Sunshine Act Meeting, 60781 [06-8718]

Download as PDF Federal Register / Vol. 71, No. 199 / Monday, October 16, 2006 / Notices requiring Stock Exchange members and member organizations effecting transactions in Shares of such ETF to deliver a Product Description to purchasers of Shares. SECURITIES AND EXCHANGE COMMISSION For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jill M. Peterson, Assistant Secretary. [FR Doc. E6–17060 Filed 10–13–06; 8:45 am] Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to the Establishment of the Second Market BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting 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 meeting during the week of October 16, 2006: An Open Meeting will be held on Wednesday, October 18, 2006 at 10 a.m. in Room L–002, the Auditorium. The subject matter of the Open Meeting scheduled for Wednesday, October 18, 2006, will be: The Commission will consider whether to adopt amendments to the best-price rule for issuer and third-party tender offers under the Securities Exchange Act of 1934. The amendments would clarify that the best-price rule applies only with respect to the consideration offered and paid for securities tendered in a tender offer and should not apply to consideration offered and paid according to employment compensation, severance or other employee benefit arrangements entered into with security holders of the issuer or subject company. 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 11, 2006. Nancy M. Morris, Secretary. [FR Doc. 06–8718 Filed 10–12–06; 10:55 am] [Release No. 34–54580; File No. SR–ISE– 2006–40] October 6, 2006. I. Introduction On July 5, 2006, the International Securities Exchange, LLC (f/k/a the International Securities Exchange, Inc.) (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposal to establish a ‘‘Second Market’’ for the listing and trading of low-volume option classes. On August 16, 2006, ISE filed Amendment No. 1 to the proposed rule change.3 The proposed rule change, as amended, was published for comment in the Federal Register on August 29, 2006.4 The Commission received no comments regarding the proposal. This order approves the proposed rule change, as amended. II. Description of the Proposal The ISE proposes to adopt rules for the listing and trading of low-volume option classes that qualify for listing under existing Exchange standards in a ‘‘Second Market.’’ Historically, the Exchange has elected to refrain from trading many option classes that qualify for trading on the ISE, but are characterized by low average daily trading volumes (‘‘ADVs’’) on the other option exchanges. A. Listing in the Second Market Under the proposal, the Exchange would be able to list in the Second Market equity option classes (excluding options on exchange traded funds) that trade on other option exchange(s) that are characterized by an ADV below 500 contracts over the previous six-month period. The proposed rules would allow the Exchange to list equity option classes with an ADV of over 1,500 contracts only in the existing market (the ‘‘First Market’’), and would trade such classes pursuant to existing ISE 60781 rules. The Exchange would be able to list option classes with an ADV between 500 and 1,500 contracts initially in either market. Starting one year after the Exchange initiates trading in the Second Market, the Exchange would review the market in which option classes are listed every three months, and option classes would be moved from the First to the Second Market when their ADV in the prior six-month period falls below 300 contracts, and moved from the Second to the First Market when their ADV in the prior six-month period exceeds 750 contracts. B. Participation as Market Makers in the Second Market Under the proposal, all members approved to operate ISE market maker memberships would be eligible to be Competitive Market Makers in the Second Market (‘‘SMCMMs’’). In addition, members that are only approved as Electronic Access Members (‘‘EAMs’’) may also register as SMCMMs.5 Only Primary Market Makers in the First Market may be Primary Market Makers in the Second Market (‘‘SMPMMs’’). As in the First Market, a primary market maker would be appointed for each class traded in the Second Market. SMPMMs would be subject to all the same obligations in their appointed options as Primary Market Makers in the First Market, including, among other things, entering continuous quotations in each series of every option class to which they are appointed and satisfying requirements related to the Plan for Creating and Operating an Intermarket Option Linkage. Similar to Primary Market Makers in the First Market, SMPMMs would be permitted to execute no more than 10% of their volume in Second Market option classes to which they are not assigned. For purposes of existing Exchange rules relating to market maker obligations, SMCMMs will be considered ‘‘appointed’’ to all option classes listed in the Second Market and will be able to choose whether to make markets in any option class listed in the Second Market on a daily basis. Unlike Competitive Market Makers in the First Market, SMCMMs would not be required to enter continuous quotations in a minimum number or percentage of assigned option classes. An SMCMM will be required to continuously quote jlentini on PROD1PC65 with NOTICES BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 replaced and superseded the original filing in its entirety. 4 See Securities Exchange Act Release No. 54340 (August 21, 2006), 71 FR 51240. 2 17 VerDate Aug<31>2005 16:16 Oct 13, 2006 Jkt 211001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 5 Under the proposed rules, members that are only EAMs that want to become SMCMMs would be required to complete the same market maker application and meet the same standards that are applied to Competitive Market Makers under the Exchange’s existing rules. Members that are only EAMs are not eligible to be SMPMMs. E:\FR\FM\16OCN1.SGM 16OCN1

Agencies

[Federal Register Volume 71, Number 199 (Monday, October 16, 2006)]
[Notices]
[Page 60781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8718]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meeting

    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 meeting during the week of 
October 16, 2006:
    An Open Meeting will be held on Wednesday, October 18, 2006 at 10 
a.m. in Room L-002, the Auditorium.
    The subject matter of the Open Meeting scheduled for Wednesday, 
October 18, 2006, will be:

    The Commission will consider whether to adopt amendments to the 
best-price rule for issuer and third-party tender offers under the 
Securities Exchange Act of 1934. The amendments would clarify that 
the best-price rule applies only with respect to the consideration 
offered and paid for securities tendered in a tender offer and 
should not apply to consideration offered and paid according to 
employment compensation, severance or other employee benefit 
arrangements entered into with security holders of the issuer or 
subject company.

    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 11, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06-8718 Filed 10-12-06; 10:55 am]
BILLING CODE 8011-01-P