Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 76767 

8The text of the proposed rule change is available 

on the Commission’s Web site at http:// 

www.sec.gov. 

9 17 CFR 200.30–3(a)(12). 

1See CBOE Fees Schedule, Section 19. HAL is a 

system for automated handling of electronically 

received orders that are not automatically executed 

upon receipt by the Hybrid System. CBOE Rule 

6.14A governs the operation of the HAL system 

under the Options Order Protection and Locked/ 

Crossed Plan. 

2 15 U.S.C. 78f(b). 

3 15 U.S.C. 78f(b)(4). 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(2). 

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.8 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–BX– 

2010–082 and should be submitted on 

or before December 30, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30965 Filed 12–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63426; File No. SR–CBOE– 

2010–107] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Amendment 

of the Hybrid Agency Liaison Step-Up 

Rebate 

December 3, 2010. 

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

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1), notice is hereby given 

that on December 1, 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 and II below, which Items have 

been prepared by CBOE. 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 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend the Hybrid Agency 

Liaison (‘‘HAL’’) step-up rebate. The text 

of the proposed rule change 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, 

CBOE 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. CBOE 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, Proposed Rule 

Change 

1. Purpose 

In order to incent market makers to 

execute orders at CBOE versus routing 

orders to other exchanges pursuant to 

the Options Order Protection and 

Locked/Crossed Plan, the Exchange 

provides a rebate to market-makers that 

‘‘step-up’’ and trade all or part of certain 

orders on the HAL system.1 Specifically, 

the Exchange rebates to a market-maker 

$.20 per contract against transaction fees 

generated from a transaction on the HAL 

system in a penny pilot class, provided 

that at least 60% of the market-maker’s 

quotes in that class (excluding quotes in 

LEAPS series) in the prior calendar 

month were on one side of the national 

best bid or offer (‘‘NBBO’’) price. Marketmakers not meeting this 60% qualifying 

threshold are not eligible to receive a 

rebate. The Exchange proposes to 

reduce the amount of the rebate from 

$.20 per contract to $.15 per contract 

effective December 1, 2010. All other 

aspects of the rebate program would 

remain unchanged. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),2 in general, and furthers 

the objectives of Section 6(b)(4) 3 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its trading permit holders. The 

Exchange believes the proposed rebate 

is reasonable because it provides an 

incentive for market-makers to compete 

better for order flow in the penny pilot 

classes. The Exchange believes the 

proposed rebate is equitable because it 

applies equally to all market makers that 

trade orders in penny pilot classes on 

the HAL system and that meet the 

qualifying quoting criteria. 

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 that is not 

necessary or appropriate in furtherance 

of 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 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 4 and subparagraph (f)(2) of 

Rule 19b–4 5 thereunder. 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. 

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. 


erowe on DSK5CLS3C1PROD with NOTICES
76768 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Notices 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4http://www.sec.gov. 

5The Anti-Internalization Group identifier is a 

unique two character ID that an Exchange Member 

selects. 

6Any Exchange Member that has an MPID issued 

by FINRA is identified in the Exchange’s internal 

systems by that MPID. 

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–2010–107 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. 

All submissions should refer to File 

Number SR–CBOE–2010–107. 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 CBOE. 

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–2010–107 and 

should be submitted on or before 

December 30, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30945 Filed 12–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63427; File No. SR–EDGA– 

2010–19] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

11.9 To Offer Anti-Internalization 

Qualifier (‘‘AIQ’’) Functionality to 

Exchange Users 

December 3, 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 

30, 2010, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGA’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as constituting a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 under the 

Act.3 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 offer AntiInternalization Qualifier (‘‘AIQ’’) 

functionality to Exchange Users 

pursuant to proposed Rule 11.9(f). The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

http://www.directedge.com, at the 

Exchange’s principal office, at the 

Public Reference Room of the 

Commission, and the Commission’s 

Web site.4

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to offer AntiInternalization Qualifier (‘‘AIQ’’) 

functionality to Exchange Users 

pursuant to proposed Rule 11.9(f). 

Background 

The proposed AIQ modifiers are 

designed to prevent two orders with the 

same Unique Identifier (as defined 

below) from executing against each 

other. The Exchange proposes to offer 

five AIQ modifiers that will be 

implemented and can be set at the 

market participant identifier (‘‘MPID’’), 

the Exchange Member identifier or the 

Anti-Internalization Group identifier 

level 5 (any such identifier, a ‘‘Unique 

Identifier’’).6 With one exception, 

described below, the AIQ modifier on 

the incoming order controls the 

interaction between two orders marked 

with AIQ modifiers from the same 

Unique Identifier. The five AIQ 

modifiers are discussed more 

thoroughly below. 

AIQ Cancel Newest (‘‘CN’’) 

An incoming order marked with the 

CN modifier will not execute against 

opposite side resting interest marked 

with any AIQ modifier originating from 

the same Unique Identifier. The 

incoming order marked with the CN 

modifier will be cancelled back to the 

originating User. The resting order 

marked with an AIQ modifier, which 

otherwise would have interacted with 

the incoming order from the same 

Unique Identifier, will remain on the 

EDGA book (‘‘Book’’). 

AIQ Cancel Oldest (‘‘CO’’) 

An incoming order marked with the 

CO modifier will not execute against 

opposite side resting interest marked 

with any AIQ modifier originating from 

the same Unique Identifier. The resting 

order marked with the AIQ modifier, 

which otherwise would have interacted 

with the incoming order by the same 

Unique Identifier, will be cancelled 

back to the originating User. The 

incoming order marked with the CO 

modifier will remain on the Book. 


erowe on DSK5CLS3C1PROD with NOTICES