78780 Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Linkage’’ refers to the Options Order 

Protection and Locked/Crossed Market Plan. 

4The ORF was established in October 2008 as a 

replacement of Registered Representative fees. See 

Securities Exchange Act Release No. 58817 (October 

20, 2008), 73 FR 63744 (October 27, 2008). The ORF 

was to be effective January 1, 2009. In December 

2008 and January 2009, the Exchange filed 

proposed rule changes waiving the ORF for January 

and February, to allow additional time for the 

Exchange, OCC and firms to put in place 

appropriate procedures to implement the fee. See 

Securities Exchange Act Release No. 59182 

(December 30, 2008), 74 FR 730 (January 7, 2009), 

and Securities Exchange Act Release No. 59355 

(February 3, 2009), 74 FR 6677 (February 10, 2009). 

The ORF was amended three additional times in 

2009. See Securities Exchange Act Release No. 

59427 (February 20, 2009), 74 FR 9013 (February 

27, 2009); Securities Exchange Act Release No. 

60093 (June 10, 2009), 74 FR 28749 (June 17, 2009); 

and Securities Exchange Act Release No. 60513 

(August 17, 2009), 74 FR 42719 (August 24, 2009). 

The ORF was amended in March 2010 to eliminate 

a reference to a one-cent charge per trade. See 

Securities Exchange Act Release No. 61641 (March 

3, 2010), 75 FR 11220 (March 10, 2010). 

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

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(2). 

Sarbanes-Oxley Act and the 

Commission’s budget rule. Accordingly, 

It is ordered, pursuant to Section 109 

of the Sarbanes-Oxley Act, that the 

PCAOB’s supplemental budget request 

to create the Office of Outreach in 2010 

is approved. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–31537 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63524; File No. SR–CBOE– 

2010–110] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Options 

Regulatory Fee 

December 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 December 

6, 2010, the 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 increase its Options 

Regulatory Fee. 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’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, 

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, the Proposed Rule 

Change 

1. Purpose 

The Exchange charges an Options 

Regulatory Fee (‘‘ORF’’) of $.004 per 

contract to each Trading Permit Holder 

for all options transactions executed or 

cleared by the Trading Permit Holder 

that are cleared by The Options Clearing 

Corporation (‘‘OCC’’) in the customer 

range, excluding Linkage 3 orders, 

regardless of the exchange on which the 

transaction occurs. The ORF is collected 

indirectly from Trading Permit Holders 

through their clearing firms by OCC on 

behalf of the Exchange.4

The Exchange has reevaluated the 

current amount of the ORF in 

connection with its annual budget 

review. In light of increased regulatory 

costs and expected volume levels for 

2011, the Exchange proposes to increase 

the ORF from $.004 per contract to 

$.0045 per contract. The proposed fee 

change would become operative on 

January 3, 2011. 

The Exchange monitors the amount of 

revenue collected from the ORF to 

ensure that it, in combination with its 

other regulatory fees and fines, does not 

exceed regulatory costs. The Exchange 

will continue to monitor regulatory 

costs and revenues at a minimum on an 

annual basis. If the Exchange 

determines regulatory revenues exceed 

regulatory costs, the Exchange would 

adjust the ORF by submitting a fee 

change filing to the Commission. The 

Exchange notifies Trading Permit 

Holders of adjustments to the ORF via 

regulatory circular. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),5 in general, and furthers 

the objectives of Section 6(b)(4) 6 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 ORF is 

reasonable because revenue from the 

proposed ORF, in combination with the 

Exchange’s other regulatory fees and 

fines, will not exceed regulatory costs. 

The Exchange believes the proposed 

ORF is equitable because it would apply 

uniformly to all Trading Permit Holders 

who are being assessed the ORF. 

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 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 

The foregoing rule change has become 

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

of the Act 7 and subparagraph (f)(2) of 

Rule 19b–4 8 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. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 78781 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010). 

4The term ‘‘Listing Markets’’ refers collectively to 

NYSE, NYSE Amex, NYSE Arca, and NASDAQ. 

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–2010–110 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–2010–110. 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 No. SR–CBOE– 

2010–110 and should be submitted on 

or before January 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–31625 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63527; File No. SR– 

BX–2010–088] 

Self-Regulatory Organizations; 

NASDAQ OMX BX; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Period of the Trading Pause for 

Individual Stocks Contained in the 

Standard & Poor’s 500 Index, Russell 

1000 Index, and Specified Exchange 

Traded Products That Experience a 

Price Change of 10% or More During a 

Five-Minute Period 

December 10, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

7, 2010, NASDAQ OMX BX (‘‘BX’’ or 

‘‘Exchange’’) 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 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 extend the 

pilot period of the trading pause for 

individual stocks contained in the 

Standard & Poor’s 500 Index, Russell 

1000 Index, and specified Exchange 

Traded Products that experience a price 

change of 10% or more during a fiveminute period, so that the pilot will 

now expire on April 11, 2011. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics; proposed deletions are in 

[brackets]. 

* * * * * 

IM–4120–3. Circuit Breaker Securities 

Pilot 

The provisions of paragraph (a)(11) of 

this Rule shall be in effect during a pilot 

set to end on April 11, 2011 [December 

10, 2010]. During the pilot, the term 

‘‘Circuit Breaker Securities’’ shall mean 

the securities included in the S&P 500®

Index, the Russell 1000 Index, as well 

as a pilot list of Exchange Traded 

Products. 

* * * * * 

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 

Exchange 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 

On June 10, 2010, the Commission 

granted accelerated approval, for a pilot 

period to end December 10, 2010, for a 

proposed rule change submitted by the 

Exchange, together with related rule 

changes of the BATS Exchange, Inc., 

Chicago Board Options Exchange, 

Incorporated, Chicago Stock Exchange, 

Inc., EDGA Exchange, Inc., EDGX 

Exchange, Inc., International Securities 

Exchange LLC, The NASDAQ Stock 

Market LLC, New York Stock Exchange 

LLC, NYSE Amex LLC, NYSE Arca, Inc., 

and National Stock Exchange, Inc. 

(collectively, the ‘‘Exchanges’’), to pause 

trading during periods of extraordinary 

market volatility in S&P 500 stocks.3

The rules require the Listing Markets 4

to issue five-minute trading pauses for 

individual securities for which they are 

the primary Listing Market if the 

transaction price of the security moves 

ten percent or more from a price in the 

preceding five-minute period. The 

Listing Markets are required to notify 

the other Exchanges and market 

participants of the imposition of a 

trading pause by immediately 

disseminating a special indicator over 

the consolidated tape. Under the rules, 

once the Listing Market issues a trading 

pause, the other Exchanges are required 

to pause trading in the security on their 

markets. On September 10, 2010, the 

Commission approved the respective 

rule filings of the Exchanges to expand 

application of the pilot to the Russell 


srobinson on DSKHWCL6B1PROD with NOTICES