42346 Federal Register / Vol. 74, No. 161 / Friday, August 21, 2009 / Notices 

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

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

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

7 17 CFR 240.19b–4(f)(6). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

change the substance of those 

provisions. 

Additionally, the Exchange is seeking 

to amend Rule 414(c) to clarify that the 

exercise limit exemptions will apply to 

any member that is granted an 

exemption to position limits under the 

rule. 

Lastly, the Exchange is seeking to 

amend Rule 415 to specify that when 

calculating an aggregate long or short 

position in options, members need to 

combine (i) long positions in put 

options with short positions in call 

options, and (ii) short positions in put 

options with long positions in call 

options. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,4

in general, and furthers the objectives of 

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

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, and to protect 

investors and the public interest in that 

it is designed 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 for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, 

provided that the Exchange has given 

the Commission written notice of its 

intent to file 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 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 6 and Rule 19b–4(f)(6) 7

thereunder. 

The proposed rule change makes no 

substantive changes to the rules. The 

Exchange believes that this proposed 

rule change does not raise any new, 

unique or substantive issues. For the 

foregoing reasons, this rule filing 

qualifies for immediate effectiveness as 

a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4. 

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–ISE–2009–62 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–ISE–2009–62. 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 the filing also will be available 

for inspection and copying at the 

principal office of ISE. 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–ISE– 

2009–62 and should be submitted on or 

before September 11, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20061 Filed 8–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60503; File No. SR–BX– 

2009–046] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Incorporated [sic]; 

Notice of Filing of Proposed Rule 

Change To Further Extend the 

Temporary Cap on Certain Fees for 

Members 

August 14, 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 August 3, 

2009, NASDAQ OMX BX, Inc. (‘‘BX’’) 

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. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 74, No. 161 / Friday, August 21, 2009 / Notices 42347 

3Securities Exchange Act Release No. 59894 (May 

8, 2009), 74 FR 23000 (May 15, 2009) (SR–BX– 

2009–023); Securities Exchange Act Release No. 

60257 (July 7, 2009), 74 FR 34060 (July 14, 2009) 

(SR–BX–2009–036). 4Securities Exchange Act Release No. 60383 (July 

24, 2009), 74 FR 38065 (July 30, 2009) (SR–BX– 

2009–042). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

7 15 U.S.C. 78s(b)(3)(a)(ii). 

8 17 CFR 240.19b–4(f)(2). 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

BX proposes to extend the temporary 

cap on fees charged for OUCH ports to 

the Equities Market due to 

unanticipated delays in developing and 

implementing an anti-internalization 

function. The text of the proposed rule 

change is below. Proposed new 

language is italicized. 

* * * * * 

7015. Access Services 

The following charges are assessed by the 

Exchange for ports to establish connectivity 

to the NASDAQ OMX BX Equities Market, as 

well as ports to receive data from the 

NASDAQ OMX BX Equities Market: 

• $400 per month for each port pair, other 

than Multicast ITCH® data feed pairs, for 

which the fee is $1000 per month. Additional 

OUCH port pairs beyond 15 are at no cost for 

the months of May, June and July 2009. For 

August 2009, OUCH port pairs beyond 15 

will be assessed a pro rata charge on the 

basis of the number of trading days during 

the month during which the antiinternalization functionality introduced by 

Equity Rule 4757(a)(3) is available to market 

participants. 

• Internet Ports: An additional $200 per 

month for each Internet port that requires 

additional bandwidth. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, BX 

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. BX 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 

BX is proposing to extend the 

temporary modification to its pricing for 

OUCH ports, which provide 

connectivity to the NASDAQ OMX BX 

Equities Market. In SR–BX–2009–023 

and SR–BX–2009–036,3 BX filed 

immediately effective rule changes to 

eliminate fees for a member firm’s 

OUCH ports in excess of 15 for the 

months of May, June, and July 2009. In 

those filings, BX noted member firms 

had complained that, because BX does 

not have an anti-internalization 

capability, they must purchase 

additional OUCH ports that they would 

otherwise not need to purchase solely to 

avoid unwanted execution against their 

customer orders. Internalization occurs 

when a member firm’s customer order is 

posted on the market and executed all 

or in part by the same member firm. 

Member firms must avoid 

internalization of certain customer 

orders to avoid violating rules and 

regulations of the Employee Retirement 

Income Security Act that preclude and/ 

or limit managing broker-dealers of such 

customer accounts from trading as 

principal with orders generated for 

those accounts. Currently, some member 

firms are only able to avoid 

internalization by purchasing additional 

OUCH ports through which they place 

all order flow that must not be 

internalized. Such additional ports have 

discrete MPID numbers, which allow 

these member firms to identify the 

orders and avoid internalization. 

BX determined to limit the number of 

OUCH port pairs that a member is 

charged monthly to 15 for the months of 

May, June, and July 2009, so that those 

firms affected by BX’s lack of an antiinternalization function were provided 

relief until BX could implement such a 

function. BX noted in its rule change 

that it would either seek to remove the 

cap language from the rule upon its 

expiration or alternatively would seek to 

extend the cap until such time the antiinternalization function could be 

implemented. BX has now adopted 

Equity Rule 4757(a)(3),4 through which 

BX will provide anti-internalization 

functionality, and expects to implement 

that functionality on or about August 

10, 2009. As such, BX is proposing to 

further extend the temporary 

modification of its OUCH port pair 

pricing into August 2009, assessing a 

pro rata charge on the basis of the 

number of trading days during the 

month during which the antiinternalization functionality introduced 

by Equity Rule 4757(a)(3) is available to 

market participants. BX will then seek 

to remove the cap language from the 

rule. Thus, if the functionality is 

introduced on August 10, the fee for 

August would be 76.19% of the fee 

otherwise assessable, reflecting that the 

functionality would be available for 16 

out of the 21 trading days during the 

month. 

2. Statutory Basis 

BX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,5 in general, and 

with Section 6(b)(4) of the Act,6 in 

particular, in that it provides for the 

equitable allocation of reasonable dues, 

fees and other charges among members 

and issuers and other persons using any 

facility or system which BX operates or 

controls. The proposed fee change 

applies uniformly to all BX members. 

BX has determined that temporarily 

instituting a cap on fees for OUCH ports 

in excess of 15 will provide relief to 

member firms required to purchase 

additional ports solely due to BX’s lack 

of an anti-internalization function. 

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, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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)(ii) of the Act 7 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.8 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: 


srobinson on DSKHWCL6B1PROD with NOTICES
42348 Federal Register / Vol. 74, No. 161 / Friday, August 21, 2009 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 17 CFR 240.a51–1(a). 

5 17 CFR 240.a51–1(a)(2). 

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–2009–046 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–2009–046. 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, on business days between the 

hours of 10 a.m. and 3 p.m., located at 

100 F Street, NE., Washington, DC 

20549. 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–2009–046 and should 

be submitted on or before September 11, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20063 Filed 8–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60501; File No. SR–NYSE– 

2009–80] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change to Amend its 

Public Float Requirement for Initial 

Public Offerings 

August 13, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’) 2 and Rule 19b–4 

thereunder,3 notice is hereby given that 

on August 5, 2009, New York Stock 

Exchange LLC (the ‘‘NYSE’’ or 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 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 its 

market value of publicly-held shares 

requirement for initial public offerings 

(‘‘IPOs’’), spin-offs and companies listed 

under the Exchange’s Affiliated 

Company standard. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

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 NYSE 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 

Section 102.01B of the Manual 

requires that a company listing at the 

time of its IPO or as a result of a spinoff or under the Affiliated Company 

standard of Section 102.01C(iii) must 

demonstrate an aggregate market value 

of publicly-held shares (‘‘public float’’) 

of $60 million at the time of listing. The 

Exchange proposes to reduce this 

requirement from $60 million to $40 

million. A reduction in the public float 

requirement to $40 million for 

companies that are new to the public 

markets will enable companies to list 

that would not meet the current $60 

million public float requirement but that 

otherwise qualify to list. The proposed 

lowering of the public float requirement 

would be applicable to real estate 

investment trusts listed under Section 

102.05, but not closed-end funds listed 

under Section 102.04 (which will 

continue to be subject to a $60 million 

public float requirement) or special 

purpose acquisition companies 

(‘‘SPACs’’) listed under Section 102.06 

(which are subject to a $200 million 

public float requirement). As closed-end 

funds and SPACs are subject to their 

own separate listing standards and have 

characteristics that make them 

significantly different from operating 

companies, the Exchange does not 

believe that it is unfairly discriminatory 

to apply different public float 

requirements to them than are 

applicable to operating companies. 

The Exchange believes that the 

proposed rule change is consistent with 

the protection of investors and the 

public interest and does not raise any 

novel regulatory issues. The Exchange 

notes that the proposed $40 million 

public float requirement is higher than 

the public float requirements under the 

various Nasdaq Global Market initial 

listing standards, which range from $8 

million to $20 million. 

The Exchange believes that the 

proposed amendment does not affect the 

status of NYSE listed securities under 

Securities Exchange Act Rule 3a51–1(a) 

(the ‘‘Penny Stock Rule’’),4 as the 

amended standards satisfy the 

requirements of Exchange Act Rule 

3a51–1(a)(2).5

All of the NYSE’s equity listing 

standards meet the stock price and 

distribution requirements of Rule 3a51– 

1(a)(2), as all of the standards require 


srobinson on DSKHWCL6B1PROD with NOTICES