8768 Federal Register / Vol. 75, No. 37 / Thursday, February 25, 2010 / Notices 

29 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 No. 61319 

(January 8, 2010), 75 FR 2897 (‘‘Notice’’). 

4 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition and capital formation. See 

15 U.S.C. 78c(f). 

5 15 U.S.C. 78o–3(b)(6). 

expand the SOX index will allow the 

Exchange to seamlessly continue listing 

this premiere index in a manner that 

even more effectively reflects the 

semiconductor sector. 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve such proposed rule change, or 

(b) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–Phlx-2010–20 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–Phlx-2010–20. 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–Phlx2010–20 and should be submitted on or 

before March 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3777 Filed 2–24–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61542; File No. SR–FINRA– 

2009–093] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Repeal 

NASD Rule 2450 (Installment or Partial 

Sales), NASD Interpretive Material 

2830–2 (‘‘IM–2830–2’’) (Maintaining the 

Public Offering Price) and Incorporated 

NYSE Rule 413 (Uniform Forms) as 

Part of the Process of Developing a 

Consolidated FINRA Rulebook 

February 18, 2010. 

On December 23, 2009, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association of 

Securities Dealers, Inc. (‘‘NASD’’)) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to repeal NASD Rule 2450 

(Installment or Partial Sales), NASD 

Interpretive Material 2830–2 (‘‘IM– 

2830–2’’) (Maintaining the Public 

Offering Price), and Incorporated NYSE 

Rule 413 (Uniform Forms), as part of the 

process of developing a consolidated 

FINRA rulebook. The proposed rule 

change was published for comment in 

the Federal Register on January 19, 

2010.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change. 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

association.4 In particular, the 

Commission finds that the proposed 

rule change is consistent with the 

provisions of Section 15A(b)(6) of the 

Act,5 which requires, among other 

things, that FINRA rules be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. 

The Commission believes that the 

proposed rule change is appropriate to 

eliminate confusion and reduce 

regulatory overlap by eliminating rules 

that are outdated, duplicative of other 

FINRA rules, or addressed by the 

Federal rules or regulations. As further 

described in the Notice, FINRA stated 

that NASD Rule 2450 should be 

repealed in light of the explicit 

provisions in Regulation T requiring the 

deposit of sufficient funds within the 

specified payment period. FINRA also 

stated that the hypothecation 

prohibition in NASD Rule 2450 should 

be repealed because it would no longer 

be relevant as it is predicated on a 

partial or installment payment under 

the rule. In addition, FINRA noted that, 

since the adoption of NASD IM–2830– 

2, the laws governing broker-dealers 

have changed, and today virtually all 

broker-dealers doing business with the 

public are FINRA members. FINRA also 

noted that NASD IM–2830–2 largely 

duplicates the requirement in Section 

22(d) of the Investment Company Act to 

sell mutual fund shares to investors at 

the current public offering price. As a 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 37 / Thursday, February 25, 2010 / Notices 8769 

6 15 U.S.C. 78s(b)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

See BATS Rule 1.5(n). 

4Securities Exchange Act Release No. 61260 

(December 30, 2009), 75 FR 1109 (‘‘Notice’’). 

5 In Amendment No. 1, the Exchange replaced the 

bracketed ‘‘[September 1, 2009]’’ with ‘‘[February 1, 

2010]’’ in the proposed rule text to reflect the fact 

that the current fee schedule is dated February 1, 

2010. Because the change in Amendment No. 1 is 

technical in nature, it is not subject to notice and 

comment. 

6The Exchange states that a physical port is used 

by a Member or non-member to literally plug into 

the Exchange at the data centers where the 

Exchange’s servers are located (i.e., either a crossconnection or a private line Ethernet connection to 

the Exchange’s network within the data center). 

7The Commission notes that BATS will 

implement the proposed physical port fees 

commencing on the first day of the month 

immediately following Commission approval of this 

proposed rule change (or on the date of approval, 

if on the first business day of a month). See Notice, 

supra note 4. 

8A ‘‘pair’’ of ports refers to one port at the site 

of the Exchange’s primary data center (including 

the expansion space located adjacent to such data 

center) and one port at the site of the Exchange’s 

secondary data center. 

9 In approving this proposed rule change the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78f(b)(8). 

13 17 CFR 242.603(a). 

result, FINRA stated that NASD IM– 

2830–2 no longer serves any useful 

purpose, and proposed not to 

incorporate its content into the 

consolidated FINRA rulebook. 

Furthermore, FINRA proposed to repeal 

Incorporated NYSE Rule 413, which 

requires members to adopt such uniform 

forms as the NYSE may prescribe to 

facilitate the orderly flow of transactions 

within the financial community. FINRA 

stated that its By-Laws contain several 

provisions by which FINRA may 

prescribe processes for members’ 

activities, including the use of uniform 

forms. Thus, FINRA stated that 

Incorporated NYSE Rule 413 is 

duplicative of these provisions and 

should be repealed. In approving this 

proposed rule change, the Commission 

notes that FINRA members and their 

associated persons are required to 

comply with all applicable Federal 

securities laws and that FINRA, as a 

self-regulatory organization, has the 

obligation to have the capacity to 

enforce compliance by its members and 

their associated persons with the Act 

and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–FINRA– 

2009–093) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–3779 Filed 2–24–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61545; File No. SR–BATS– 

2009–032] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Order Approving 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, To Amend 

BATS Fee Schedule To Impose Fees 

for Physical Ports Used To Connect to 

BATS Exchange 

February 19, 2010. 

On December 18, 2009, BATS 

Exchange, Inc. (‘‘BATS’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend the fee schedule 

applicable to Members3 and nonmembers of the Exchange to begin 

charging for certain physical ports used 

to connect to the Exchange’s systems. 

The proposed rule change was 

published for comment in the Federal 

Register on January 8, 2010.4 The 

Commission received no comments 

regarding the proposal. On February 9, 

2010, the Exchange filed Amendment 

No. 1 to the proposed rule change.5 This 

order grants approval of the proposed 

rule change, as modified by Amendment 

No. 1. 

BATS proposes to begin charging a 

monthly fee for certain physical ports6

used to connect to the Exchange’s 

system for order entry and receipt of 

data from the Exchange.7 BATS states 

that under its current policy all physical 

ports are provided free of charge but 

Members and non-members are only 

permitted to establish up to four such 

physical port pairs.8 Under the 

proposal, BATS will continue to 

provide four pairs of physical ports 

without charge to any Member or nonmember that has been approved to 

connect to the Exchange. In addition, 

the Exchange will permit Members and 

non-members to establish additional 

physical ports at a charge of $2,000 for 

each additional single physical port 

provided by the Exchange to any 

Member or non-member in any data 

center. The proposal applies to all 

Exchange constituents with physical 

connections, including Members that 

obtain ports for direct access to the 

Exchange, non-member service bureaus 

that act as a conduit for orders entered 

by Exchange Members that are their 

customers, Sponsored Participants, and 

market data recipients. 

The Exchange states that very few 

Members or non-members require four 

physical ports for their operations 

related to the Exchange or would utilize 

more than four physical ports, and thus, 

the Exchange believes that the proposal 

should not affect many of the 

Exchange’s constituents. However, the 

Exchange believes that Members and 

non-members that wish to pay for 

additional physical ports outside of 

those provided for free should have the 

ability to do so. 

The Commission has carefully 

reviewed the proposed rule change and 

finds that it is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.9

Specifically, the Commission finds that 

the proposal is consistent with Section 

6(b)(4) of the Act,10 which requires the 

equitable allocation of reasonable dues, 

fees, and other charges among Exchange 

Members and other persons using the 

Exchange’s facilities, and Section 6(b)(5) 

of the Act,11 which requires, among 

other things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, 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, and 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. The 

Commission also finds that the 

proposed rule change is consistent with 

Section 6(b)(8) of the Act,12 which 

requires that the rules of an exchange 

not impose a burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. Finally, the 

Commission finds that the proposed 

rule change is consistent with Rule 

603(a) of Regulation NMS,13 which 

requires an exclusive processor that 

distributes information with respect to 

quotations for or transactions in an NMS 

stock to do so on terms that are fair and 

reasonable and not unreasonably 

discriminatory. 

The Commission believes that the 

proposed physical port fees are 

equitably allocated among Members and 


jlentini on DSKJ8SOYB1PROD with NOTICES