Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Consisting of an Interpretive Notice Regarding MSRB Rule G-15(a), on Customer Confirmations, 49049-49050 [E9-23163]
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Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
during the preceding three calendar
months. The listing of $0.50 strike
prices will be limited to options classes
overlying no more than five individual
stocks as specifically designated by the
Exchange. The Exchange also will be
able to list $0.50 strike prices on any
other option classes if those classes
were specifically designated by other
securities exchanges that employ a
similar $0.50 Strike Program under their
respective rules.
Currently, the Exchange may list
options on stocks trading at $3 at strike
prices of $1, $2, $3, $4, $5, $6, $7 and
$8 if they are designated to participate
in the $1 Strike Program. If these stocks
have not been selected for the
Exchange’s $1 Strike Program, the
Exchange may list strike prices of $2.50,
$5, $7.50 and so forth as provided in
Commentary .05(a), but not strike prices
of $1, $2, $3, $4, $6, $7 and $8. The
proposed amendments to Commentary
.05 to Phlx Rule 1012 will permit the
Exchange to list strike prices on options
on qualifying stocks that trade at or
under $3.00, which may include stocks
also participating in the $1 Strike
Program, in finer intervals of $0.50,
beginning at $1 up to $3.50.7 Thus, a
stock trading at $3 that is selected for
the $0.50 Strike Program would have
option strike prices established not just
at $2.50, $5.00, $7.50 and so forth (for
stocks not in the Exchange’s $1 Strike
Program) or just at $1, $2, $3, $4, $5, $6,
$7 and $8 (for stocks designated to
participate in the $1 Strike Program),
but rather at strike prices established at
$1, $1.50, $2, $2.50, $3 and $3.50.8
In its filing with the Commission, the
Exchange stated that the number of
securities trading below $3.00 has
increased dramatically recently and that
the Exchange therefore believes that
new strike prices for securities trading
at or below $3.00 are appropriate.
According to the Exchange, as the price
of a stock declines below $3 or even $2,
the availability of options with strike
prices at intervals of $0.50 could
provide investors with opportunities
and strategies to minimize losses
associated with owning a stock
declining in price. In addition, the
Exchange represented that it and the
Options Price Reporting Authority
(‘‘OPRA’’) have the necessary systems
capacity to handle the additional traffic
associated with the expanded number of
7 Current sections (ii), (iii) and (iv) will be
renumbered as sections (iii), (iv) and (v)
respectively.
8 The option on the qualifying stock could also
have strike prices set at $5, $7.50 and so forth at
$2.50 intervals (pursuant to Commentary .05(a)(ii)
to Phlx Rule 1012) or, if it has been selected for the
$1 Strike Program, at $4, $5, $6, $7 and $8.
VerDate Nov<24>2008
18:52 Sep 24, 2009
Jkt 217001
options series proposed to be listed and
traded.
After careful review, the Commission
finds that the proposed rule change is
consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.9 In
particular, the Commission believes that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,10 which
requires, among other things, that the
rules of a national securities 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.
Specifically, the Commission believes
that the proposal to permit the Exchange
to select a total of 5 individual
underlying stocks trading at or under $3
on which option series may be listed at
$0.50 strike intervals should provide
investors with added flexibility in the
trading of equity options and further the
public interest by allowing investors to
establish equity options positions that
are better tailored to meet their
investment objectives. The Commission
also believes that the proposal strikes a
reasonable balance between the
Exchange’s desire to accommodate
market participants by offering a wider
array of investment opportunities and
the need to avoid unnecessary
proliferation of options series and the
corresponding increase in quotes. The
Commission expects that the Exchange
will monitor the trading volume
associated with the additional options
series listed as a result of this proposal
and the effect of these additional series
on market fragmentation and on the
capacity of the Exchange’s, OPRA’s and
vendors’ automated systems.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–Phlx–2009–
65) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23098 Filed 9–24–09; 8:45 am]
BILLING CODE 8010–01–P
9 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).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(12).
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49049
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60690; File No. SR–MSRB–
2009–14]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Consisting of an Interpretive
Notice Regarding MSRB Rule G–15(a),
on Customer Confirmations
September 18, 2009.
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 15, 2009, the Municipal
Securities Rulemaking Board (‘‘Board’’
or ‘‘MSRB’’), filed with the Securities
and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) the proposed
rule change as described in Items I, II
and III below, which Items have been
prepared by the Board. The MSRB has
designated the proposed rule change as
constituting a stated policy, practice, or
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule of the
self-regulatory organization pursuant to
Section 19(b)(3)(A)(i) of the Act,3 and
Rule 19b–4(f)(1) 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 MSRB has filed with the
Commission a proposed rule change
consisting of an interpretive notice
regarding MSRB Rule G–15(a), on
customer confirmations, concerning use
of electronic confirmations produced by
a clearing agency or qualified vendor to
satisfy the requirements of Rule G–15(a).
The text of the proposed rule change is
available on the MSRB’s Web site
(https://www.msrb.org/msrb1/sec.asp), at
the MSRB’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
MSRB included statements concerning
the purpose of and basis for the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
2 17
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49050
Federal Register / Vol. 74, No. 185 / Friday, September 25, 2009 / Notices
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 MSRB 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 MSRB received an interpretive
request concerning the written
confirmation requirements of MSRB
Rule G–15(a), on customer
confirmations of transactions in
municipal securities transactions, in
which the MSRB was asked whether
dealers could rely on a confirmation
sent by a Clearing Agency or Qualified
Vendor, as defined in MSRB Rule G–
15(d)(ii)(B), where disclosures
customarily provided on the back of
paper confirmations are provided
electronically using a URL link to satisfy
their confirmation delivery obligations
to customers under MSRB Rule G–15(a).
The MSRB recognizes that the speed
and efficiencies offered by electronic
confirmation delivery are of benefit to
the municipal securities industry.
Therefore, the MSRB has interpreted the
requirement in Rule G–15(a) to provide
a customer with a written confirmation
to be satisfied by an electronic
confirmation for DVP/RVP transactions
sent by a Clearing Agency or Qualified
Vendor, as defined in MSRB Rule G–
15(d)(ii)(B), where disclosures
customarily provided on the back of
paper confirmations are provided
electronically using a URL link when
the following conditions are met: (i) the
confirmation sent includes all of the
information required by Rule G–15(a);
and (ii) all of the requirements and
conditions concerning the use of the
electronic confirmation service
expressed in applicable SEC no-action
letters concerning Rule 10b–10 continue
to be met.
jlentini on DSKJ8SOYB1PROD with NOTICES
2. Statutory Basis
The MSRB believes that the proposed
rule change is consistent with Section
15B(b)(2)(C) of the Act,5 which provides
that the MSRB’s rules shall:
be 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 municipal
5 15
U.S.C. 78o–4(b)(2)(C).
VerDate Nov<24>2008
18:52 Sep 24, 2009
Jkt 217001
securities, to remove impediments to and
perfect the mechanism of a free and open
market in municipal securities, and, in
general, to protect investors and the public
interest.
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–MSRB–2009–14 on the
subject line.
The MSRB believes that the proposed
rule change is consistent with the Act
because the speed and efficiencies
offered by electronic confirmation
delivery are of benefit to the municipal
securities industry.
Paper Comments
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The MSRB does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, since it
would apply equally to all brokers,
dealers and municipal securities
dealers.
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
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(i) of the Act 6 and Rule 19b–
4(f)(1) thereunder,7 in that the proposed
rule change constitutes a stated policy,
practice, or interpretation with respect
to the meaning, administration, or
enforcement of an existing rule of the
MSRB. 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.8
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 (https://www.sec.gov/
rules/sro.shtml); or
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
8 See Section 19(b)(3)(C) of the Act, 15 U.S.C.
78s(b)(3)(C).
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–MSRB–2009–14. 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 MSRB. 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–MSRB–2009–14 and should
be submitted on or before October 16,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–23163 Filed 9–24–09; 8:45 am]
BILLING CODE 8010–01–P
6 15
7 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 74, Number 185 (Friday, September 25, 2009)]
[Notices]
[Pages 49049-49050]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23163]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60690; File No. SR-MSRB-2009-14]
Self-Regulatory Organizations; Municipal Securities Rulemaking
Board; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Consisting of an Interpretive Notice Regarding MSRB Rule G-
15(a), on Customer Confirmations
September 18, 2009.
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 15, 2009, the Municipal Securities Rulemaking Board
(``Board'' or ``MSRB''), filed with the Securities and Exchange
Commission (``Commission'' or ``SEC'') the proposed rule change as
described in Items I, II and III below, which Items have been prepared
by the Board. The MSRB has designated the proposed rule change as
constituting a stated policy, practice, or interpretation with respect
to the meaning, administration, or enforcement of an existing rule of
the self-regulatory organization pursuant to Section 19(b)(3)(A)(i) of
the Act,\3\ and Rule 19b-4(f)(1) 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(i).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The MSRB has filed with the Commission a proposed rule change
consisting of an interpretive notice regarding MSRB Rule G-15(a), on
customer confirmations, concerning use of electronic confirmations
produced by a clearing agency or qualified vendor to satisfy the
requirements of Rule G-15(a). The text of the proposed rule change is
available on the MSRB's Web site (https://www.msrb.org/msrb1/sec.asp),
at the MSRB'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 MSRB included statements
concerning the purpose of and basis for the
[[Page 49050]]
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 MSRB 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 MSRB received an interpretive request concerning the written
confirmation requirements of MSRB Rule G-15(a), on customer
confirmations of transactions in municipal securities transactions, in
which the MSRB was asked whether dealers could rely on a confirmation
sent by a Clearing Agency or Qualified Vendor, as defined in MSRB Rule
G-15(d)(ii)(B), where disclosures customarily provided on the back of
paper confirmations are provided electronically using a URL link to
satisfy their confirmation delivery obligations to customers under MSRB
Rule G-15(a). The MSRB recognizes that the speed and efficiencies
offered by electronic confirmation delivery are of benefit to the
municipal securities industry. Therefore, the MSRB has interpreted the
requirement in Rule G-15(a) to provide a customer with a written
confirmation to be satisfied by an electronic confirmation for DVP/RVP
transactions sent by a Clearing Agency or Qualified Vendor, as defined
in MSRB Rule G-15(d)(ii)(B), where disclosures customarily provided on
the back of paper confirmations are provided electronically using a URL
link when the following conditions are met: (i) the confirmation sent
includes all of the information required by Rule G-15(a); and (ii) all
of the requirements and conditions concerning the use of the electronic
confirmation service expressed in applicable SEC no-action letters
concerning Rule 10b-10 continue to be met.
2. Statutory Basis
The MSRB believes that the proposed rule change is consistent with
Section 15B(b)(2)(C) of the Act,\5\ which provides that the MSRB's
rules shall:
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78o-4(b)(2)(C).
be 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 municipal securities, to remove
impediments to and perfect the mechanism of a free and open market
in municipal securities, and, in general, to protect investors and
---------------------------------------------------------------------------
the public interest.
The MSRB believes that the proposed rule change is consistent with
the Act because the speed and efficiencies offered by electronic
confirmation delivery are of benefit to the municipal securities
industry.
B. Self-Regulatory Organization's Statement on Burden on Competition
The MSRB does not believe that the proposed rule change will impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, since it would apply equally to
all brokers, dealers and municipal securities dealers.
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
The proposed rule change has become effective pursuant to Section
19(b)(3)(A)(i) of the Act \6\ and Rule 19b-4(f)(1) thereunder,\7\ in
that the proposed rule change constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule of the MSRB. 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.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(i).
\7\ 17 CFR 240.19b-4(f)(1).
\8\ See Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-MSRB-2009-14 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-MSRB-2009-14. 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 MSRB. 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-MSRB-2009-14 and should be
submitted on or before October 16, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-23163 Filed 9-24-09; 8:45 am]
BILLING CODE 8010-01-P
