77932 Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices 

3For example, the Chicago Board Options 

Exchange, Inc. (‘‘CBOE’’) currently charges a 

marketing fee of up to $0.65 per contract for 

customer orders executed in its Automated 

Improvement Mechanism. See CBOE Fees Schedule 

dated October 29, 2010. 

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

5 17 CFR 240.19b–4(f)(2). 

6The text of the proposed rule change is available 

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

www.sec.gov. 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

office of the Exchange, 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 

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 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 

ISE currently has a payment-for-orderflow (‘‘PFOF’’) program pursuant to 

which the Exchange charges a PFOF fee 

of $0.65 per contract for all options 

classes that are not in the penny pilot 

program and are not subject to the 

Exchange’s maker/taker fees. For penny 

pilot classes, the Exchange charges a 

PFOF fee of $0.25 per contract. The 

Exchange’s PFOF fee currently does not 

apply to market makers executing a 

Public Customer Order in the 

Exchange’s Price Improvement 

Mechanism (‘‘PIM’’). For competitive 

reasons, the Exchange now proposes to 

apply its PFOF fee for Public Customer 

Orders executed in the Exchange’s PIM. 

As a result of this change, ISE will be 

more competitive with the PFOF fee 

that at least one other options 

exchange 3 assesses for these types of 

orders. This proposed fee change will 

also allow ISE market makers to better 

compete for order flow. 

The Exchange has designated this 

proposal to be operative on December 1, 

2010. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change is 

the requirement under Section 6(b)(4) 

that an exchange have an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. In 

particular, the proposed fee change will 

allow the Exchange and its market 

makers to better compete for order flow 

and thus enhance competition. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is 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 has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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) of 

the Act 4 and Rule 19b–4(f)(2) 

thereunder 5 because it establishes a 

due, fee, or other charge imposed on its 

members by ISE. 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. 

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–ISE–2010–113 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–ISE–2010–113. 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,6 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–ISE– 

2010–113 and should be submitted on 

or before January 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31328 Filed 12–13–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63475; File No. SR– 

NYSEAMEX–2010–114] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Reestablishing a Pilot 

Program Relating to Cabinet Trades 

Until June 1, 2011 

December 8, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices 77933 

3See Securities Exchange Act Release No. 61726 

(March 17, 2010), 75 FR 14234 (March 24, 2010) 

(SR–NYSE Amex–2010–21). 

4See Securities Exchange Act Release No. 62192 

(May 28, 2010), 75 FR 31828 (June 4, 2010) (SR– 

CBOE–2010–052). 

5Currently the $1 cabinet trading procedures are 

limited to options classes traded in $0.05 or $0.10 

standard increment. The $1 cabinet trading 

procedures are not available in Penny Pilot Program 

classes because in those classes an option series can 

trade in a standard increment as low as $0.01 per 

share (or $1.00 per option contract with a 100 share 

multiplier). Because the instant rule change would 

allow trading below $0.01 per share (or $1.00 per 

option contract with a 100 share multiplier), the 

procedures would be made available for all classes, 

including those classes participating in the Penny 

Pilot Program. 

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

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

notice is hereby given that on December 

2, 2010, NYSE Amex LLC (‘‘Exchange’’ 

or ‘‘NYSE Amex’’) 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 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 establish 

and extend its program that allows 

transactions to take place at a price that 

is below $1 per option contract until 

June 1, 201 [sic]. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to reestablish the Pilot Program 3 under Rule 

968NY to allow accommodation 

transactions (‘‘Cabinet Trades’’) to take 

place at a price that is below $1 per 

option contract, and to extend the 

program to June 1, 2011. The Exchange 

proposes to extend the program to the 

same date as The Chicago Board 

Options Exchange (‘‘CBOE’’).4 The Pilot 

Program expired on July 1, 2010. 

An ‘‘accommodation’’ or ‘‘cabinet’’ 

trade refers to trades in listed options on 

the Exchange that are worthless or not 

actively traded. Cabinet trading is 

generally conducted in accordance with 

the Exchange Rules, except as provided 

in Exchange Rule 968NY Cabinet Trades 

(Accommodation Transactions), which 

sets forth specific procedures for 

engaging in cabinet trades. Rule 968NY 

currently provides for cabinet 

transactions to occur via open outcry at 

a cabinet price of a $1 per option 

contract in any options series open for 

trading in the Exchange, except that the 

Rule is not applicable to trading in 

option classes participating in the 

Penny Pilot Program. Under the 

procedures, bids and offers (whether 

opening or closing a position) at a price 

of $1 per option contract may be 

represented in the trading crowd by a 

Floor Broker or by a Market-Maker or 

provided in response to a request by a 

Trading Official, a Floor Broker or a 

Market-Maker, but must yield priority to 

all resting orders in the Cabinet (those 

orders held by the Trading Official, and 

which resting cabinet orders may be 

closing only). So long as both the buyer 

and the seller yield to orders resting in 

the cabinet book, opening cabinet bids 

can trade with opening cabinet offers at 

$1 per option contract. 

The Exchange temporarily amended 

the procedures through July 1, 2010 to 

allow transactions to take place in open 

outcry at a price of at least $0 but less 

than $1 per option contract. These lower 

priced transactions were permitted to be 

traded pursuant to the same procedures 

applicable to $1 cabinet trades, except 

that (i) bids and offers for opening 

transactions were only permitted to 

accommodate closing transactions in 

order to limit use of the procedure to 

liquidations of existing positions, and 

(ii) the procedures were also made 

available for trading in option classes 

participating in the Penny Pilot 

Program.5 The Exchange believed (and 

continues to believe) that allowing a 

price of at least $0 but less than $1 

would better accommodate the closing 

of options positions in series that were 

worthless or not actively traded, 

particularly due to recent market 

conditions which had resulted in a 

significant number of series being outof-the-money. For example, a market 

participant might have a long position 

in a call series with a strike price of 

$100 and the underlying stock might be 

trading at $30. In such an instance, there 

might not otherwise be a market for that 

person to close-out the position even at 

the $1 cabinet price (e.g., the series 

might be quoted no bid). 

As with other accommodation 

liquidations under Rule 968NY, 

transactions that occur for less than $1 

will not be disseminated to the public 

on the consolidated tape. In addition, as 

with other accommodation liquidations 

under Rule 968NY, the transactions will 

be exempt from the Consolidated 

Options Audit Trail (‘‘COATS’’) 

requirements of Exchange Rule 955NY. 

Order Format and System Entry 

Requirements. However, the Exchange 

will maintain quotation, order and 

transaction information for the 

transactions in the same format as the 

COATS data is maintained. In this 

regard, all transactions for less than $1 

must be reported to the Exchange 

following the close of each business 

day. 

The Pilot Program lapsed on July 1, 

2010. The Exchange is proposing to 

reinstate the Program at this time to be 

in place for end-of-year liquidations. 

During the period from July 1 to date, 

no sub-penny cabinet trades were 

executed on the Exchange. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 6 of the Securities Exchange Act of 

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

the objectives of Section 6(b)(5) 7 in 

particular in that it is designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that allowing for liquidations at a price 

less than $1 per option contract will 

better facilitate the closing of options 

positions that are worthless or not 

actively trading, especially in Penny 

Pilot issues where Cabinet Trades are 

not otherwise permitted. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 


srobinson on DSKHWCL6B1PROD with NOTICES
77934 Federal Register / Vol. 75, No. 239 / Tuesday, December 14, 2010 / Notices 

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

9 17 CFR 240.19b–4(f)(6). 

10 In addition, Rule 19b–4(f)(6) provides that the 

Exchange must provide 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. The 

Exchange has satisfied this requirement. 

11See CBOE Rule 6.54, Interpretations and 

Policies .03. 

12For 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). 

13 15 U.S.C. 78s(b)(3)(C). 14 17 CFR 200.30–3(a)(12). 

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 8 and Rule 19b–4(f)(6) 

thereunder 9 because the proposal does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) by its 

terms, 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.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay period. The Commission hereby 

grants the request. The Commission 

notes that the proposal is nearly 

identical to the rules of another 

exchange.11 Therefore, the Commission 

believes it is consistent with the 

protection of investors and the public 

interest to waive the 30-day operative 

delay and designates the proposal as 

operative upon filing.12

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.13

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–2010–114 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–2010–114. 

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– 

NYSEAmex–2010–114 and should be 

submitted on or before January 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31290 Filed 12–13–10; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Small Business Information Security 

Task Force 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of meeting minutes. 

SUMMARY: The SBA is issuing this notice 

to publish meeting minutes for the 

Small Business Information Security 

Task Force Meeting. 

DATES: 1 p.m., Wednesday, November 

10, 2010. 

ADDRESSES: The meeting was held via 

teleconference. 

SUPPLEMENTARY INFORMATION: Pursuant 

to section 507(i)(4)(A) of the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009, SBA submits the 

meeting minutes for the second meeting 

of the Small Business Information 

Security Task Force. Chairman Rusty 

Pickens called the meeting to order on 

November 10, 2010 at 1 p.m. Roll call 

was taken and a quorum was 

established. An overview of the last 

meeting was provided. Introductions 

were provided for Dr. Babita Gupta, and 

Katherine White, both of whom were 

unable to attend the first meeting. Dr. 

Gupta and Ms. White then each 

provided a brief overview to the group. 

Ms. Frances Henderson provided that 

the focus for today is on what resources 

the group will need going forward in 

terms of personnel, systems, and 

software as there will be lots of material 

to collate before being able to produce 

a final report. Input to define tasks and 

how to keep the group on schedule were 

sought. It was indicated the work plan 

will continue to be developed. 

Mr. Pickens recapped the Task Force 

scope of work and asked everyone to 

keep the charter readily available and to 

review Section 507 of the authorizing 

law as it provides the requirements for 

the work the Task Force has been 

directed to complete. The focus is to 

examine resources available nationwide 

for small business on privacy and 

technology concerns and then collate 

the data. A gap analysis then needs to 

be performed to determine how effective 

the programs are and provide a report to 

the Administrator with 

recommendations of what can be done 

to improve on them. The Task Force has 

until the end of 2013 to complete the 

report but it is hoped that the work 

could be completed sooner. It was also 

clarified that there is no authorization 

for the Task Force to establish any new 

programs; the Task Force has only been 

directed to report to the Administrator 

their recommendations. 


srobinson on DSKHWCL6B1PROD with NOTICES