55196 Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2The amendment corrected a pagination error in 

the original filing. 

3The Commission has modified the text of the 

summaries prepared by DTC. 4 15 U.S.C. 78q–1. 

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 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 available publicly. All 

submissions should refer to File 

Number SR–CBOE–2005–76 and should 

be submitted on or before October 11, 

2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18674 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52422; No. SR–DTC–2005–

11] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Establish an 

Insurance Program as Part of the 

Profile Modification System Feature of 

Its Direct Registration System 

September 14, 2005. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

August 22, 2005, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) and on August 22, 

2005, amended 2 the rule change 

described in Items I, II, and III below, 

which items have been prepared 

primarily by DTC. The Commission is 

publishing this notice to solicit 

comments on the rule change from 

interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The rule change establishes an 

insurance program as part of DTC’s 

Profile Modification System (‘‘Profile’’) 

of its Direct Registration System 

(‘‘DRS’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC included statements concerning 

the purpose of and basis for the rule 

change and discussed any comments it 

received on the rule change. The text of 

these statements may be examined at 

the places specified in Item IV below. 

DTC has prepared summaries, set forth 

in sections (A), (B), and (C) below, of the 

most significant aspects of these 

statements.3

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Currently, Profile allows a DTC 

participant to submit electronically to a 

transfer agent that is a DRS limited 

participant an investor’s instruction that 

its share positions be moved from the 

investor’s DRS account with the DRS 

limited participant to the investor’s 

broker-dealer’s participant account at 

DTC. Similarly, a DRS limited 

participant may submit an investor’s 

instruction for the movement of its 

share positions from the investor’s 

broker-dealer’s participant account at 

DTC to an account maintained by the 

DRS limited participant. 

Currently, all Profile users must agree 

to a Participant Terminal System 

(‘‘PTS’’) screen indemnity as part of 

their use of Profile and must procure a 

surety bond relating to their obligations 

under such indemnity (‘‘Surety 

Program’’). Participation in the Surety 

Program requires the payment of an 

annual premium of $3,150 to a surety 

provider and a DTC administration fee 

of $250. The Surety Program provides 

for a coverage limit of $3 million per 

occurrence and an annual aggregate 

limit of $6 million. 

DTC believes the cost of the annual 

surety and the coverage limit may be a 

disincentive for some to use Profile. In 

order to encourage greater participation 

in the service, DTC proposes the 

implementation of the DTC Profile 

Modification System Indemnity 

Insurance Program (‘‘Insurance 

Program’’). Under the Insurance 

Program, Profile users will have the 

option to procure indemnity insurance 

with higher coverage limits ($25 million 

per occurrence per policy with an 

annual aggregate limit of $100 million) 

than the surety bond under the Surety 

Program provides, which will allow 

larger transactions to be covered under 

one policy. Furthermore, Profile users 

will have the option to procure 

indemnity insurance at an annual fee 

that is less than the premium for the 

Surety Program. In addition to any passthrough fee from the insurer, DTC will 

charge users participating in the 

Insurance Program an annual 

administration fee of $250 and a $2.50 

per transaction fee. Users will be able to 

participate in both the Surety Program 

and the Insurance Program but would be 

required and permitted to use only one 

provider per Profile transaction. 

The issuing insurance company will 

be either a company selected by DTC as 

the administrator of such insurance or 

an insurance company selected by the 

user procuring the insurance, provided 

the insurance company will issue 

insurance subject to the terms and 

conditions established by DTC for the 

Insurance Program. 

DTC believes the rule change is 

consistent with Section 17A of the Act,4

as amended, because it is a modification 

of a DTC service that enhances the 

safeguards for transactions processed in 

the service. As such it is a change to an 

existing service that will not adversely 

affect the safeguarding of securities and 

funds in DTC’s custody or control. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the rule 

change will have any impact or impose 

any burden on competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the rule 

change have not yet been solicited or 

received. DTC will notify the 

Commission of any written comments it 

receives. 

Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 55197 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 17 CFR 240.19b–4(f)(4). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option 

linkage proposed by the American Stock Exchange 

LLC, the Chicago Board Options Exchange, 

Incorporated, and the ISE. See Securities Exchange 

Act Release No. 43086 (July 28, 2000), 65 FR 48023 

(August 4, 2000) (‘‘Linkage Plan’’). Subsequently, 

upon separate requests by the Philadelphia Stock 

Exchange, Inc., the Pacific Exchange, Inc., and the 

Boston Stock Exchange, Inc., the Commission 

issued orders to permit these exchanges to 

participate in the Linkage Plan. See Securities 

Exchange Act Release Nos. 43573 (November 16, 

2000), 65 FR 70851 (November 28, 2000); 43574 

(November 16, 2000), 65 FR 70850 (November 28, 

2000); and 49198 (February 5, 2004), 69 FR 7029 

(February 12, 2004). 

4See Securities Exchange Act Release No. 52174 

(July 29, 2005), 70 FR 45455. 

5See ISE Rule 1900(10). 

6 15 U.S.C. 78f. 

7 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

8 15 U.S.C. 78f(b)(5). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 5 and Rule 

19b–4(f)(4) 6 thereunder because it does 

not adversely affect the safeguarding of 

securities or funds in the custody or 

control of DTC or for which it is 

responsible and does not significantly 

affect the respective rights or obligations 

of the clearing agency or persons using 

the service. At any time within sixty 

days of the filing of the 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 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–DTC–2005–11 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9303. 

All submissions should refer to File 

Number SR–DTC–2005–11. 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 rule change that are 

filed with the Commission, and all 

written communications relating to the 

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 filings also will 

be available for inspection and copying 

at the principal office of DTC and on 

DTC’s Web site at https:// 

login.dtcc.com/dtcorg/. 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–DTC–

2005–11 and should be submitted on or 

before October 11, 2005. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18668 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52418; File No. SR–ISE–

2005–33] 

Self-Regulatory Organizations; 

International Securities Exchange, Inc.; 

Order Approving a Proposed Rule 

Change To Amend the Exchange’s 

Trade-Through and Locked Markets 

Rules 

September 13, 2005. 

On July 8, 2005, the International 

Securities Exchange, Inc. (‘‘ISE’’), filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 to implement 

Amendment No. 15 to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage 3 by 

amending ISE Rules 1900 and 1903 to 

add a ‘‘trade and ship’’ exception to the 

definition of ‘‘Trade-Through’’ and add 

a ‘‘book and ship’’ exception to the 

provision relating to locked markets, 

respectively. The proposed rule change 

was published for comment in the 

Federal Register on August 5, 2005.4

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

Under the proposed rule change, an 

ISE member could trade an order at a 

price that is one minimum quoting 

increment inferior to the national best 

bid or offer (‘‘NBBO’’) if a Linkage 

Order 5 is sent contemporaneously to 

the market(s) disseminating the NBBO 

to satisfy all interest at the NBBO price. 

The proposed rule change also would 

provide that an ISE member may enter 

an order on the ISE that would 

otherwise lock another market if a 

Linkage Order is sent 

contemporaneously to such other 

market to satisfy all interest at the lock 

price and only the remaining portion of 

the order is booked. The ISE proposes 

that, under trade and ship, any 

execution received from the market 

disseminating the NBBO must (pursuant 

to agency obligations) be reassigned to 

the customer order that is underlying 

the Linkage Order that was sent to trade 

with the market disseminating the 

NBBO. 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 6 of the Act 6

and the rules and regulations 

thereunder applicable to a national 

securities exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,8 which requires, 

among other things, that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission 

believes that the proposed rule change 

should help to implement the Linkage 

Plan by facilitating the ability of ISE’s 

members to execute their customer