Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to List and Trade Options on the Sprott Physical Gold Trust, 41247-41250 [2010-17194]
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Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Notices
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Proposed Collection; Comment
Request
James E. Rivera,
Associate Administrator for Disaster
Assistance.
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
[FR Doc. 2010–17315 Filed 7–14–10; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12040 and #12041]
Virginia Disaster Number VA–00028
AGENCY: U.S. Small Business
Administration.
ACTION:
Amendment 4.
SUMMARY: This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the Commonwealth of Virginia (FEMA–
1874–DR), dated 02/16/2010.
Incident: Severe Winter Storm and
Snowstorm.
Incident Period: 12/18/2009 through
12/20/2009.
Effective Date: 07/07/2010.
Physical Loan Application Deadline
Date: 04/19/2010.
Economic Injury (EIDL) Loan
Application Deadline Date: 11/16/2010.
Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the Commonwealth of
Virginia, dated 02/16/2010, is hereby
amended to include the following areas
as adversely affected by the disaster.
srobinson on DSKHWCL6B1PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Primary Counties: Buena Vista City.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2010–17262 Filed 7–14–10; 8:45 am]
BILLING CODE 8025–01–P
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SECURITIES AND EXCHANGE
COMMISSION
Extension:
Rule 6h–1; SEC File No. 270–497; OMB
Control No. 3235–0555.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 6h–1 (17 CFR
240.6h–1) under the Securities
Exchange Act of 1934, as amended
(‘‘Act’’) (15 U.S.C. 78a et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget for
extension and approval.
Section 6(h) of the Act (15 U.S.C.
78f(h)) requires national securities
exchanges and national securities
associations that trade security futures
products to establish listing standards
that, among other things, require that: (i)
Trading in such products not be readily
susceptible to price manipulation; and
(ii) the market on which the security
futures product trades has in place
procedures to coordinate trading halts
with the listing market for the security
or securities underlying the security
futures product. Rule 6h–1 implements
these statutory requirements and
requires that (1) the final settlement
price for each cash-settled security
futures product fairly reflects the
opening price of the underlying security
or securities, and (2) the exchanges and
associations trading security futures
products halt trading in any security
futures product for as long as trading in
the underlying security, or trading in
50% of the underlying securities, is
halted on the listing market.
It is estimated that approximately 18
respondents, consisting of 14 national
securities exchanges and 4 national
securities exchanges notice-registered
pursuant to Section 6(g) of the Act (15
U.S.C. 78f(g)), will incur an average
burden of 10 hours per year to comply
with this rule, for a total burden of 180
hours. At an average cost per hour of
approximately $316, the resultant total
cost of compliance for the respondents
is $56,880 per year (18 respondents × 10
hours/respondent × $316/hour =
$56,880).
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Written comments are invited on (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to: Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to: PRA_Mailbox@sec.gov.
Dated: July 8, 2010.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–17195 Filed 7–14–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62473; File No. SR–ISE–
2010–74]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change to List and Trade Options on
the Sprott Physical Gold Trust
July 8, 2010.
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 July 7,
2010, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 Exchange.
ISE filed the proposal 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
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
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Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Notices
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to enable the listing and trading on
the Exchange of options on the Sprott
Physical Gold Trust. 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
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
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Recently, the U.S. Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) authorized ISE to list
and trade options on the SPDR Gold
Trust,5 the iShares COMEX Gold Trust
and the iShares Silver Trust,6 the ETFS
Gold Trust and the ETFS Silver Trust,7
the ETFS Palladium Trust and the ETFS
Platinum Trust.8 Now, the Exchange
proposes to list and trade options on the
Sprott Physical Gold Trust.
Under current Rule 502(h), 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
5 See Securities Exchange Act Release No. 57894
(May 30, 2008), 73 FR 32061 (June 5, 2008) (SR–
ISE–2008–12).
6 See Securities Exchange Act Release No. 59055
(December 4, 2008), 73 FR 75148 (December 10,
2008) (SR–ISE–2008–58).
7 See Securities Exchange Act Release No. 61483
(February 3, 2010), 75 FR 6753 (February 10, 2010)
(SR–ISE–2009–106).
8 See Securities Exchange Act Release No. 61983
(April 26, 2010), 75 FR 23314 (May 3, 2010) (SR–
ISE–2010–19).
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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 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 (‘‘Funds’’)
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) represent interests in the SPDR®
Gold Trust, the iShares COMEX Gold
Trust, the iShares Silver Trust, the ETFS
Gold Trust, the ETFS Silver Trust, the
ETFS Palladium Trust or the ETFS
Platinum Trust or (v) represents an
interest in a registered investment
company (‘‘Investment Company’’)
organized as an open-end management
company or similar entity, that invests
in a portfolio of securities selected by
the Investment Company’s investment
adviser consistent with the Investment
Company’s investment objectives and
policies, which is issued in a specified
aggregate minimum number in return
for a deposit of a specified portfolio of
securities and/or a cash amount with a
value equal to the next determined net
asset value (‘‘NAV’’), and when
aggregated in the same specified
minimum number, may be redeemed at
a holder’s request, which holder will be
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paid a specified portfolio of securities
and/or cash with a value equal to the
next determined NAV (‘‘Managed Fund
Share’’) are eligible as underlying
securities for options traded on the
Exchange.9 This rule change proposes to
expand the types of ETFs that may be
approved for options trading on the
Exchange to include the Sprott Physical
Gold Trust.
Apart from allowing the Sprott
Physical Gold Trust to be an underlying
for options traded on the Exchange as
described above, the listing standards
for ETFs will remain unchanged from
those that apply under current Exchange
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 ISE Rule 502(h).
Specifically, in addition to satisfying
the aforementioned listing
requirements, ETFs must meet either (1)
the criteria and guidelines under ISE
Rules 502(a) and (b) or (2) they must 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, as provided in the respective
prospectus.
The Exchange states that the current
continued listing standards for options
on ETFs will apply to options on the
Sprott Physical Gold Trust. Specifically,
under ISE Rule 503(h), options on
Exchange-Traded Fund Shares may be
subject to the suspension of opening
transactions in any of the following
circumstances: (1) In the case of options
covering Exchange-Traded Fund Shares
approved pursuant to Rule 502(h)(A)(i),
in accordance with the terms of
subparagraphs (b)(1), (2), (3) and (4) of
Rule 503; (2) in the case of options
covering Exchange-Traded Fund Shares
approved pursuant to Rule 502(h)(A)(ii),
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
9 See
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ISE Rule 502(h).
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Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Notices
holders of the Exchange-Traded Fund
Shares for 30 or more consecutive
trading days; (3) the value of the
underlying gold is no longer calculated
or available; or (4) such other event
occurs or condition exists that in the
opinion of the Exchange makes further
dealing on the Exchange inadvisable.
Additionally, the Sprott Physical Gold
Trust shall not be deemed to meet the
requirements for continued approval,
and the Exchange shall not open for
trading any additional series of option
contracts of the class covering the Sprott
Physical Gold Trust, if the Sprott
Physical Gold Trust ceases to be an
‘‘NMS stock’’ as provided for in ISE Rule
503(b)(5) or the Sprott Physical Gold
Trust is halted from trading on its
primary market.
The addition of the Sprott Physical
Gold Trust to ISE Rule 502(h) will not
have any effect on the rules pertaining
to position and exercise limits 10 or
margin.11
The Exchange represents that its
surveillance procedures applicable to
trading in options on the Sprott Physical
Gold Trust will be similar to those
applicable to all other options on other
ETFs currently traded on the Exchange.
Also, the Exchange may obtain
information from the New York
Mercantile Exchange, Inc. (‘‘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.
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2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 12 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
objectives of Section 6(b)(5) 13 in
particular, in that it 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 facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system in a
manner consistent with the protection
of investors and the public interest. In
particular, the Exchange believes that
amending its rules to accommodate the
listing and trading of options on the
Sprott Physical Gold Trust will benefit
10 See
ISE Rules 412 and 414.
ISE Rule 1202.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
11 See
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investors by providing them with
valuable risk management tools.
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
Because the foregoing proposed rule
change does not significantly affect the
protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not 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) 14 of the Act and Rule 19b–
4(f)(6) 15 thereunder. The Exchange
provided 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 the proposed
rule change.
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 Sprott Physical Gold 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 Sprott Physical Gold
Trust without delay.16 The Commission
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
16 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).
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14 15
15 17
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41249
notes the proposal is substantively
identical to a proposal that was recently
approved by the Commission, and does
not raise any new regulatory issues.17
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,
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–2010–74 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–ISE–2010–74. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
17 See Securities Exchange Act Release No. 62463
(July 7, 2010) (SR–CBOE–2010–043).
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Federal Register / Vol. 75, No. 135 / Thursday, July 15, 2010 / Notices
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–ISE–
2010–74 and should be submitted on or
before August 5, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–17194 Filed 7–14–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62472; File No. SR–Phlx–
2010–94]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to
the Fees and Rebates for Adding and
Removing Liquidity
July 8, 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 29,
2010, NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
fees and rebates for adding and
removing liquidity for options overlying
various select symbols.
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
for transactions settling on or after July
1, 2010.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqtrader.com/
micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
The Exchange proposes to amend its
current fees and rebates for adding and
removing liquidity by implementing a
fee for adding liquidity. Specifically, the
Exchange proposes to assess a $0.05 per
contract fee for Firms and BrokerDealers who add liquidity in select
symbols.3 The Exchange is proposing
these fees in order to support increased
bandwidth usage.
The Exchange currently assesses a
per-contract transaction charge in
various select Symbols on six different
categories of market participants that
submit orders and/or quotes that
remove, or ‘‘take,’’ liquidity from the
Exchange: (i) Specialists,4 Registered
Options Traders (‘‘ROTs’’),5 Streaming
Quote Traders (‘‘SQTs’’) 6 and Remote
Streaming Quote Traders (‘‘RSQTs’’); 7
(ii) customers; 8 (iii) specialists, SQTs
and RSQTs that receive Directed Orders
(‘‘Directed Participants’’ 9 or ‘‘Directed
Specialists, RSQTs, or SQTs’’ 10); (iv)
Firms; (v) broker-dealers; and (vi)
Professionals.11 The current percontract transaction charge depends on
the category of market participant
submitting an order or quote to the
Exchange that removes liquidity.
The per-contract transaction charges
that are currently assessed on
participants who submit proprietary
quotes and/or orders that remove
liquidity in the applicable Symbols are,
by category:
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.
1. Purpose
Category
Charge
Customer ........................................................................................................................................................................
Directed Participants .......................................................................................................................................................
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The fees and rebates for adding and removing
liquidity are applicable to executions in options
overlying AA, AAPL, ABK, ABX, AIG, ALL, AMD,
AMR, AMZN, ARIA, AXP, BAC, BRCD, C, CAT,
CIEN, CIGX, CSCO, DELL, DIA, DNDN, DRYS,
EBAY, EK, F, FAS, FAZ, GDX, GE, GLD, GLW, GS,
HAL, IBM, INTC, IWM, IYR, JPM, LVS, MGM,
MOT, MSFT, MU, NEM, NOK, NVDA, ONNN,
ORCL, PALM, PFE, POT, QCOM, QID, QQQQ, RIG,
RIMM, RMBS, SBUX, SDS, SIRI, SKF, SLV, SMH,
SNDK, SPY, T, TBT, TZA, UAUA, UNG, USO,
UYG, V, VALE, VZ, WYNN, X, XHB, XLF, XRX and
YHOO (‘‘Symbols’’).
4 A Specialist is an Exchange member who is
registered as an options specialist pursuant to Rule
1020(a).
5 A Registered Option Trader is defined in
Exchange Rule 1014(b) as a regular member or a
foreign currency options participant of the
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Exchange located on the trading floor who has
received permission from the Exchange to trade in
options for his own account. A ROT includes a
SQT, a RSQT and a Non-SQT, which by definition
is neither a SQT or a RSQT. See Exchange Rule
1014 (b)(i) and (ii).
6 An SQT is an Exchange Registered Options
Trader (‘‘ROT’’) who has received permission from
the Exchange to generate and submit option
quotations electronically through an electronic
interface with AUTOM via an Exchange approved
proprietary electronic quoting device in eligible
options to which such SQT is assigned. See
Exchange Rule 1014(b)(ii)(A).
7 An RSQT is an ROT that is a member or member
organization with no physical trading floor
presence who has received permission from the
Exchange to generate and submit option quotations
electronically through AUTOM in eligible options
to which such RSQT has been assigned. An RSQT
may only submit such quotations electronically
from off the floor of the Exchange. See Exchange
Rule 1014(b)(ii)(B).
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
$0.25 per contract.
$0.30 per contract.
8 This applies to all customer orders, directed and
non-directed.
9 For purposes of the fees and rebates related to
adding and removing liquidity, A Directed
Participant is a Specialist, SQT, or RSQT that
executes a customer order that is directed to them
by an Order Flow Provider and is executed
electronically on PHLX XL II.
10 See Exchange Rule 1080(l), ‘‘* * * The term
‘Directed Specialist, RSQT, or SQT’ means a
specialist, RSQT, or SQT that receives a Directed
Order.’’ A Directed Participant has a higher quoting
requirement as compared with a specialist, SQT or
RSQT who is not acting as a Directed Participant.
See Exchange Rule 1014.
11 The Exchange defines a ‘‘professional’’ as any
person or entity that (i) is not a broker or dealer in
securities, and (ii) places more than 390 orders in
listed options per day on average during a calendar
month for its own beneficial account(s) (hereinafter
‘‘Professional’’).
E:\FR\FM\15JYN1.SGM
15JYN1
]]>Agencies
[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Notices]
[Pages 41247-41250]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17194]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62473; File No. SR-ISE-2010-74]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change to List and Trade Options on the Sprott Physical Gold Trust
July 8, 2010.
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 July 7, 2010, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') 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 Exchange.
ISE filed the proposal 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
[[Page 41248]]
comments on the proposed rule change from interested persons.
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\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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to enable the listing and
trading on the Exchange of options on the Sprott Physical Gold Trust.
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 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 ISE to list and trade options on the SPDR
Gold Trust,\5\ the iShares COMEX Gold Trust and the iShares Silver
Trust,\6\ the ETFS Gold Trust and the ETFS Silver Trust,\7\ the ETFS
Palladium Trust and the ETFS Platinum Trust.\8\ Now, the Exchange
proposes to list and trade options on the Sprott Physical Gold Trust.
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\5\ See Securities Exchange Act Release No. 57894 (May 30,
2008), 73 FR 32061 (June 5, 2008) (SR-ISE-2008-12).
\6\ See Securities Exchange Act Release No. 59055 (December 4,
2008), 73 FR 75148 (December 10, 2008) (SR-ISE-2008-58).
\7\ See Securities Exchange Act Release No. 61483 (February 3,
2010), 75 FR 6753 (February 10, 2010) (SR-ISE-2009-106).
\8\ See Securities Exchange Act Release No. 61983 (April 26,
2010), 75 FR 23314 (May 3, 2010) (SR-ISE-2010-19).
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Under current Rule 502(h), 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 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 (``Funds'') 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) represent interests in the
SPDR[supreg] Gold Trust, the iShares COMEX Gold Trust, the iShares
Silver Trust, the ETFS Gold Trust, the ETFS Silver Trust, the ETFS
Palladium Trust or the ETFS Platinum Trust or (v) represents an
interest in a registered investment company (``Investment Company'')
organized as an open-end management company or similar entity, that
invests in a portfolio of securities selected by the Investment
Company's investment adviser consistent with the Investment Company's
investment objectives and policies, which is issued in a specified
aggregate minimum number in return for a deposit of a specified
portfolio of securities and/or a cash amount with a value equal to the
next determined net asset value (``NAV''), and when aggregated in the
same specified minimum number, may be redeemed at a holder's request,
which holder will be paid a specified portfolio of securities and/or
cash with a value equal to the next determined NAV (``Managed Fund
Share'') are eligible as underlying securities for options traded on
the Exchange.\9\ This rule change proposes to expand the types of ETFs
that may be approved for options trading on the Exchange to include the
Sprott Physical Gold Trust.
---------------------------------------------------------------------------
\9\ See ISE Rule 502(h).
---------------------------------------------------------------------------
Apart from allowing the Sprott Physical Gold Trust to be an
underlying for options traded on the Exchange as described above, the
listing standards for ETFs will remain unchanged from those that apply
under current Exchange 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 ISE
Rule 502(h).
Specifically, in addition to satisfying the aforementioned listing
requirements, ETFs must meet either (1) the criteria and guidelines
under ISE Rules 502(a) and (b) or (2) they must 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, as
provided in the respective prospectus.
The Exchange states that the current continued listing standards
for options on ETFs will apply to options on the Sprott Physical Gold
Trust. Specifically, under ISE Rule 503(h), options on Exchange-Traded
Fund Shares may be subject to the suspension of opening transactions in
any of the following circumstances: (1) In the case of options covering
Exchange-Traded Fund Shares approved pursuant to Rule 502(h)(A)(i), in
accordance with the terms of subparagraphs (b)(1), (2), (3) and (4) of
Rule 503; (2) in the case of options covering Exchange-Traded Fund
Shares approved pursuant to Rule 502(h)(A)(ii), 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
[[Page 41249]]
holders of the Exchange-Traded Fund Shares for 30 or more consecutive
trading days; (3) the value of the underlying gold is no longer
calculated or available; or (4) such other event occurs or condition
exists that in the opinion of the Exchange makes further dealing on the
Exchange inadvisable.
Additionally, the Sprott Physical Gold Trust shall not be deemed to
meet the requirements for continued approval, and the Exchange shall
not open for trading any additional series of option contracts of the
class covering the Sprott Physical Gold Trust, if the Sprott Physical
Gold Trust ceases to be an ``NMS stock'' as provided for in ISE Rule
503(b)(5) or the Sprott Physical Gold Trust is halted from trading on
its primary market.
The addition of the Sprott Physical Gold Trust to ISE Rule 502(h)
will not have any effect on the rules pertaining to position and
exercise limits \10\ or margin.\11\
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\10\ See ISE Rules 412 and 414.
\11\ See ISE Rule 1202.
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The Exchange represents that its surveillance procedures applicable
to trading in options on the Sprott Physical Gold Trust will be similar
to those applicable to all other options on other ETFs currently traded
on the Exchange. Also, the Exchange may obtain information from the New
York Mercantile Exchange, Inc. (``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.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \12\ of
the Securities Exchange Act of 1934 (the ``Act''), in general, and
furthers the objectives of Section 6(b)(5) \13\ in particular, in that
it 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 facilitating
transactions in securities, and to remove impediments to and perfect
the mechanisms of a free and open market and a national market system
in a manner consistent with the protection of investors and the public
interest. In particular, the Exchange believes that amending its rules
to accommodate the listing and trading of options on the Sprott
Physical Gold Trust will benefit investors by providing them with
valuable risk management tools.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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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
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not 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) \14\ of the Act and Rule 19b-
4(f)(6) \15\ thereunder. The Exchange provided 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 the proposed rule
change.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 Sprott Physical Gold 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 Sprott Physical Gold Trust without
delay.\16\ The Commission notes the proposal is substantively identical
to a proposal that was recently approved by the Commission, and does
not raise any new regulatory issues.\17\ For these reasons, the
Commission designates the proposed rule change as operative upon
filing.
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\16\ 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).
\17\ See Securities Exchange Act Release No. 62463 (July 7,
2010) (SR-CBOE-2010-043).
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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-ISE-2010-74 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-ISE-2010-74. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
[[Page 41250]]
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-ISE-2010-74 and should be submitted on or before August
5, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17194 Filed 7-14-10; 8:45 am]
BILLING CODE 8010-01-P
