Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices 38067 

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). 

11The Commission is also waiving the five 

business-day pre-filing requirement. 

12See BATS Exchange Rule 11.9(f) and NYSE 

Arca Equities Rule 7.31(qq). 13 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. 60130 

(June 17, 2009), 74 FR 30194. 

4See CBOE Rule 6.53C(c)(ii)(3). 

4(f)(6)(iii) requires a self-regulatory 

organization to provide the Commission 

with 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. However, Rule 19b– 

4(f)(6)(iii) 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 well 

as the five business-day pre-filing 

requirement so that the benefits of this 

functionality to NASDAQ OMX BX 

market participants expected from the 

rule change can be implemented on 

August 3, 2009, when the Exchange 

expects to have the technological 

changes in place to support the 

proposed rule change. The Commission 

believes that waiving the 30-day 

operative delay 10 to make this 

functionality available without delay is 

consistent with the protection of 

investors and the public interest.11 The 

Commission notes that the proposal is 

similar to rules of other exchanges and 

thus does not raise any novel regulatory 

issues.12 The Commission designates 

the proposal operative upon filing to 

allow the Exchange to implement the 

functionality without delay. 

At any time within 60 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–BX–2009–042 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–2009–042. 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 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–BX–2009–042 and should 

be submitted on or before August 20, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18170 Filed 7–29–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60381; File No. SR–CBOE– 

2009–038] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving a 

Proposed Rule Change Relating to the 

Complex Order Book 

July 24, 2009. 

I. Introduction 

On June 16, 2009, the Chicago Board 

Options Exchange, Incorporated 

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

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposal to amend CBOE 

Rule 6.53C(c) to modify the order and 

quote types that market participants 

may enter to trade against orders resting 

in the complex order book (‘‘COB’’). The 

proposed rule change was published for 

comment in the Federal Register on 

June 24, 2009.3 The Commission 

received no comments regarding the 

proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

A market participant, as defined in 

CBOE Rule 6.45A or CBOE Rule 6.45B, 

may submit orders or quotes to trade 

against orders in the COB.4 However, 

under CBOE Rule 6.53C(c)(i), the CBOE 

may determine the options classes and 

the complex order origin types (i.e., 

non-broker-dealer public customer, 

broker-dealers that are not Market 

Makers or specialists on an options 

exchange, and/or Market Makers or 

specialists on an options exchange) that 

are eligible to be entered into (i.e., rest 

in) the COB, and whether such orders 

may route directly to the COB and/or 

from PAR to the COB. 

Currently, a market participant whose 

quotes or orders are not eligible to rest 

in the COB, but that wishes to trade 

against orders resting in the COB, may 

enter limit orders using an immediateor-cancel (‘‘IOC’’) contingency to avoid 

resting its orders in the COB. If such a 

market participant does not use an IOC 

contingency, it must cancel the 

unexecuted balance of its limit order or 

quote if the limit order or quote is 

partially filled by trading against an 

order resting in the COB. 


erowe on DSK5CLS3C1PROD with NOTICES
38068 Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices 

5See CBOE Rule 6.53C(c)(ii)(3). 

6Only Market Makers may enter quotes. 

7 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

The CBOE proposes to amend CBOE 

Rule 6.53C(c)(ii)(3) to require market 

participants whose quotes or orders are 

not eligible to rest in the COB to enter 

only IOC orders and such other order or 

quote types as the CBOE may determine 

on a class-by-class basis. Quote types 

that are not eligible to rest in or trade 

against the COB will be cancelled 

automatically.5 According to the CBOE, 

Market Makers whose quotes are not 

eligible to rest in or trade against the 

COB would be able, at a minimum, to 

submit IOC orders to trade against the 

COB.6

Finally, the CBOE proposes to amend 

CBOE Rule 6.53C(c)(i) to clarify that an 

order entry firm whose complex orders 

are not eligible to route to the COB 

could route its orders to the firm’s 

booth, as well as to PAR. 

III. Discussion and Commission 

Findings 

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 

exchange.7 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,8 which requires, in part, that the 

rules of a national securities exchange 

be designed to prevent fraudulent and 

manipulative acts and practices, 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. CBOE 

Rule 6.53C(c)(i) currently allows the 

Exchange to determine the class of 

entities that may enter orders to rest in 

the COB. By requiring market 

participants who are not eligible to rest 

orders or quotes in the COB to enter 

only IOC orders and such other order or 

quote types as the CBOE determines, 

and by providing for the automatic 

cancellation of quote types that are not 

eligible to rest in or trade against the 

COB, the proposal could help to prevent 

the entry of ineligible orders and quote 

types in the COB. The Commission 

notes that Market Makers that are not 

eligible to enter quotes to rest in or trade 

against the COB would be permitted, at 

a minimum, to enter IOC orders to trade 

against orders in the COB. Finally, the 

Commission believes that the 

amendment to CBOE Rule 6.53C(c)(i) to 

indicate that an order entry firm may 

route its orders to the firm’s booth, as 

well as to PAR, should clarify the 

operation of CBOE Rule 6.53C. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (File No. SR– 

CBOE–2009–038) is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18168 Filed 7–29–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60382; File No. SR–ISE– 

2009–45] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

International Securities Exchange, LLC 

Relating to Changes to Rule 312 in 

Connection With the Purchase of 

Equity Interests by International 

Securities Exchange Holdings, Inc. in 

Optifreeze, LLC 

July 24, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on July 23, 2009, the International 

Securities Exchange, LLC (the 

‘‘Exchange’’ or ‘‘ISE’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’) 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 submitting this 

proposed rule change (the ‘‘Proposed 

Rule Change’’) to the Commission to 

amend ISE Rule 312 (Limitation on 

Affiliation between the Exchange and 

Members) in connection with the capital 

contribution by its parent company, 

International Securities Exchange 

Holdings, Inc. (‘‘ISE Holdings’’), in 

Optifreeze LLC, a Delaware Limited 

Liability Company (‘‘Optifreeze’’). The 

text of the proposed rule change is 

available on the Exchange’s Web site 

http://www.ise.com, at the principal 

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 

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 

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 June 5, 2009, ISE Holdings entered 

into a Membership Purchase Agreement 

(‘‘Purchase Agreement’’) with 

Optifreeze. Pursuant to the Purchase 

Agreement, ISE Holdings contributed 

cash to the capital of Optifreeze in 

exchange for membership interests 

representing on the date of such 

issuance 8.57% of the aggregate 

membership interests in Optifreeze 

(‘‘Purchased Interests’’). ISE Holdings 

and its subsidiaries and affiliates do not 

have any voting or other ‘‘control’’ 

arrangements with any of the other 

members of Optifreeze relating to its 

investment in Optifreeze. The purchase 

by ISE Holdings of the Purchased 

Interests (the ‘‘Transaction’’) was 

consummated on June 5, 2009. As a 

result of such purchase, ISE Holdings 

became a member of Optifreeze 

pursuant to the Third Amended and 

Restated Operating Agreement of 

Optifreeze dated June 5, 2009, and is 

entitled to appoint one representative to 

the Optifreeze Board of Directors. 

Ballista Securities LLC (‘‘Ballista 

Securities’’), a wholly-owned subsidiary 

of Optifreeze, is an electronic access 

member (‘‘EAM’’) of the Exchange. 

In connection with the capital 

contribution by ISE Holdings in 

Optifreeze, the Exchange proposes to 

amend ISE Rule 312 (Limitation on 

Affiliation between the Exchange and 

Members) to reflect ISE Holdings’ 

ownership interest in Ballista Securities, 

and to set forth certain limitations and 

obligations relating to such relationship. 


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