Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 50433

14 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 44994 

(October 26, 2001), 66 FR 55722 (November 2, 2001) 

(order granting permanent approval to the 

elimination of position and exercise limits on the 

SPX, OEX, and DJX) (‘‘Permanent Approval 

Order’’). See also Securities Exchange Act Release 

No. 40969 (January 22, 1999), 64 FR 4911 (February 

1, 1999) (order approving the original pilot 

program) (‘‘Pilot Approval Order’’).

4See Permanent Approval Order, supra note 3.

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which the Amex consents, the 

Commission will: 

(A) By order approve such proposed 

rule change; or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 rulecomments@sec.gov. Please include File 

Number SR–Amex–2005–063 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–9303. All 

submissions should refer to File 

Number SR–Amex–2005–063. 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 

Section, 100 F Street, NE., Washington, 

DC 20549. 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 publicly available. All 

submissions should refer to File 

Number SR–Amex–2005–063 and 

should be submitted on or before 

September 16, 2005.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. E5–4658 Filed 8–25–05; 8:45 am] 

BILLING CODE 8010–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52313; File No. SR–CBOE–

2005–41] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change Relating to the 

Elimination of Position and Exercise 

Limits on NDX Options 

August 22, 2005. 

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 May 23, 

2005, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ 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 CBOE. 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 amend its 

rules to eliminate position and exercise 

limits for options on the Nasdaq 100 

Index (‘‘NDX’’). The text of the proposed 

rule change is available on the CBOE’s 

Web site (http://www.cboe.com), at the 

CBOE’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, the 

CBOE included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it had received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

CBOE 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 CBOE proposes to eliminate 

position and exercise limits for options 

on the NDX, a broad-based securities 

index. In November 2001, the 

Commission granted permanent 

approval to a CBOE pilot program that 

eliminated position and exercise limits 

for options on the S&P 500 Index 

(‘‘SPX’’), the S&P 100 Index (‘‘OEX’’), 

and the Dow Jones Industrial Average 

(‘‘DJX’’).3 The Exchange believes that 

the circumstances and considerations 

relied upon in approving the 

elimination of position and exercise 

limits for options on those broad-based 

indexes equally apply to this proposal 

relating to NDX position and exercise 

limits.

In the Permanent Approval Order 

relating to SPX, OEX, and DJX options, 

the Commission cited several reasons 

for allowing the Exchange to eliminate 

position and exercise limits for these 

options. First, the Commission 

expressed its belief that the enormous 

capitalization of each index and the 

deep liquid markets for the securities 

underlying each index significantly 

reduced concerns of market 

manipulation or disruptions in the 

underlying markets.4 The Commission 

previously had also noted the active 

trading volume for options on the 

50434 Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 

5See Pilot Approval Order, supra note 3.

6ADTVs are calculated over the previous three 

months of trading.

7See Permanent Approval Order, supra note 3.

8 17 CFR 240.15c3–1.

9See Interpretation and Policy .04 to CBOE Rule 

24.4. Clarified as per telephone conversation 

between Ira Brandriss, Special Counsel, and 

Theodore Venuti, Attorney, Division of Market 

Regulation, Commission, and James M. Flynn, 

Attorney II, Legal Division, CBOE, on August 12, 

2005 (‘‘Telephone Conversation of August 12, 

2005’’).

10See Interpretation and Policy .03 to CBOE Rule 

24.4.

11 Id.

12See CBOE Rules 24A.7 and 24A.8. The text of 

Rule 24A.8 is not amended by this proposed rule 

change.

13This would include the authority of the 

Exchange to impose additional margin on accounts 

maintaining underhedged positions in these 

options. Telephone Conversation of August 12, 

2005, supra note.

14 15 U.S.C. 78f(b).

15 15 U.S.C. 78f(b)(5).

respective indexes.5 The CBOE believes 

that NDX shares these factors in 

common with the SPX, OEX, and DJX. 

As of the date of this rule filing, the 

approximate market capitalizations of 

the SPX, OEX, and DJX were $10.97 

trillion, $5.94 trillion, and $3.7 trillion, 

respectively. The average daily trading 

volumes (‘‘ADTVs’’) for all underlying 

components of the indexes were 1,250, 

560, and 250 million shares, 

respectively, and the ADTV for options 

on the indexes were 253,981 contracts, 

72,809 contracts, and 30,938 contracts, 

respectively.6 The CBOE believes that 

the NDX has very comparable 

characteristics. The market 

capitalization for the NDX is $1.84 

trillion dollars, the ADTV for the 

underlying securities is 420 million 

shares, and the options ADTV is 44,008 

contracts.

Secondly, with respect to SPX, OEX, 

and DJX options, the Commission noted 

that the financial requirements imposed 

by both the Exchange and the 

Commission help to address concerns 

that a CBOE member or its customer(s) 

may try to maintain an inordinately 

large unhedged position in the indexes.7

These identical financial requirements 

also apply to NDX options. Under CBOE 

rules, the Exchange has the authority to 

impose additional margin upon 

accounts maintaining underhedged 

positions, and is further able to monitor 

accounts to determine when such action 

is warranted. As noted in the 

Exchange’s rules, the clearing firm 

carrying such an account would be 

subject to capital charges under Rule 

15c3–1 under the Act 8 to the extent of 

any resulting margin deficiency.9

Finally, the Exchange believes that 

with regard to SPX, OEX, and DJX 

options, the Commission relied 

substantially on the Exchange’s ability 

to provide surveillance and reporting 

safeguards to detect and deter trading 

abuses arising from the elimination of 

position and exercise limits in options 

on these indexes. The Exchange 

represents that it monitors trading in 

NDX options in much the same manner 

as trading in SPX, OEX, and DJX options 

and that the current CBOE surveillance 

procedures are more than adequate to 

continue monitoring NDX options. 

Additionally, the Exchange proposes to 

impose a reporting requirement on 

CBOE members (other than CBOE 

market-makers) and member 

organizations that trade NDX options. 

This reporting requirement, which is 

currently imposed on members and 

member organizations that trade SPX 

and OEX options, would require each 

member or member organization that 

maintains in excess of 100,000 NDX 

contracts on the same side of the 

market, for its own account or for the 

account of a customer, to report 

information as to whether the positions 

are hedged and provide documentation 

as to how such contracts are hedged, in 

a manner and form required by the 

Exchange’s Department of Market 

Regulation.10 The Exchange also may 

specify other reporting requirements, as 

well as the limit at which the reporting 

requirement may be triggered.11

In the interest of consistency, the 

Exchange also proposes to amend 

Exchange rules relating to the trading of 

FLEX broad-based index options to 

reflect that there shall be no exercise or 

position limits on NDX options and to 

adopt the 100,000 contract reporting 

requirement for NDX FLEX options.12

Thus, the provisions in CBOE Rule 

24A.7(b) applicable specifically to SPX 

and OEX FLEX options shall also apply 

to NDX FLEX options.13

The Exchange believes that 

eliminating position and exercise limits 

for NDX options and FLEX options is 

consistent with CBOE Rules relating to 

similar broad-based indexes and also 

allows CBOE members and their 

customers greater hedging and 

investment opportunities. 

2. Statutory Basis 

By placing position and exercise 

limits for NDX options on an equal basis 

with other similar broad-based index 

options, the Exchange believes that this 

proposed rule change is consistent with 

Section 6(b) of the Act,14 in general, and 

furthers the objectives of Section 

6(b)(5),15 in particular, in that it should 

promote just and equitable principles of 

trade, serve to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and to protect investors and the 

public interest.

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The CBOE believes that the proposed 

rule change would 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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which the CBOE consents, the 

Commission will: 

(A) By order approve such proposed 

rule change; or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2005–41 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–9303. 

All submissions should refer to File 

Number SR–CBOE–2005–41. 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 

Federal Register / Vol. 70, No. 165 / Friday, August 26, 2005 / Notices 50435

16 17 CFR 200.30–3(a)(12).

1See Securities Exchange Act Release No. 52209 

(August 4, 2005), 70 FR 46557 (August 10, 2005). 2 17 CFR 200.30–3(a)(12).

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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at the principal office of the CBOE. 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 publicly available. All 

submissions should refer to File 

Number SR–CBOE–2005–41 and should 

be submitted on or before September 16, 

2005.

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 05–16963 Filed 8–25–05; 8:45 am] 

BILLING CODE 8010–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52209A; File No. SR–

NASD–2004–165] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Order Approving 

Proposed Rule Change and 

Amendment Nos. 1 and 2 Thereto 

Relating to NASD Rule 2790; Corrected 

August 22, 2005. 

Correction 

In Part III.D. of Release 34–52209, 

issued August 4, 2005,1 the Commission 

is replacing the following sentence:

‘‘The NASD suggests that the proposed rule 

change become effective 45 days after 

approval by the Commission and the 

Commission believes that this is reasonable.’’

with:

‘‘The NASD will announce the effective date 

of the proposed rule change in a Notice to 

Members (‘‘NtM’’) to be published no later 

than 60 days following Commission 

approval. The effective date will be not more 

than 30 days following publication of the 

NtM announcing Commission approval and 

the Commission believes this is reasonable.’’

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.2

Margaret H. McFarland, 

Deputy Secretary.

[FR Doc. 05–16956 Filed 8–25–05; 8:45 am] 

BILLING CODE 8010–01–P

DEPARTMENT OF STATE

[Public Notice 5175 ] 

30-Day Notice of Proposed Information 

Collection: DS Form 4502, Fulbright 

Teacher Exchange Program 

Application Package, OMB Control No. 

1405–0114

ACTION: Notice of request for public 

comments and submission to OMB of 

proposed collection of information. 

SUMMARY: The Department of State has 

submitted the following information 

collection request to the Office of 

Management and Budget (OMB) for 

approval in accordance with the 

Paperwork Reduction Act of 1995. 

• Title of Information Collection:

Fulbright Teacher Exchange Program 

Application Package. 

• OMB Control Number: 1405–0114. 

• Type of Request: Extension of a 

currently approved collection. 

• Originating Office: Office of Global 

Educational Programs (ECA/A/S). 

• Form Numbers: DS–4502. 

• Respondents: Educators desiring to 

participate in the Fulbright Teacher 

Exchange Program. 

• Estimated Number of Respondents:

950. 

• Estimated Number of Responses:

950. 

• Average Hours Per Response: 3. 

• Total Estimated Burden: 2850. 

• Frequency: On occasion. 

• Obligation to Respond: Required to 

obtain or retain a benefit.

DATES: The Department will accept 

comments from the public up to 30 days 

from August 26, 2005.

ADDRESSES: Direct comments and 

questions to Katherine Astrich, the 

Department of State Desk Officer in the 

Office of Information and Regulatory 

Affairs at the Office of Management and 

Budget (OMB), who may be reached at 

202–395–4718. You may submit 

comments by any of the following 

methods: 

• E-mail: 

Katherine_T._Astrich@omb.eop.gov. 

You must include the DS form number, 

information collection title, and OMB 

control number in the subject line of 

your message. 

• Mail (paper, disk, or CD–ROM 

submissions): Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, 725 17th 

Street, NW., Washington, DC 20503. 

• Fax: 202–395–6974.

FOR FURTHER INFORMATION CONTACT:

Public comments, or requests for 

additional information, regarding the 

collection listed in this notice should be 

directed to Jennifer Gibson, Branch 

Chief, or Ruta Chagnon, Program Officer 

(ECA/A/S/X); Department of State, SA–

44, Room 349, 301 Fourth Street, SW., 

Washington, DC 20547, who may be 

reached at 202–619–4555/6.

SUPPLEMENTARY INFORMATION: We are 

soliciting public comments to permit 

the agency to: 

• Evaluate whether the proposed 

information collection is necessary for 

the proper performance our functions. 

• Evaluate the accuracy of our 

estimate of the burden of the proposed 

collection, including the validity of the 

methodology and assumptions used. 

• Enhance the quality, utility, and 

clarity of the information to be 

collected. 

• Minimize the reporting burden on 

those who are to respond, including the 

use of automated collection techniques 

or other forms of technology. 

Abstract of proposed collection:

Under the Mutual Educational and 

Cultural Exchange (Fulbright-Hays) Act 

of 1961, as amended, the Fulbright 

Teacher Exchange Program offers sixweek, semester, and academic-year 

exchanges and seminar opportunities to 

U.S. educators. The data collected is 

used to determine whether prospective 

candidates are qualified for 

participation in the program. 

Methodology: Applicants submit 

either a paper or electronic application 

to ECA. The receiving office inputs the 

data into a database for retention and 

program use as appropriate.

Dated: July 17, 2005. 

Cathy Chikes, 

Executive Director, Office of Global 

Educational Programs, Department of State.

[FR Doc. 05–17023 Filed 8–25–05; 8:45 am] 

BILLING CODE 4710–05–P