6750 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

9 17 C.F.R. 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4 15 U.S.C. 78q–1. 

5 15 U.S.C. 78s(b)(3)(A)(i). 

6 17 C.F.R. 240.19b(f)(1). 

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 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– 

NASDAQ–2010–019 and should be 

submitted on or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2861 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61485; File No. SR–OCC– 

2010–01] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Relating to 

Options for Which the Premium and 

Exercise Price Are Expressed as a 

Multiple of the Per-Share Amount 

February 3, 2010. 

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

Securities Exchange Act of 1934,1 notice 

is hereby given that on January 14, 2010, 

The Options Clearing Corporation 

(‘‘OCC’’) 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 primarily by OCC. OCC filed 

the proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 

Rule 19b–4(f)(4) thereunder 3 so that the 

proposal was effective upon filing with 

the Commission. 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 proposed rule change would 

revise OCC’s By-Laws and Rules to 

accommodate options for which the 

premium and exercise price are 

expressed on other than a per-unit basis. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC 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 

The purpose of this rule change is to 

revise OCC By-Law, Article I.A.5 

(definition of ‘‘Aggregate Exercise 

Price’’) and OCC Rule 805(d)(2) to 

accommodate options for which the 

premium and exercise price are 

expressed as other than a per-unit basis. 

NYSE Amex LLC (‘‘NYSE Amex’’) is 

proposing to trade physically-settled 

options on exchange-traded funds 

(‘‘ETFs’’) with a unit of trading of 1,000 

shares (‘‘Grand Options’’) rather than the 

standard unit of trading of 100 shares. 

When NYSE Amex previously 

introduced ETF options with units of 

trading of 1,000 shares, NYSE Amex 

followed the usual convention of 

quoting premiums and exercise prices 

as per-share amounts. The extended 

premium and aggregate exercise price 

were then calculated in the usual way 

by multiplying the per-share amount by 

the unit of trading (i.e. 1,000). In NYSE 

Amex’s experience, this approach 

caused investor confusion because 

investors in some cases failed to realize 

that they were trading large-sized 

options until premiums equal to ten 

times the expected amount were debited 

from their accounts. To address this, 

NYSE Amex intends to modify the 

standard method of stating premiums 

and exercise prices for Grand Options 

by multiplying the per-share amount by 

10. Extended premiums and exercise 

prices for such contracts would then be 

calculated by multiplying by 100 rather 

than the actual unit of trading of 1,000. 

NYSE Amex believes that, by increasing 

the size of the stated premiums and 

exercise prices by a factor of 10, the 

larger size of these options will be more 

apparent to investors. 

To accommodate options for which 

the premium and exercise price are 

expressed as a multiple of the per-share 

amount, OCC proposes to make minor 

technical amendments to a few 

definitions in its By-Laws and to its rule 

governing expiration date exercise 

procedures. The changes being 

proposed can be viewed at http:// 

www.optionsclearing.com/components/ 

docs/legal/rules_and_bylaws/ 

sr_occ_10_01.pdf. 

OCC believes that the proposed 

changes to OCC’s By-Laws and Rules are 

consistent with the purposes and 

requirements of Section 17A of the Act 4

because the changes promote the 

prompt and accurate clearance and 

settlement of Grand Options, protect 

investors by reducing the likelihood of 

investor confusion, and permit Grand 

Options to be traded, cleared, and 

settled in the same basic manner as 

other currently available options and be 

subject to the same rules and procedures 

that have been successfully used by 

OCC to clear and settle other options. 

Furthermore, OCC states that the 

proposed rule change is not inconsistent 

with OCC’s existing rules, including 

those proposed to be amended. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

OCC has not solicited or received 

written comments relating to the 

proposed rule change. OCC will notify 

the Commission of any written 

comments it receives. 

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)(i) of the Act 5 and Rule 19b– 

4(f)(4) 6 thereunder because the 

proposed rule change effects a change in 

an existing service of a registered 

clearing agency that (i) does not 

adversely affect the safeguarding of 

securities or funds in the custody or 

control of the clearing agency or for 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6751 

7 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4The Commission has modified the text of the 

summaries prepared by DTC. 

5Securities Exchange Act Release No. 26896 

(June 5, 1989), 54 FR 25185. DTC filed a proposed 

rule change with the Commission on April 4, 1989 

to establish procedures for covering short positions 

using DTC’s Participant Terminal System. The 

purpose of the rule change was to provide a means 

of reducing short positions at DTC. The ICS 

program is detailed in DTC’s PTS Function Guide. 

6 If the Participant initiating the ICS request holds 

a security similar to the security in which it has a 

short position, then its invitation may include an 

offer to sell or swap the similar security. 

7This message includes a quantity, price range, 

description, and CUSIP for the security. The 

Participant submitting the invitation also includes 

a contact name and phone number as well as any 

information about substitute securities. 

8Because of its role as a securities depository, 

DTC is uniquely positioned to identify Participants 

with long positions in certain securities. 

which it is responsible and (ii) does not 

significantly affect the respective rights 

or obligations of the clearing agency or 

persons using the service. At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

may summarily abrogate such rule 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 

No. SR–OCC–2010–01 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC, 20549–1090. 

All submissions should refer to File No. 

SR–OCC–2010–01. 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 OCC’s principal office and on 

OCC’s Web site at http:// 

www.optionsclearing.com/components/ 

docs/legal/rules_and_bylaws/ 

sr_occ_10_01.pdf. 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 submission 

should refer to File No. SR–OCC–2010– 

01 and should be submitted on or before 

March 3, 2010. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2860 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61477; File No. SR–DTC– 

2010–01] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Expand Its 

Invitation To Cover Shorts Capability 

To Include Short Positions Outside 

DTC 

February 3, 2010. 

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

Securities Exchange Act of 1934 

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

January 15, 2010, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared primarily by DTC. DTC filed 

the proposal pursuant to Section 

19(b)(3)(A)(iii) of the Act 2 and Rule 

19b–4(f)(4) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission. 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 purpose of the proposed rule 

change is to expand the Invitation to 

Cover Shorts (‘‘ICS’’) capability to 

include short positions outside DTC. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC has prepared 

summaries, set forth in sections (A), (B) 

and (C) below, of the most significant 

aspects of such statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change. 

DTC rules require Participants to 

cover short positions immediately and 

provide 130% of the market value of the 

relevant security until the position is 

covered. DTC’s ICS capability offers 

Participants a means to cover short 

positions by inviting tenders of 

securities from other Participants that 

hold long positions.5 Communication 

about these requests is facilitated 

through DTC’s automated Participant 

Terminal System (‘‘PTS’’).6

Participants initiate ICS requests by 

broadcasting a message to DTC.7 DTC in 

turn automatically identifies 

Participants with long positions in the 

relevant security 8 and sends those 

Participants an automated PTS message 

asking for a response if the Participant 

wants to tender its securities. 

Participants inviting the tender are 

informed by DTC of any affirmative 

responses and the Participant 

responding to the tender offer is asked 

to send DTC an e-mail or letter of 

authorization stating its willingness to 

sell its shares at the price agreed upon 


sroberts on DSKD5P82C1PROD with NOTICES