2160 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 

15 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5See SR–CBOE–2011–002. 

6See Rules 5.5(d)(1) and 24.9(a)(2)(A)(i), which 

permit the Exchange to select five option classes to 

participate in the Short Term Option Series 

Program and to also list Short Term Option Series 

on any option classes that are selected by other 

securities exchanges that employ a similar program 

under their rules. See also Rules 5.5(e)(1) and 

24.9(a)(2)(B)(i), which permit the Exchange to select 

five option classes to participate in the Quarterly 

Option Series Program and to also list Quarterly 

Option Series on any option classes that are 

selected by other securities exchanges that employ 

a similar program under their rules. Reciprocity 

provisions also exist for the $2.50 Strike Program, 

the $1 Strike Program and the $0.50 Strike Program. 

See Rules 5.5.01(a), 5.5.05(a) and 5.5.01(b). 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2011–002 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–CBOE–2011–002. 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 (http://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 

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–CBOE– 

2011–002 and should be submitted on 

or before February 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–439 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63656; File No. SR–CBOE– 

2011–003] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Clarify Reciprocal 

Listing Respecting a $5 Strike Program 

for Stock Options 

January 6, 2011. 

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 January 4, 

2011, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to clarify that the 

Exchange may list $5 strike prices on 

any other option classes designated by 

other securities exchanges that employ 

a $5 Strike Program. The text of the rule 

proposal is available on the Exchange’s 

Web site (http://www.cboe.org/legal), at 

the Exchange’s Office of the Secretary, 

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 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of 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 Exchange proposed to 

adopt a $5 Strike Program (by modifying 

Interpretation and Policy .01 to Rule 

5.5), which will allow the Exchange to 

list and trade series in intervals of $5 or 

greater where the strike price is more 

than $200 in up to five (5) option classes 

on individual stocks (‘‘$5 Strike 

Program’’).5 The purpose of this 

proposed rule change is to amend the 

text of Rule 5.5.01 to clarify that the 

Exchange may list $5 strike prices on 

any other option classes designated by 

other securities exchanges that employ 

a $5 Strike Program. 

The Exchange has several strike 

setting programs that permit the 

Exchange to choose a fixed number of 

classes to participate in the programs. 

For each of these programs, the 

Exchange’s rules also expressly set forth 

reciprocity provisions.6 In other words, 

the Exchange is permitted to list series 

for classes that are selected by other 

securities exchanges that employ similar 

programs under their respective rules. 

While the recent proposal to establish 

the $5 Strike Program did not 

specifically address a reciprocity 

provision, the Exchange’s existing strike 

setting programs demonstrate the intent 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 2161 

7 15 U.S.C. 78s(b)(1). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 satisfied this requirement. 

12See Rule 5.5, Interpretations and Policies 

.01(a)(1) ($1 Strike Program), .01(b) ($0.50 Strike 

Program), and .05(a) ($2.50 Strike Program). 

13See, e.g., Securities Exchange Act Release No. 

60694 (September 18, 2009); 74 FR 49048 

(September 25, 2009) (SR–Phlx-2009–65) 

(approving NASDAQ OMX PHLX’s $0.50 Strike 

Program, with reciprocity provision). 

14For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

of a reciprocity provision and the need 

for it to implement the $5 Strike 

Program. Clarifying that reciprocity is 

permitted is pro-competitive and will 

eliminate confusion. For example, 

CBOE will be able to list all series in 

option classes chosen by other 

exchanges and investors will be able to 

access these series across all exchanges 

that employ a $5 Strike Program. CBOE 

believes that this is consistent with the 

goals of the National Market System and 

the concepts of price improvement and 

best execution. Also, because all of the 

existing strike price programs that have 

been adopted by the various exchanges 

include reciprocity provisions, the 

Exchange believes that the current 

proposal will eliminate confusion and 

prevent listing errors amongst the 

exchanges. 

It is expected that other options 

exchanges that have also proposed to 

establish a $5 Strike Program will 

submit similar clarifying proposals. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 7

and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.8

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 9 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

codifying a reciprocity provision to the 

$5 Strike Price Program eliminate 

investor confusion and promote 

competition. While the reciprocity 

provision will generate additional quote 

traffic, the Exchange does not believe 

that this increased traffic will become 

unmanageable since the proposal is 

limited to a fixed number of classes per 

exchange. Further, the Exchange does 

not believe that the proposal will result 

in a material proliferation of additional 

series because it is limited to a fixed 

number of classes per exchange and the 

Exchange does not believe that the 

additional price points will result in 

fractured liquidity. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

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 

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) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposed reciprocity 

provision is similar to reciprocity 

provisions in place for other option 

strike price programs,12 which have 

been previously approved by the 

Commission.13 Therefore, the 

Commission designates the proposal 

operative upon filing.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2011–003 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–CBOE–2011–003. 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 (http://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 

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–CBOE– 

2011–003 and should be submitted on 

or before February 2, 2011. 

mstockstill on DSKH9S0YB1PROD with NOTICES

2162 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 

15 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(i). 

4 17 CFR 240.19b–4(f)(1). 

5 15 U.S.C. 78o–4(b)(2)(A). 

6See Release No. 34–63310 (November 12, 2010); 

75 FR 70760 (November 18, 2010). 

7 15 U.S.C. 78s(b)(3)(A)(i). 

8 17 CFR 240.19b–4(f)(1). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–443 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63645; File No. SR–MSRB– 

2010–18] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Revisions to the 

Selection Specifications for the 

Municipal Securities Representative 

Qualification Examination (Series 52) 

Program 

January 5, 2011. 

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 December 

23, 2010, the Municipal Securities 

Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by the 

MSRB. The MSRB has designated the 

proposed rule change as constituting a 

stated policy, practice, or interpretation 

with respect to the meaning, 

administration, or enforcement of an 

existing rule of the self-regulatory 

organization pursuant to Section 

19(b)(3)(A)(i) 3 of the Act and Rule 19b– 

4(f)(1) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. The MSRB proposes to 

implement the revised Series 52 

examination program on January 3, 

2011. 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 

The MSRB is filing with the 

Commission revisions to the selection 

specifications for the Municipal 

Securities Representative Qualification 

Examination (Series 52) program. 

The text of the proposed rule change 

is available on the MSRB’s Web site at 

http://www.msrb.org/Rules-andInterpretations/SEC–Filings/2010– 

Filings.aspx, at the MSRB’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 

MSRB 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 MSRB 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 

Section 15B(b)(2)(A) of the Act 5

authorizes the MSRB to prescribe 

standards of training, experience, 

competence, and such other 

qualifications as the Board finds 

necessary or appropriate in the public 

interest or for the protection of investors 

and municipal entities or obligated 

persons. On November 10, 2010, the 

MSRB filed with the Commission a 

proposed rule change (File No. SR– 

MSRB–2010–12) consisting of revisions 

to the study outline and selection 

specifications for the Municipal 

Securities Representative Qualification 

(Series 52) program. On November 12, 

2010, the Commission published a 

notice of filing and immediate 

effectiveness for the revisions to the 

study outline and selection 

specifications for the Series 52 

program.6 The MSRB recently became 

aware that the selection specifications 

filed with the Commission on November 

10, 2010, contained a technical error 

and the MSRB is filing this proposed 

rule change to correct that error. The 

selection specifications indicate how 

many questions are asked per 

examination on every topic. 

2. Statutory Basis 

The MSRB believes that the proposed 

revisions to the selection specifications 

are consistent with the provisions of 

Section 15B(b)(2)(A) of the Act, which 

authorizes the MSRB to prescribe 

standards of training, experience, 

competence, and such other 

qualifications as the Board finds 

necessary or appropriate in the public 

interest or for the protection of investors 

and municipal entities or obligated 

persons. Section 15B(b)(2)(A) of the Act 

also provides that the Board may 

appropriately classify municipal 

securities brokers, municipal securities 

dealers, and municipal advisors, and 

persons associated with municipal 

securities brokers, municipal securities 

dealers, and municipal advisors and 

require persons in any such class to pass 

tests prescribed by the Board. 

The MSRB believes that the proposed 

revisions to the selection specifications 

are consistent with the provisions of 

Section 15B(b)(2)(A) of the Act in that 

the revisions will ensure that certain 

key concepts or rules are tested on each 

administration of the examination in 

order to test the competency of 

individuals seeking to qualify as 

municipal securities representatives 

with respect to their knowledge about 

MSRB rules and the municipal 

securities market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The MSRB 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, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(i) of the Act 7 and Rule 19b– 

–4(f)(1) 8 thereunder, in that the 

proposed rule change constitutes a 

stated policy, practice, or interpretation 

with respect to the meaning, 

administration, or enforcement of an 

existing rule of the self-regulatory 

organization. The MSRB proposes to 

implement the revised Series 52 

examination program on January 3, 

2011. At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

mstockstill on DSKH9S0YB1PROD with NOTICES