17462 Federal Register / Vol. 76, No. 60 / Tuesday, March 29, 2011 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63955 

(February 24, 2011) (SR–ISE 2010–73). 

4The term ‘‘Non-ISE Market Maker’’ means a 

market maker as defined in Section 3(a)(38) of the 

Securities Exchange Act of 1934 registered in the 

same options class on another options exchange. 

See ISE’s Schedule of Fees. 

5The term ‘‘Professional Order’’ means an order 

that is for the account of a person or entity that is 

not a Priority Customer. See ISE Rule 100(37C). 

6The rate of $.18 remains unchanged for ISE 

Market Makers participating in all symbols other 

than those set forth in footnote 5 [sic]. 7 ISE Market Makers and Market Maker Plus are 

charged a higher rate of $.20 when participating in 

a QCC order in these select symbols: QQQQ, C, 

BAC, SPY, IWM, XLF, GE, JPM, INTC, RIMM, T, 

VZ, UNG, FCX, CSCO, DIA, AMZN, X, AA, AIG, 

AXP, BBY, CAT, CHK, DNDN, EEM, EFA, EWZ, F, 

FAS, FAZ, FSLR, GDX, GLD, IYR, MGM, MS, 

MSFT, MU, PBR, PG, POT, RIG, SDS, SLV, XLE, 

XOM, ABX, BMY, BP, COP, DELL, FXI, HAL, IBM, 

KO, LVS, MCD, MO, MON, NOK, ORCL, PFE, 

QCOM, S, SLB, SMH, SNDK, TBT, USO, V, VALE, 

WFT, XLI, XRT, YHOO, AKAM, AMD, AMR, APC, 

BA, BRCM, GG, HPQ, LCC, MOT, NEM, NFLX, 

NVDA, QID, SSO, TEVA, TLT, TZA, UAL, WFC, 

XLB, SIRI, SBUX and VVUS. 

8Priority Customers are currently not charged 

when participating in orders executed in the 

facilitation, solicitation and price improvement 

mechanism. Consistent with the Exchange’s 

approach, this will be extended to Priority 

Customers when participating in QCC orders. 

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

10 15 U.S.C. 78f(b)(4). 

2. Report on completion of annual 

compliance determination. 

3. Report on status of pending dockets 

before the Commission. 

4. Report on international activities. 

5. Report on legislative activities. 

6. Report on improved public access 

to Commission archival records. 

7. Report on Commission docket 

management procedures in the event of 

a government shutdown. 

Portions Closed to the Public 

8. Discussion of pending litigation. 

9. Discussion of contractual matters 

involving sensitive business 

information—lease-related negotiations. 

10. Discussion of information 

technology security implementation. 

11. Discussion of confidential 

personnel matters—performance, 

records and practices. 

CONTACT PERSON FOR MORE INFORMATION: 

Stephen L. Sharfman, General Counsel, 

Postal Regulatory Commission, 901 New 

York Avenue, NW., Suite 200, 

Washington, DC 20268–0001, at 202– 

789–6820 (for agenda-related inquiries) 

and Shoshana M. Grove, Secretary of the 

Commission, at 202–789–6800 or 

shoshana.grove@prc.gov (for inquiries 

related to meeting location, access for 

handicapped or disabled persons, the 

audiocast, or similar matters). 

Dated: March 24, 2011. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2011–7397 Filed 3–25–11; 11:15 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64112; File No. SR–ISE– 

2011–14] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees for Qualified 

Contingent Cross Orders 

March 23, 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 March 14, 

2011, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I, II, 

and III below, which items have been 

prepared by the self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The ISE is proposing to amend its fee 

schedule to establish fees for a new 

order type called Qualified Contingent 

Cross. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://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 

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 

The purpose of the proposed rule 

change is to establish fees for a new 

order type called Qualified Contingent 

Cross (‘‘QCC’’). The QCC order type was 

recently approved by the Commission.3

The Exchange now proposes to adopt 

fees related to this new order type. 

Specifically, the Exchange proposes to 

extend the same pricing that currently 

applies to orders entered into the 

facilitation, solicitation and price 

improvement mechanism on behalf of 

firm proprietary, Non-ISE Market 

Makers 4 and Professional Order 

participants,5 which amounts to $0.20 

per contract for QCC orders in all option 

classes traded on the Exchange. 

The fee for ISE Market Makers that 

participate in a QCC order will be 

charged either $.18 6 or $.20, 7

depending upon the product.8

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Schedule of Fees 

is consistent with Section 6(b) of the 

Act 9 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 10

in particular, in that it is an equitable 

allocation of reasonable dues, fees and 

other charges among Exchange 

members. The Exchange believes that 

the fees proposed for QCC orders are 

reasonable because QCC orders are 

similar to facilitation and solicitation 

orders in that the members have both 

sides of the order and are entering the 

order onto the exchange for execution. 

Members are currently charged $.20 for 

executions of facilitation and 

solicitation orders and because QCC 

orders have a similar composition, it is 

reasonable that the Exchange is 

proposing to extend the same fee to QCC 

orders. The Exchange believes that the 

proposed fee is equitable in that this fee 

is applied consistently across all 

memberships and client categories, 

except for ISE Market Makers in certain 

circumstances. The Exchange believes 

that it is equitable to allow ISE Market 

Makers a lower transaction fee in certain 

circumstances because ISE Market 

Makers are differentiated from other 

members in that they have negative and 

affirmative obligations to the market 

place. 

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. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 60 / Tuesday, March 29, 2011 / Notices 17463 

11 15 U.S.C. 78s(b)(3)(A)(ii). 

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). 

5FLEX Options provide investors with the ability 

to customize basic option features including size, 

expiration date, exercise style, and certain exercise 

prices. FLEX Options can be FLEX Index Options 

or FLEX Equity Options. In addition, other products 

are permitted to be traded pursuant to the FLEX 

trading procedures. For example, credit options are 

eligible for trading as FLEX Options pursuant to the 

FLEX rules in Chapters XXIVA and XXIVB. See 

CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1), 

24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 28.17. 

The rules governing the trading of FLEX Options on 

the FLEX Request for Quote (‘‘RFQ’’) System 

platform are contained in Chapter XXIVA. The rules 

governing the trading of FLEX Options on the FLEX 

Hybrid Trading System platform are contained in 

Chapter XXIVB. 

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.11 At any time 

within 60 days of the filing of such 

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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or disapproved. 

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–ISE–2011–014 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–ISE–2011–014. 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 website viewing and 

printing in the Commission’s Public 

Reference Room on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of such filing also will be 

available for inspection and copying at 

the principal offices 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–2011–014, and should 

be submitted on or before April 19, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7265 Filed 3–28–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64110; File No. SR–CBOE– 

2011–024] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend Pilot Programs 

Relating to FLEX Exercise Settlement 

Values and Minimum Value Sizes 

March 23, 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 March 14, 

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 has 

designated the proposal as a ‘‘noncontroversial’’ 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 

The Exchange is proposing to extend 

the operation of its pilot programs 

regarding permissible exercise 

settlement values and the elimination of 

minimum value sizes for Flexible 

Exchange Options (‘‘FLEX Options’’),5

which pilot programs are currently set 

to expire on March 28, 2011, through 

March 30, 2012. The text of the 

proposed rule change 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 

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 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 

On January 28, 2010, the Exchange 

received approval of a rule change that 

established two pilot programs 

regarding permissible exercise 

settlement values and the elimination of 

minimum value sizes for FLEX Options. 


jlentini on DSKJ8SOYB1PROD with NOTICES