Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 46257 

15See Securities Exchange Act Release No. 59039 

(December 2, 2008), 73 FR 74770 (December 9, 

2008) (SR–NYSEArca–2006–21). 

16See, e.g., Rule 7015 of The NASDAQ Stock 

Market LLC (‘‘NASDAQ’’) (setting forth, among 

other fees for access services, port fees charged to 

members and non-members used to enter orders 

into NASDAQ trading systems). See also Securities 

Exchange Act Release Nos. 60546 (August 20, 

2009), 74 FR 43184 (August 26, 2009) (SR– 

NASDAQ–2009–058) (increasing the monthly fee 

for each port used to enter orders in NASDAQ 

trading systems from $400 per month to $500 per 

month); 59337 (February 2, 2009), 74 FR 6441 

(February 9, 2009) (SR–BX–2009–004) (establishing 

fees for ports used by members to enter orders); 

59615 (March 20, 2009), 74 FR 14604 (March 31, 

2009) (SR–BX–2009–005) (establishing, among 

other fees, port fees for accessing market data). 

17 15 U.S.C. 78s(b)(2). 

18 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 

5 15 U.S.C. 78s(b)(1). 

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

7 15 U.S.C. 78f(b)(5). 

customers, issuers, brokers, or dealers 

because the proposed port fees do not 

distinguish among the type of 

participant but rather are the same for 

all members and non-members. The 

Commission also believes that BATS 

was subject to significant competitive 

pressure to act equitably, fairly, and 

reasonably in setting the port fees, in 

light of the highly competitive nature of 

the market for execution and routing 

services.15 The Commission further 

notes that the Exchange’s proposed port 

fees are consistent with similar port fees 

charged by other exchanges.16

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule change (SR–BATS–2009– 

026), as modified by Amendment No. 1 

thereto, be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21455 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60585; File No. SR–CBOE– 

2009–053] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Permit FLEX Options 

on Securities Eligible for Non-FLEX 

Options Trading and on Corporate 

Debt Securities 

August 28, 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 August 

19, 2009, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 prepared 

by the Exchange. The Exchange filed the 

proposal as ‘‘non-controversial’’ 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 3 and Rule 19b–4(f)(6) 

thereunder, which renders it effective 

upon filing.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 

CBOE is proposing to amend certain 

CBOE rules to (1) permit the Exchange 

to list Flexible Exchange Options 

(‘‘FLEX Options’’) on securities that are 

eligible for Non-FLEX options trading, 

even if the Exchange does not list NonFLEX options on such securities, and (2) 

designate Corporate Debt Security 

Options as eligible for FLEX Options 

trading. The text of the rule proposal is 

available on the Exchange’s website 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary 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 first change being proposed by 

this filing is to permit CBOE to list 

FLEX Options on securities that are 

eligible for Non-FLEX options trading, 

even if the Exchange does not list NonFLEX options on such securities. 

Currently, CBOE’s rules only permit 

FLEX Options on those securities on 

which the Exchange lists and trades 

Non-FLEX options. For various reasons, 

exchange traded options are not listed 

on every NMS stock, index or other 

products approved for options trading. 

The Exchange recognizes that market 

participants may want access to options 

on such securities, in addition to the 

certainty and safeguards of a regulated 

and standardized marketplace. As an 

alternative to the over-the-counter 

marketplace, CBOE proposes to increase 

the spectrum of products that are 

eligible for FLEX Options trading, even 

if the Exchange does not list Non-FLEX 

options on such securities. In order to 

effect this change, the Exchange is 

proposing to amend its Flexible 

Exchange Options rules and other 

product rules (e.g., Range Options, 

binary options, Credit Options) that 

currently designate such products as 

eligible for FLEX Options trading to 

permit FLEX Options trading even if 

Non-FLEX options on such securities 

are not traded. 

The second change being proposed by 

this filing is to designate Corporate Debt 

Security Options as eligible for FLEX 

Option trading. To effect this change, 

the Exchange is proposing to adopt new 

rule 28.17, which is similar to other 

FLEX Option designation rules for other 

products that have stand alone chapters 

(e.g., Range Options, binary options, 

Credit Options). The Exchange would 

like to offer FLEX Option trading on 

Corporate Debt Security Options as an 

alternative to similar products trading in 

the over-the-counter marketplace. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 5 and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.6

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 7 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that the FLEX Option changes proposed 

in this rule filing will provide market 

investors with additional means to 

manage their risk exposures and carry 


jlentini on DSKJ8SOYB1PROD with NOTICES
46258 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Notices 

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

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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. The 

Exchange has satisfied this requirement. 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4Changes are marked to the rules of The 

NASDAQ Stock Market LLC found at http:// 

nasdaqomx.cchwallstreet.com. 

out their investment objectives with 

exchange-traded products. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

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 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

As for permitting FLEX Options on 

Corporate Debt Security Options, the 

Exchange notes that new products 

brought up and approved by the SEC 

during the past couple of years (e.g., 

Range Options, binary options, Credit 

Options) have contained rules 

designating them as FLEX eligible. As a 

result, the Exchange believes the 

proposed change is consistent with 

existing rules for products and conforms 

the rules for Corporate Debt Security 

Options to other existing product rules. 

For the foregoing reasons, the Exchange 

believes the rule filing qualifies for 

expedited effectiveness as a ‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 of the 

Act. 

At any time within 60 days of the 

filing of such 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–CBOE–2009–053 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–CBOE–2009–053. 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 No. 

SR–CBOE–2009–053 and should be 

submitted on or before September 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21582 Filed 9–4–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60590; File No. SR– 

NASDAQ–2009–078] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change to the 

Nasdaq Listing Rules To Make Certain 

Conforming and Technical Changes 

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 

18, 2009, The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’) 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 Nasdaq. Nasdaq has designated the 

proposed rule change as constituting a 

non-controversial rule change 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 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 

Nasdaq proposes to revert to the 

previously approved requirements of 

certain listing standards that were 

inadvertently changed when adopting 

the new Listing Rules, and to complete 

certain conforming changes to the 

Listing Rules that were not fully 

implemented with their adoption. The 

text of the proposed rule change is 

below. Proposed new language is 

italicized and proposed deletions are in 

brackets.4

5415. Initial Listing Requirements for 

Preferred Stock and Secondary Classes 

of Common Stock 

(a) No change. 


jlentini on DSKJ8SOYB1PROD with NOTICES