Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6773 

7 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires the self-regulatory 

organization to give the Commission 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. 

NYSE Amex has satisfied this requirement. 8 17 CFR 240.19b–4(f)(6)(iii). 

9See Securities Exchange Act Release No. 61061 

(November 24, 2009), 74 FR 62857 (December 1, 

2009) (granting partial approval of NYSEArca– 

2009–44). 10For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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 Nos. 61223 

(December 22, 2009), 74 FR 69161; 61222 

(December 22, 2009), 74 FR 69182; and 61228 

(December 22, 2009), 74 FR 69180. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

become operative for 30 days after the 

date of filing.7 However, Rule 19b– 

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

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requested that the 

Commission waive the 30-day operative 

delay, as specified in Rule 19b– 

4(f)(6)(iii),8 which would make the rule 

change effective and operative upon 

filing. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is based on a 

recent Commission-approved proposal 

submitted by another options exchange 9

and therefore does not raise any novel 

regulatory issues. Further, waiving the 

operative delay will allow the Exchange 

to commence quoting all series of IWM 

and SPY in increments of $0.01 effective 

February 1, 2010, contemporaneously 

with other options exchanges. 

Accordingly, the Commission 

designates the proposed rule change as 

operative upon filing with the 

Commission.10

At any time within 60 days of the 

filing of the 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–NYSEAmex–2010–08 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–NYSEAmex–2010–08. 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 the filing also 

will be available for inspection and 

copying at the NYSE’s principal office 

and on its Web site at http:// 

www.nyse.com. 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– 

NYSEAmex–2010–08 and should be 

submitted on or before March 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–2863 Filed 2–9–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61483; File Nos. SR– 

CBOE–2010–007; SR–ISE–2009–106; SR– 

NYSEAmex–2009–86; and SR–NYSEArca– 

2009–110] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated, International Securities 

Exchange, LLC, NYSE Amex LLC, and 

NYSE Arca, Inc.; Order Granting 

Approval of Proposed Rule Changes 

and Notice of Filing and Order 

Granting Accelerated Approval of a 

Proposed Rule Change Relating to 

Listing and Trading Options on the 

ETFS Gold Trust and the ETFS Silver 

Trust 

February 3, 2010. 

Three options exchanges filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule changes pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 2

thereunder to list and trade options on 

shares of the ETFS Gold Trust and the 

ETFS Silver Trust (collectively ‘‘ETFS 

Options’’). Specifically, NYSE Amex 

LLC (‘‘NYSE Amex’’) and NYSE Arca, 

Inc. (‘‘NYSE Arca’’) both submitted their 

proposals on December 4, 2009 and the 

International Securities Exchange, LLC 

(‘‘ISE’’) submitted its proposal on 

December 10, 2009. Each proposed rule 

change was published for comment in 

the Federal Register on December 30, 

2009 for a 21-day comment period.3 No 

comments were received on the 

proposed rule changes. This order 

approves the proposed rule changes. 

In addition, on January 27, 2010, the 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or the 

‘‘Exchange’’) filed with the Commission 

the proposed rule change as described 

in Items I and II below, which items 

have been prepared by the CBOE. The 

proposal submitted by the CBOE is 

substantively identical to the proposals 

of NYSE Amex, NYSE Arca, and ISE. 

Pursuant to Section 19(b)(1) of the Act 4

and Rule 19b–4 5 thereunder, the 

Commission is publishing this notice to 

solicit comments on the CBOE proposed 

rule change from interested persons and 


sroberts on DSKD5P82C1PROD with NOTICES
6774 Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 

6See Securities Exchange Act Release No. 57897 

(May 30, 2008), 73 FR 32061 (June 5, 2008) (order 

approving SR–CBOE–2005–11). 

7See Securities Exchange Act Release No. 59055 

(December 4, 2008), 73 FR 75148 (December 10, 

2008) (order approving SR–CBOE–2008–72). 8See Interpretation and Policy .06 to Rule 5.3. 

is approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

certain rules to enable the listing and 

trading on the Exchange of options on 

the ETFS Silver Trust and the ETFS 

Gold Trust. 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 III 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 Organizations’ 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Recently, the Commission authorized 

CBOE to list and trade options on the 

SPDR Gold Trust,6 the iShares COMEX 

Gold Trust and the iShares Silver 

Trust.7 Now, the Exchange proposes to 

list and trade options on the ETFS 

Silver Trust (‘‘SIVR’’) and the ETFS Gold 

Trust (‘‘SGOL’’). 

Under current Rule 5.3, only Units 

(also referred to herein as exchange 

traded fund (‘‘ETFs’’)) representing (i) 

interests in registered investment 

companies (or series thereof) organized 

as open-end management investment 

companies, unit investment trusts or 

similar entities that hold portfolios of 

securities and/or financial instruments 

including, but not limited to, stock 

index futures contracts, options on 

futures, options on securities and 

indexes, equity caps, collars and floors, 

swap agreements, forward contracts, 

repurchase agreements and reverse 

purchase agreements (the ‘‘Financial 

Instruments’’), and money market 

instruments, including, but not limited 

to, U.S. government securities and 

repurchase agreements (the ‘‘Money 

Market Instruments’’) comprising or 

otherwise based on or representing 

investments in indexes or portfolios of 

securities and/or Financial Instruments 

and Money Market Instruments (or that 

hold securities in one or more other 

registered investment companies that 

themselves hold such portfolios of 

securities and/or Financial Instruments 

and Money Market Instruments), or (ii) 

interests in a trust or similar entity that 

holds a specified non-U.S. currency 

deposited with the trust or similar entity 

when aggregated in some specified 

minimum number may be surrendered 

to the trust by the beneficial owner to 

receive the specified non-U.S. currency 

and pays the beneficial owner interest 

and other distributions on deposited 

non-U.S. currency, if any, declared and 

paid by the trust, or (iii) commodity 

pool interests principally engaged, 

directly or indirectly, in holding and/or 

managing portfolios or baskets of 

securities, commodity futures contracts, 

options on commodity futures contracts, 

swaps, forward contracts and/or options 

on physical commodities and/or nonU.S. currency, or (iv) represent interests 

in the streetTRACKS Gold Trust or the 

iShares COMEX Gold Trust or the 

iShares Silver Trust, or (v) represents an 

interest in a registered investment 

company (‘‘Investment Company’’) 

organized as an open-end management 

investment company or similar entity, 

that invests in a portfolio of securities 

selected by the Investment Company’s 

investment adviser consistent with the 

Investment Company’s investment 

objectives and policies, which is issued 

in a specified aggregate minimum 

number in return for a deposit of a 

specified portfolio of securities and/or a 

cash amount with a value equal to the 

next determined net asset value 

(‘‘NAV’’), and when aggregated in the 

same specified minimum number, may 

be redeemed at a holder’s request, 

which holder will be paid a specified 

portfolio of securities and/or cash with 

a value equal to the next determined 

NAV are eligible as underlying 

securities for options traded on the 

Exchange.8 This rule change proposes to 

expand the types of ETFs that may be 

approved for options trading on the 

Exchange to include SIVR and SGOL. 

Apart from allowing SIVR and SGOL 

to be an underlying for options traded 

on the Exchange as described above, the 

listing standards for ETFs will remain 

unchanged from those that apply under 

current Exchange rules. ETFs on which 

options may be listed and traded must 

still be listed and traded on a national 

securities exchange and must satisfy the 

other listing standards set forth in 

Interpretation and Policy .06 to Rule 5.3. 

Specifically, in addition to satisfying 

the aforementioned listing 

requirements, Units must meet either (1) 

the criteria and guidelines under Rule 

5.3 and Interpretation and Policy .01 to 

Rule 5.3, Criteria for Underlying 

Securities; or (2) they must 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, and the issuer must be 

obligated to issue Units in a specified 

aggregate number even if some or all of 

the investment assets required to be 

deposited have not been received by the 

issuer, subject to the condition that the 

person obligated to deposit the 

investments has undertaken to deliver 

the investment assets as soon as 

possible and such undertaking is 

secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the issuer, as provided in the respective 

prospectus. 

The Exchange states that the current 

continued listing standards for options 

on ETFs will apply to options on SIVR 

and SGOL. Specifically, under 

Interpretation and Policy .08 to Rule 5.4, 

options on Units may be subject to the 

suspension of opening transactions as 

follows: (1) Following the initial twelvemonth period beginning upon the 

commencement of trading of the Units, 

there are fewer than 50 record and/or 

beneficial holders of the Units for 30 or 

more consecutive trading days; (2) the 

value of the index or portfolio of 

securities, non-U.S. currency, or 

portfolio of commodities including 

commodity futures contracts, options on 

commodity futures contracts, swaps, 

forward contracts and/or options on 

physical commodities and/or Financial 

Instruments and Money Market 

Instruments on which Units are based is 

no longer calculated or available; or (3) 

such other event occurs or condition 

exists that in the opinion of the 

Exchange makes further dealing on the 

Exchange inadvisable. 

Additionally, SIVR and SGOL shall 

not be deemed to meet the requirements 

for continued approval, and the 

Exchange shall not open for trading any 

additional series of option contracts of 

the class covering SIVR and SGOL, if 

SIVR and SGOL ceases to be an ‘‘NMS 

stock’’ as provided for in paragraph (f) 

of Interpretation and Policy .01 of Rule 

5.4 or SIVR and SGOL is halted from 

trading on its primary market. 


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Federal Register / Vol. 75, No. 27 / Wednesday, February 10, 2010 / Notices 6775 

9See Rules 4.11, Position Limits, and 4.12, 

Exercise Limits. 

10See Rule 12.3, Margin Requirements. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. 15 U.S.C. 78c(f). 14 15 U.S.C. 78f. 15 15 U.S.C. 78f(b)(5). 16 15 U.S.C. 78f(b)(1). 17See NASD Rule 2320. 18See CBOE Rule 9.15; ISE Rule 616; NYSE Amex 

Rule 926; and NYSE Arca Rule 9.18(g). 19See FINRA Rule 2360(b); CBOE Rules 9.7 and 

9.9; ISE Rules 608 and 610; NYSE Amex Rule 923; 

and NYSE Arca Rule 918(b)–(c). 

The addition of SIVR and SGOL to 

Interpretation and Policy .06 to Rule 5.3 

will not have any effect on the rules 

pertaining to position and exercise 

limits 9 or margin.10

The Exchange represents that its 

surveillance procedures applicable to 

trading in options on SIVR and SGOL 

will be similar to those applicable to all 

other options on other Units currently 

traded on the Exchange. The Exchange 

represents that its surveillance 

procedures applicable to trading in 

options on SIVR and SGOL will be 

similar to those applicable to all other 

options on other ETFs currently traded 

on the Exchange. Also, the Exchange 

may obtain information from the New 

York Mercantile Exchange, Inc. 

(‘‘NYMEX’’) (a member of the 

Intermarket Surveillance Group) related 

to any financial instrument that is 

based, in whole or in part, upon an 

interest in or performance of gold or 

silver. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 11 of the Act, in general, and 

furthers the objectives of Section 

6(b)(5) 12 in particular in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market in a manner consistent 

with the protection of investors and the 

public interest. In particular, the 

Exchange believes that amending its 

rules to accommodate the listing and 

trading of options on the ETFS Gold 

Trust and the ETFS Silver Trust will 

benefit investors by providing them 

with valuable risk management tools. 

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 

The Exchange neither solicited nor 

received comments on the proposal. 

III. 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–2010–007 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–2010–007. 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 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– 

2010–007 and should be submitted on 

or before March 3, 2010. 

IV. Commission Findings 

After careful consideration, the 

Commission finds that the proposed 

rule changes submitted by CBOE, ISE, 

NYSE Amex, and NYSE Arca 

(collectively, the ‘‘Proposals’’) are 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange 13 and, in particular, 

the requirements of Section 6 of the 

Act.14 Specifically, the Commission 

finds that the Proposals are consistent 

with Section 6(b)(5) of the Act,15 which 

requires, among other things, that the 

rules of a national securities exchange 

be designed 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. In 

accordance with the Memorandum of 

Understanding entered into between the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and the 

Commission on March 11, 2008, and in 

particular the addendum thereto 

concerning Principles Governing the 

Review of Novel Derivative Products, 

the Commission believes that novel 

derivative products that implicate areas 

of overlapping regulatory concern 

should be permitted to trade in either or 

both a CFTC- or Commission-regulated 

environment, in a manner consistent 

with laws and regulations (including the 

appropriate use of all available 

exemptive and interpretive authority). 

As national securities exchanges, each 

of the CBOE, ISE, NYSE Amex, and 

NYSE Arca is required under Section 

6(b)(1) of the Act 16 to enforce 

compliance by its members, and persons 

associated with its members, with the 

provisions of the Act, Commission rules 

and regulations thereunder, and its own 

rules. In addition, brokers that trade 

ETFS Options will also be subject to 

best execution obligations and FINRA 

rules.17 Applicable exchange rules also 

require that customers receive 

appropriate disclosure before trading 

ETFS Options.18 Further, brokers 

opening accounts and recommending 

options transactions must comply with 

relevant customer suitability 

standards.19

ETFS Options will trade as options 

under the trading rules of each of the 

exchanges. These rules, among other 

things, are designed to avoid trading 


sroberts on DSKD5P82C1PROD with NOTICES
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