20062 Federal Register / Vol. 76, No. 69 / Monday, April 11, 2011 / Notices 

10 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

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

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR– 

ISE–2010–48). 

4See Securities Exchange Act Release No. 63506 

(December 9, 2010), 75 FR 78301 (December 15, 

2010) (SR–ISE–2010–117). 

5See Securities Exchange Act Release No. 62884 

(September 10, 2010), 75 FR 56618 (September 16, 

2010) (SR–ISE–2010–66). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78k–1(a)(1). 

replacement of physical certificates, 

specifically in this case the balance 

certificates, which should in turn allow 

DTC to better safeguard the securities 

which are in its custody or control or for 

which it is responsible. 

While the Commission understands 

the STA would like to further promote 

dematerialization by eliminating the 

need for FAST agents acting for issues 

that are eligible but not participating in 

DRS to maintain a balance certificate, 

we agree with DTC that at this time 

allowing only those issues where the 

issuer has expressly provided that 

statements are evidence of ownership to 

eliminate maintaining the balance 

certificate better safeguards the 

securities being custodied by the FAST 

agent on DTC’s behalf. Furthermore, the 

proposed rule change may encourage 

those issuers that have made their 

securities eligible but are not 

participating in DRS to participate in 

DRS, which would further facilitate the 

STA’s goal of reducing the use of 

physical certificates. 

With regards to the STA’s concern 

that requiring issuers or their transfer 

agents to provide a balance certificate 

upon request, the proposed rule change 

does not change DTC’s current 

requirements relating to certificating 

FAST balance positions and therefore 

should not present any new issues for 

issuers or FAST transfer agents. DTC 

was simply making clear in the 

proposed rule change that it is 

continuing to reserve the right to request 

such a certificate. 

Accordingly, for the reasons stated 

above the Commission believes that the 

proposed rule change is consistent with 

DTC’s obligation under Section 17A of 

the Exchange Act, as amended, and the 

rules and regulations thereunder.10

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

Section 17A of the Act and the rules and 

regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (File No. SR– 

DTC–2010–15) be and hereby is 

approved. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8553 Filed 4–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64193; File No. SR–ISE– 

2011–17] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend ISE Rule 2102 To 

Extend the Pilot Program 

April 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 March 31, 

2011, 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 selfregulatory 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 2102 (Hours of Business) to extend 

the expiration of the pilot rule. 

The text of the proposed rule change 

is available on the Exchange’s Internet 

Web site at 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 Exchange proposes to amend ISE 

Rule 2102 to extend the expiration of 

the pilot rule. Initial amendments to ISE 

Rule 2102 to allow the Exchange to 

pause trading in an individual stock 

when the primary listing market for 

such stock issues a trading pause were 

approved by the Commission on June 

10, 2010 on a pilot basis to end on 

December 10, 2010.3 The pilot was then 

extended to expire on April 11, 2011.4

On September 10, 2010, ISE Rule 2102 

was amended again to expand the pilot 

rule to apply to the Russell 1000® Index 

and other specified exchange traded 

products.5 The Exchange now proposes 

to extend the date by which this pilot 

rule will expire to the earlier of August 

11, 2011 or the date on which a limit 

up/limit down mechanism to address 

extraordinary market volatility, if 

adopted, applies. Extending this pilot 

program will provide the exchanges 

with a continued opportunity to assess 

the effect of this rule proposal on the 

markets. 

2. Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act,6 which requires the rules of an 

exchange 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 proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 7 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets. The 

Exchange believes that the proposed 

rule meets these requirements in that it 

promotes uniformity across markets 

concerning decisions to pause trading in 

a security when there are significant 

price movements. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 69 / Monday, April 11, 2011 / Notices 20063 

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

9 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an exchange is required to give the 

Commission 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 of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Commission 

notes that the Exchange has satisfied this 

requirement. 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 Id. 

12For the purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.15c3–1. 

3Securities Exchange Act Release No. 63623 (Dec. 

30, 2010), 76 FR 0602. 

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: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

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

4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.10 However, Rule 19b– 

4(f)(6) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, as it will allow the pilot 

program to continue uninterrupted, 

thereby avoiding the investor confusion 

that could result from a temporary 

interruption in the pilot program.12 For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change 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, as amended, 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–2011–17 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–2011–17. 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 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– 

2011–17, and should be submitted on or 

before May 2, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8527 Filed 4–8–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64181; File No. SR–OCC– 

2010–19] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Approving a Proposed Rule Change 

Relating to Stock Loan Programs 

April 5, 2011. 

I. Introduction 

On December 16, 2010, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission a proposed rule change 

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

Securities Exchange Act of 1934 

(‘‘Act’’).1 The proposed rule change 

clarifies the regulatory treatment under 

Rule 15c3–1 2 of collateral and margin 

posted by clearing members 

participating in stock loan transactions 

through OCC’s Stock Loan/Hedge 

Program or Market Loan Program. The 

proposed rule change was published for 

comment in the Federal Register on 

January 5, 2011.3 No comment letters 

were received. This order approves the 

proposed rule change. 

II. Description of the Proposal 

A. Background 

OCC’s Stock Loan/Hedge Program, 

provided for in Article XXI of OCC’s ByVerDate Mar<15>2010 17:49 Apr 08, 2011 Jkt 223001 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 E:\FR\FM\11APN1.SGM 11APN1

srobinson on DSKHWCL6B1PROD with NOTICES