Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices 38065 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

Rule 15c3–1 (17 CFR 240.15c3–1) 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.) requires 

brokers and dealers to have at all times 

sufficient liquid assets to meet their 

current liabilities, particularly the 

claims of customers. The rule facilitates 

monitoring the financial condition of 

brokers and dealers by the Commission 

and the various self-regulatory 

organizations. It is estimated that the 

active broker-dealer respondents 

registered with the Commission incur 

an aggregate burden of 73,300 hours per 

year to comply with this rule. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

Comments should be directed to 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, Virginia 22312 or send an 

e-mail to: PRA_Mailbox@sec.gov. 

Dated: July 24, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18171 Filed 7–29–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 30e–1; SEC File No. 270–21; OMB 

Control No. 3235–0025. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget for extension 

and approval. 

The title for the collection of 

information is: ‘‘Rule 30e–1 (CFR 

270.30e–1) under the Investment 

Company Act of 1940, Reports to 

Stockholders of Management 

Companies.’’ Section 30(e) (15 U.S.C. 

80a–29(e)) of the Investment Company 

Act of 1940 (‘‘Investment Company 

Act’’) (15 U.S.C. 80a–1 et seq.) requires 

a registered investment company 

(‘‘fund’’) to transmit to its shareholders, 

at least semi-annually, reports 

containing information and financial 

statements as the Commission may 

prescribe. Among other requirements, 

Rule 30e–1 (17 CFR 270.30e–1) under 

the Investment Company Act directs 

funds to include in the shareholder 

reports the information that is required 

by the fund’s registration statement form 

under the Investment Company Act. 

Failure to require the collection of this 

information would seriously impede the 

amount of current information available 

to shareholders and the public about 

funds and would prevent the 

Commission from implementing the 

regulatory program required by statute. 

The estimated annual number of 

respondents providing shareholder 

reports under Rule 30e–1 is 

approximately 2800. The proposed 

frequency of response is semi-annual. 

The estimate of the total annual 

reporting burden of the collection of 

information is approximately 145.8 

hours per shareholder report and the 

total estimated annual burden for the 

industry is 816,480 hours (145.8 hours 

per report × 2 reports × 2,800 funds). 

Providing the information required by 

Rule 30e–1 is mandatory. Responses 

will not be kept confidential. Estimates 

of the burden hours are made solely for 

the purposes of the Paperwork 

Reduction Act, and are not derived from 

a comprehensive or even a 

representative survey or study of the 

costs of SEC rules and forms. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to a collection of information 

unless it displays a currently valid 

control number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Charles Boucher, Director/CIO, 

Securities and Exchange Commission, 

C/O Shirley Martinson, 6432 General 

Green Way, Alexandria, VA 22312; or 

send an e-mail to: 

PRA_Mailbox@sec.gov. 

Dated: July 24, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18172 Filed 7–29–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60383; File No. SR–BX– 

2009–042] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Its 

Optional Anti-Internalization 

Functionality 

July 24, 2009. 

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 July 22, 

2009, NASDAQ OMX BX, Inc. 

(‘‘NASDAQ OMX BX’’ or ‘‘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 the Exchange. The 

Exchange has designated the proposed 

rule change as effecting a change 

described under Rule 19b–4(f)(6) under 

the Act,3 which renders the proposal 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 


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38066 Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices 

4See SR–BATS–2009–022 and SR–NYSEArca– 

2009–058. Nasdaq’s proposed anti-internalization 

functionality is similar to BAT’s MMTP Decrement 

and Cancel and NYSE Arca’s STP Decrement and 

Cancel. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7See SR–NASD–2003–039. 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

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 proposed rule change to 

modify its optional anti-internalization 

functionality. 

The text of the proposed rule change 

is below. Proposed new language is 

italic and proposed deletions are in 

brackets. 

* * * * * 

4757. Book Processing 

System orders shall be executed 

through the Book Process set forth 

below: 

(a) Execution Algorithm—Price/ 

Time—The System shall execute 

equally priced or better priced trading 

interest within the System in price/time 

priority in the following order: 

(1)–(2) No Change. 

(3) Exception: Anti-Internalization— 

Market participants may direct that 

quotes/orders entered into the System 

not execute against quotes/orders 

entered under the same MPID. [In such 

a case, the later entered of the quote/ 

orders will be cancelled back to the 

entering party.] In such a case, if the 

interacting orders from the same MPID 

are equivalent in size, both orders will 

be cancelled back to their entering 

parties. If the interacting orders from the 

same MPID are not equivalent in size, 

share amounts equal to size of the 

smaller of the two orders will be 

cancelled back to their originating 

parties with the remainder of the larger 

order being retained by the System for 

potential execution. 

(b)–(c) No Change. 

* * * * * 

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 

Nasdaq OMX BX is proposing to 

modify its voluntary anti-internalization 

functionality. Under the proposal, 

market participants entering quotes/ 

orders under a specific market 

participant identifier (‘‘MPID’’) may 

voluntarily direct that they not execute 

against other quotes/orders entered into 

the System under the same MPID. In 

such a case, if the orders from the same 

MPID are equivalent in size, both orders 

will be cancelled back to their entering 

parties. If the orders from the same 

MPID are not equivalent in size, share 

amounts equal to [sic] size of the 

smaller of the two orders will be 

cancelled back to their respective 

originating parties with the remainder of 

the larger order being retained by the 

System for potential execution. 

The above replaces NASDAQ OMX 

BX’s ’s [sic] currently approved, but not 

yet operational, anti-internalization 

functionality that would cancel the later 

entered of interacting orders from the 

same MPID. NASDAQ OMX BX is 

modifying its anti-internalization 

functionality based on additional input 

from system users as well as the 

Commission’s recent approval of 

various versions of anti-internalization 

functionality for the BATS and NYSE 

Arca exchanges.4

Anti-internalization functionality is 

designed to assist market participants in 

complying with certain rules and 

regulations of the Employee Retirement 

Income Security Act (‘‘ERISA’’) that 

preclude and/or limit managing brokerdealers of such accounts from trading as 

principal with orders generated for 

those accounts. It can also assist market 

participants in reducing execution fees 

potentially resulting from the 

interaction of executable buy and sell 

trading interest from the same firm. 

NASDAQ OMX BX notes that use of the 

functionality does not relieve or 

otherwise modify the duty of best 

execution owed to orders received from 

public customers. As such, market 

participants using anti-internalization 

functionality will need to take 

appropriate steps to ensure that public 

customer orders that do not execute 

because of the use of anti-internalization 

functionality ultimately receive the 

same execution price (or better) they 

would have originally obtained if 

execution of the order was not inhibited 

by the functionality. 

2. Statutory Basis 

Nasdaq OMX BX believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,5

in general, and with Sections [sic] 

6(b)(5) of the Act,6 in particular, in that 

the proposal 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 regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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. 

Nasdaq OMX BX notes that similar 

functionality has previously [sic] 

approved for other trading systems.7

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 

Written comments on the proposed 

rule change were neither solicited nor 

received. 

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) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. In addition, Rule 19b– 


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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. 


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