6776 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

20See CBOE Rule 6.81; ISE Rule 1902; NYSE 

Amex Rule 991NY; and NYSE Arca Rule 6.94. 

Specifically, each of the exchanges is a participant 

in the Options Order Protection and Locked/ 

Crossed Market Plan. 

21 17 CFR 242.600. 

22See Interpretation and Policy .06 to CBOE Rule 

5.3; ISE Rule 502(a)–(b); NYSE Amex Rule 915 

Commentary .06; and NYSE Arca Rule 5.3(a)–(b). 

23See CBOE Rules 4.11 and 4.12; ISE Rules 412 

and 414; NYSE Amex Rules 904 and 905; and NYSE 

Arca Rules 6.8 and 6.9. 

24See CBOE Rule 12.3; ISE Rule 1202; NYSE 

Amex Rule 462; and NYSE Arca Rules 4.15 and 

4.16. See also FINRA Rule 2360(b) and Commentary 

.01 to FINRA Rule 2360. 

25 15 U.S.C. 78s(b)(2). 

26 15 U.S.C. 78s(b)(5). 

27 15 U.S.C. 78s(b)(2). 

28 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 43186 (August 21, 

2000), 65 FR 51880 (August 25, 2000) (SR–CBOE– 

99–37). 

through better displayed prices for ETFS 

Options available on other exchanges 

and, thereby, satisfy each exchange’s 

obligation under the Options Order 

Protection and Locked/Crossed Market 

Plan.20 Series of the ETFS Options will 

be subject to exchange rules regarding 

continued listing requirements, 

including standards applicable to the 

underlying ETFS Silver and ETF Gold 

Trusts. Shares of the ETFS Silver and 

ETFS Gold Trusts must continue to be 

traded through a national securities 

exchange or through the facilities of a 

national securities association, and must 

be ‘‘NMS stock’’ as defined under Rule 

600 of Regulation NMS.21 In addition, 

the underlying shares must continue to 

be available for creation or redemption 

each business day from or through the 

issuer in cash or in kind at a price 

related to net asset value.22 If the ETFS 

Silver or ETFS Gold Trust shares fail to 

meet these requirements, the exchanges 

will not open for trading any new series 

of the respective ETFS Options. 

CBOE, ISE, NYSE Amex, and NYSE 

Arca have all represented that they have 

surveillance programs in place for the 

listing and trading of ETFS Options. For 

example, these exchanges may obtain 

trading information via the ISG from the 

NYMEX related to any financial 

instrument traded there that is based, in 

whole or in part, upon an interest in, or 

performance of, silver or gold. 

Additionally, the listing and trading of 

ETFS Options will be subject to the 

exchanges’ rules pertaining to position 

and exercise limits 23 and margin.24

In addition, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,25 for approving the proposed 

rule change of CBOE prior to the 

thirtieth day after the date of 

publication of notice in the Federal 

Register. The Commission notes that 

CBOE’s proposal is substantively 

identical to the proposals of ISE, NYSE 

Amex, and NYSE Arca, which were 

published for a 21-day comment period 

and generated no comments. Therefore, 

the Commission does not believe that 

the CBOE proposal raises any new 

regulatory issues different from that of 

the ISE, NYSE Amex, and NYSE Arca 

proposals. Accordingly, the Commission 

finds that there is good cause, consistent 

with Section 6(b)(5) of the Act,26 to 

approve the CBOE proposal on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,27 that the 

proposed rule changes (SR–ISE–2009– 

106; SR–NYSEAmex–2009–86; and SR– 

NYSEArca–2009–110) be, and are 

hereby, approved and that the proposed 

rule change (SR–CBOE–2010–007) be, 

and is hereby, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2954 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61494; File No. SR–CBOE– 

2010–012] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Rule 8.85 and 

Rule 8.92 Regarding the Requirement 

To Own an Exchange Membership 

February 4, 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 February 

2, 2010, Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ or the 

‘‘Exchange’’) 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 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 

CBOE proposes to amend proposes to 

amend proposes to amend [sic] Rule 

8.85 and Rule 8.92 regarding the 

requirement to own an Exchange 

membership. The text of the rule 

proposal 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. 

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 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 

CBOE proposes to amend Rule 8.85 

and Rule 8.92 to eliminate the 

requirement that a DPM organization 

and an e-DPM organization are required 

to own at least one Exchange 

membership. Instead, each DPM 

organization and each e-DPM 

organization will be required to own or 

lease such number of Exchange 

memberships as may be necessary based 

on the aggregate ‘‘appointment cost’’ for 

the classes allocated to the DPM 

organization or e-DPM organization. 

CBOE established this ownership 

requirement with respect to DPMs in 

2000 and, at the time, believed that it 

was appropriate and would encourage 

DPMs to have a long-term commitment 

to CBOE.3 CBOE later included this 

requirement when its e-DPM program 

was adopted. 

CBOE no longer believes that this 

requirement is necessary particularly as 

its proposed restructuring approaches, 

and eliminating it may attract new DPM 

organizations to CBOE who otherwise 

may not be willing to apply to be a DPM 

due to this membership ownership 

requirement. CBOE notes that in 

connection with its plan to restructure 

from a Delaware non-stock corporation 

owned by its members to a Delaware 

stock corporation that will be a whollyowned subsidiary of CBOE Holdings, 

this requirement will be eliminated. 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6777 

4See Exchange Act Release No. 58425 (August 26, 

2008), 73 FR 51652 (September 4, 2008) (noticing 

for comment SR–CBOE–2008–088). CBOE has 

consented to an extension of time for Commission 

action on this proposed rule change pending a 

membership vote. 

5CBOE notes that Temporary Members under 

Rule 3.19.02 will not be adversely impacted by this 

proposed rule change. 

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

7 15 U.S.C. 78f(b)(5). 

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

9 17 CFR 240.19b–4(f)(6). 10 17 CFR 200.30–3(a)(12). 

Specifically, as part of CBOE’s 

restructuring, the owners of 

membership interests will become 

stockholders of CBOE Holdings through 

the conversion of their memberships 

into shares of common stock of CBOE 

Holdings. Additionally, Trading Permits 

will provide trading access to the 

Exchange, and not Exchange 

memberships as is currently the case. A 

Trading Permit will not convey any 

ownership interest in the Exchange, and 

will only be available through the 

Exchange.4 As part of this proposed rule 

change, CBOE proposes conforming 

changes to Rule 3.27, and proposes to 

delete Interpretation .04 of Rule 8.85 

and Interpretation .01 of Rule 8.92 

which are no longer necessary in light 

of the elimination of the membership 

ownership requirement.5

In connection with this proposed rule 

change, CBOE proposes to delete 

Interpretation .03 of Rule 8.85, which 

was adopted in 2003 for the purpose of 

allowing a senior principal’s ownership 

of a membership to satisfy the 

requirement on behalf of the DPM 

organization, but only if the senior 

principal meets certain criteria. In light 

of the fact that CBOE is eliminating the 

membership ownership requirement, 

Interpretation .03 no longer is 

applicable or necessary. 

2. Statutory Basis 

The Exchange believes the rule 

proposal is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

under the Act applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b) of the 

Act.6 Specifically, the Exchange 

believes that the proposed rule change 

is consistent with the Section 6(b)(5) 

Act 7 requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, to 

prevent fraudulent and manipulative 

acts and, in general, to protect investors 

and the public interest. The DPM and eDPM membership ownership 

requirement is no longer necessary and 

eliminating it may attract new 

organizations to act in the capacity of a 

DPM (or e-DPM). Additionally, this 

requirement will be eliminated in 

connection with CBOE’s restructuring. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

Because the foregoing proposed rule 

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, 

provided that the self-regulatory 

organization has given 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, the proposed rule change 

has become effective pursuant to 

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

19b–4(f)(6) thereunder.9 At any time 

within 60 days of the filing of such 

proposed rule change, the Commission 

may summarily abrogate 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. 

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–CBOE–2010–012 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–CBOE–2010–012. 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, 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–CBOE–2010–012 and 

should be submitted on or before March 

3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2950 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 


sroberts on DSKD5P82C1PROD with NOTICES