Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Eliminating the Post-Trade Allocation Feature in ANTE, 65844-65845 [E6-18952]
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Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54691; File No. SR–Amex–
2006–103]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change Eliminating
the Post-Trade Allocation Feature in
ANTE
November 2, 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 October
27, 2006, the American Stock Exchange
LLC (‘‘Amex’’ or ‘‘Exchange’’) submitted
to the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been substantially prepared by Amex.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to eliminate
the concept of post-trade allocation
codified in Amex Rule 935–ANTE(b).
The text of the proposed rule change is
available on the Amex’s Web site at
https://amex.com, the Amex’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
sroberts on PROD1PC70 with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Amex 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.
1 15
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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16:26 Nov 08, 2006
Jkt 211001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to eliminate
Amex Rule 935–ANTE (b), governing
ANTE post-trade allocation. Amex Rule
935–ANTE (b) currently provides for the
post-trade allocation of contracts
executed as the result of the submission
of orders to trade with orders in the
ANTE Central Book. Amex Rule 935–
ANTE (b)(2) provides that if more than
one ANTE Participant 5 and/or a floor
broker representing a customer order
submits an order to trade with an order
in the ANTE Central book, within a
period not to exceed five seconds after
the initial ANTE Participant has
submitted its order, all those ANTE
Participants and the floor broker’s
customer will be entitled to participate
in the allocation of any executed
contracts. Amex Rule 935–ANTE (b)(2)
provides that the ANTE Participant to
first submit the order to trade would be
allocated executed contracts up to a size
established on a class-by-class basis by
the Options Trading Committee and
referred to as the ‘‘Take Size.’’ The
initial ANTE Participant receives the
lesser of the number of executed
contracts in his indicated order size or
the ‘‘Take Size.’’ The Options Trading
Committee considers the option’s
liquidity and the size of the trading
crowd in determining the appropriate
‘‘Take Size’’ for each option class. They
are responsible for reviewing and in
some cases revising the assigned ‘‘Take
Size’’ on a periodic basis, but do not
change a ‘‘Take Size’’ during the course
of a trading day.
Other Exchanges have moved towards
electronic trading, where the notion of
‘‘Take-Size’’ does not exist.6 The
Exchange believes that eliminating the
concept of ‘‘Take-Size’’ at the Amex will
further encourage competition with the
liquidity providers on the Exchange’s
Floor. Accordingly, the Exchange
proposes that ANTE Participants will no
longer be limited by the post-trade
allocation process.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6 of the Act 7 in general and
5 Amex Rule 900–ANTE (b)(45) defines ANTE
Participant as either the specialist, registered
options trader(s), Remote Registered Options Trader
or Supplemental Registered Options Trader,
assigned to trade a specific options class on the
ANTE System.
6 See ISE Rule 714 and NYSEArca Rule 6.76B.
7 15 U.S.C. 78f.
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Frm 00074
Fmt 4703
Sfmt 4703
furthers the objectives of Section
6(b)(5) 8 in particular in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does 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 foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4 10
thereunder because it does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate; and the
Exchange has given the Commission
written notice of its intention to file the
proposed rule change at least five
business days prior to filing. At any
time within 60 days of the filing of such
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.
Under Rule 19b–4(f)(6) of the Act,11
the proposal does not become operative
for 30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. Amex has requested that the
Commission waive the 30-day operative
8 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6).
11 Id.
9 15
E:\FR\FM\09NON1.SGM
09NON1
Federal Register / Vol. 71, No. 217 / Thursday, November 9, 2006 / Notices
delay so that it may implement the
proposal as quickly as possible. The
Commission believes that the proposal
raises no issues of regulatory concern.
Therefore, the Commission, consistent
with the protection of investors and the
public interest, has determined to waive
the 30-day operative date so that the
proposal may take effect upon filing.12
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:
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–Amex–2006–103 and
should be submitted on or before
November 30, 2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.13
Nancy M. Morris,
Secretary.
[FR Doc. E6–18952 Filed 11–8–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
sroberts on PROD1PC70 with NOTICES
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–2006–103 on the
subject line.
[Release No. 34–54698; File No. SR–Amex–
2006–104]
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–Amex–2006–103. 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 Amex. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
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 October
30, 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, II, and III below, which Items
have been prepared by the Exchange.
Amex has designated this proposal as
one establishing or changing a due, fee,
or other charge imposed by a selfregulatory organization pursuant to
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
12 For purposes only of waiving the operative
delay for this proposal, 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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16:26 Nov 08, 2006
Jkt 211001
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change to Eliminate
Certain Licensing Fees
November 2, 2006.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Amex proposes to modify its Options
Fee Schedule and its Exchange-Traded
Fund (‘‘ETF’’) and Trust Issued Receipts
Fee Schedule to eliminate certain
licensing fees.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site (https://www.amex.com), at the
Exchange’s principal office, and at the
Commission’s Public Reference Room.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
65845
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
The Exchange is proposing to amend
its Options Fee Schedule to eliminate
the licensing fee of $0.10 a contract
which is currently charged on (1)
options on the S&P 500 Index Tracking
Stock (‘‘SPY’’) and (2) options on the
Nasdaq-100 Index Tracking Stock
(‘‘QQQQ’’). The Exchange is proposing
to retroactively eliminate the licensing
fee applicable to the SPY options as of
the close of business on September 29,
2006. The Exchange is also proposing to
retroactively eliminate the licensing fee
applicable to the QQQQ options as of
the close of business on October 11,
2006. The Exchange is proposing the
termination of these licensing fees
because said licensing fees are no longer
being imposed on the Amex.5
The Exchange is further proposing to
eliminate the licensing fee of $0.10 a
contract on the options on the SPDR OStrip ETF. The Exchange further
proposes to modify its Exchange-Traded
Fund and Trust Issued Receipts Fee
Schedule to eliminate the references to
the SPDR O-Strip ETF, which has been
delisted. The Exchange asserts that the
proposal is equitable as required by
Section 6(b)(4) of the Act.
2. Statutory Basis
The Exchange believes that the
proposed fee change is consistent with
Section 6(b)(4) of the Act 6 regarding the
equitable allocation of reasonable dues,
fees, and other charges among its
5 The Exchange has represented that the licensing
agreements for the SPY options and the QQQQ
options were eliminated on September 29, 2006 and
October 11, 2006, respectively. Email
communication from Nyieri Nazarian, Assistant
General Counsel, Amex, to Leah Mesfin, Special
Counsel, Division of Market Regulation,
Commission, on November 1, 2006.
6 15 U.S.C. 78f(b)(4).
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 71, Number 217 (Thursday, November 9, 2006)]
[Notices]
[Pages 65844-65845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18952]
[[Page 65844]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54691; File No. SR-Amex-2006-103]
Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Eliminating the Post-Trade Allocation Feature in ANTE
November 2, 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 October 27, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') submitted to the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by Amex. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) 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)(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 eliminate the concept of post-trade
allocation codified in Amex Rule 935-ANTE(b). The text of the proposed
rule change is available on the Amex's Web site at https://amex.com, the
Amex's Office of the Secretary, 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, Amex 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
The Exchange proposes to eliminate Amex Rule 935-ANTE (b),
governing ANTE post-trade allocation. Amex Rule 935-ANTE (b) currently
provides for the post-trade allocation of contracts executed as the
result of the submission of orders to trade with orders in the ANTE
Central Book. Amex Rule 935-ANTE (b)(2) provides that if more than one
ANTE Participant \5\ and/or a floor broker representing a customer
order submits an order to trade with an order in the ANTE Central book,
within a period not to exceed five seconds after the initial ANTE
Participant has submitted its order, all those ANTE Participants and
the floor broker's customer will be entitled to participate in the
allocation of any executed contracts. Amex Rule 935-ANTE (b)(2)
provides that the ANTE Participant to first submit the order to trade
would be allocated executed contracts up to a size established on a
class-by-class basis by the Options Trading Committee and referred to
as the ``Take Size.'' The initial ANTE Participant receives the lesser
of the number of executed contracts in his indicated order size or the
``Take Size.'' The Options Trading Committee considers the option's
liquidity and the size of the trading crowd in determining the
appropriate ``Take Size'' for each option class. They are responsible
for reviewing and in some cases revising the assigned ``Take Size'' on
a periodic basis, but do not change a ``Take Size'' during the course
of a trading day.
---------------------------------------------------------------------------
\5\ Amex Rule 900-ANTE (b)(45) defines ANTE Participant as
either the specialist, registered options trader(s), Remote
Registered Options Trader or Supplemental Registered Options Trader,
assigned to trade a specific options class on the ANTE System.
---------------------------------------------------------------------------
Other Exchanges have moved towards electronic trading, where the
notion of ``Take-Size'' does not exist.\6\ The Exchange believes that
eliminating the concept of ``Take-Size'' at the Amex will further
encourage competition with the liquidity providers on the Exchange's
Floor. Accordingly, the Exchange proposes that ANTE Participants will
no longer be limited by the post-trade allocation process.
---------------------------------------------------------------------------
\6\ See ISE Rule 714 and NYSEArca Rule 6.76B.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act \7\ in general and furthers the objectives of
Section 6(b)(5) \8\ in particular in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does 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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
\10\ thereunder because it does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate; and the Exchange has given the Commission
written notice of its intention to file the proposed rule change at
least five business days prior to filing. At any time within 60 days of
the filing of such 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Under Rule 19b-4(f)(6) of the Act,\11\ the proposal does not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. Amex has requested that the
Commission waive the 30-day operative
[[Page 65845]]
delay so that it may implement the proposal as quickly as possible. The
Commission believes that the proposal raises no issues of regulatory
concern. Therefore, the Commission, consistent with the protection of
investors and the public interest, has determined to waive the 30-day
operative date so that the proposal may take effect upon filing.\12\
---------------------------------------------------------------------------
\11\ Id.
\12\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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-2006-103 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 Number SR-Amex-2006-103. 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 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-2006-103 and should be submitted on or before
November 30, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Nancy M. Morris,
Secretary.
[FR Doc. E6-18952 Filed 11-8-06; 8:45 am]
BILLING CODE 8011-01-P
