Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 55191 

12See supra note 6. 

13 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. 52401 

(September 9, 2005) (File No. 4–429) (‘‘Amendment 

No. 16’’). 

4On July 28, 2000, the Commission approved a 

national market system plan for the purpose of 

creating and operating an intermarket option market 

linkage proposed by the American Stock Exchange, 

LLC, Chicago Board Options Exchange, 

Incorporated, and International Securities 

Exchange, Inc. See Securities Exchange Act Release 

No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 

2000). Subsequently, upon separate requests by the 

Philadelphia Stock Exchange, Inc., Pacific 

Exchange, Inc., and BSE, 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 

70850 (November 28, 2000), 43574 (November 16, 

2000), 65 FR 70851 (November 28, 2000) and 49198 

(February 5, 2004), 69 FR 7029 (February 12, 2004). 

5See Section 2(11) of the Linkage Plan and 

Chapter XII, Section 1(g) of BOX’s Rules. 

6See Section 2(16)(a) of the Linkage Plan and 

Chapter XII, Section 1(j)(i) of BOX’s Rules. 

imposed by the BSE. 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.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: 

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–BSE–2005–38 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-BSE–2005–38. 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 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of the Exchange. 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-BSE–2005–38 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. 05–18619 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52429; File No. SR–BSE–

2005–39] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

of Proposed Rule Change Relating to 

the Definition of Firm Customer Quote 

Size and Limitations on Sending of 

Multiple P/A Orders on the Boston 

Options Exchange 

September 14, 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 

September 13, 2005, the Boston Stock 

Exchange, Inc. (‘‘BSE’’ 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 BSE. 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 is proposing to amend 

its rules governing the operation of the 

intermarket option linkage (‘‘Linkage’’) 

on the Boston Options Exchange 

(‘‘BOX’’) to conform with a proposed 

amendment 3 to the Plan for the Purpose 

of Creating and Operating an 

Intermarket Option Linkage (‘‘Linkage 

Plan’’).4 The Exchange is proposing: (i) 

To amend the definition of ‘‘Firm 

Customer Quote Size’’ (‘‘FCQS’’) 5 to 

provide automatic executions for 

Principal Acting as Agent Orders (‘‘P/A 

Orders’’) 6 sent via Linkage up to the full 

size of a Participant’s disseminated 

quotation; and (ii) to eliminate a 15- 

second waiting period between the 

sending of P/A Orders. 

The text of the proposed rule 

amendment is available on BSE’s Web 

site at http://www.bostonstock.com, at 

the BSE’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 

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 proposes to amend its 

rules governing Linkage in two areas: 

the definition of FCQS and limitations 

on sending multiple P/A Orders. 

The Linkage Plan participants 

(‘‘Participants’’) provide automatic 

execution to P/A Orders up to the 

FCQS, if automatic execution is 

available. At the time the Participants 

adopted the Linkage Plan, options quote 

sizes were not disseminated through the 

Options Price Reporting Authority, and 

the floor-based Participants employed 

automatic execution systems that 

guaranteed automatic fills on orders 

under a certain contract size (which 

generally was a static number). As such, 

the FCQS was calculated based on the 

number of contracts the sending and 

receiving Participants guaranteed they 

would automatically execute. Now that 

55192 Federal Register / Vol. 70, No. 181 / Tuesday, September 20, 2005 / Notices 

7 15 U.S.C. 78f(b). 

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

9 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 CBOE, and the International Securities 

Exchange, Inc. 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 

all Participants disseminate dynamic 

quotes with size, the Participants 

believe that it is appropriate to calculate 

the FCQS based on the size of the 

disseminated quotation of the 

Participant receiving the P/A Order. 

Accordingly, the Participant Exchanges 

submitted Amendment No. 16 to the 

Linkage Plan, and the Exchange 

proposes to amend the definition of 

FCQS to Chapter XII, Section 1(g) of 

BOX Rules. As such, upon 

implementation of the proposed rule 

change and Amendment No. 16, a 

Participant will provide incoming P/A 

Orders with executions up to the full 

size of a Participant’s disseminated 

quotation. 

The proposed rule change will 

eliminate a 15-second period 

Participants must wait before sending a 

second P/A Order. Specifically, Chapter 

XII, Section 2(c) of BOX’s Rules governs 

the manner in which P/A Orders larger 

than the FCQS are handled. It provides 

that an initial P/A Order may be sent to 

a Participant for execution at the FCQS; 

if the same Participant continues to 

disseminate the same price 15 seconds 

after the execution of the initial P/A 

Order, the market maker can send a 

second P/A Order, subject to certain 

restrictions. The Exchange proposes to 

eliminate the 15-second wait period 

because the Participants now employ 

dynamic quotes with size, obviating the 

need for a manual quote refresh period 

for P/A Orders. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 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 regulating, clearing, 

settling, processing information with 

respect to, and facilitating transactions 

in securities, 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. 

Specifically, the Exchange believes the 

proposed rule change will help promote 

the Linkage Plan by providing greater 

automatic execution of Linkage orders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would 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 

Written comments were neither 

solicited nor received. 

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 BSE 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–BSE–2005–39 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–BSE–2005–39. 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 Room. Copies of such filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. 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–BSE–

2005–39 and should be submitted on or 

before October 11, 2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18669 Filed 9–19–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52419; File No. SR–CBOE–

2005–51] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving a 

Proposed Rule Change and 

Amendment No. 1 Thereto To Amend 

the Exchange’s Trade-Through and 

Locked Markets Rules 

September 13, 2005. 

On June 30, 2005, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’), 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