Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 42717 

8U.S.C. 78q–1(b)(3)(F). 

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

10 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

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

11 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)(6). 

correlated more closely with the level of 

risk associated with IDB positions. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

FICC does not believe that the 

proposed rule change will have any 

impact or 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 relating to the 

proposed rule change have not yet been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder and 

particularly with the requirements of 

Section 17A(b)(3)(F).8 Section 

17A(b)(3)(F) requires that the rules of a 

clearing agency remove impediments to 

and perfect the mechanism of a national 

system for the prompt and accurate 

clearance and settlement of securities 

transactions and protect investors and 

the public interest. The Commission 

finds that the approval of FICC’s rule 

change is consistent with this section 

because it will allow FICC to modify its 

rules regarding the calculation of 

clearing fund deposits on inter-dealer 

broker positions to correlate more 

closely those deposits with the level of 

risk associated with such positions. 

FICC has requested that the 

Commission approve the proposed rule 

prior to the thirtieth day after 

publication of the notice of the amended 

filing. The Commission finds good 

cause for approving the proposed rule 

change prior to the thirtieth day after 

the publication of notice because such 

approval will allow FICC to better 

correlate inter-dealer broker clearing 

fund deposits with the level of risk 

associated with their positions 

immediately. 

The Commission is approving the 

proposed rule filing on a temporary 

basis through August 20, 2010, so that 

FICC will have time to evaluate the 

modified calculation of clearing fund 

deposits on inter-dealer broker positions 

and to report its findings to the 

Commission before the Commission 

decides on permanent approval. 

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–FICC–2009–08 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–FICC–2009–08. 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 

Section, 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 filings also will be 

available for inspection and copying at 

the principal office of FICC and on 

FICC’s Web site at http://www.dtcc.com/ 

downloads/legal/rule_filings/2009/ficc/ 

2009-08.pdf. 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–FICC– 

2009–08 and should be submitted on or 

before September 14, 2009. 

V. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (File No. SR– 

FICC–2009–08) be and hereby is 

approved on an accelerated basis 

through August 20, 2010.10

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20197 Filed 8–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60512; File No. SR–NYSE– 

2009–75] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change by New York 

Stock Exchange LLC Adopting NYSE 

Rule 406 as New Rule 3250 To 

Correspond With a Rule Change 

Recently Filed by the Financial 

Industry Regulatory Authority, Inc. 

August 17, 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 28, 

2009, New York Stock Exchange LLC 

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

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the selfregulatory organization. The Exchange 

has designated this proposal eligible for 

immediate effectiveness pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) thereunder.4 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 adopt 

NYSE Rule 406 (Designation of 

Accounts) as new Rule 3250 to 


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42718 Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 

5See Securities Exchange Act Release No. 59947 

(May 20, 2009), 74 FR 25293 (May 27, 2009) (order 

approving FINRA 2009–017). 

6 Id. 

7 17 CFR 240.17d–2. 

8See Securities Exchange Act Release No. 56148 

(July 26, 2007), 72 FR 42146 (August 1, 2007) (order 

approving the Agreement) and Securities Exchange 

Act Release No. 56147 (July 26, 2007), 72 FR 42166 

(August 1, 2007) (SR–NASD–2007–054) (order 

approving the incorporation of certain NYSE Rules 

as ‘‘Common Rules’’). Paragraph 2(b) of the 17d–2 

Agreement sets forth procedures regarding 

proposed changes by either NYSE or FINRA to the 

substance of any of the Common Rules. 

9FINRA’s rulebook currently has three sets of 

rules: (1) NASD Rules, (2) FINRA Incorporated 

NYSE Rules, and (3) consolidated FINRA Rules. 

The FINRA Incorporated NYSE Rules apply only to 

those members of FINRA that are also members of 

the NYSE (‘‘Dual Members’’), while the 

consolidated FINRA Rules apply to all FINRA 

members. For more information about the FINRA 

rulebook consolidation process, see FINRA 

Information Notice, March 12, 2008. 

10NYSE Amex LLC has submitted a companion 

rule filing to conform its corresponding NYSE 

Amex Equities Rules to the changes proposed in 

this filing. See SR–NYSE–Amex–2009–51, formally 

submitted July 28, 2009. 

11See Securities Exchange Act Release No. 59947 

(May 20, 2009), 74 FR 25293 (May 27, 2009). 

12 Id. 

13 Id. As noted by FINRA, member organizations 

are subject to additional requirements regarding 

customer accounts under the Act. See, e.g., 17 CFR 

240.17a–3(a)(9) (requiring records indicating the 

name and address of the beneficial owner of cash 

and margin customer accounts). 

14 15 U.S.C. 78f(b). 

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

correspond with a rule change recently 

filed by the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

and approved by the Commission.5 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 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to adopt NYSE Rule 406 

(Designation of Accounts) as new Rule 

3250 to correspond with a rule change 

recently filed by FINRA and approved 

by the Commission.6

Background 

On July 30, 2007, FINRA’s 

predecessor, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), and 

NYSE Regulation, Inc. (‘‘NYSER’’) 

consolidated their member firm 

regulation operations into a combined 

organization, FINRA. Pursuant to Rule 

17d–2 under the Act,7 NYSE, NYSER 

and FINRA entered into an agreement 

(the ‘‘Agreement’’) to reduce regulatory 

duplication for their members by 

allocating to FINRA certain regulatory 

responsibilities for certain NYSE rules 

and rule interpretations (‘‘FINRA 

Incorporated NYSE Rules’’).8 As part of 

its effort to reduce regulatory 

duplication and relieve firms that are 

members of both FINRA and the 

Exchange of conflicting or unnecessary 

regulatory burdens, FINRA is now 

engaged in the process of reviewing and 

amending the NASD and FINRA 

Incorporated NYSE Rules in order to 

create a consolidated FINRA rulebook.9

Proposed Conforming Amendment to 

NYSE Rules 

As discussed in more detail below, 

FINRA adopted FINRA Incorporated 

NYSE Rule 406 (Designation of 

Accounts) as consolidated FINRA Rule 

3250, subject to some minor technical 

changes. The NYSE hereby proposes to 

adopt NYSE Rule 406 as new Rule 3250 

to conform to the rule change adopted 

by FINRA.10

Specifically, FINRA Incorporated 

NYSE Rule 406 provides that no NYSE 

member organization shall carry an 

account on its books in the name of a 

person other than that of the customer. 

However, an account may be designated 

by a number or symbol, provided the 

member organization has a written 

statement of ownership signed by the 

customer. This Rule has been used to 

address, inter alia, sales practice abuses, 

including commingling of funds, failure 

to disclose ownership interests in 

accounts and unauthorized trading.11

FINRA adopted FINRA Incorporated 

NYSE Rule 406 as consolidated FINRA 

Rule 3250 because it believes the Rule 

is an important enforcement tool and 

should be applied to all FINRA 

members and not just Dual Members. In 

addition, the Rule provides customers 

and their accounts with a level of 

anonymity that may be useful while still 

permitting identification to the member 

organization carrying the account as 

well as regulators. Upon adoption of 

Rule 3250, FINRA made minor technical 

changes to apply the Rule to all FINRA 

members, replacing the terms ‘‘member 

organization’’ or ‘‘organization’’ with 

the term ‘‘member.’’ 12

To harmonize the NYSE Rules with 

the approved FINRA Rules, the 

Exchange correspondingly proposes to 

adopt NYSE Rule 406 as new Rule 3250, 

which is substantially similar to the 

new FINRA Rule. As proposed, NYSE 

Rule 3250 adopts the same language as 

FINRA Rule 3250, except for retaining 

or adding, as needed, the term ‘‘member 

organization’’ and making 

corresponding technical changes. As 

with the consolidated FINRA Rule, 

under proposed NYSE Rule 3250 

Exchange member organizations will be 

required to carry customer accounts in 

the name of the customer, except that an 

account may be designated by a number 

or symbol, as long as the member 

maintains documentation identifying 

the customer.13

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,14 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,15 in particular, in that it is 

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. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 


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Federal Register / Vol. 74, No. 162 / Monday, August 24, 2009 / Notices 42719 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

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 Exchange has satisfied this 

requirement. 

18For 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). 19 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(3)(A)(ii). 

2 17 CFR 240.19b–4(f)(2). 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 16 and Rule 19b– 

4(f)(6) thereunder.17

The Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

Commission has determined that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver will allow the 

Exchange to promptly conform its rule 

with the approved FINRA Rule, and will 

ensure the elimination of any potential 

regulatory gap and that the NYSE Rules 

maintain their status as Common Rules 

under the Agreement. Therefore, the 

Commission designates the proposal 

operative upon filing.18

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–NYSE–2009–75 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–NYSE–2009–75. 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 will also be available 

for inspection and copying at the 

principal office of the Exchange and on 

its Web site at http://www.nyse.com. 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–NYSE–2009–75 and should 

be submitted on or before September 14, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–20196 Filed 8–21–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60513; File No. SR–CBOE– 

2009–059] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Options 

Regulatory Fee 

August 17, 2009. 

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

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1), notice is hereby given 

that on August 12, 2009, Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ 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 CBOE. CBOE has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge applicable only to a 

member under Section 19(b)(3)(A)(ii) of 

the Act,1 and Rule 19b–4(f)(2) 

thereunder,2 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 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend its Fees Schedule 

relating to the Options Regulatory Fee. 

The text of the proposed rule change is 

below. Additions are in italics. 

Deletions are in [brackets]. 

* * * * * 

Chicago Board Options Exchange, 

Incorporated Fees Schedule 

[August] September 1, 2009 

1.–4. Unchanged. 

Footnotes: 

(1)–(17) Unchanged. 

5.–11. Unchanged. 

12. Regulatory Fees: 

A) Options Regulatory Fee: $.004 per 

contract* 

*The Options Regulatory Fee is 

assessed by CBOE to each member for 

all options transactions executed or 

cleared by the member that are cleared 

by The Options Clearing Corporation 

(OCC) in the customer range, excluding 

Linkage orders, regardless of the 

exchange on which the transaction 

occurs. The fee is collected indirectly 

from members through their clearing 

firms by OCC on behalf of CBOE. There 

is a minimum one-cent charge per trade. 

Remainder of Fees Schedule— 

Unchanged. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 


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