participants expect
to have submitted an amendment to eliminate the
ITS Plan.
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]]>Agencies
[Federal Register Volume 71, Number 194 (Friday, October 6, 2006)]
[Notices]
[Pages 59157-59159]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16547]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54543; File No. SR-Amex-2006-92]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the Exercise Deadline for Quarterly Options Series
September 29, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19(b)(4) thereunder,\2\ notice is hereby given
that on September 25, 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 substantially been prepared by the Exchange.
The Commission has designated this proposed rule change as non-
controversial under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Amex Rule 980(c) to provide that
options holders of quarterly options have until the expiration date to
make a decision to exercise or not exercise an expiring option. The
text of the proposed rule change is set forth below. Proposed new
language is italicized.
* * * * *
American Stock Exchange LLC
* * * * *
Rule 980. Exercise of Option Contracts
(a)-(b) No change.
(c) Exercise cut-off time. Option holders have until 5:30 p.m.
Eastern time (``ET'') on the business day immediately prior to the
expiration date or, in the case of a Quarterly Options Series, on the
expiration date, to make a final decision to exercise or not exercise
an expiring option. For customer accounts, members and member
organizations may not accept exercise instructions after 5:30 p.m. ET
but have until 6:30 p.m. ET to submit a Contrary Exercise Advice. For
non-customer accounts, members and member organizations may not accept
exercise instructions after 5:30 p.m. ET but have until 6:30 p.m. ET to
submit a Contrary Exercise Advice if such member or member organization
employs an electronic submission procedure with time stamp for the
submission of exercise instructions by option holders. Consistent with
Commentary .04, members and member organizations are required to submit
a Contrary Exercise Advice by 5:30 p.m.
[[Page 59158]]
ET for non-customer accounts if such Members and/or member organization
do not employ an electronic submission procedure with time stamp for
the submission of exercise instructions by option holders.
(d)-(h) No change
* * * * *
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Amex proposes to amend Amex Rule 980(c) to provide that holders
of a Quarterly Options Series \5\ have until 5:30 p.m. Eastern Time
(``ET'') on the expiration date to make a final decision to exercise or
not exercise an expiring option.
---------------------------------------------------------------------------
\5\ See Amex Rule 900(b)(45) which defines Quarterly Options
Series to mean a series in an options class that is approved for
listing and trading on the Exchange in which the series is opened
for trading on any business day and that expires at the close of
business on the last business day of a calendar quarter.
---------------------------------------------------------------------------
Amex Rule 980(c) states that option holders have until 5:30 p.m. ET
on the business day immediately prior to the expiration date to make a
final decision to exercise or not exercise any expiring option. Because
Quarterly Options Series continue to trade on the expiration date, the
rule in its current form would require the holder of a Quarterly Option
to decide whether to exercise or not exercise and expiring option
without the knowledge of what the closing price of the underlying
security would be on expiration. Thus, the Exchange proposes to amend
Rule 980(c) to permit holders of Quarterly Options Series to make their
final decision regarding exercise of such options at any time before
5:30 p.m. ET on the expiration date.
The Exchange believes that changing the exercise cut-off time for
Quarterly Options Series is beneficial to the Exchange and the
marketplace because doing so will allow holders of contracts in
Quarterly Options Series to take into account trading activity on the
expiration day when making a final decision whether to exercise the
options.
The Exchange believes that it is appropriate for the Exchange to
adopt the proposed rule change, as proposed, in order to permit
exercise of a quarterly options series at any time until the close of
business on its expiration date.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \6\ in general, and Section 6(b)(5) of the
Act \7\ specifically, in that it is designed to promote just and
equitable principles of trade, to prevent fraudulent and manipulative
acts and practices, and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes that the proposed rule change will not 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
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) \8\ of the Act and subparagraph (f)(6) of Rule 19b-4
thereunder.\9\ Because the foregoing proposed rule change (i) does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date of the
filing, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest,
the proposed rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. Section 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ Rule 19b-4(f)(6)(iii) requires the Exchange to give written
notice to the Commission of its intent to file the proposed rule
change five business days prior to filing. The Commission has
determined to waive the five-day pre-filing requirement for this
proposal.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to waive the operative
delay if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
operative delay to permit the proposed rule change to become effective
prior to the 30th day after filing.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Waiving the operative delay will allow the Exchange to permit exercise
of a Quarterly Options Series at any time until the close of business
on its expiration date starting with the third quarter 2006 expirations
on Friday, September 29, 2006, and consequently will benefit investors.
Therefore the Commission has determined to waive the 30-day delay and
allow the proposed rule change to become operative immediately.\11\
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\11\ For purposes only of waiving the operative delay of this
proposal, the Commission notes that it 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 sixty (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 purposes 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 Number SR-Amex-2006-92 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission,
[[Page 59159]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-Amex-2006-92. 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 Section. Copies of such
filing also will be available for inspection and copying at the
principal office of the Amex. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-Amex-2006-92 and should be submitted on or before
October 27, 2006.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
[FR Doc. E6-16547 Filed 10-5-06; 8:45 am]
BILLING CODE 8011-01-P
