42724 Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60504; File No. SR–BX– 

2009–047] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Fee Schedule of the Boston Options 

Exchange Facility 

August 14, 2009. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on August 12, 2009, NASDAQ OMX BX, 

Inc. (the ‘‘Exchange’’) 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 by the Exchange. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(ii) 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 amend the 

Fee Schedule of the Boston Options 

Exchange Group, LLC (‘‘BOX’’). The text 

of the proposed rule change is available 

from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 

Orders on BOX which are not 

executable against the BOX Book are 

routed via the InterMarket Linkage 

System (‘‘Linkage Orders’’) to away 

exchanges for execution. The Exchange 

proposes to exempt outbound Principal 

Acting as Agent (‘‘P/A’’) Linkage Orders 

from both the Liquidity Make or Take 

Pricing Structure and the Non-Penny 

Pilot Class Pricing Structure as these 

transactions are deemed to neither 

‘‘add’’ nor ‘‘take’’ liquidity from the 

BOX Book. Instead these orders will 

follow the Intermarket Linkage pricing 

as described in Section 4(a)2 of the Fee 

Schedule (i.e., free), regardless of 

whether the class is contained in the 

Liquidity Make or Take Pricing 

Structure or the Non-Penny Pilot Class 

Pricing Structure or not. The proposed 

change will have no effect on the billing 

of orders of non-Participants, including 

any orders received through Intermarket 

Linkage. 

For example, if a Public Customer 

order is entered into the BOX Trading 

Host and is routed to an away market as 

an outbound P/A Order, the routing of 

the Public Customer’s order will be free, 

regardless of class. Prior to this proposal 

such a transaction may have been 

subject to the fees and credits set forth 

in either the Liquidity Make or Take 

Pricing Structure, resulting in the 

applicable ‘‘take’’ fee (currently $0.45), 

or the Non-Penny Pilot Class Pricing 

Structure, resulting in the applicable 

‘‘removal’’ credit (currently $0.30), of 

Sections 7 and 8 of the Fee Schedule, 

respectively. 

The Exchange requests that the 

effective date of the proposed rule 

change be August 12, 2009. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act, 

in general, and Section 6(b)(4) of the 

Act, in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities. In particular, the 

proposed change will allow the 

Exchange to charge the appropriate fees 

and provide the appropriate credits with 

respect to orders routed by BOX to away 

exchanges. 

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 on 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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Exchange Act and 

Rule 19b–4(f)(2) thereunder, because it 

establishes or changes a due, fee, or 

other charge applicable only to a 

member. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

the rule change if it appears to the 

Commission that the action is necessary 

or appropriate in the public interest, for 

the protection of investors, or would 

otherwise further 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–2009–047 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–2009–047. 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/ 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 42725 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 will also 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 No. 

SR–BX–2009–047 and should be 

submitted on or before September 14, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20192 Filed 8–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60518; File No. SR– 

NYSEArca–2009–70] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending Rule 10.12 

(Minor Rule Plan) 

August 18, 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 29, 

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

‘‘Exchange’’) 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 by the self-regulatory 

organization. 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 amend 

Rule 10.12–Minor Rule Plan. The text of 

the proposed rule change is attached as 

Exhibit 5 to the 19b–4 form. 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 NYSE Arca Minor Rule Plan 

(‘‘MRP’’) fosters compliance with 

applicable rules and also helps to 

reduce the number and extent of rule 

violations committed by Options 

Trading Permit (‘‘OTP’’) Holders, OTP 

Firms and associated persons. The 

prompt imposition of a financial penalty 

helps to quickly educate and improve 

the conduct of OTP Holders, OTP Firms 

and associated persons that have 

engaged in inadvertent or otherwise 

minor violations of the Exchange’s 

rules. By promptly imposing a 

meaningful financial penalty for such 

violations, the MRP focuses on 

correcting conduct before it gives rise to 

more serious enforcement action. 

The Exchange is now proposing to 

incorporate additional violations into 

the MRP, these violations include (i) 

trading in restricted classes; and (ii) 

failure to report position and account 

information. The Exchange is also 

proposing to increase fine levels for 

certain violations presently included in 

the MRP. The increases [sic] fine levels 

will be applicable for violations of due 

diligence, priority rules and order 

exposure rules. A brief description of 

each proposed changes [sic] is shown 

below. 

Proposed Rules 10.12(h)(22) and 

10.12(k)(i)(22) 

NYSE Arca Rule 5.4(a) provides, with 

limited exceptions, that the Exchange 

may prohibit any opening purchase 

transactions in a series of options to the 

extent it deems such action necessary or 

appropriate. Accordingly, OTP Holders 

effecting opening transactions in 

restricted series, that are inconsistent 

with the terms of any such restriction, 

will be considered to be in violation of 

Rule 5.4(a). The Exchange is proposing 

to incorporate violations related to 

trading in restricted series into the MRP 

under Exchange Rule 10.12(h)(22). 

The Exchange is proposing to 

implement a fine of $1,000 for the first 

violation in a rolling twenty-four month 

period. A second violation within the 

same period would be allocated a 

$2,500 fine and a third violation would 

be allocated a $5,000 fine. The schedule 

of fines will be included under Rule 

10.12(k)(i)(22). Any subsequent 

violations within a rolling twenty-four 

month period would be subject to 

formal disciplinary proceedings by the 

Exchange. NYSE Arca believes that 

establishing a rolling twenty-four month 

period for cumulative violations will 

serve as an effective deterrent to future 

violative conduct. 

NYSE Arca believes that in most cases 

these violations may be handled 

efficiently through the MRP, however, 

as with other violations, any egregious 

activity or activity that is believed to be 

manipulative will continue to be subject 

to formal disciplinary proceedings. 

Proposed Rules 10.12(h)(23) and 

10.12(k)(i)(23) 

Among other things, Rule 6.6(a) 

requires each OTP Holder and OTP 

Firm to report to the Exchange the 

account and position information of any 

customer who, acting alone, or in 

concert with others, on the previous 

business day maintained aggregate long 

or short positions on the same side of 

the market of 200 or more contracts of 

any single class of option contracts dealt 

in on the Exchange. OTP Holders and 

OTP Firms report this information on 

the Large Option Position Report 

(‘‘LOPR’’). 

NYSE Arca is proposing to 

incorporate violations for failing to 

accurately report position and account 

information in accordance with Rule 

6.6(a) into the MRP. The Exchange 

believes most of these violations are 

inadvertent and technical in nature. Not 

having LOPR reporting violation 

necessarily subject to formal 


erowe on DSK5CLS3C1PROD with NOTICES