Self-Regulatory Organizations; NYSE Amex LLC; Order Granting Approval of Proposed Rule Change Amending NYSE Amex Options Rule 915, 54112-54113 [E9-25205]
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54112
Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to adopt a fee for
ISE market maker orders sent to the
Exchange by Electronic Access Members
(‘‘EAMs’’). The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.ise.com), at the
principal office of the Exchange, 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 purpose of this proposed rule
change is to adopt a fee for ISE market
maker orders sent to the Exchange by
EAMs. Specifically, the Exchange
proposes to adopt a fee of $0.20 per
contract for such orders. Market maker
orders sent to the Exchange by EAMs
are currently charged per the Exchange’s
market maker sliding scale. Market
maker orders sent by EAMs, however,
are essentially broker-dealer orders and
thus should be billed at the rate the
Exchange currently charges for brokerdealer orders. The Exchange treats
broker-dealer orders as Firm Proprietary
orders for the purpose of the Exchange’s
fee schedule and charges a fee of $0.20
per contract. ISE proposes to implement
this fee change on October 1, 2009.
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2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Exchange
Act’’) for this proposed rule change is
the requirement under Section 6(b)(4)
that an exchange have an equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities. In
particular, the proposed fee change will
align fees charged by the Exchange for
market maker orders sent by EAMs with
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17:33 Oct 20, 2009
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the fees charged by the Exchange for
broker-dealer orders.
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
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 3 and Rule 19b–4(f)(2) 4
thereunder. 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.
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 rulecomments@sec.gov. Please include File
Number SR–ISE–2009–76 on the subject
line.
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, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing will also 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 No. SR–ISE–2009–
76 and should be submitted on or before
November 12, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25201 Filed 10–20–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60823; File No. SR–
NYSEAmex–2009–59]
Self-Regulatory Organizations; NYSE
Amex LLC; Order Granting Approval of
Proposed Rule Change Amending
NYSE Amex Options Rule 915
October 14, 2009.
On August 19, 2009, NYSE Amex, Inc.
(‘‘NYSE Amex’’ or ‘‘Exchange’’) filed
Paper Comments
with the Securities and Exchange
• Send paper comments in triplicate
Commission (‘‘Commission’’) a
to Elizabeth M. Murphy, Secretary,
proposed rule change pursuant to
Securities and Exchange Commission,
Section 19(b)(1) of the Securities
100 F Street, NE., Washington, DC
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
20549–1090.
19b–4 2 thereunder to amend the
All submissions should refer to File
definition of Futures Reference Asset in
Number SR–ISE–2009–76. This file
Commentary .11(5) to NYSE Amex Rule
number should be included on the
915 to permit options on Futures-Linked
subject line if e-mail is used. To help the Securities to be based on products
Commission process and review your
5 17
3 15
U.S.C. 78s(b)(3)(A) [sic].
4 17 CFR 19b–4(f)(2).
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Frm 00095
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices
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linked to CBOE Volatility Index Futures
(‘‘VIX Futures’’). The proposed rule
change was published for comment in
the Federal Register on September 11,
2009 for a 21-day comment period.3 The
Commission received no comment
letters regarding the proposal. This
order approves the proposed rule
change.
Commentary .11 to NYSE Amex Rule
915 designates the listing and trading of
options on Equity Index-Linked
Securities, Commodity-Linked
Securities, Currency-Linked Securities,
Fixed Income Index-Linked Securities,
Futures-Linked Securities, and
Multifactor Index-Linked Securities,
collectively known as Index-Linked
Securities (as defined in NYSE Amex
Company Guide Section 107(H)) that are
principally traded on a national
securities exchange and an ‘‘NMS
Stock’’ (as defined in Rule 600 of
Regulation NMS under the Act).
Futures-Linked Securities pay at
maturity an amount of cash based on the
performance of a ‘‘Futures Reference
Asset,’’ currently defined as an index of
futures on Treasury Securities, GSE
Securities, supranational debt and debt
of a foreign country or a subdivision
thereof, or interest rate futures, or
options or derivatives on any of the
foregoing. The Exchange proposes to
include VIX Futures in this definition.
After careful consideration, 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 exchange 4 and, in
particular, the requirements of Section 6
of the Act.5 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,6 which requires,
among other things, that the rules of a
national securities exchange 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
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Currently, the Exchange will consider
listing and trading options on Index3 See Securities Exchange Act Release No. 60622
(September 3, 2009), 74 FR 46826.
4 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).
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(5).
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17:33 Oct 20, 2009
Jkt 220001
Linked Securities, including options on
Futures-Linked Securities, provided the
Index-Linked Securities meet the
criteria for underlying securities set
forth in Commentary .01 to NYSE Amex
Rule 915. Underlying Index-Linked
Securities must meet the criteria and
guidelines for underlying securities set
forth in Commentary .01 to NYSE Amex
Rule 915; or the Index-Linked Securities
must be redeemable at the option of the
holder at least on a weekly basis
through the issuer at a price related to
the applicable underlying Reference
Asset.7 After the addition of VIX
Futures to the definition of a Futures
Reference Asset in Commentary .11(5)
to NYSE Amex Rule 915, options on
Index-Linked Securities, including
options on Futures Linked Securities,
would continue to be subject to all
Exchange rules governing the trading of
equity options 8 and the current
continuing or maintenance listing
standards applicable to the trading of
options on Index-Linked Securities on
NYSE Amex. The Commission also
notes that it has previously approved an
amendment to Section 107H of the
Amex Company Guide to add the VIX
Futures to the definition of ‘‘Futures
Reference Asset’’ for the listing and
trading of Futures-Linked Securities.9
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–NYSEAmex–
2009–59) is hereby approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–25205 Filed 10–20–09; 8:45 am]
BILLING CODE 8010–01–P
7 For purposes of Commentary .11 to NYSE Amex
Rule 915, Reference Assets collectively refers to
Equity Reference Assets, Commodity Reference
Assets, Currency Reference Assets, Fixed Income
Reference Assets, Futures Reference Assets, and
Multifactor Reference Assets.
8 Despite the fact that Index-Linked Securities are
linked to an underlying index, each trade as a
single, exchange-listed security. Accordingly, rules
pertaining to the listing and trading of standard
equity options apply to options on Index-Linked
Securities.
9 See Securities Exchange Act Release No. 60535
(August 19, 2009), 74 FR 46826 (August 26, 2009)
(NYSEAmex–2009–55); see also Securities
Exchange Act Release No. 58968 (November 17,
2008), 73 FR 71082 (November 24, 2008) (SR–
NYSEArca–2008–111).
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
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54113
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60818; File No. SR–BX–
2009–048]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Order
Approving a Proposed Rule Change To
Amend the Grandfathered Rules of the
Exchange
October 13, 2009.
On August 17, 2009, NASDAQ OMX
BX, Inc. (‘‘Exchange’’) 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 the Grandfathered Rules of the
Exchange.3 The proposed rule change
was published for comment in the
Federal Register on September 8, 2009.4
The Commission received no comments
on the proposal.
The proposed rule change would
incorporate certain provisions of the
former Constitution of the Boston Stock
Exchange, Incorporated (‘‘BSE’’) 5 into
the Grandfathered Rules. The provisions
to be added to the Grandfathered Rules
relate to the following: (1) Participation
(formerly Membership) rules, to
supplement the By-Laws and the
Grandfathered Rules to direct the BOX
Options Participants (‘‘Participants’’)
and prospective participants to Section
6(c) of the Act,6 as cited in the proposed
rule text regarding the investigation and
acceptance of an applicant; (2) Nonliability of the Exchange provision, to
reinforce to Participants the ‘‘nonliability’’ of the Exchange for damages
sustained from use of the facilities of the
Exchange;
(3) Insolvent Participants, to provide
guidance for Insolvent Participants to
notify the Exchange, of such insolvency
and to state that the Exchange will
notify the Commission of such
insolvency; and (4) Exchange Inquiries
to remind Participants that they may be
subject to expulsion or suspension for
failure to respond to an Exchange
Inquiry.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The Grandfathered Rules are operative to the
extent that they apply to the Boston Options
Exchange Group, LLC (‘‘BOX’’) and to Options
Participants on the Exchange, and are to be read in
conjunction with the Rules of the BOX.
4 See Securities Exchange Act Release No. 60591
(August 31, 2009), 74 FR 46288.
5 Securities Exchange Act Release No. 58324
(August 7, 2008), 73 FR 46936 (August 12, 2008)
(SR–BSE–2008–02, –23, –25; SR–BSECC–2008–01)
(‘‘Release No. 34–58324’’).
6 15 U.S.C. 78f(c).
2 17
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Agencies
[Federal Register Volume 74, Number 202 (Wednesday, October 21, 2009)]
[Notices]
[Pages 54112-54113]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25205]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60823; File No. SR-NYSEAmex-2009-59]
Self-Regulatory Organizations; NYSE Amex LLC; Order Granting
Approval of Proposed Rule Change Amending NYSE Amex Options Rule 915
October 14, 2009.
On August 19, 2009, NYSE Amex, Inc. (``NYSE Amex'' or ``Exchange'')
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 \2\ thereunder to
amend the definition of Futures Reference Asset in Commentary .11(5) to
NYSE Amex Rule 915 to permit options on Futures-Linked Securities to be
based on products
[[Page 54113]]
linked to CBOE Volatility Index Futures (``VIX Futures''). The proposed
rule change was published for comment in the Federal Register on
September 11, 2009 for a 21-day comment period.\3\ The Commission
received no comment letters regarding the proposal. This order approves
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 60622 (September 3,
2009), 74 FR 46826.
---------------------------------------------------------------------------
Commentary .11 to NYSE Amex Rule 915 designates the listing and
trading of options on Equity Index-Linked Securities, Commodity-Linked
Securities, Currency-Linked Securities, Fixed Income Index-Linked
Securities, Futures-Linked Securities, and Multifactor Index-Linked
Securities, collectively known as Index-Linked Securities (as defined
in NYSE Amex Company Guide Section 107(H)) that are principally traded
on a national securities exchange and an ``NMS Stock'' (as defined in
Rule 600 of Regulation NMS under the Act). Futures-Linked Securities
pay at maturity an amount of cash based on the performance of a
``Futures Reference Asset,'' currently defined as an index of futures
on Treasury Securities, GSE Securities, supranational debt and debt of
a foreign country or a subdivision thereof, or interest rate futures,
or options or derivatives on any of the foregoing. The Exchange
proposes to include VIX Futures in this definition.
After careful consideration, 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
exchange \4\ and, in particular, the requirements of Section 6 of the
Act.\5\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 6(b)(5) of the Act,\6\ which
requires, among other things, that the rules of a national securities
exchange 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanisms of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 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).
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Currently, the Exchange will consider listing and trading options
on Index-Linked Securities, including options on Futures-Linked
Securities, provided the Index-Linked Securities meet the criteria for
underlying securities set forth in Commentary .01 to NYSE Amex Rule
915. Underlying Index-Linked Securities must meet the criteria and
guidelines for underlying securities set forth in Commentary .01 to
NYSE Amex Rule 915; or the Index-Linked Securities must be redeemable
at the option of the holder at least on a weekly basis through the
issuer at a price related to the applicable underlying Reference
Asset.\7\ After the addition of VIX Futures to the definition of a
Futures Reference Asset in Commentary .11(5) to NYSE Amex Rule 915,
options on Index-Linked Securities, including options on Futures Linked
Securities, would continue to be subject to all Exchange rules
governing the trading of equity options \8\ and the current continuing
or maintenance listing standards applicable to the trading of options
on Index-Linked Securities on NYSE Amex. The Commission also notes that
it has previously approved an amendment to Section 107H of the Amex
Company Guide to add the VIX Futures to the definition of ``Futures
Reference Asset'' for the listing and trading of Futures-Linked
Securities.\9\
---------------------------------------------------------------------------
\7\ For purposes of Commentary .11 to NYSE Amex Rule 915,
Reference Assets collectively refers to Equity Reference Assets,
Commodity Reference Assets, Currency Reference Assets, Fixed Income
Reference Assets, Futures Reference Assets, and Multifactor
Reference Assets.
\8\ Despite the fact that Index-Linked Securities are linked to
an underlying index, each trade as a single, exchange-listed
security. Accordingly, rules pertaining to the listing and trading
of standard equity options apply to options on Index-Linked
Securities.
\9\ See Securities Exchange Act Release No. 60535 (August 19,
2009), 74 FR 46826 (August 26, 2009) (NYSEAmex-2009-55); see also
Securities Exchange Act Release No. 58968 (November 17, 2008), 73 FR
71082 (November 24, 2008) (SR-NYSEArca-2008-111).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-NYSEAmex-2009-59) is hereby
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. E9-25205 Filed 10-20-09; 8:45 am]
BILLING CODE 8010-01-P