Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices 55641 

13 17 CFR 200.30–3(a)(12). 

1The amendment corrected a typographical error 

in the original filing. 

2 15 U.S.C. 78s(b)(1). 

3Securities Exchange Act Release No. 52123 (July 

26, 2005), 70 FR 44132. 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 15 U.S.C. 78s(b)(2). 

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–Amex–2005–088. 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 such filing also will be 

available for inspection and copying at 

the principal office of 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–2005–088 and 

should be submitted on or before 

October 13, 2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 05–18939 Filed 9–21–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52450; File No. SR–DTC–

2005–07] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Approving Proposed Rule Change To 

Expand DTC’s Inventory Management 

System 

September 15, 2005. 

I. Introduction 

On July 8, 2005, the Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) and on July 8, 2005, 

amended 1 proposed rule change SR–

DTC–2005–07 pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’).2 Notice of the proposal 

was published in the Federal Register 

on August 1, 2005.3 No comment letters 

were received. For the reasons 

discussed below, the Commission is 

approving the proposed rule change. 

II. Description 

DTC is expanding its Inventory 

Management System (‘‘IMS’’) to offer 

additional customized transaction 

recycling capabilities and to provide 

users with an enhanced approval 

mechanism in order to give users greater 

internal control over deliveries that they 

submit to DTC. 

Currently, a participant using IMS can 

prepopulate its profile to customize the 

position recycle order for its night cycle 

deliveries. These ‘‘high priority’’

transactions are processed in the 

prescribed order if the participant has 

sufficient shares in its account. If there 

are insufficient shares to complete these 

high priority transactions, then DTC 

attempts to complete lower prioritized 

transactions that can be completed with 

the shares the participant has available. 

The rule change: (i) Increases 

participant control over the processing 

order by adding two new recycle 

profiles; (ii) expands the recycle profiles 

to include Initial Public Offering 

(‘‘IPO’’) transactions; and (iii) allows a 

participant’s input to be subjected to 

secondary authorization through a new 

transaction type in IMS. 

The new recycle profiles allow 

participants to further customize the 

processing of their deliveries by either: 

(i) Electing to have the deliveries 

processed in strict profile order or (ii) 

enabling the participant to hold all or a 

specific set of deliveries in a separate 

profile until they are ready to release 

those transactions for processing. For 

each delivery that is customized and 

recycled based upon profile selection, a 

participant will be charged $0.06 in 

addition to the applicable delivery fee. 

Currently, participants only can route 

their night delivery orders to IMS for 

authorization. The rule change allows 

participants also to submit their manual 

or automated day delivery orders for 

authorization based on predetermined 

profiles. A user can create a profile by 

asset class and within asset class by 

input source (e.g., only deliveries 

submitted by DTC’s Participant Browser 

Service). The user can determine, based 

on input source, which delivery types 

(all valued, all free, only under/over 

valued deliveries) should be routed for 

authorization. For these deliveries, 

participants will be charged the current 

authorization fee of $0.006 each in 

addition to the applicable delivery fee. 

Participants are not required to make 

any systemic changes and may continue 

to process their deliveries as they do 

today. IMS recycle profiles are optional, 

and users that do not elect to prioritize 

their deliveries through IMS continue to 

be subjected to the existing default 

recycle profile. 

III. Discussion 

Section 17A(b)(3)(F) of the Act 

requires that the rules of a clearing 

agency be designed to provide for the 

prompt and accurate clearance and 

settlement of securities.4 The 

Commission finds that DTC’s proposed 

rule change is consistent with this 

requirement because it will allow 

participants to have all of their 

deliveries residing at DTC throughout 

the day and will maximize their priority 

deliveries and associated settlement 

credits. As such, the proposed rule 

change should promote the prompt and 

accurate clearance and settlement of 

securities transactions by increasing 

efficiency of processing participants’

transactions. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,5 that the 

proposed rule change (File No. SR–

55642 Federal Register / Vol. 70, No. 183 / Thursday, September 22, 2005 / Notices 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5On 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). 6The Exchange defines ‘‘Linkage’’ in ISE Rule 

1900(9). 7See Securities Exchange Act Release No. 52418 

(September 13, 2005) (order approving SR–ISE–

2005–33). 8The Exchange defines ‘‘Linkage Order’’ in ISE 

Rule 1900(10). 9 15 U.S.C. 78f(b)(5). 

DTC–2005–07) be and hereby is 

approved. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–18896 Filed 9–21–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52451; File No. SR–ISE–

2005–44] 

Self-Regulatory Organizations; 

International Securities Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Primary Market 

Maker Obligations 

September 15, 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 14, 2005, the International 

Securities Exchange, Inc. (‘‘ISE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

filed the proposed rule change as a 

‘‘non-controversial’’ rule change 

pursuant to Section 19(b)(3)(A) of the 

Act,3 and Rule 19b–4(f)(6) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend ISE 

Rule 803 regarding Primary Market 

Maker obligations in consideration of a 

recently approved change to the ISE 

Rules relating to the Plan for the 

Purpose of Creating and Operating an 

Intermarket Option Linkage.5

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.iseoptions.com), at the 

Exchange’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 

In file number SR–ISE–2005–33, 

which was recently approved by the 

Commission, the Exchange proposed to 

amend its rules governing Linkage 6

trading with respect to trade-throughs 

and locked markets.7 SR–ISE–2005–33 

provided that an Exchange member may 

trade an order at a price that is one 

minimum quoting increment inferior to 

the national best bid and offer 

(‘‘NBBO’’) if the member 

contemporaneously transmits to the 

market(s) disseminating the NBBO 

Linkage Order(s) 8 to satisfy all interest 

at the NBBO price (‘‘trade and ship’’). 

Under trade and ship, pursuant to 

agency obligations, any execution the 

member receives from the market 

disseminating the NBBO must be 

reassigned to any customer order 

underlying the Linkage Order that was 

transmitted to trade with the market 

disseminating the NBBO. 

The purpose of this proposed rule 

change is to reflect the change made in 

SR–ISE–2005–33 in ISE Rule 803(c), 

which specifies the obligations of a 

Primary Market Maker when handling a 

Public Customer Order. Specifically, the 

Exchange proposes to amend ISE Rule 

803(c) to specify that a Primary Market 

Maker may trade and ship as described 

above. This proposed rule change is 

necessary to assure that the Exchange’s 

rules are consistent with respect to the 

handling of Public Customer Orders. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 9 that an exchange 

have rules that are 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. In 

particular, the proposed rule change 

will help implement the Linkage Plan 

by facilitating the ability of market 

makers to execute their customer orders 

and assuring that the Exchange’s rules 

in this respect are consistent. 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change effects a change that does not: 

(1) Significantly affect the protection of 

investors or the public interest; (2) 

impose any significant burden on 

competition; and (3) become operative 

for 30 days from the date on which it 

was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the