Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 46283 

18 15 U.S.C. 78s(b)(3)(A). 

19 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 Commission has determined to 

waive the five-day pre-filing period in this case. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6). 

22For 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). 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that Exhibit 5 is attached 

to the rule filing filed with the Commission but not 

to this release. The text of the proposed rule change 

is available at BX, on its Web site (http:// 

nasdaqomxbx.cchwallstreet.com), and at the 

Commission’s Public Reference Room. 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 18 and Rule 19b– 

4(f)(6) thereunder.19

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 20 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 21

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE requests that the 

Commission waive the 30-day operative 

delay because the Exchange believes 

that the absence of such a rule in an 

automated and fast-paced trading 

environment poses a danger to the 

integrity of the markets and the public 

interest. NYSE notes that immediate 

effectiveness of the proposed rule 

change will immediately and timely 

enable NYSE to cancel or adjust clearly 

erroneous trades that may present a risk 

to the integrity of the equities markets 

and all related markets. The 

Commission believes that waiving the 

30-day operative delay 22 is consistent 

with the protection of investors and the 

public interest because such waiver will 

permit the Exchange to continue 

operation of interim NYSE Rule 128 on 

an uninterrupted basis, and therefore 

designates the proposal operative upon 

filing. 

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–2009–92 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–2009–92. 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 publicly available. All 

submissions should refer to File 

Number SR–NYSE–2009–92 and should 

be submitted on or before September 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21636 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60592; File No. SR–BX– 

2009–050] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ OMX 

BX Equities System 

August 31, 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 

17, 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. 

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 is filing a proposed rule change to 

modify pricing for BX members using 

the NASDAQ OMX BX Equities System. 

BX will implement the proposed rule 

change on September 1, 2009. The text 

of the proposed rule change is attached 

as Exhibit 5 and is available at http:// 

nasdaqomxbx.cchwallstreet.com.3


jlentini on DSKJ8SOYB1PROD with NOTICES
46284 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 

4The changes all relate to transactions that 

execute at prices of $1 or more. For transactions at 

prices below $1, there is a charge of 0.1% of total 

transaction cost to remove liquidity and no charge 

or rebate to provide liquidity. 

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). 9 17 CFR 200.30–3(a)(12). 

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 modify its fees to 

execute transactions on the NASDAQ 

OMX BX Equities System.4 For 

securities listed on The NASDAQ Stock 

Market (‘‘NASDAQ’’) or the New York 

Stock Exchange (‘‘NYSE’’), BX currently 

provides a credit of $0.0006 per share 

executed to members accessing 

liquidity, with no charge or credit to 

members providing liquidity. Under the 

modified fee schedule, BX will lower 

the credit for accessing liquidity to 

$0.0001 per share executed and assess a 

charge of $0.0003 per share executed to 

members providing liquidity. Although 

the change will result in a small fee 

increase, the fee change is designed to 

continue BX’s strategy of becoming a 

preferred routing destination for firms 

seeking to access liquidity at extremely 

low cost and a preferred market for 

firms that wish to post liquidity in a 

venue to which growing numbers of 

firms route. The change also reverses an 

‘‘inverted’’ fee structure in which 

rebates associated with the execution of 

an order exceeded charges. 

For securities other than those listed 

on NASDAQ and NYSE, BX currently 

charges a fee of $0.0014 per share 

executed to access liquidity and 

provides a credit of $0.002 per share 

executed for providing liquidity. Under 

the modified fee schedule, BX will raise 

the fee to access liquidity to $0.0016 

and lower the liquidity provider credit 

to $0.0014. Although the change will 

result in a small fee increase, the level 

of fees is consistent with BX’s goal of 

offering liquidity at extremely low cost 

to investors, and also reverses an 

inverted fee structure. 

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. 

The impact of the changes upon the net 

fees paid by a particular market 

participant will depend upon the types 

of stocks that it trades, the order types 

that it uses, and the prices of its quotes 

and orders (i.e., its propensity to add or 

remove liquidity). BX notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. The 

proposed changes will continue BX’s 

goal of allowing members to access 

available liquidity at extremely low 

cost. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

BX 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: 

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–2009–050 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–2009–050. 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 publicly available. All 

submissions should refer to File 

Number SR–BX–2009–050 and should 

be submitted on or before September 29, 

2009. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 46285 

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

2Securities Exchange Act Release No. 60304 (Jul. 

14, 2009), 74 FR 35221. 

3 DTC has created a Profile Indemnity Insurance 

Program (‘‘PIP II’’) to replace the PSP II. Securities 

Exchange Act Release No. 60036 (Jun. 3, 2009), 74 

FR 28085 (Jun. 12, 2009) [File No. SR–DTC–2009– 

09]. 

4Securities Exchange Act Release No. 42704 

(Apr. 19, 2000), 65 FR 24242 (Apr. 25, 2000) [File 

No. SR–DTC–2000–04]. 

5Securities Exchange Act Release No. 43586 

(Nov. 17, 2000), 65 FR 70745 (Nov. 27, 

2000) [File No. SR–DTC–2000–09]. 

6Participation in PSP requires the payment of an 

annual premium of $3,150 to a surety provider and 

an administration fee of $250 to DTC. The PSP 

surety provider provides for a coverage limit of $3 

million per transaction with an annual aggregate 

limit of $6 million. On September 14, 2005, the 

Commission approved a DTC rule filing to establish 

the Profile Indemnity Insurance Program (‘‘PIP’’), 

which serves as an alternative to PSP. Securities 

Exchange Act Release No. 52422 (Sept. 14, 2005), 

70 FR 55196 (Sept. 20, 2005) [File No. SR–DTC– 

2005–11]. PIP allows users of Profile that agree to 

the Screen Indemnity have the option to procure 

insurance relating to a particular securities 

transaction according to the value of the securities 

transaction. PIP provides a coverage limit of $25 

million per transaction with an annual aggregate 

limit of $100 million. In addition to any passthrough fee from the insurer, DTC charges users 

participating in PIP an annual administration fee of 

$250 and a per transaction fee of $27.50. 

7Securities Exchange Act Release No. 58042 (Jun. 

26, 2008), 73 FR 39067 (July 8, 2008) [File No. SR– 

DTC–2008–04]. 

8Securities Exchange Act Release No. 60036 (Jun. 

3, 2009) 74 FR 28085 (Jun. 12, 2009) [File No. DTC– 

2009–09]. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 15 U.S.C. 78q–1. 

11 15 U.S.C. 78s(b)(2). 

12 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). 

13 17 CFR 200.30–3(a)(12). 

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

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21635 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60594; File No. SR–DTC– 

2009–11] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Approving Proposed Rule Change To 

Eliminate One of the Indemnity Surety 

Programs in the Profile Modification 

System 

August 31, 2009. 

I. Introduction 

On June 11, 2009, The Depository 

Trust Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) proposed rule change 

SR–DTC–2009–11 pursuant to Section 

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

of 1934 (‘‘Act’’).1 The proposed rule 

change was published for comment in 

the Federal Register on July 20, 2009.2

No comment letters were received on 

the proposal. This order approves the 

proposal. 

II. Description 

The proposed rule change eliminates 

one of the Indemnity Surety Programs 

(‘‘PSP II’’) of DTC’s Profile Modification 

System (‘‘Profile’’).3

On April 19, 2000, the Commission 

approved a DTC rule filing to establish 

Profile,4 an electronic communication 

system between transfer agents that are 

Direct Registration System (‘‘DRS’’) 

Limited Participants (‘‘Limited 

Participants’’) and broker-dealers that 

are DRS Participants (‘‘Participants’’). In 

May 2000, DTC implemented Profile. 

Profile allows Participants to submit 

electronically an instruction to move a 

share position from an account at the 

Limited Participant to the Participant’s 

account at DTC (‘‘Electronic Participant 

Instruction’’). Profile also allows 

Limited Participants to submit an 

instruction for the movement of a share 

position from a Participant’s account at 

DTC to an account at the Limited 

Participant (‘‘Electronic Limited 

Participant Instruction;’’ together with 

Electronic Participant Instruction, 

‘‘Electronic Instruction’’). A Participant 

or Limited Participant submitting an 

Electronic Instruction through Profile is 

required to agree to a Participant 

Terminal System (‘‘PTS’’) screen 

indemnity (‘‘Screen Indemnity’’). 

On November 17, 2000, the 

Commission approved a DTC rule filing 

to establish the Profile Indemnity Surety 

Program (‘‘PSP’’).5 Under PSP, all users 

of Profile that agree to the Screen 

Indemnity as part of their use of Profile 

must procure a surety bond (‘‘Surety 

Bond’’) to back the representations 

under the Screen Indemnity.6

On June 26, 2008, the Commission 

approved a DTC rule filing to establish 

PSP II,7 which provides for a coverage 

limit of $7.5 million per transaction 

with an annual aggregate limit of $15 

million. Users of PSP II are required to 

pay an annual premium of $6,000 to a 

surety provider and a DTC 

administration fee of $250. 

On June 3, 2009, the Commission 

approved a DTC rule filing to establish 

a new Profile Indemnity Insurance 

Program (‘‘PIP II’’) to replace PSP II.8

PIP II will account for the additional, 

larger value Profile transactions that 

DRS currently handles by providing the 

same coverage limits (i.e., $7.5 million 

per transaction with an annual aggregate 

limit of $15 million) at the same annual 

premium (i.e., $6,000 to a provider and 

a $250 administration fee to DTC) as 

PSP II without requiring users of Profile 

to procure a surety bond. Since PIP II 

will perform the same function of PSP 

II, DTC is eliminating PSP II. 

III. Discussion 

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 registered clearing 

agency. In particular, the Commission 

believes the proposal is consistent with 

the requirements of Section 

17A(b)(3)(F),9 which requires, among 

other things, that the rules of a clearing 

agency are designed to remove 

impediments to and perfect the 

mechanisms of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 10 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (File No. SR– 

DTC–2009–11) be, and hereby is, 

approved.12

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21619 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60610; File No. SR–BX– 

2009–058] 

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 

September 1, 2009. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

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


jlentini on DSKJ8SOYB1PROD with NOTICES