38242 Federal Register / Vol. 74, No. 146 / Friday, July 31, 2009 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

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. 

14 Id. 

15See SR–BATS–2009–025, Item 7. 

16See supra note 10. 

17For the 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). 

18 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(i). 

3 17 CFR 240.19b–4(f)(1). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.13 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 has requested that the 

Commission waive the 30-day operative 

delay. BATS believes that waiver of the 

30-day operative delay will allow the 

Exchange to more promptly implement 

the changes to its system to reject 

market orders outside of Regular 

Trading Hours even if such orders 

would otherwise execute. BATS expects 

to have technological changes in place 

to support the proposed rule change on 

July 24, 2009, and believes that benefits 

to Exchange Users expected from the 

proposed rule change should not be 

delayed.15 In addition, the Commission 

notes that the proposed rule change is 

consistent with the rules of other 

exchanges that prohibit the execution of 

market orders outside of regular trading 

hours.16 Based on the foregoing, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and hereby designates 

the proposal operative upon filing.17

At any time within 60 days of the 

filing of such proposed rule change the 

Commission may summarily abrogate 

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 

No. SR–BATS–2009–025 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 No. 

SR–BATS–2009–025. 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 inspection and copying 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 BATS. 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–BATS–2009–025 and should be 

submitted on or before August 21, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18228 Filed 7–30–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60380; File No. SR–OCC– 

2009–12] 

Self-Regulatory Organizations; the 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change Relating to 

Clearing Cash-Settled Foreign 

Currency Index Options 

July 23, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

July 12, 2009, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which items have been 

prepared primarily by OCC. OCC filed 

the proposed rule change pursuant to 

Section 19(b)(3)(A)(i) of the Act 2 and 

Rule 19b–4(f)(1) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission. 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 proposed rule change would 

clarify that index options cleared by 

OCC may include options on foreign 

currency indexes, including options on 

the International Securities Exchange 

(‘‘ISE’’) Leveraged USD Basket Index. 


PWALKER on DSK8KYBLC1PROD with NOTICES
Federal Register / Vol. 74, No. 146 / Friday, July 31, 2009 / Notices 38243 

4The Commission has modified parts of these 

statements. 

5Although there are eleven countries in the G– 

10, because several of these countries are members 

of the European Union and use the Euro as their 

currency. As a result, there are only seven 

currencies associated with the G–10: US Dollar, 

Euro, Japanese Yen, British Pound, Canadian 

Dollar, Swiss Franc and Swedish Krona. 

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

7 17 CFR 240.19b–4(f)(2). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of such statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

ISE has proposed for trading cashsettled foreign currency index options 

(‘‘Currency Index Options’’) on the ISE 

USD Leveraged Basket Index (‘‘ISE FX 

Index’’). In its rule filing, ISE states that 

the ISE FX Index, which is a foreign 

currency index, tracks two times the 

performance, relative to the U.S. Dollar, 

of a basket of the official currencies 

associated with the other ‘‘Group of 10’’ 

countries (‘‘G–10’’).5 The ISE FX Index 

was created by ISE and will be 

maintained and calculated by an index 

calculation agent based on a 

methodology developed by ISE. The ISE 

FX Index is intended as a benchmark for 

investors interested in the performance 

of the US Dollar versus the currencies 

of other G–10 countries. OCC may clear 

options on other foreign currency 

indexes in the future. 

Currency Index Options are similar to 

other index options cleared by OCC. 

Therefore, OCC believes that the 

provisions of its By-Laws and Rules 

governing index options, as they are 

currently in effect, are sufficient to 

support the clearance and settlement of 

Currency Index Options. The purpose of 

this rule change is to make a purely 

technical amendment to the definition 

of ‘‘index component’’ in Article XVII of 

the By-Laws to make it more transparent 

that index options cleared by OCC may 

include options on foreign currency 

indexes. 

The proposed rule change is 

consistent with the purposes and 

requirements of Section 17A of the Act 

because it is designed to promote the 

prompt and accurate clearance and 

settlement of transactions in, including 

exercises of, foreign currency index 

options, and to foster cooperation and 

coordination with persons engaged in 

the clearance and settlement of such 

transactions, to remove impediments to 

and perfect the mechanism of a national 

system for the prompt and accurate 

clearance and settlement of such 

transactions, and, in general, to protect 

investors and the public interest. The 

proposed rule change accomplishes this 

purpose by applying the same rules and 

procedures to these transactions as OCC 

applies to transactions in other index 

options. The proposed rule change is 

not inconsistent with the existing rules 

of OCC, including any rules proposed to 

be amended. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were not and are 

not intended to be solicited with respect 

to the proposed rule change and none 

have been received. 

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)(i) of the Act 6 and Rule 19b– 

4(f)(1) 7 promulgated thereunder 

because the proposed rule change 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

However, OCC will not begin to clear 

and settle foreign currency index 

options until distribution of a 

supplement to the options disclosure 

document, Characteristics and Risks of 

Standardized Options, addressing such 

options. At any time within sixty days 

of the filing of the proposed rule change, 

the Commission may summarily 

abrogate 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–OCC–2009–12 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–OCC–2009–12. 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 inspection and copying 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 OCC. 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–OCC–2009–12 and should 

be submitted on or before August 21, 

2009. 


PWALKER on DSK8KYBLC1PROD with NOTICES
38244 Federal Register / Vol. 74, No. 146 / Friday, July 31, 2009 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5See Securities Exchange Act Release No. 59393 

(February 11, 2009), 74 FR 7721 (February 19, 2009) 

(SR–Phlx–2009–12) (increasing the Firm-Related 

Equity Option and Index Option Cap to $75,000 and 

exclude JBO participants). 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18273 Filed 7–30–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60379; File No. SR– 

NYSEArca–2009–62] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Amending the Schedule 

of Fees and Charges for Exchange 

Services 

July 23, 2009. 

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 July 1, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘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 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. 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 the section 

of its Schedule of Fees and Charges for 

Exchange Services (the ‘‘Schedule’’). 

Changes to the Schedule pursuant to 

this proposal will be effective and 

operative upon filing. The amended 

section of the Schedule is included as 

Exhibit 5 hereto. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office 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 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

filing is to amend the Schedule to reflect 

new transaction pricing. The Exchange 

proposes to eliminate the facilitation fee 

charged to firms who facilitate their 

customer order flow. Currently, the 

Firm Facilitation Fee is $0.15. The Firm 

Facilitation Fee applies to any 

transaction involving a firm’s 

proprietary trading account, which has 

a customer of that same firm on the 

contra side of the transaction. The 

Exchange also proposes to reduce the 

Broker Dealer and Firm Manual fee from 

$0.26 to $0.25. 

The proposed fees are part of the 

Exchange’s ongoing effort to offer 

attractive transaction rates, and will 

become operative on July 1, 2009. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act, in general, and Section 

6(b)(4), in particular, in that it provides 

for the equitable allocation of dues, fees 

and other charges among its members 

and other market participants that use 

the trading facilities of NYSE Arca. 

The Exchange believes the reduced 

Firm Facilitation Fee is equitable 

because it applies uniformly to all 

similarly situated users, specifically 

firms facilitating customer order flow. 

Reduction of the fee to zero also follows 

precedent currently in place on other 

exchanges that have established fee 

caps.5 The Exchange believes this 

proposal is in fact more equitable than 

fee caps attainable only by large broker 

dealer firms. For example, certain large 

broker dealers are capable of reaching 

the fee cap at certain options exchanges 

on the first day of trading in a given 

month, making their transaction fees 

equal to zero for the remainder of the 

month. This treatment favors larger 

firms capable of reaching the 

established fee cap. In comparison to fee 

caps, this proposed change creates a 

level playing field for all similarly 

situated participants, by charging a Firm 

Facilitation Fee of $0.00 to all firms 

executing facilitation trades regardless 

of the firm’s volume. 

The fee reduction is also consistent 

with the current fee schedule and 

industry precedent that allows for 

different rates to be charged for different 

order types originated by dissimilarly 

classified market participants. The 

Exchange, along with other options 

exchanges, currently applies different 

rates to firms facilitating their own 

customer order flow as opposed to 

solicited orders. The degree of 

difference between the rates charged for 

different order types is the result of 

competitive forces in the marketplace 

and reflects certain competitive 

differences amongst market participants. 

For example, under the Exchange’s 

current fee schedule, the customer side 

of a firm facilitation trade is $0.00, 

while the facilitation side is currently 

$0.15. The current $0.15 Facilitation Fee 

is $0.11 less than the $0.26 charged for 

manual broker dealer executions and 

$0.02 less than the market maker nondirected fee of $0.17. These differences 

exist, in part, because customers have 

historically been at a competitive 

disadvantage in the options markets as 

compared to firms actively engaged in 

the market, thus firms are appropriately 

incentivized to facilitate customer order 

flow. The Exchange believes that 

reducing the Firm Facilitation Fee to 

zero follows existing precedent for rate 

differentials and further encourages 

firms to facilitate customer order flow, 

thereby assisting customers in their 

attempt to transact in the options 

markets. 

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 foregoing rule change is effective 

upon filing pursuant to Section 


PWALKER on DSK8KYBLC1PROD with NOTICES