Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Order Approving Proposed Rule Change Relating to Transaction-Related Charges for Trade Reporting to the OTC Reporting Facility, 44414-44415 [E9-20783]
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Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or received.
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)
becomes operative for 30 days from the
date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 8 and Rule 19b–4(f)(6) thereunder.9
At any time within 60 days of the
filing of the 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.
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:
hsrobinson on DSK69SOYB1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2009–70 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2009–70. 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 (https://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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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–Phlx–2009–70 and should
be submitted on or before September 18,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20784 Filed 8–27–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60560; File No. SR–FINRA–
2009–045]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving
Proposed Rule Change Relating to
Transaction-Related Charges for Trade
Reporting to the OTC Reporting
Facility
August 21, 2009.
On July 1, 2009, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘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 to amend Rule 7710, OTC
Reporting Facility. The proposed rule
change clarifies the application of
transaction-related charges for trade
reporting to the OTC Reporting Facility
(‘‘ORF’’) by deleting the reference to
‘‘OTC Equity Security’’ in Rule 7710 to
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
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clarify that, from March 5, 2007, until
June 17, 2009,3 the trade reporting
charges imposed by the rule applied to
trade reports in any security sent to the
ORF that were not subject to
comparison through the ORF. This
change to the rule is necessary to correct
an inadvertent mistake made in SR–
NASD–2007–018.4 In SR–NASD–2007–
018, FINRA deleted a catch-all phrase
from Rule 7010(g) which had the effect
of excluding from the rule securities
such as PORTAL equity securities,
which are specifically excluded from
the definition of OTC Equity Security.
On June 17, 2009, FINRA filed SR–
FINRA–2009–043 5 to correct this
mistake prospectively. The change made
in the instant rule filing corrects the
mistake for the period from March 5,
2007 until June 17, 2009, the date of
effectiveness of SR–FINRA–2009–043.
The proposed rule change was
published for comment in the Federal
Register on July 13, 2009.6 The
Commission received no comments on
the proposal.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
association.7 In particular, the
Commission finds that the proposed
rule change is consistent with the
provisions of Section 15A(b)(6) of the
Act,8 which requires, among other
things, that FINRA rules be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. The Commission
believes that the proposed rule change
does not raise any novel issues; it is
merely designed to accurately reflect
FINRA’s intent when it filed SR–NASD–
2007–018,9 as well as its members’
understanding of the coverage of the
rule. The proposal clarifies that the
charges that FINRA assessed with
respect to transactions that were
reported to the ORF from March 5, 2007,
until June 17, 2009 are consistent with
3 March 5, 2007, is the effective date for SR–
NASD–2007–018 infra and June 17, 2009 is the
effective date for SR–FINRA–2009–043.
4 See Securities Exchange Act Release No. 55538
(March 27, 2007), 72 FR 15924 (April 3, 2007).
5 See Securities Exchange Act Release No. 60168
(June 24, 2009), 74 FR 31471 (July 1, 2009).
6 See Securities Exchange Act Release No. 60239
(July 2, 2009), 74 FR 33492.
7 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
8 15 U.S.C. 78o–3(b)(6).
9 See footnote 4, supra.
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Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 / Notices
FINRA’s intent when it filed SR–NASD–
2007–018.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–FINRA–
2009–045) be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–20783 Filed 8–27–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60549; File No. SR–
NYSEArca–2009–75]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Permissible
Expiration Dates for Flexible Exchange
Options
August 20, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
12, 2009, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 regarding permissible expiration
dates for Flexible Exchange Options
(‘‘FLEX Options’’).4 The text of the
proposed rule change is available on the
10 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 FLEX Options provide investors with the ability
to customize basic option features including size,
expiration date, exercise style, and certain exercise
prices. FLEX Options can be FLEX Index Options
or FLEX Equity Options. FLEX Index Options Series
may be approved and open for trading on any index
that has been approved for Non-FLEX Options
trading on the Exchange. FLEX Equity Options may
be on underlying securities that have been
approved by the Exchange in accordance with
NYSE Arca Rule 5.3, which includes but is not
limited to stock options and exchange-traded fund
options. Both FLEX Index Options and FLEX Equity
Options are subject to the FLEX rules in Section 4.
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Exchange’s Web site at https://
www.nyse.com, at the Exchange’s
principal office 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
self-regulatory organization 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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposal is to
correct certain cross-references and
modify the permissible expiration dates
for FLEX Options. These options are
governed by Flexible Exchange Options,
Section 4 pursuant to the Rules of NYSE
Arca, Inc. Under current NYSE Arca
Rule 5.32, FLEX options may not expire
on any business day that falls on, or
within two business days of, a third
Friday-of-the-month expiration day for
any Non-FLEX Options (an ‘‘Expiration
Friday’’).5 However, subject to
aggregation requirements 6 for cash
settled options, the current FLEX Rules
do permit the expiration of FLEX
Options on the same day that Non-FLEX
quarterly index options (‘‘QIX’’) expire.
The Exchange is now proposing to
eliminate the expiration date restriction
so that FLEX Options may expire on any
given business day. Although the
expiration date restrictions would be
eliminated, the Exchange notes that
position and exercise limits under
applicable NYSE Arca rules will
continue to apply. FLEX Index Options
remain subject to position limits under
NYSE Arca Rules 6.8 and 5.35, as
applicable. Additionally, all FLEX
Options remain subject to the position
reporting requirements of NYSE Arca
5 For example, under the current rule, a FLEX
Option could expire on the Tuesday before
Expiration Friday, but could not expire on the
Wednesday or Thursday before Expiration Friday.
Similarly, a FLEX Option could expire on the
Wednesday after Expiration Friday, but could not
expire on the Monday or Tuesday after Expiration
Friday. This restriction is hereinafter referred to as
the ‘‘three business day’’ expiration restriction.
6 See NYSE Arca Rule 5.35(b).
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44415
Rule 6.8. Moreover, the Exchange has
the authority, pursuant to NYSE Arca
Rule 5.25, to impose additional margin
requirements as deemed advisable.
Beyond the above described position
limit and reporting requirements for
FLEX Options that expire on Expiration
Friday, the proposed rule change
includes an aggregation requirement
under NYSE Arca Rule 5.35 for position
limit purposes. Specifically, for as long
as the options positions remain open,
positions in FLEX Options that expire
on Expiration Friday shall be aggregated
with positions in Non-FLEX options on
the same underlying (e.g., the same
underlying security in the case of a
FLEX Equity Option and the same
underlying index in the case of a FLEX
Index Option) (referred to as
‘‘Comparable Non-FLEX options’’). Such
FLEX Options and comparable NonFLEX options would be subject to the
position and exercise limits that are
applicable to the Non-FLEX Options.7
The aggregation requirement would
apply to both cash and physically
settled options.
In addition, in the case of FLEX Index
Options only, the proposed rule change
provides that FLEX Index Options
expiring on or within two business days
of an Expiration Friday may not have an
exercise settlement value on the
expiration date determined by reference
to the closing price of the index or
specified averages. Therefore, the
exercise settlement value on such
expiration dates may only be
determined by a.m. settlement values.
These limitations on exercise settlement
value calculations are intended to serve
as a safeguard against potential adverse
effects that might be associated with
triple witching.8
In conjunction with the elimination of
the expiration date restriction, the
proposed rule change also states that,
provided the options on an underlying
security or index are otherwise eligible
for FLEX trading, FLEX Options will be
permitted in puts and calls that do not
have the same exercise style, same
expiration date and same exercise price
7 Position Limits for Non-FLEX equity options are
governed by NYSE Arca Rule 6.8; Exercise Limits
for Non-FLEX equity options are governed by NYSE
Arca Rule 6.9; Position Limits for Non FLEX index
options are governed by Rules 5.15 and 5.16;
Exercise Limits for Non Flex index options are
governed by Rule 5.18.
8 The expiration of the contracts for stock index
futures, stock index options, and stock options all
expire on the same days occurring on the third
Friday of March, June, September, and December
(which is referred to as ‘‘triple witching’’). The
Exchange’s proposed limitations on p.m. exercise
settlement values and exercise settlement values
based on a specified average would apply during
triple witching expirations, as well as on all other
Expiration Fridays.
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]]>Agencies
[Federal Register Volume 74, Number 166 (Friday, August 28, 2009)]
[Notices]
[Pages 44414-44415]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20783]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60560; File No. SR-FINRA-2009-045]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Order Approving Proposed Rule Change Relating to
Transaction-Related Charges for Trade Reporting to the OTC Reporting
Facility
August 21, 2009.
On July 1, 2009, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
(``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 to amend Rule 7710, OTC Reporting Facility. The
proposed rule change clarifies the application of transaction-related
charges for trade reporting to the OTC Reporting Facility (``ORF'') by
deleting the reference to ``OTC Equity Security'' in Rule 7710 to
clarify that, from March 5, 2007, until June 17, 2009,\3\ the trade
reporting charges imposed by the rule applied to trade reports in any
security sent to the ORF that were not subject to comparison through
the ORF. This change to the rule is necessary to correct an inadvertent
mistake made in SR-NASD-2007-018.\4\ In SR-NASD-2007-018, FINRA deleted
a catch-all phrase from Rule 7010(g) which had the effect of excluding
from the rule securities such as PORTAL equity securities, which are
specifically excluded from the definition of OTC Equity Security. On
June 17, 2009, FINRA filed SR-FINRA-2009-043 \5\ to correct this
mistake prospectively. The change made in the instant rule filing
corrects the mistake for the period from March 5, 2007 until June 17,
2009, the date of effectiveness of SR-FINRA-2009-043.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ March 5, 2007, is the effective date for SR-NASD-2007-018
infra and June 17, 2009 is the effective date for SR-FINRA-2009-043.
\4\ See Securities Exchange Act Release No. 55538 (March 27,
2007), 72 FR 15924 (April 3, 2007).
\5\ See Securities Exchange Act Release No. 60168 (June 24,
2009), 74 FR 31471 (July 1, 2009).
---------------------------------------------------------------------------
The proposed rule change was published for comment in the Federal
Register on July 13, 2009.\6\ The Commission received no comments on
the proposal.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 60239 (July 2,
2009), 74 FR 33492.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities association.\7\ In
particular, the Commission finds that the proposed rule change is
consistent with the provisions of Section 15A(b)(6) of the Act,\8\
which requires, among other things, that FINRA rules be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, and, in general, to protect
investors and the public interest. The Commission believes that the
proposed rule change does not raise any novel issues; it is merely
designed to accurately reflect FINRA's intent when it filed SR-NASD-
2007-018,\9\ as well as its members' understanding of the coverage of
the rule. The proposal clarifies that the charges that FINRA assessed
with respect to transactions that were reported to the ORF from March
5, 2007, until June 17, 2009 are consistent with
[[Page 44415]]
FINRA's intent when it filed SR-NASD-2007-018.
---------------------------------------------------------------------------
\7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
\8\ 15 U.S.C. 78o-3(b)(6).
\9\ See footnote 4, supra.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-FINRA-2009-045) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-20783 Filed 8-27-09; 8:45 am]
BILLING CODE 8010-01-P
