Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enable the Listing and Trading on BOX of Options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust, 40007-40010 [2010-16995]

Download as PDF Federal Register / Vol. 75, No. 133 / Tuesday, July 13, 2010 / Notices consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 11 and, in particular, the requirements of Section 6 of the Act.12 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,13 which requires, among other things, that the rules of a national securities exchange be designed 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. In accordance with the Memorandum of Understanding entered into between the Commodity Futures Trading Commission (‘‘CFTC’’) and the Commission on March 11, 2008, and in particular the addendum thereto concerning Principles Governing the Review of Novel Derivative Products, the Commission believes that novel derivative products that implicate areas of overlapping regulatory concern should be permitted to trade in either or both a CFTC- or Commission-regulated environment, in a manner consistent with laws and regulations (including the appropriate use of all available exemptive and interpretive authority). As a national securities exchange, the CBOE is required under Section 6(b)(1) of the Act 14 to enforce compliance by its members, and persons associated with its members, with the provisions of the Act, Commission rules and regulations thereunder, and its own rules. In addition, brokers that trade Sprott Options will also be subject to best execution obligations and FINRA rules.15 Applicable exchange rules also require that customers receive appropriate disclosure before trading Sprott Options.16 Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.17 Sprott Options will trade as options under the trading rules of the CBOE. These rules, among other things, are designed to avoid trading through better displayed prices for Sprott Options available on other exchanges and, thereby, satisfy CBOE’s obligation under the Options Order Protection and jlentini on DSKJ8SOYB1PROD with NOTICES 11 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). 12 15 U.S.C. 78f. 13 15 U.S.C. 78f(b)(5). 14 15 U.S.C. 78f(b)(1). 15 See NASD Rule 2320. 16 See CBOE Rule 9.15. 17 See FINRA Rule 2360(b) and CBOE Rules 9.7 and 9.9. VerDate Mar<15>2010 16:44 Jul 12, 2010 Jkt 220001 Locked/Crossed Market Plan.18 Series of the Sprott Options will be subject to exchange rules regarding continued listing requirements, including standards applicable to the underlying Sprott Physical Gold Trust. Shares of the Sprott Physical Gold Trust must continue to be traded through a national securities exchange or through the facilities of a national securities association, and must be ‘‘NMS stock’’ as defined under Rule 600 of Regulation NMS.19 In addition, the underlying shares must continue to comply with the Exchange’s continued listing standards applicable to Units.20 If the Sprott Physical Gold Trust shares fail to meet these requirements, the exchanges will not open for trading any new series of the respective Sprott Options. CBOE has represented that it has surveillance programs in place for the listing and trading of Sprott Options. For example, CBOE may obtain trading information via the ISG from the NYMEX related to any financial instrument traded there that is based, in whole or in part, upon an interest in, or performance of, gold. Additionally, the listing and trading of Sprott Options will be subject to the exchange’s rules pertaining to position and exercise limits 21 and margin.22 III. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,23 that the propose rule change (SR–CBOE–2010– 043) be, and is hereby, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.24 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–16997 Filed 7–12–10; 8:45 am] BILLING CODE 8010–01–P 18 See CBOE Rule 6.81. Specifically, CBOE is a participant in the Options Order Protection and Locked/Crossed Market Plan. 19 17 CFR 242.600. 20 See Interpretation and Policy .08 to CBOE Rule 5.4. 21 See CBOE Rules 4.11 and 4.12. 22 See CBOE Rule 12.3. See also FINRA Rule 2360(b) and Commentary .01 to FINRA Rule 2360. 23 15 U.S.C. 78s(b)(2). 24 17 CFR 200.30–3(a)(12). PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 40007 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62464; File No. SR–BX– 2010–045] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Enable the Listing and Trading on BOX of Options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust July 7, 2010. 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 June 30, 2010, NASDAQ OMX BX, Inc. (the ‘‘Exchange’’), filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) 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 NASDAQ OMX BX, Inc. (the ‘‘Exchange’’) proposes to amend the Rules of the Boston Options Exchange Group, LLC (‘‘BOX’’) to enable the listing and trading on BOX of options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room and also on the Exchange’s Internet Web site at https:// nasdaqomxbx.cchwallstreet.com/ NASDAQOMXBX/Filings/. 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). 2 17 E:\FR\FM\13JYN1.SGM 13JYN1 40008 Federal Register / Vol. 75, No. 133 / Tuesday, July 13, 2010 / Notices of these statements may be examined at the places specified in Item IV below. The self-regulatory organization 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 jlentini on DSKJ8SOYB1PROD with NOTICES Recently, the U.S. Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) authorized the listing and trading on BOX of options on the SPDR Gold Trust 5 and the iShares COMEX Gold Trust and the iShares Silver Trust.6 Now, the Exchange proposes for BOX to list and trade options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust. Under current Chapter IV, Section 3(i) of the BOX Rules, only ExchangeTraded Fund Shares, or ETFs, that are traded on a national securities exchange and are defined as an ‘‘NMS’’ stock under Rule 600 of Regulation NMS, and that (i) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities that hold portfolios of securities and/or financial instruments, including, but not limited to, stock index futures contracts, options on futures, options on securities and indices, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse repurchase agreements (the ‘‘Financial Instruments’’), and money market instruments, including, but not limited to, U.S. government securities and repurchase agreements (the ‘‘Money Market Instruments’’) comprising or otherwise based on or representing investments in broad based indexes or portfolios of securities and/or Financial Instruments and Money Market Instruments (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities and/or Financial Instruments and Money Market Instruments) or (ii) represent interests in 5 See Securities Exchange Act Release No. 58136 (July 10, 2008), 73 FR 40884 (July 16, 2008) (SR– BSE–2008–41) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Options on Shares of the SPDR Gold Trust). 6 See Securities Exchange Act Release No. 59055 (December 4, 2008), 73 FR 75148 (December 10, 2008) (SR–BSE–2008–51) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Changes Relating to the Listing and Trading Options on Shares of the iShares COMEX Gold Trust and the iShares Silver Trust). VerDate Mar<15>2010 16:44 Jul 12, 2010 Jkt 220001 a trust that holds a specified non-U.S. currency or currencies deposited with the trust or similar entity when aggregated in some specified minimum number may be surrendered to the trust by the beneficial owner to receive the specified non-U.S. currency or currencies and pays the beneficial owner interest and other distributions on the deposited non-U.S. currency or currencies, if any, declared and paid by the trust (‘‘Currency Trust Shares’’) or (iii) represent commodity pool interests principally engaged, directly or indirectly, in holding and/or managing portfolios or baskets of securities, commodity futures contracts, options on commodity futures contracts, swaps, forward contracts and/or options on physical commodities and/or non-U.S. currency (‘‘Commodity Pool ETFs’’) or (iv) are issued by the SPDR® Gold Trust or the iShares COMEX Gold Trust or the iShares Silver Trust are eligible as underlying securities for options traded on BOX.7 This rule change proposes to expand the types of ETFs that may be approved for options trading on BOX to include the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust. Apart from allowing the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust to be underlying securities for options traded on BOX, as described above, the listing standards for ETFs will remain unchanged from those that apply under current BOX rules. ETFs on which options may be listed and traded must still be listed and traded on a national securities exchange and must satisfy the other listing standards set forth in Chapter IV, Section 3(i) of the BOX Rules. Specifically, in addition to satisfying the aforementioned listing requirements, ETFs must either (1) meet the criteria and guidelines set forth in paragraphs (a) and (b) of Chapter IV, Section 3 or (2) be available for creation or redemption each business day from or through the issuing trust, investment company, commodity pool or other entity in cash or in kind at a price related to net asset value, and the issuer must be obligated to issue ExchangeTraded Fund Shares in a specified aggregate number even if some or all of the investment assets and/or cash required to be deposited have not been received by the issuer, subject to the condition that the person obligated to deposit the investment assets has undertaken to deliver them as soon as possible and such undertaking is secured by the delivery and PO 00000 7 See Chapter IV, Section 3(i) of the BOX Rules. Frm 00099 Fmt 4703 Sfmt 4703 maintenance of collateral consisting of cash or cash equivalents satisfactory to the issuer of the Exchange-Traded Fund Shares, all as provided in the ExchangeTraded Fund Shares’ prospectus. The Exchange states that the current continued listing standards for options on ETFs will apply to options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust. Specifically, under Chapter IV, Section 4(h) of the BOX Rules, options on Exchange-Traded Fund Shares may be subject to the suspension of opening transactions as follows: (1) Following the initial twelvemonth period beginning upon the commencement of trading of the Exchange-Traded Fund Shares, there are fewer than 50 record and/or beneficial holders of the Exchange-Traded Fund Shares for 30 or more consecutive trading days; (2) the value of the underlying silver, gold, palladium or platinum, respectively, is no longer calculated or available; or (3) such other event occurs or condition exists that in the opinion of the Exchange makes further dealing in such options on BOX inadvisable. Additionally, the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust shall not be deemed to meet the requirements for continued approval, and BOX shall not open for trading any additional series of option contracts of the class covering the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust, respectively, if the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust ceases to be an ‘‘NMS stock’’ as provided for in Chapter IV, Section 4(b)(vi) of the BOX Rules or the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust is halted from trading on its primary market. The addition of the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust to Chapter IV, Section 3(i) of the BOX Rules will not have any effect on the rules pertaining to position and exercise limits 8 or margin.9 The Exchange represents that its surveillance procedures applicable to trading in options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust will be similar to those applicable to all other options on other ETFs currently traded on BOX. Also, the Exchange may obtain information from the New York Mercantile Exchange, Inc. 8 See Chapter III, Sections 7 and 9 of the BOX Rules. 9 See Chapter XIII of the BOX Rules. E:\FR\FM\13JYN1.SGM 13JYN1 Federal Register / Vol. 75, No. 133 / Tuesday, July 13, 2010 / Notices (‘‘NYMEX’’) (a member of the Intermarket Surveillance Group) related to any financial instrument that is based, in whole or in part, upon an interest in or performance of gold, silver, palladium and/or platinum. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,10 in general, and Section 6(b)(5) of the Act,11 in particular, in that it is designed 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 for a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the Exchange believes that amending the BOX Rules to accommodate the listing and trading of options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust will benefit investors by providing them with valuable risk management tools. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition 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 neither solicited nor received comments on the proposed rule change. jlentini on DSKJ8SOYB1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change: (1) Does not significantly affect the protection of investors or the public interest; (2) does not impose any significant burden on competition; and (3) by its terms does not become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 16:44 Jul 12, 2010 Jkt 220001 Section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(6) thereunder.13 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative for 30 days after the date of filing. However, Rule 19b– 4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange requests that the Commission waive the 30-day operative delay so that the Exchange can list and trade options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust, and the ETFS Platinum Trust immediately. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest to permit the Exchange to list and trade options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust, and the ETFS Platinum Trust without delay.14 The Commission notes the proposal is substantively identical to proposals that were recently approved by the Commission, and does not raise any new regulatory issues.15 For these reasons, the Commission designates the proposed rule change as operative upon filing. 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, U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has fulfilled this requirement. 14 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 See Securities Exchange Act Release No. 61483 (February 3, 2010), 75 FR 6773 (February 10, 2010) (Order Granting Approval of Proposed Rule Changes and Notice of Filings and Order Granting Accelerated Approval of a Proposed Rule Change Relating to Listing and Trading of the ETFS Gold Trust and the ETFS Silver Trust) (SR–CBOE–2010– 007; SR–ISE–2009–106; SR–NYSEAmex–2009–86; and SR–NYSEArca–2009–110). See also Securities Exchange Act Release Nos. 61892 (April 13, 2010), 75 FR 20649 (April 20, 2010) (SR–CBOE–2010– 015); 61983 (April 26, 2010), 75 FR 23314 (May 3, 2010) (SR–ISE–2010–19); and 62250 (June 9, 2010), 75 FR 33882 (June 15, 2010) (SR–NYSEArca–2010– 25) (SR–NYSEAmex–2010–37) (Orders Granting Approval of Proposed Rule Changes to Enable the Listing and Trading of Options on the ETFS Palladium Trust and the ETFS Platinum Trust on CBOE, ISE, NYSEArca and NYSEAmex, respectively). PO 00000 12 15 13 17 Frm 00100 Fmt 4703 Sfmt 4703 40009 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–BX–2010–045 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities Exchange Commission, 100 F Street, NE., Washington, DC 20549– 1090. All submissions should refer to File Number SR–BX–2010–045. 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,16 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 Web site viewing and printing 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 the 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 available publicly. All submissions should refer to File Number SR–BX– 16 The text of the proposed rule change is available on the Commission’s Web site at https:// www.sec.gov. E:\FR\FM\13JYN1.SGM 13JYN1 40010 Federal Register / Vol. 75, No. 133 / Tuesday, July 13, 2010 / Notices 2010–045 and should be submitted on or before August 3, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–16995 Filed 7–12–10; 8:45 am] BILLING CODE 8010–01–P 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62459; File No. SR– NYSEAmex–2010–64] Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fee Schedule With Respect to Firm Proprietary—Manual Tiered Pricing July 7, 2010. 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 June 25, 2010, NYSE Amex LLC (‘‘NYSE Amex’’ 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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. jlentini on DSKJ8SOYB1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Schedule of Fees and Charges for Exchange Services (the ‘‘Schedule’’) effective July 1, 2010. The text of the proposed rule change is available on NYSE Amex’s Web site at https:// www.nyse.com, on the Commission’s Web site at https://www.sec.gov, 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 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 Currently, the Exchange aggregates all of an ATP Holder’s volume at the trading permit level for purposes of the Firm Proprietary Manual tiers. Recently, certain ATP Holders have requested that the Firm Proprietary Manual tiered pricing be calculated at the initiating firm level. By this filing, the Exchange proposes to allow its ATP Holders to elect to have their Firm Proprietary Manual billing calculated at the initiating firm level. The Exchange’s default billing will continue to aggregate volume at the trading permit level, and ATP Holders must elect this new billing option. If elected, this option will allow Joint Back Office operations to passthrough the pricing associated with the tiers at NYSE Amex more effectively. The Exchange believes this proposed elective billing option is reasonable and equitable and applies uniformly to all ATP Holders. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Securities Exchange Act of 1934 (the ‘‘Act’’),3 in general, and Section 6(b)(4) of the Act,4 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. This proposed elective billing option is reasonable and equitable and applies uniformly to all ATP Holders. If elected, this option will allow Joint Back Office operations to pass-through the pricing associated with the tiers at NYSE Amex more effectively. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange 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. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 5 of the Act and subparagraph (f)(2) of Rule 19b–4 6 thereunder, because it establishes a due, fee, or other charge imposed by the NYSE Amex. 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–NYSEAmex–2010–64 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–NYSEAmex-2010–64. 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 17 17 3 15 1 15 VerDate Mar<15>2010 16:44 Jul 12, 2010 4 15 Jkt 220001 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(4). Frm 00101 Fmt 4703 5 15 6 17 Sfmt 4703 E:\FR\FM\13JYN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 13JYN1

Agencies

[Federal Register Volume 75, Number 133 (Tuesday, July 13, 2010)]
[Notices]
[Pages 40007-40010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-16995]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62464; File No. SR-BX-2010-045]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Enable 
the Listing and Trading on BOX of Options on the ETFS Gold Trust, the 
ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust

July 7, 2010.
    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 June 30, 2010, NASDAQ OMX BX, Inc. (the ``Exchange''), filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I and II below, which Items have been 
prepared by the self-regulatory organization. The Exchange filed the 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(6) 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).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ OMX BX, Inc. (the ``Exchange'') proposes to amend the Rules 
of the Boston Options Exchange Group, LLC (``BOX'') to enable the 
listing and trading on BOX of options on the ETFS Gold Trust, the ETFS 
Silver Trust, the ETFS Palladium Trust and the ETFS Platinum Trust. The 
text of the proposed rule change is available from the principal office 
of the Exchange, at the Commission's Public Reference Room and also on 
the Exchange's Internet Web site at https://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/.

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

[[Page 40008]]

of these statements may be examined at the places specified in Item IV 
below. The self-regulatory organization 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
    Recently, the U.S. Securities and Exchange Commission (``SEC'' or 
``Commission'') authorized the listing and trading on BOX of options on 
the SPDR Gold Trust \5\ and the iShares COMEX Gold Trust and the 
iShares Silver Trust.\6\ Now, the Exchange proposes for BOX to list and 
trade options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS 
Palladium Trust and the ETFS Platinum Trust.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 58136 (July 10, 
2008), 73 FR 40884 (July 16, 2008) (SR-BSE-2008-41) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Options on Shares of the SPDR Gold Trust).
    \6\ See Securities Exchange Act Release No. 59055 (December 4, 
2008), 73 FR 75148 (December 10, 2008) (SR-BSE-2008-51) (Notice of 
Filing and Order Granting Accelerated Approval of Proposed Rule 
Changes Relating to the Listing and Trading Options on Shares of the 
iShares COMEX Gold Trust and the iShares Silver Trust).
---------------------------------------------------------------------------

    Under current Chapter IV, Section 3(i) of the BOX Rules, only 
Exchange-Traded Fund Shares, or ETFs, that are traded on a national 
securities exchange and are defined as an ``NMS'' stock under Rule 600 
of Regulation NMS, and that (i) represent interests in registered 
investment companies (or series thereof) organized as open-end 
management investment companies, unit investment trusts or similar 
entities that hold portfolios of securities and/or financial 
instruments, including, but not limited to, stock index futures 
contracts, options on futures, options on securities and indices, 
equity caps, collars and floors, swap agreements, forward contracts, 
repurchase agreements and reverse repurchase agreements (the 
``Financial Instruments''), and money market instruments, including, 
but not limited to, U.S. government securities and repurchase 
agreements (the ``Money Market Instruments'') comprising or otherwise 
based on or representing investments in broad based indexes or 
portfolios of securities and/or Financial Instruments and Money Market 
Instruments (or that hold securities in one or more other registered 
investment companies that themselves hold such portfolios of securities 
and/or Financial Instruments and Money Market Instruments) or (ii) 
represent interests in a trust that holds a specified non-U.S. currency 
or currencies deposited with the trust or similar entity when 
aggregated in some specified minimum number may be surrendered to the 
trust by the beneficial owner to receive the specified non-U.S. 
currency or currencies and pays the beneficial owner interest and other 
distributions on the deposited non-U.S. currency or currencies, if any, 
declared and paid by the trust (``Currency Trust Shares'') or (iii) 
represent commodity pool interests principally engaged, directly or 
indirectly, in holding and/or managing portfolios or baskets of 
securities, commodity futures contracts, options on commodity futures 
contracts, swaps, forward contracts and/or options on physical 
commodities and/or non-U.S. currency (``Commodity Pool ETFs'') or (iv) 
are issued by the SPDR[reg] Gold Trust or the iShares COMEX Gold Trust 
or the iShares Silver Trust are eligible as underlying securities for 
options traded on BOX.\7\ This rule change proposes to expand the types 
of ETFs that may be approved for options trading on BOX to include the 
ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and 
the ETFS Platinum Trust.
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    \7\ See Chapter IV, Section 3(i) of the BOX Rules.
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    Apart from allowing the ETFS Gold Trust, the ETFS Silver Trust, the 
ETFS Palladium Trust and the ETFS Platinum Trust to be underlying 
securities for options traded on BOX, as described above, the listing 
standards for ETFs will remain unchanged from those that apply under 
current BOX rules. ETFs on which options may be listed and traded must 
still be listed and traded on a national securities exchange and must 
satisfy the other listing standards set forth in Chapter IV, Section 
3(i) of the BOX Rules.
    Specifically, in addition to satisfying the aforementioned listing 
requirements, ETFs must either (1) meet the criteria and guidelines set 
forth in paragraphs (a) and (b) of Chapter IV, Section 3 or (2) be 
available for creation or redemption each business day from or through 
the issuing trust, investment company, commodity pool or other entity 
in cash or in kind at a price related to net asset value, and the 
issuer must be obligated to issue Exchange-Traded Fund Shares in a 
specified aggregate number even if some or all of the investment assets 
and/or cash required to be deposited have not been received by the 
issuer, subject to the condition that the person obligated to deposit 
the investment assets has undertaken to deliver them as soon as 
possible and such undertaking is secured by the delivery and 
maintenance of collateral consisting of cash or cash equivalents 
satisfactory to the issuer of the Exchange-Traded Fund Shares, all as 
provided in the Exchange-Traded Fund Shares' prospectus.
    The Exchange states that the current continued listing standards 
for options on ETFs will apply to options on the ETFS Gold Trust, the 
ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum 
Trust. Specifically, under Chapter IV, Section 4(h) of the BOX Rules, 
options on Exchange-Traded Fund Shares may be subject to the suspension 
of opening transactions as follows: (1) Following the initial twelve-
month period beginning upon the commencement of trading of the 
Exchange-Traded Fund Shares, there are fewer than 50 record and/or 
beneficial holders of the Exchange-Traded Fund Shares for 30 or more 
consecutive trading days; (2) the value of the underlying silver, gold, 
palladium or platinum, respectively, is no longer calculated or 
available; or (3) such other event occurs or condition exists that in 
the opinion of the Exchange makes further dealing in such options on 
BOX inadvisable. Additionally, the ETFS Gold Trust, the ETFS Silver 
Trust, the ETFS Palladium Trust and the ETFS Platinum Trust shall not 
be deemed to meet the requirements for continued approval, and BOX 
shall not open for trading any additional series of option contracts of 
the class covering the ETFS Gold Trust, the ETFS Silver Trust, the ETFS 
Palladium Trust and the ETFS Platinum Trust, respectively, if the ETFS 
Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and the 
ETFS Platinum Trust ceases to be an ``NMS stock'' as provided for in 
Chapter IV, Section 4(b)(vi) of the BOX Rules or the ETFS Gold Trust, 
the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum 
Trust is halted from trading on its primary market. The addition of the 
ETFS Gold Trust, the ETFS Silver Trust, the ETFS Palladium Trust and 
the ETFS Platinum Trust to Chapter IV, Section 3(i) of the BOX Rules 
will not have any effect on the rules pertaining to position and 
exercise limits \8\ or margin.\9\
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    \8\ See Chapter III, Sections 7 and 9 of the BOX Rules.
    \9\ See Chapter XIII of the BOX Rules.
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    The Exchange represents that its surveillance procedures applicable 
to trading in options on the ETFS Gold Trust, the ETFS Silver Trust, 
the ETFS Palladium Trust and the ETFS Platinum Trust will be similar to 
those applicable to all other options on other ETFs currently traded on 
BOX. Also, the Exchange may obtain information from the New York 
Mercantile Exchange, Inc.

[[Page 40009]]

(``NYMEX'') (a member of the Intermarket Surveillance Group) related to 
any financial instrument that is based, in whole or in part, upon an 
interest in or performance of gold, silver, palladium and/or platinum.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\10\ in general, and Section 
6(b)(5) of the Act,\11\ in particular, in that it is designed 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 for a free and open market and a national market 
system and, in general, to protect investors and the public interest. 
In particular, the Exchange believes that amending the BOX Rules to 
accommodate the listing and trading of options on the ETFS Gold Trust, 
the ETFS Silver Trust, the ETFS Palladium Trust and the ETFS Platinum 
Trust will benefit investors by providing them with valuable risk 
management tools.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition 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 neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) 
thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written notice of its intent to file the proposed rule change, 
along with a brief description and text of the proposed rule change, 
at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has fulfilled this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange requests that the Commission waive 
the 30-day operative delay so that the Exchange can list and trade 
options on the ETFS Gold Trust, the ETFS Silver Trust, the ETFS 
Palladium Trust, and the ETFS Platinum Trust immediately. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest to 
permit the Exchange to list and trade options on the ETFS Gold Trust, 
the ETFS Silver Trust, the ETFS Palladium Trust, and the ETFS Platinum 
Trust without delay.\14\ The Commission notes the proposal is 
substantively identical to proposals that were recently approved by the 
Commission, and does not raise any new regulatory issues.\15\ For these 
reasons, the Commission designates the proposed rule change as 
operative upon filing.
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    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \15\ See Securities Exchange Act Release No. 61483 (February 3, 
2010), 75 FR 6773 (February 10, 2010) (Order Granting Approval of 
Proposed Rule Changes and Notice of Filings and Order Granting 
Accelerated Approval of a Proposed Rule Change Relating to Listing 
and Trading of the ETFS Gold Trust and the ETFS Silver Trust) (SR-
CBOE-2010-007; SR-ISE-2009-106; SR-NYSEAmex-2009-86; and SR-
NYSEArca-2009-110). See also Securities Exchange Act Release Nos. 
61892 (April 13, 2010), 75 FR 20649 (April 20, 2010) (SR-CBOE-2010-
015); 61983 (April 26, 2010), 75 FR 23314 (May 3, 2010) (SR-ISE-
2010-19); and 62250 (June 9, 2010), 75 FR 33882 (June 15, 2010) (SR-
NYSEArca-2010-25) (SR-NYSEAmex-2010-37) (Orders Granting Approval of 
Proposed Rule Changes to Enable the Listing and Trading of Options 
on the ETFS Palladium Trust and the ETFS Platinum Trust on CBOE, 
ISE, NYSEArca and NYSEAmex, respectively).
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    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:

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-BX-2010-045 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BX-2010-045. 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,\16\ 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 Web site 
viewing and printing 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 the 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 
available publicly. All submissions should refer to File Number SR-BX-

[[Page 40010]]

2010-045 and should be submitted on or before August 3, 2010.
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    \16\ The text of the proposed rule change is available on the 
Commission's Web site at https://www.sec.gov.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
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    \17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-16995 Filed 7-12-10; 8:45 am]
BILLING CODE 8010-01-P
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