Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 81687 

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

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

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(6). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6)(iii). 

10For purposes only of waiving the 30-day 

operative delay, 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. 

11Ac1–1 within Rule 7.17(b) with Rule 

602. 

2. Statutory Basis 

The proposed rule changes are 

consistent with Section 6(b) 4 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and further the 

objectives of Section 6(b)(5),5 in 

particular. By amending various NYSE 

Arca Equities rules in order to 

harmonize them with FINRA rules and 

federal rules and to eliminate confusing 

or duplicative language and 

unnecessary references to terms or 

systems that are now obsolete, the 

proposed rule changes are 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 

and a national market system. 

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. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 6 and Rule 

19b–4(f)(6) thereunder.7 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 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, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 8 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),9 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission has determined that 

waiving the 30-day operative delay of 

the Exchange’s proposal is consistent 

with the protection of investors and the 

public interest because such waiver will 

allow the Exchange to promptly 

harmonize its rules with FINRA rules 

and and to correct non-substantive 

changes, thereby avoiding further 

potential confusion and ensuring that 

the rule text of the Exchange is 

accurate.10 Therefore, the Commission 

designates the proposed rule change to 

be operative upon filing. 

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–NYSEArca–2010–88 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–NYSEArca–2010–88. 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 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–NYSEArca–2010–88 and 

should be submitted on or before 

January 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32607 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63591; File No. SR–BX– 

2010–091] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Continue 

the Practice Governing the Directed 

Order Process on BOX 

December 21, 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 

16, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 


emcdonald on DSK2BSOYB1PROD with NOTICES
81688 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 

3Capitalized terms not otherwise defined herein 

shall have the meanings prescribed within the BOX 

Rules. 4See Securities Exchange Act Release No. 63539 

(December 14, 2010) (SR–BX–2010–079). 5See Securities Exchange Act Release No. 63540 

(December 14, 2010) (SR–BX–2010–080). 

6See Securities Exchange Act Release Nos. 63540 

(December 14, 2010) (SR–BX–2010–080) and 63539 

(December 14, 2010) (SR–BX–2010–079). 

7See Securities Exchange Act Release No. 63539 

(December 14, 2010) (SR–BX–2010–079). 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10See Securities Exchange Act Release No. 63539 

(December 14, 2010) (SR–BX–2010–079). 

11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(6). 13 Id. 14 17 CFR 240.19b–4(f)(6)(iii). 15 Id. 16For 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). 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Chapter VI, Section 5 (Obligations of 

Market Makers) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to extend the date of 

effectiveness of the Directed Order 3

process (‘‘Pilot Program’’) from 

December 31, 2010, to June 30, 2011 

while the Commission considers the 

Exchange’s proposal to amend the BOX 

Rules to permit Executing Participants 

(‘‘EPs’’) to only receive Directed Orders 

through the BOX Trading Host from 

Order Flow Providers (‘‘OFPs’’) whom 

the EP has designated.4 The text of the 

proposed rule change is available on the 

Exchange’s website at http:// 

nasdaqomxbx.cchwallstreet.com/

NASDAQOMXBX/Filings/, on the 

Commission’s Web site at http:// 

www.sec.gov, at 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On December 13, 2010, the Exchange 

filed SR–BX–2010–080, a proposal to 

amend the BOX Rules to continue the 

practice governing the Exchange’s 

Directed Order process on BOX.5

Specifically, pursuant to SR–BX–2010– 

080, the BOX Rules state that the BOX 

Trading Host identifies to an Executing 

Participant the identity of the firm 

entering the Directed Order on BOX. 

The amended rule as set forth in SR– 

BX–2010–080 was to be effective on a 

pilot basis until December 31, 2010, 

while the Commission considered the 

Exchange’s proposal to amend the BOX 

Rules to permit EPs to only receive 

Directed Orders through the BOX 

Trading Host from OFPs whom the EP 

has designated.6

The purpose of this proposed rule 

change is to amend Chapter VI, Section 

5(c)(i) of the BOX Rules to extend the 

date of effectiveness of the amended 

Directed Order rule from December 31, 

2010, to June 30, 2011. This extension 

of the pilot period will afford the 

Commission the necessary time to 

consider the Exchange’s proposal 

SR–BX–2010–079 referenced above.7 In 

the event the Commission reaches a 

decision with respect to Exchange 

proposal SR–BX–2010–079 before June 

30, 2011, the proposed Pilot Program 

governing the Directed Order process on 

BOX will cease to be effective at the 

time of that decision. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

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 

and a national market system, and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes that the proposed 

extension of the pilot period will afford 

the Commission the necessary time to 

consider the Exchange’s proposal 

SR–BX–2010–079 which would amend 

the BOX Rules to permit EPs to only 

receive Directed Orders through the 

BOX Trading Host from OFPs whom the 

EP has designated.10 Additionally, the 

Exchange believes that the proposed 

extension will allow the Directed Order 

Pilot Program to remain in effect on 

BOX without interruption. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 11 of the Act and 

Rule 19b–4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay, as 

specified in Rule 19b–4(f)(6)(iii),15

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 such waiver 

would continue the pilot for Directed 

Orders that has operated under SR–BX– 

2010–080. A waiver would therefore 

continue to permit the Directed Order 

Pilot Program to remain in effect on 

BOX without 

interruption.16 Accordingly, the 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 81689 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Commentary .11 to Rule 1012 and Rule 

1101A(b)(vi). See Securities Exchange Act Release 

No. 62296 (June 15, 2010), 75 FR 35115 (June 21, 

2010) (SR–Phlx–2010–84) (notice of filing and 

immediate effectiveness permanently establishing 

STO Program on the Exchange). Other exchanges 

have also established permanent short term option 

programs. See Securities Exchange Act Release Nos. 

59824 (April 27, 2009), 74 FR 20518 (May 4, 2009) 

(SR–CBOE–2009–018) (approval order permanently 

establishing short term option program); 62444 (July 

2, 2010), 75 FR 39595 (July 9, 2010) (SR–ISE–2010– 

72) (approval order [sic] permanently establishing 

short term option program); 62297 (June 15, 2010), 

75 FR 35111 (June 21, 2010) (SR–NASDAQ–2010– 

073) (notice of filing and immediate effectiveness 

permanently establishing short term option 

program); 62296 (June 15, 2010), 75 FR 35111 (June 

21, 2010) [sic] (SR–Arca–2010–059) (notice of filing 

and immediate effectiveness permanently 

establishing short term option program); 62296 

(June 15, 2010), 75 FR 35111 (June 21, 2010) [sic] 

(SR–Amex–2010–062) (notice of filing and 

immediate effectiveness permanently establishing 

short term option program); and 62505 (July 15, 

2010), 75 FR 42792 (July 22, 2010) (SR–BX–2010– 

047) (approval order [sic] permanently establishing 

short term option program). 

4Short Term Option Series are series in an option 

class that is approved for listing and trading on the 

Exchange in which the series is opened for trading 

on any Thursday or Friday that is a business day 

and that expires on the Friday of the next business 

week. If a Thursday or Friday is not a business day, 

the series may be opened (or shall expire) on the 

first business day immediately prior to that 

Thursday or Friday, respectively. Rules 1000(b)(44), 

1000A(b)(16), Commentary .11 to Rule 1012 and 

Rule 1101A(b)(vi). 

Commission designates the proposed 

rule change operative upon filing with 

the Commission. 

At any time within 60 days of the 

filing of such 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–BX–2010–091 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–BX–2010–091. 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 

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 website 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 

publicly available. All submissions 

should refer to File Number SR–BX– 

2010–091 and should be submitted on 

or before January 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32615 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63594; File No. SR–Phlx– 

2010–183] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NASDAQ OMX PHLX LLC To Expand 

Its Short Term Option Program 

December 21, 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 

15, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 

The Exchange is filing with the 

Commission a proposal to expand the 

Short Term Option Program (‘‘STO 

Program’’ or ‘‘Program’’) 3 so that the 

Exchange may select fifteen option 

classes on which Short Term Option 

Series 4 may be opened. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend Rule 1012 to expand 

the STO Program so that the Exchange 

may select fifteen option classes on 

which Short Term Option Series may be 

opened. 

The STO Program is codified in 

Commentary .11 to Rule 1012 and Rule 

1101A(b)(vi). These sections state that 

after an option class has been approved 

for listing and trading on the Exchange, 

the Exchange may open for trading on 

any Thursday or Friday that is a 

business day series of options on no 

more than five option classes that expire 

on the Friday of the following business 

week that is a business day. In addition 

to the five-option class limitation, there 


emcdonald on DSK2BSOYB1PROD with NOTICES