Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Approving a Proposed Rule Change To Retroactively Correct an Error in Rule 7018, 55875-55876 [E9-26023]

Download as PDF Federal Register / Vol. 74, No. 208 / Thursday, October 29, 2009 / Notices • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASDAQ–2009–088 on the subject line. the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other parties using its facilities. The Commission notes that the Paper Comments changes outlined in this proposed rule • Send paper comments in triplicate change were also contained in an to Elizabeth M. Murphy, Secretary, September 30, 2009 submission by Securities and Exchange Commission, NASDAQ for immediate effectiveness 100 F Street, NE., Washington, DC pursuant to Section 19(b)(3)(A) 8 of the 20549–1090. Act and Rule 19b–4(f)(2) 9 thereunder; All submissions should refer to File however that submission was rejected Number SR–NASDAQ–2009–088. This because it was not filed in accordance file number should be included on the subject line if e-mail is used. To help the with the requirements of the Act and the rules and regulations thereunder.10 The Commission process and review your proposed fee changes would otherwise comments more efficiently, please use only one method. The Commission will qualify for immediate effectiveness post all comments on the Commission’s pursuant to Section 19(b)(3)(A) 11 of the Act and Rule 19b–4(f)(2).12 However, Internet Web site (https://www.sec.gov/ because the proposed rule change seeks rules/sro.shtml). Copies of the retroactive application of a fee change, submission, all subsequent amendments, all written statements NASDAQ filed pursuant to Section with respect to the proposed rule 19(b)(2) of the Act.13 change that are filed with the The Commission finds good cause, Commission, and all written consistent with Section 19(b)(2) of the communications relating to the Act,14 for approving the proposed rule proposed rule change between the change before the thirtieth day after the Commission and any person, other than date of publication of notice of filing those that may be withheld from the thereof in the Federal Register with public in accordance with the such approval retroactive to October 1, provisions of 5 U.S.C. 552, will be 2009. Retroactive approval of this available for inspection and copying in proposal allows the proposed rule the Commission’s Public Reference Room, on official business days between change to take effect for the month of October 2009. the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for V. Conclusion inspection and copying at the principal office of the Exchange. All comments It is therefore ordered, pursuant to received will be posted without change; Section 19(b)(2) of the Act, that the the Commission does not edit personal proposed rule change (SR–NASDAQ– identifying information from 2009–088) is hereby approved on an submissions. You should submit only accelerated basis. information that you wish to make For the Commission, by the Division of available publicly. All submissions Trading and Markets, pursuant to delegated should refer to File Number SR– authority.15 NASDAQ–2009–088 and should be Elizabeth M. Murphy, submitted on or before November 19, Secretary. 2009. dcolon on DSK2BSOYB1PROD with NOTICES IV. Commission’s Findings and Order Granting Accelerated Approval of a Proposed Rule Change 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.6 In particular, approval of the retroactive application of the proposal is consistent with Section 6(b)(4) of the Act,7 which requires that the rules of a national securities exchange provide for 6 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(4). VerDate Nov<24>2008 15:20 Oct 28, 2009 Jkt 220001 [FR Doc. E9–26022 Filed 10–28–09; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60863; File No. SR–BX– 2009–055] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order Approving a Proposed Rule Change To Retroactively Correct an Error in Rule 7018 October 22, 2009. On August 28, 2009, NASDAQ OMX BX, Inc. (the ‘‘Exchange’’ or ‘‘BX’’) 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 apply retroactively to the period from April 1, 2009 through August 16, 2009 the correction made by SR–BX–2009–049 3 of an error formerly in Rule 7018. BX believes that all of its members that trade on the NASDAQ OMX BX Equities System are cognizant of the correct fee. BX has been billing members in accordance with the correct fee since the effective date of April 1, 2009 in a previous BX proposed rule change,4 but due to an error the credit incorrectly appeared as ‘‘$0.006’’ in Exhibit 5 to the BX Fee Filing. Notice of the proposed rule change was published for comment in the Federal Register on September 17, 2009.5 The Commission received no comments on the proposal. After careful review, 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.6 In particular, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act,7 which requires, among other things, that the rules of a national securities exchange remove impediments to and perfect the mechanism of a free and open market and a national market system. The Commission believes the proposed rule change matches both the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 60603 (September 1, 2009), 74 FR 46266 (September 8, 2009) (SR–BX–2009–049). 4 See Securities Exchange Act Release No. 59682 (April 1, 2009), 74 FR 16015 (April 8, 2009) (SR– BX–2009–018) (‘‘BX Fee Filing’’). 5 See Securities Exchange Act Release No. 60634 (September 8, 2009), 74 FR 47849. 6 In approving this proposed rule change, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 7 15 U.S.C. 78f(b)(5). 2 17 8 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10 See 19 CFR 240.19b–4 and 19 CFR 249.819 Appendix A. 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(6). 13 15 U.S.C. 78s(b)(2). 14 Id. 15 17 CFR 200.30–3(a)(12). 9 17 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 55875 E:\FR\FM\29OCN1.SGM 29OCN1 55876 Federal Register / Vol. 74, No. 208 / Thursday, October 29, 2009 / Notices original intent of the BX Fee Filing and the fee BX currently charges its members. The proposed rule change will retroactively correct the error by assessing the fees pursuant to the now accurate Rule 7018. The Commission believes it is important for BX’s rules to be accurate and applied correctly in order to remove impediments to and perfect the mechanism of a free and open market and a national market system. It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR–BX–2009– 055), be and hereby is approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. E9–26023 Filed 10–28–09; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60864; File No. SR–CBOE– 2009–076] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Penny Pilot Program October 22, 2009. dcolon on DSK2BSOYB1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 20, 2009, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) 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 Exchange. The Exchange filed the proposal as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder.4 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 CBOE proposes to amend its rules relating to the Penny Pilot Program. The CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 1 15 VerDate Nov<24>2008 15:20 Oct 28, 2009 Jkt 220001 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 BILLING CODE 8011–01–P 8 17 text of the rule proposal is available on the Exchange’s Web site (https:// www.cboe.org/legal), at the Exchange’s Office of the Secretary and at the Commission. 1. Purpose CBOE proposes to extend and expand the Penny Pilot Program, which commenced on January 26, 2007, in accordance with the proposed expansion that the SEC approved on September 23, 2009.5 Background: The Penny Pilot Program currently is in effect in fifty-eight multiply-listed option classes.6 For all classes in the Program except for the QQQQs, the minimum increment for bids and offers is 0.01 for all option series below $3 (including LEAPS), and $0.05 for all option series $3 and above (including LEAPS). For QQQQs, the minimum increment is $0.01 for all option series. The Penny Pilot Program is scheduled to expire on October 31, 2009.7 On May 20, 2009, CBOE filed SR– CBOE–2009–31, which filing proposed to extend the Pilot Program, and also proposed to significantly expand the Pilot Program to all equity and ETF option classes, such that at the end of a brief roll-out period all equity and ETF option classes would be included in the 5 See Securities Exchange Act Release No. 60711 (September 23, 2009), approving SR–NYSEArca– 2009–44. 6 CBOE’s rules also provide that for so long as SPDR options (SPY) and options on Diamonds (DIA) participate in the Penny Pilot Program, the minimum increments for Mini-SPX Index Options (XSP) and options on the Dow Jones Industrial Average (DJX), respectively, are $0.01 for all option series below $3, and $0.05 for all option series $3 and above. See CBOE Rule 6.42.03. 7 See Securities Exchange Act Release No. 60223 (July 1, 2009), 74 FR 32993 (July 9, 2009), granting immediate effectiveness to SR–CBOE–2009–43. PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 Penny Pilot Program.8 Moreover, in all Pilot classes, option series of less than $1 premium value would be quoted in penny increments, and series at $1 or above would be quoted in nickel increments. CBOE believed that extending and expanding the Penny Pilot Program as proposed was balanced, responsible, and reasonable. It would benefit investors by expanding the Pilot Program in all equity and ETF option classes over a relatively short period of time, which would enable investors to obtain the benefits of penny quoting and trading in those option contracts that customers actually trade. CBOE also believed that its proposal was balanced in that it recognized that the Pilot Program, while providing certain benefits such as reducing spreads, also resulted in a significant reduction in liquidity at the BBO, a decrease in volume in some classes, and a significant rise in quote traffic. Moreover, CBOE’s plan eliminated investor confusion as to which options are quoted in penny increments, and helps to reduce the growth of quote traffic. Proposed Expansion: In light of the SEC’s recent approval the NYSEArca’s proposed expansion of the Penny Pilot Program (see SR– NYSEArca–2009–44), CBOE has determined to withdraw its proposal to expand the Pilot Program as described in SR–CBOE–2009–31. Instead, CBOE now proposes to extend the Pilot Program from November 1, 2009 until December 31, 2010, and expand the Penny Pilot Program by adding the 300 most actively-traded, multiply-listed option classes that are not currently in the Pilot Program, excluding option classes with high premiums. An option class would be designated as ‘‘high premium’’ if, at the time of selection, the underlying security was priced at $200 per share or above, or the underlying index level was at 200 or above. These determinations shall be based on the price at the close of trading on Expiration Friday prior to the class being added to the Pilot Program. CBOE believes that it is appropriate to exclude high priced underlying securities, as the benefit to the public from excluding such issues is minimal because of the high price of at-the-money options. The 300 option classes would be added in groups of 75 classes each quarter beginning on the following dates: November 2, 2009, February 1, 2010, May 3, 2010, and August 2, 2010. The option classes will be identified based on national average daily volume 8 See Securities Exchange Act Release No. 60018 (June 1, 2009), 74 FR 27211 (June 8, 2009). E:\FR\FM\29OCN1.SGM 29OCN1

Agencies

[Federal Register Volume 74, Number 208 (Thursday, October 29, 2009)]
[Notices]
[Pages 55875-55876]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26023]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60863; File No. SR-BX-2009-055]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Order 
Approving a Proposed Rule Change To Retroactively Correct an Error in 
Rule 7018

October 22, 2009.
    On August 28, 2009, NASDAQ OMX BX, Inc. (the ``Exchange'' or 
``BX'') 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 apply retroactively to the period from April 1, 
2009 through August 16, 2009 the correction made by SR-BX-2009-049 \3\ 
of an error formerly in Rule 7018. BX believes that all of its members 
that trade on the NASDAQ OMX BX Equities System are cognizant of the 
correct fee. BX has been billing members in accordance with the correct 
fee since the effective date of April 1, 2009 in a previous BX proposed 
rule change,\4\ but due to an error the credit incorrectly appeared as 
``$0.006'' in Exhibit 5 to the BX Fee Filing. Notice of the proposed 
rule change was published for comment in the Federal Register on 
September 17, 2009.\5\ The Commission received no comments on the 
proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60603 (September 1, 
2009), 74 FR 46266 (September 8, 2009) (SR-BX-2009-049).
    \4\ See Securities Exchange Act Release No. 59682 (April 1, 
2009), 74 FR 16015 (April 8, 2009) (SR-BX-2009-018) (``BX Fee 
Filing'').
    \5\ See Securities Exchange Act Release No. 60634 (September 8, 
2009), 74 FR 47849.
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    After careful review, 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.\6\ 
In particular, the Commission finds that the proposed rule change is 
consistent with the requirements of Section 6(b)(5) of the Act,\7\ 
which requires, among other things, that the rules of a national 
securities exchange remove impediments to and perfect the mechanism of 
a free and open market and a national market system.
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    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Commission believes the proposed rule change matches both the

[[Page 55876]]

original intent of the BX Fee Filing and the fee BX currently charges 
its members. The proposed rule change will retroactively correct the 
error by assessing the fees pursuant to the now accurate Rule 7018. The 
Commission believes it is important for BX's rules to be accurate and 
applied correctly in order to remove impediments to and perfect the 
mechanism of a free and open market and a national market system.
    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-BX-2009-055), be and hereby is 
approved.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-26023 Filed 10-28-09; 8:45 am]
BILLING CODE 8011-01-P
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