Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change Relating to Foreign Currency Options, 3950-3951 [2010-1271]

Download as PDF 3950 Federal Register / Vol. 75, No. 15 / Monday, January 25, 2010 / Notices in general, and with Sections 6(b)(5) of the Act,10 in particular, in that the proposal is 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 securities, 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. The proposed changes will conform NASDAQ Rules 3330 and 9810 to recent changes made to several corresponding FINRA rules, to promote application of consistent regulatory standards. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. 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 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, it 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 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. jlentini on DSKJ8SOYB1PROD with NOTICES 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: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–61368; File No. SR–ISE– 2009–87] • 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–NASDAQ–2010–005 on the subject line. Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving Proposed Rule Change Relating to Foreign Currency Options Paper Comments I. Introduction On October 27, 2009, the International Securities Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act All submissions should refer to File of 1934 (‘‘Act’’) 1 and Rule 19b–4 Number SR–NASDAQ–2010–005. This thereunder,2 a proposed rule change to file number should be included on the amend its rules regarding Foreign subject line if e-mail is used. To help the Currency Options (‘‘FX Options’’) to Commission process and review your permit the Exchange to list a single comments more efficiently, please use strike price of one cent ($0.01) for each only one method. The Commission will expiration month for FX Options post all comments on the Commission’s opened for trading on the Exchange. The Internet Web site (https://www.sec.gov/ proposed rule change was published for rules/sro.shtml). Copies of the comment in the Federal Register on submission, all subsequent November 24, 2009.3 The Commission amendments, all written statements received no comment letters on the with respect to the proposed rule proposal. This order approves the change that are filed with the proposed rule change. Commission, and all written II. Description of the Proposal communications relating to the proposed rule change between the ISE Rule 2205 governs the opening for Commission and any person, other than trading of series of FX Options.4 those that may be withheld from the Pursuant to ISE Rule 2205, after a class public in accordance with the of options contracts on any underlying provisions of 5 U.S.C. 552, will be currency pair has been approved for available for inspection and copying in listing and trading, the Exchange may the Commission’s Public Reference open for trading series of FX Options Room on official business days between that expire in consecutive monthly the hours of 10 a.m. and 3 p.m. Copies intervals, in three or ‘‘cycle’’ month of such filing also will be available for intervals, or that have up to 36 months inspection and copying at the principal to expiration. The Exchange also may office of NASDAQ. All comments open additional consecutive month received will be posted without change; series of the same class for trading at or the Commission does not edit personal about the time a prior consecutive identifying information from month series expires. submissions. You should submit only ISE now proposes to amend ISE Rule information that you wish to make 2205 to allow the Exchange to list a available publicly. All submissions single strike price of one cent ($0.01) for should refer to File Number SR– each expiration month for FX Options NASDAQ–2010–005 and should be opened for trading on the Exchange. The submitted on or before February 16, proposed one cent strike would be in 2010. addition to the strike prices listed by the Exchange pursuant to ISE Rule 2205. For the Commission, by the Division of • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–1267 Filed 1–22–10; 8:45 am] BILLING CODE 8011–01–P 10 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(6). 11 15 VerDate Nov<24>2008 16:23 Jan 22, 2010 13 17 Jkt 220001 January 15, 2010. PO 00000 CFR 200.30–3(a)(12). Frm 00061 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Securities Exchange Act Release No. 61024 (November 18, 2009), 74 FR 61395 (November 24, 2009). 4 ISE began trading FX options on April 17, 2007. See Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 10, 2007) (SR– ISE–2006–59) (the ‘‘FX Options Order’’). 2 17 E:\FR\FM\25JAN1.SGM 25JAN1 Federal Register / Vol. 75, No. 15 / Monday, January 25, 2010 / Notices III. Discussion 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.5 Specifically, the Commission finds that the proposal 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 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. comments on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Conclusion CBOE proposes to adjust (i) the monthly access fee for persons granted temporary CBOE membership status (‘‘Temporary Members’’) pursuant to Interpretation and Policy .02 under CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and (ii) the monthly access fee for Interim Trading Permit (‘‘ITP’’) holders under CBOE Rule 3.27. The text of the proposed rule change 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’s Public Reference Room. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–ISE–2009–87) be, and hereby is, approved. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. In its filing with the Commission, CBOE 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 CBOE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. [FR Doc. 2010–1271 Filed 1–22–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–61369; File No. SR–CBOE– 2009–103] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Temporary Membership Status and Interim Trading Permit Access Fees A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on December 31, 2009, 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 CBOE. The Commission is publishing this notice to solicit The current access fee for Temporary Members under Rule 3.19.02 2 and the current access fee for ITP holders under Rule 3.27 3 are both $8,991 per month. Both access fees are currently set at the indicative lease rate (as defined below) for December 2009. The Exchange proposes to adjust both access fees effective at the beginning of January 2010 to be equal to the indicative lease rate for January 2010 (which is $7,928). Specifically, the Exchange proposes to revise both the Temporary Member access fee and the ITP access fee to be $7,928 per month commencing on January 1, 2010. The indicative lease rate is defined under Rule 3.27(b) as the highest 5 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). 6 15 U.S.C. 78f(b)(5). 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 See Securities Exchange Act Release No. 56458 (September 18, 2007), 72 FR 54309 (September 24, 2007) (SR–CBOE–2007–107) for a description of the Temporary Membership status under Rule 3.19.02. 3 See Securities Exchange Act Release No. 58178 (July 17, 2008), 73 FR 42634 (July 22, 2008) (SR– CBOE–2008–40) for a description of the Interim Trading Permits under Rule 3.27. jlentini on DSKJ8SOYB1PROD with NOTICES January 15, 2010. VerDate Nov<24>2008 16:23 Jan 22, 2010 Jkt 220001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 3951 clearing firm floating monthly rate 4 of the CBOE Clearing Members that assist in facilitating at least 10% of the CBOE transferable membership leases.5 The Exchange determined the indicative lease rate for January 2010 by polling each of these Clearing Members and obtaining the clearing firm floating monthly rate designated by each of these Clearing Members for that month. The Exchange used the same process to set the proposed Temporary Member and ITP access fees that it used to set the current Temporary Member and ITP access fees. The only difference is that the Exchange used clearing firm floating monthly rate information for the month of January 2010 to set the proposed access fees (instead of clearing firm floating monthly rate information for the month of December 2009 as was used to set the current access fees) in order to take into account changes in clearing firm floating monthly rates for the month of January 2010. The Exchange believes that the process used to set the proposed Temporary Member access fee and the proposed Temporary Member access fee itself are appropriate for the same reasons set forth in CBOE rule filing SR– CBOE–2008–12 with respect to the original Temporary Member access fee.6 Similarly, the Exchange believes that the process used to set the proposed ITP access fee and the proposed ITP access fee itself are appropriate for the same reasons set forth in CBOE rule filing SR– CBOE–2008–77 with respect to the original ITP access fee.7 Each of the proposed access fees will remain in effect until such time either that the Exchange submits a further rule filing pursuant to Section 19(b)(3)(A)(ii) 4 Rule 3.27(b) defines the clearing firm floating monthly rate as the floating monthly rate that a Clearing Member designates, in connection with transferable membership leases that the Clearing Member assisted in facilitating, for leases that utilize that monthly rate. 5 The concepts of an indicative lease rate and of a clearing firm floating month rate were previously utilized in the CBOE rule filings that set and adjusted the Temporary Member access fee. Both concepts are also codified in Rule 3.27(b) in relation to ITPs. 6 See Securities Exchange Act Release No. 57293 (February 8, 2008), 73 FR 8729 (February 14, 2008) (SR–CBOE–2008–12), which established the original Temporary Member access fee, for detail regarding the rationale in support of the original Temporary Member access fee and the process used to set that fee, which is also applicable to this proposed change to the Temporary Member access fee as well. 7 See Securities Exchange Act Release No. 58200 (July 21, 2008), 73 FR 43805 (July 28, 2008) (SR– CBOE–2008–77), which established the original ITP access fee, for detail regarding the rationale in support of the original ITP access fee and the process used to set that fee, which is also applicable to this proposed change to the ITP access fee as well. E:\FR\FM\25JAN1.SGM 25JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 75, Number 15 (Monday, January 25, 2010)]
[Notices]
[Pages 3950-3951]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1271]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61368; File No. SR-ISE-2009-87]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Order Approving Proposed Rule Change Relating to Foreign Currency 
Options

January 15, 2010.

I. Introduction

    On October 27, 2009, the International Securities Exchange, LLC 
(``ISE'' or ``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 its rules regarding 
Foreign Currency Options (``FX Options'') to permit the Exchange to 
list a single strike price of one cent ($0.01) for each expiration 
month for FX Options opened for trading on the Exchange. The proposed 
rule change was published for comment in the Federal Register on 
November 24, 2009.\3\ The Commission received no comment letters on the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 61024 (November 18, 
2009), 74 FR 61395 (November 24, 2009).
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II. Description of the Proposal

    ISE Rule 2205 governs the opening for trading of series of FX 
Options.\4\ Pursuant to ISE Rule 2205, after a class of options 
contracts on any underlying currency pair has been approved for listing 
and trading, the Exchange may open for trading series of FX Options 
that expire in consecutive monthly intervals, in three or ``cycle'' 
month intervals, or that have up to 36 months to expiration. The 
Exchange also may open additional consecutive month series of the same 
class for trading at or about the time a prior consecutive month series 
expires.
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    \4\ ISE began trading FX options on April 17, 2007. See 
Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 
17963 (April 10, 2007) (SR-ISE-2006-59) (the ``FX Options Order'').
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    ISE now proposes to amend ISE Rule 2205 to allow the Exchange to 
list a single strike price of one cent ($0.01) for each expiration 
month for FX Options opened for trading on the Exchange. The proposed 
one cent strike would be in addition to the strike prices listed by the 
Exchange pursuant to ISE Rule 2205.

[[Page 3951]]

III. Discussion

    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.\5\ 
Specifically, the Commission finds that the proposal 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 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.
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    \5\ 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).
    \6\ 15 U.S.C. 78f(b)(5).
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Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\7\ that the proposed rule change (SR-ISE-2009-87) be, and hereby 
is, approved.
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    \7\ 15 U.S.C. 78s(b)(2).

    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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1271 Filed 1-22-10; 8:45 am]
BILLING CODE 8011-01-P

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