Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 70335 

32 15 U.S.C. 78f(b). 

33 15 U.S.C. 78f(b)(5). 34 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

511(b); and reference to Rule 515 is 

deleted. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 32 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 33

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, by 

updating and making more uniform the 

evaluation process for specialist units, 

ensuring timely electronic quotations by 

SQTs and RSQTs, and consolidating 

and deleting unnecessary and obsolete 

rules and processes. The Exchange 

believes that its rule change proposal 

does not engender unfair discrimination 

among specialists, specialist units, SQTs 

and RSQTs in that it proposes to amend 

rules and procedures that are equally 

applicable to all members and member 

organizations at the Exchange. 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 

No. SR–Phlx-2010–153 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–Phlx–2010–153. 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 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– 

2010–153 and should be submitted on 

or before December 8, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.34

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28900 Filed 11–16–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63308; File No. SR–MSRB– 

2010–15] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing and Immediate 

Effectiveness of Rule D–13, on a 

Definition of ‘‘Municipal Advisory 

Activities’’, Rule D–14, on a Definition 

of ‘‘Appropriate Regulatory Agency’’, 

and Amendments to Rule D–11 

(‘‘Associated Persons’’), Rule G–40 on 

Electronic Mail Contacts, and Form G– 

40, on Electronic Mail Contacts 

November 12, 2010. 

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 November 

10, 2010, the Municipal Securities 

Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’) 

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 MSRB. The 

Board has designated the proposed rule 

change as concerned solely with the 

administration of the Board or other 

matters which the Commission, by rule, 

consistent with the public interest and 

the purposes of this subsection, may 

specify as without the provisions of 

Section 19(b)(2) of the Act. 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 MSRB is filing a proposed rule 

change relating to municipal advisors, 

consisting of: (i) Amendments to Rule 

D–11 (definition of ‘‘associated 

persons’’); (ii) new Rule D–13 (definition 

of ‘‘municipal advisory activities’’); (iii) 

new Rule D–14 (definition of 

‘‘appropriate regulatory agency’’); (iv) 

amendments to Rule G–40, on electronic 

mail contacts, by municipal advisors; 

and (v) amendments to Form G–40, on 

electronic mail contacts. The proposed 

rule change is effective immediately 

upon filing. 

The text of the proposed rule change 

is available on the MSRB’s Web site at 

http://www.msrb.org/Rules-andInterpretations/SEC-Filings/2010- 

Filings.aspx, at the MSRB’s principal 

office, and at the Commission’s Public 

Reference Room. 

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70336 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 

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

4 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory organization to give the Commission 

written notice of its intent to file 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. 

5For the purposes only of accelerating the 

operative date of this proposal, the Commission has 

considered the proposed rule change’s impact on 

efficiency, competition, and capital formation. See 

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

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 

MSRB 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 Board 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 purposes of the proposed rule 

change are: (i) To complete the 

rulemaking that is necessary for the 

registration of municipal advisors with 

the MSRB (amended Rule G–40 and 

amended Form G–40) and (ii) to define 

certain terms that are necessary to the 

MSRB rules governing rulemaking 

concerning municipal advisors and the 

process of registering municipal 

advisors with the MSRB. Specifically, 

the proposed rule change consists of: (i) 

An amendment to Rule D–11 to provide 

that the term ‘‘municipal advisor’’ in 

MSRB rules shall include the associated 

persons of such municipal advisor 

unless otherwise specified, (ii) a new 

Rule D–13 that defines ‘‘municipal 

advisory activities’’ with respect to the 

activities of municipal advisors 

described in Section 15B(e)(4)(A)(i) and 

(ii) of the Act, (iii) a new Rule D–14 that 

defines ‘‘appropriate regulatory agency’’ 

to have the meaning set forth in Section 

3(a)(34) of the Act with respect to a 

broker, dealer, or municipal securities 

dealer and to mean the Commission 

with respect to a municipal advisor; (iv) 

amendments to Rule G–40 concerning 

the provision of electronic mail contacts 

by municipal advisors, and (v) amended 

Form G–40 concerning the provision of 

electronic mail contacts by municipal 

advisors. 

2. Statutory Basis 

The MSRB believes that the proposed 

rule change is consistent with Section 

15B(b)(2) of the Act, which provides 

that: 

The Board shall propose and adopt rules to 

effect the purposes of this title with respect 

to transactions in municipal securities 

effected by brokers, dealers, and municipal 

securities dealers and advice provided to or 

on behalf of municipal entities or obligated 

persons by brokers, dealers, municipal 

securities dealers, and municipal advisors 

with respect to municipal financial products, 

the issuance of municipal securities, and 

solicitations of municipal entities or 

obligated persons undertaken by brokers, 

dealers, municipal securities dealers, and 

municipal advisors. 

The proposed rule change is 

consistent with Section 15B(b)(2) of the 

Act, because it: (i) Is essential to the 

registration with the MSRB of the 

municipal advisors described in Section 

15B(b)(2) of the Act and (ii) defines 

certain terms that are necessary to the 

MSRB rules governing such municipal 

advisors and the process of registering 

such advisors with the MSRB. 

Section 15B(2)(L) of the Act requires 

that rules adopted by the Board 

not impose a regulatory burden on small 

municipal advisors that is not necessary or 

appropriate in the public interest and for the 

protection of investors, municipal entities, 

and obligated persons, provided that there is 

robust protection of investors against fraud. 

The proposed rule change does not 

impose a regulatory burden on small 

advisors that is not necessary or 

appropriate in the public interest and 

for the protection of investors, 

municipal entities, and obligated 

persons and for the robust protection of 

investors against fraud. Rule G–40, as 

amended by the proposed rule change, 

only requires municipal advisors to 

submit basic contact information and to 

select the categories of municipal 

advisors that best describe them. The 

MSRB expects that municipal advisors 

will need no more than 15 minutes to 

complete electronic Form G–40, but the 

MSRB will have staff ready to assist 

them should they have any questions. 

Any burden on municipal advisors is de 

minimis. The portion of the proposed 

rule change that consists of definitions 

will impose no burden on any 

municipal advisor. While the proposed 

rule change, at best, imposes only a de 

minimis burden on municipal advisors, 

the proposed rule change is necessary 

for the MSRB to have a record of the 

municipal advisors it regulates, so that 

it may keep them abreast of regulatory 

developments, better target its 

rulemaking and professional 

qualifications examinations to different 

types of municipal advisors, and 

identify to the Commission those 

municipal advisors who have reportedly 

violated MSRB rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The MSRB does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, since it 

would apply equally to all municipal 

advisors. 

C. Self-Regulatory Organization’s 

Statement on Comments Received on 

the Proposed Rule Change by Members, 

Participants, or Others 

Written comments were neither 

solicited nor received on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The MSRB represented that the 

proposed rule change qualifies for 

immediate effectiveness pursuant to 

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

thereunder, because it: (i) Does not 

significantly affect the protection of 

investors or the public interest; (ii) does 

not impose any significant burden on 

competition; and (iii) does not become 

operative for 30 days after filing or such 

shorter time as the Commission may 

designate consistent with the protection 

of investors and the public interest.4

The MSRB provided the required 

written notice of its intention to file the 

proposed rule change to the 

Commission on October 22, 2010. 

The MSRB has requested that the 

Commission designate a shorter time 

period for the proposed rule change to 

become operative, that is, on November 

15, 2010, and has represented that the 

proposed rule change is not 

controversial, that it is integrally related 

to SR–MSRB–2010–14, which became 

effective November 9, 2010, and that it 

is necessary for the completion of 

rulemaking related to the registration of 

municipal advisors with the MSRB. The 

MSRB has stated that an earlier 

operative date of November 15, 2010 

will permit the MSRB to begin to 

register municipal advisors and will 

provide municipal advisors with 

additional time to complete their 

registration process with the MSRB by 

no later than January 1, 2011. The 

Commission hereby grants the MSRB’s 

request and believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest.5 The earlier operative 

date will allow municipal advisors 

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Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices 70337 

6See Section 19(b)(3)(C) of the Act, 15 U.S.C. 

78s(b)(3)(C). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

additional time to register with the 

MSRB. 

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.6

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–MSRB–2010–15 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–MSRB–2010–15. 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 

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 MSRB’s offices. 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–MSRB–2010–15 and should 

be submitted on or before December 8, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28986 Filed 11–16–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63304; File No. SR–ISE– 

2010–108] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Expand the $0.50 Strike 

Program 

November 10, 2010. 

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 

November 10, 2010, the International 

Securities Exchange, LLC (‘‘ISE’’ 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 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 its 

rules to: (i) Expand the $0.50 Strike 

Program for strike prices below $1.00; 

(ii) extend the $0.50 Strike Program to 

strike prices that are $5.50 or less; (iii) 

extend the prices of the underlying 

security to at or below $5.00; and (iv) 

extend the number of options classes 

overlying 20 individual stocks. 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, 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 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 this proposed rule 

change is to modify the Exchange’s rules 

to expand the $0.50 Strike Program in 

order to provide investors with 

opportunities and strategies to minimize 

losses associated with owning a stock 

declining in price. 

The Exchange is proposing to 

establish strike price intervals of $0.50, 

beginning at $0.50 for certain options 

classes where the strike price is $5.50 or 

less and whose underlying security 

closed at or below $5.00 in its primary 

market on the previous trading day and 

which have national average daily 

volume that equals or exceeds 1000 

contracts per day as determined by The 

Options Clearing Corporation (‘‘OCC’’) 

during the preceding three calendar 

months. The Exchange also proposes to 

limit the listing of $0.50 strike prices to 

options classes overlying no more than 

20 individual stocks as specifically 

designated by the Exchange. 

Currently, Supplementary Material 

.05 to ISE Rule 504 permits strike price 

intervals of $0.50 or greater beginning at 

$1.00 where the strike price is $3.50 or 

less, but only for option classes whose 

underlying security closed at or below 

$3.00 in its primary market on the 

previous trading day and which have 

national average daily volume that 

equals or exceeds 1000 contracts per 

day as determined by OCC during the 

preceding three calendar months. 

Further, the listing of $0.50 strike prices 

is limited to options classes overlying 

no more than 5 individual stocks as 

specifically designated by the Exchange. 

The Exchange is currently restricted 

from listing series with $1 intervals 

within $0.50 of an existing strike price 

in the same series, except that strike 

prices of $2, $3, and $4 shall be 

permitted within $0.50 of an existing 

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