18816 Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 7 U.S.C. 7a–2(c). 

3See Securities Exchange Act Release No. 62582 

(July 28, 2010), 75 FR 47039 (August 4, 2010) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change by OneChicago, Amending 

Rule 419(a), Regulatory Halts) (SR–OC–2010–03). 

4See Securities Exchange Act Release No. 60143 

(June 19, 2009), 74 FR 30345 (June 25, 2009) (Notice 

of Filing and Immediate Effectiveness of a Proposed 

Rule Change Widening the Bid/Ask Spread for 

Quoting Market-Makers) (SR–OC–2009–02). 

5See Securities Exchange Act Release No. 59744 

(April 9, 2009), 74 FR 17706 (April 16, 2009) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change Eliminating the $3 Market 

Price Maintenance Standard) (SR–OC–2009–01). 

6See Securities Exchange Act Release No. 54454 

(September 15, 2006), 71 FR 5539 (September 22, 

2006) (Notice of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to Listing 

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 website 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–Phlx– 

2011–40 and should be submitted on or 

before April 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7979 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64152; File No. SR–CFE– 

2011–001] 

Self-Regulatory Organizations; CBOE 

Futures Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

Certain Rules Relating to Listing and 

Trading Security Futures 

March 30, 2011. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

March 18, 2011, CBOE Futures 

Exchange, LLC. (‘‘CFE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

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

the proposed rule change described in 

Items I, II, and III below, which Items 

have been prepared by CFE. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. CFE 

also filed this proposed rule change 

concurrently with the Commodity 

Futures Trading Commission (‘‘CFTC’’). 

CFE filed a written certification with the 

CFTC under Section 5c(c) of the 

Commodity Exchange Act (‘‘CEA’’) 2 on 

March 18, 2011. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

The Exchange proposes to amend 

certain rules relating to the listing and 

trading of security futures on the 

Exchange. The changes are being 

proposed to conform certain CFE rules 

to current parallel rules of OneChicago, 

LLC (‘‘OCX’’). The text of the proposed 

rule change is available on the 

Exchange’s Web site at http:// 

www.cfe.cboe.com, on the Commission’s 

Web site at http://www.sec.gov, 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, CFE 

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. CFE 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 is 

to amend certain rules governing the 

listing and trading of security futures on 

the Exchange. The changes are being 

made to conform certain CFE rules to 

current parallel rules of OCX. 

Regulatory Halt Amendments 

CFE is proposing to amend Rule 417 

by adding provisions for regulatory 

halts. OCX made a similar rule change 

to make clear that a ‘‘regulatory halt’’ 

applies not only to the suspending of all 

trading in equity securities on the 

underlying national securities exchange 

but also to a trading pause on an 

individual underlying equity security 

that has been imposed by the rules of 

the national securities exchange.3 CFE is 

also proposing to amend CFE Policy and 

Procedure III by adding a crossreference to Rule 417 and setting forth 

the ability of the help desk to bust any 

trade in a Single Stock Future or in a 

Narrow-Based Index Future that occurs 

after the time a regulatory halt is 

instituted and before trading has been 

resumed in the affected Single Stock 

Future or Narrow-Based Index Future. 

Change Quoting Requirements for 

Market Makers 

CFE is proposing to amend Rule 517 

and CFE Policy and Procedure VII to 

change the quoting requirements for 

Market Makers. Presently, a market 

maker, when providing quotations, 

quotes with a maximum bid/ask spread 

of no more than the greater of $0.20 (the 

‘‘20 Cent Spread’’) of 150 percent of the 

bid/ask spread in the primary market for 

the security underlying the Security 

Future. The proposed rule change will 

raise the 20 Cent Spread to $5. This 

change will be affected by amending 

subparagraph (n) to Rule 517 and 

subparagraph C to CFE Policy and 

Procedure VII. OCX made a similar rule 

change raising its 20 Cent Spread to $5, 

which was nearly identical to one 

approved by the SEC for security 

options.4

Maintenance Standard Amendments 

First, CFE is proposing to amend CFE 

Policy and Procedure VIII by 

eliminating the $3 market price 

maintenance standard. This change will 

be affected by deleting subparagraph 

B.1.(v) to CFE Policy and Procedure 

VIII. OCX made a similar rule change 

eliminating the $3 market price per 

share requirement, which was nearly 

identical to one approved by the SEC for 

security options.5

Second, CFE is proposing to eliminate 

the prohibition against opening trading 

in a Single Stock Future with a new 

delivery month unless the issuer of the 

underlying satisfies applicable 

Exchange Act reporting requirements, or 

corrects any failure within 30 days after 

the date the report was due to be filed. 

This change will be affected by deleting 

subparagraph B.2.(i) to CFE Policy and 

Procedure VIII. OCX made a similar rule 

change eliminating this maintenance 

requirement, which was nearly identical 

to one approved by the SEC for security 

options.6


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 65 / Tuesday, April 5, 2011 / Notices 18817 

Standards of Security Futures Products) (SR–OC– 

2006–02). 

7 74 FR 61380 (November 24, 2009). 

8See Securities Exchange Act Release No. 61346 

(January 13, 2010), 75 FR 3515 (January 21, 2010) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change, as Modified by Amendment 

No. 1, Changing Its Listing Standards in 

Conformance with the November 9, 2009 Joint 

Order Modifying the Listing Standards 

Requirements under Section 6(h) of the Securities 

Exchange Act of 1934 and the Criteria under 

Section 2(a)(1) of the Commodity Exchange Act) 

(SR–OC–2009–04). 

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

10 15 U.S.C. 78f(b)(5). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63914 

(February 15, 2011), 76 FR 9846 (‘‘Notice’’). 

New Listing Standard Conforming With 

Joint Order 

CFE is proposing to conform its listing 

standards to those approved by the SEC 

and the Commodity Futures Trading 

Commission in their Joint Order dated 

November 19, 2009.7 To affect this 

change, CFE is proposing to add new 

paragraph E to CFE Policy and 

Procedure VIII that references the Joint 

Order and provides that, ‘‘the Exchange 

may list security futures on any security 

that is eligible to underlie options on a 

national securities exchange.’’ CFE notes 

that OCX made a similar change 

conforming its listing standards to those 

set forth in the Joint Order.8

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 9 of the Securities Exchange 

Act (the ‘‘Act’’), in general, and furthers 

the objectives of Section 6(b)(5) 10 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 

mechanism of a free and open market 

and a national market system. The 

proposed rule change updates certain 

CFE listing and trading rules for security 

futures and conforms them to ones 

previously changed by OCX for security 

futures. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CFE 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 

The proposed rule change has become 

effective on March 22, 2011. 

At any time within 60 days of the date 

of effectiveness of the proposed rule 

change, the Commission, after 

consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

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–CFE–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–CFE–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 SR–CFE– 

2011–001 and should be submitted on 

or before April 26, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7980 Filed 4–4–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64157; File No. SR–Phlx– 

2011–15] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Order 

Granting Approval of Proposed Rule 

Change To Expand the $2.50 Strike 

Price Program 

March 31, 2011. 

I. Introduction 

On February 2, 2011, NASDAQ OMX 

PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to expand the $2.50 Strike Price 

Program. The proposed rule change was 

published for comment in the Federal 

Register on February 22, 2011.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

Phlx has proposed to modify 

Exchange Rule 1012, Series of Options 

Open for Trading, to expand the range 

of option strike prices for which $2.50 

strike price intervals may be listed 

under the $2.50 Strike Price Program 


srobinson on DSKHWCL6B1PROD with NOTICES