2156 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 

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

2 17 CFR 240.19b–4. 

clients with information about how 

their proxies were voted. 

Rule 206(4)–6 contains ‘‘collection of 

information’’ requirements within the 

meaning of the Paperwork Reduction 

Act. The respondents are investment 

advisers registered with the Commission 

that vote proxies with respect to clients’ 

securities. Advisory clients of these 

investment advisers use the information 

required by the rule to assess 

investment advisers’ proxy voting 

policies and procedures and to monitor 

the advisers’ performance of their proxy 

voting activities. The information also is 

used by the Commission staff in its 

examination and oversight program. 

Without the information collected under 

the rules, advisory clients would not 

have information they need to assess the 

adviser’s services and monitor the 

adviser’s handling of their accounts, and 

the Commission would be less efficient 

and effective in its programs. 

The estimated number of investment 

advisers subject to the collection of 

information requirements under the rule 

is 10,207. It is estimated that each of 

these advisers is required to spend on 

average 10 hours annually documenting 

its proxy voting procedures under the 

requirements of the rule, for a total 

burden of 102,070 hours. We further 

estimate that on average, approximately 

121 clients of each adviser would 

request copies of the underlying policies 

and procedures. We estimate that it 

would take these advisers 0.1 hours per 

client to deliver copies of the policies 

and procedures, for a total burden of 

123,505 hours. Accordingly, we 

estimate that rule 206(4)–6 results in an 

annual aggregate burden of collection 

for SEC-registered investment advisers 

of a total of 225,575 hours. 

Written comments are invited on: 

(a) Whether the collections of 

information are necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information has practical utility; (b) the 

accuracy of the Commission’s estimate 

of the burdens of the collections of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burdens of the collections 

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 Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

VA 22312; or send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: January 5, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–448 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 18f–1 and Form N–18f–1; SEC 

File No. 270–187; OMB Control No. 

3235–0211. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 350l–3520), the Securities 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 18f–1 (17 CFR 270.18f–1) 

enables a registered open-end 

management investment company 

(‘‘fund’’) that may redeem its securities 

in-kind, by making a one-time election, 

to commit to make cash redemptions 

pursuant to certain requirements 

without violating section 18(f) of the 

Investment Company Act of 1940 (15 

U.S.C. 80a–18(f)). A fund relying on the 

rule must file Form N–18F–1 (17 CFR 

274.51) to notify the Commission of this 

election. The Commission staff 

estimates that approximately 52 funds 

file Form N–18F–1 annually, and that 

each response takes approximately one 

hour. Based on these estimates, the total 

annual burden hours associated with 

the rule is estimated to be 52 hours. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. 

Written comments are invited on: (a) 

Whether the collection of information is 

necessary for the proper performance of 

the functions of the Commission, 

including whether the information has 

practical utility; (b) the accuracy of the 

Commission’s estimate of the burden of 

the collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information 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 Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, C/O Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

VA 22312; or send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: January 5, 2011. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–447 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63650; File No. SR– 

NASDAQ–2011–001] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by The 

NASDAQ Stock Market, LLC to 

Establish a $5 Strike Price Program 

January 6, 2011. 

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 January 

3, 2011, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

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

the proposed rule change as described 

in Items I and II 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The NASDAQ Stock Market LLC 

proposes to amend Chapter IV, 

Securities Traded on NOM, Section 6, 

Series of Open Contracts Open for 

Trading, to allow the Exchange to list 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 2157 

3Chapter IV, Section 6(d) also permits strike price 

intervals of $5 or greater where the strike price is 

greater than $25.00; and $2.50 or greater where the 

strike price is $25.00 or less. 

4The prices listed in this example are 

assumptions and not based on actual prices. The 

assumptions are made for illustrative purposes only 

using the stock price as a hypothetical. 

5The prices listed in this example are 

assumptions and not based on actual prices. The 

assumptions are made for illustrative purposes only 

using the stock price as a hypothetical. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

and trade series in intervals of $5 or 

greater where the strike price is more 

than $200 in up to five option classes on 

individual stocks. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.cchwallstreet.com, at the 

principal office of the Exchange, on the 

Commission’s Web site at http:// 

www.sec.gov, 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. 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify Chapter IV, Section 

6(d) to 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 option classes on 

individual stocks (‘‘$5 Strike Price 

Program’’) to provide investors and 

traders additional opportunities and 

strategies to hedge high priced 

securities. 

Currently, Chapter IV, Section 6(d)(iii) 

permits strike price intervals of $10 or 

greater where the strike price is greater 

than $200.3 The Exchange is proposing 

to add the proposed $5 Strike Price 

Program as an exception to the $10 or 

greater program language in Chapter IV, 

Section 6. The proposal would allow the 

Exchange to list series in intervals of $5 

or greater where the strike price is more 

than $200 in up to five option classes on 

individual stocks. The Exchange 

specifically proposes to create a new 

section (d)(v) to Chapter IV, Section 6 

which would state, ‘‘Nasdaq may list 

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.’’ 

The Exchange believes the $5 Strike 

Price Program would offer investors a 

greater selection of strike prices at a 

lower cost. For example, if an investor 

wanted to purchase an option with an 

expiration of approximately one month, 

a $5 strike interval could offer a wider 

choice of strike prices, which may result 

in reduced outlays in order to purchase 

the option. By way of illustration, using 

Google, Inc. (‘‘GOOG’’) as an example, if 

GOOG would trade at $610 4 with 

approximately one month remaining 

until expiration, the front month (one 

month remaining) at-the-money call 

option (the 610 strike) would trade at 

approximately $17.50 and the next 

highest available strike (the 620 strike) 

would trade at approximately $13.00. 

By offering a 615 strike an investor 

would be able to trade a GOOG front 

month call option at approximately 

$15.25, thus providing an additional 

choice at a different price point. 

Similarly, if an investor wanted to 

hedge exposure to an underlying stock 

position by selling call options, the 

investor may choose an option term 

with two months remaining until 

expiration. An additional $5 strike 

interval could offer additional and 

varying yields to the investor. For 

example if Apple, Inc. (‘‘AAPL’’) would 

trade at $310 5 with approximately two 

months remaining until expiration, the 

second month (two months remaining) 

at-the-money call option (the 310 strike) 

would trade at approximately $14.50 

and the next highest available strike (the 

320) strike would trade at $9.90. The 

310 strike would yield a return of 4.67% 

and the 320 strike would yield a return 

of 3.20%. If the 315 strike were 

available, that series would be priced at 

approximately $12.20 (a yield of 3.93%) 

and would minimize the risk of having 

the underlying stock called away at 

expiration. 

With regard to the impact of this 

proposal on system capacity, the 

Exchange has analyzed its capacity and 

represents that it and the Options Price 

Reporting Authority have the necessary 

systems capacity to handle the potential 

additional traffic associated with the 

listing and trading of classes on 

individual stocks $5 Strike Price 

Program. 

The proposed $5 Strike Price Program 

would provide investors increased 

opportunities to improve returns and 

manage risk in the trading of equity 

options that overlie high priced stocks. 

In addition, the proposed $5 Strike Price 

Program would allow investors to 

establish equity options positions that 

are better tailored to meet their 

investment, trading and risk 

management requirements. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange believes the $5 Strike Price 

Program proposal would provide the 

investing public and other market 

participants increased opportunities 

because a $5 series in high priced stocks 

would provide market participants 

additional opportunities to hedge high 

priced securities. This would allow 

investors to better manage their risk 

exposure. Moreover, the Exchange 

believes the proposed $5 Strike Price 

Program would benefit investors by 

giving them more flexibility to closely 

tailor their investment decisions in a 

greater number of securities. 

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 

No written comments were solicited 

or received. 

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 

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2158 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 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. 

10See Securities Exchange Act Release No. 63654 

(January 6, 2011) (SR–Phlx–2010–158) (order 

approving establishment of a $5 Strike Price 

Program). 

11For 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). 

12 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). 

5 Interpretation and Policy .01(d) permits strike 

intervals of $2.50 or greater where the strike price 

is $25 or less and Interpretation and Policy .01(c) 

19(b)(3)(A) of the Act 8 and Rule 19b– 

4(f)(6) thereunder.9

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 proposal is substantially 

similar to that of another exchange that 

has been approved by the 

Commission.10 Therefore, the 

Commission designates the proposal 

operative upon filing.11

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–NASDAQ–2011–001 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– NASDAQ–2011–001. 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 SRNASDAQ–2011–001 and should be 

submitted on or before February 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–438 Filed 1–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63651; File No. SR–CBOE– 

2011–002] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Establish a $5 Strike 

Price Program 

January 6, 2011. 

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 January 

3, 2011, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

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

Rule 19b–4(f)(6) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to amend 

Interpretation and Policy .01 to Rule 5.5 

to allow CBOE to list and trade series in 

intervals of $5 or greater where the 

strike price is more than $200 in up to 

five option classes on individual stocks. 

The text of the rule proposal is available 

on the Exchange’s Web site (http:// 

www.cboe.org/legal), 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 

self-regulatory organization included 

statements concerning the purpose of 

and basis for the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to modify Interpretation and 

Policy .01 to Rule 5.5 to 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 option classes on individual stocks 

(‘‘$5 Strike Price Program’’) to provide 

investors and traders with additional 

opportunities and strategies to hedge 

high priced securities. 

Currently, Interpretation and Policy 

.01(e) to Rule 5.5 permits strike price 

intervals of $10 or greater where the 

strike price is greater than $200.5 The 

mstockstill on DSKH9S0YB1PROD with NOTICES