Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices 56943 

14 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). 

5The Exchange asked the Commission to waive 

the five business day pre-filing notice requirement. 

See Rule 19b–4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii). 

The Commission is exercising its authority to waive 

the five business day pre-filing notice requirement 

and notes that the Exchange provided the 

Commission with four business days’ notice. 

6See Securities Exchange Act Release No. 50005 

(July 12, 2004), 69 FR 43032 (July 19, 2004) (SR–

CBOE–2004–33). The pilot program has been 

extended once. See Securities Exchange Act Release 

No. 51030 (January 12, 2005), 70 FR 3404 (January 

24, 2005) (SR–CBOE–2004–91) (extension of the 

pilot program until October 12, 2005). 

7CBOE Rule 6.13(b)(i)(C)(ii) governs the 

submission of orders from market-makers 

(paragraph (C)(ii)(A)) and stock exchange specialists 

(paragraph (C)(ii)(B)). It should be noted that, 

pursuant CBOE Rule 6.13(b)(i)(C)(iii), the floor 

procedures committees (FPCs) determined to 

shorten to 5 seconds (from 15 seconds) the period 

Continued 

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 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–2005–087 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–Amex–2005–087. 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–Amex–2005–087 and 

should be submitted on or before 

October 20, 2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–19495 Filed 9–28–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52494; File No. SR–CBOE–

2005–70] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Extend a Pilot Program 

Relating to Market-Maker Access to the 

Hybrid Automatic Execution System 

September 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 

September 12, 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 Exchange. The 

Exchange has designated this proposal 

as ‘‘non-controversial’’ pursuant to 

Section 19(b)(3)(A) of the Act,3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposed rule change effective upon 

filing with the Commission.5 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 extend the 

pilot program in CBOE Rule 6.13 

relating to market-maker access to the 

Exchange’s automatic execution system 

until October 12, 2006. No other 

changes are being made to the pilot 

program. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.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 2004, the Commission approved on 

a pilot basis, CBOE Rule 6.13(b)(i)(C)(iii) 

(‘‘Rule’’) relating to the frequency with 

which certain market participants could 

submit orders for execution through the 

Exchange’s Hybrid Trading System 

(‘‘Hybrid’’).6 CBOE Rule 6.13(b)(i)(C)(iii) 

currently provides in relevant part: 

(iii) 15-Second Limitation: With 

respect to orders eligible for submission 

pursuant to paragraph (b)(i)(C)(ii), 

members shall neither enter nor permit 

the entry of multiple orders on the same 

side of the market in an option class 

within any 15-second period for an 

account or accounts of the same 

beneficial owner. The appropriate FPC 

may shorten the duration of this 15- 

second period by providing notice to the 

membership via a Regulatory Circular 

that is issued at least one day prior to 

implementation. The effectiveness of 

this rule shall terminate on October 12, 

2005. 

Upon approval of the Rule, the 

Exchange began allowing orders from 

options exchange market-makers to be 

eligible for automatic execution subject 

to the 15-second limitation described 

above.7 As the pilot period expires on 

56944 Federal Register / Vol. 70, No. 188 / Thursday, September 29, 2005 / Notices 

required between entry of multiple market-maker 

orders (including non-CBOE market-maker orders) 

on the same side of the market in an option class 

for an account or accounts of the same beneficial 

owner using Hybrid. This change went into effect 

on July 18, 2005 and was announced to the 

membership via Regulatory Circular RG05–61. 

8 15 U.S.C. 78a et seq. 

9 15 U.S.C. 78f(b). 

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

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(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. 52235 

(August 10, 2005) 70 FR 48214 (August 16, 2005) 

(the ‘‘Commission’s Notice’’). 

4See letter to Jonathan G. Katz, Secretary, 

Commission, from Terry L. Atkinson, Managing 

Director, UBS Financial Services Inc. (‘‘UBS’’), 

dated September 1, 2005 (‘‘UBS’ Letter’’); letter to 

Jonathan G. Katz, Secretary, Commission, from 

Leslie M. Norwood, Vice President and Assistant 

General Counsel, The Bond Market Association 

(‘‘BMA’’), dated September 2, 2005 (‘‘BMA’s 

Letter’’); letter to Jonathan G. Katz, Secretary, 

Commission, from Marc E. Elias and Rebecca H. 

Gordon, Perkins Coie, Counsel to the Democratic 

Senatorial Campaign Committee (‘‘DSCC’’), dated 

September 6, 2005 (‘‘DSCC’s Letter’’); and letter to 

Jonathan G. Katz, Secretary, Commission, from 

David M. Thompson, President, and Robert J. 

October 12, 2005, the Exchange 

proposes to extend the pilot program. 

Given the success of the pilot program 

in attracting market-maker volume to 

the Exchange, the Exchange proposes to 

extend the pilot program’s duration an 

additional year, until October 12, 2006. 

2. Statutory Basis 

The Exchange believes that the 

extension of the pilot program will 

allow the Exchange to continue to 

provide auto-ex access to all marketmakers. Accordingly, the Exchange 

believes the proposed rule change is 

consistent with the Act 8 and the rules 

and regulations under the Act 

applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the Act.9

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5)10 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts and, in general, to 

protect investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition 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 neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change 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 if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(6) 

thereunder.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the 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 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–2005–70 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–CBOE–2005–70. 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–CBOE–2005–70 and should 

be submitted on or before October 20, 

2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–19498 Filed 9–28–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52496, File No. SR–MSRB–

2005–12] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Order Approving Proposed 

Rule Change Concerning Solicitation 

and Coordination of Payments to 

Political Parties and Question and 

Answer Guidance on Supervisory 

Procedures Related to Rule G–37(d) on 

Indirect Violations 

September 22, 2005. 

On June 27, 2005, the Municipal 

Securities Rulemaking Board (‘‘MSRB’’

or ‘‘Board’’), filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

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

of 1934 (‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change 

consisting of an amendment to Rule G–

37(c), concerning solicitation and 

coordination of payments to political 

parties, and Q&A guidance on 

supervisory procedures related to Rule 

G–37(d), on indirect violations. The 

proposed rule change was published for 

comment in the Federal Register on 

August 16, 2005.3 The Commission 

received four comment letters regarding 

the proposal.4 On September 16, 2005,