46826 Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission 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. 

11For 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). 

12 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. 

of the Act 9 and Rule 19b–4(f)(6) 

thereunder.10

The Exchange has requested the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes 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 immediately to provide 

investors with an additional venue to 

close their existing open positions. The 

Commission notes further that the 

Exchange would be permitted to list the 

restricted series solely for the purpose of 

closing transactions as long as the 

restricted series is listed on another 

national securities exchange. For this 

reason, the Commission designates the 

proposal operative upon filing.11

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–CBOE–2009–066 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–2009–066. 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 

Number SR–CBOE–2009–066 and 

should be submitted on or before 

October 2, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21909 Filed 9–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60622; File No. SR– 

NYSEAmex–2009–59] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change Amending 

NYSE Amex Options Rule 915 

September 3, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on August 

19, 2009, NYSE Amex LLC (‘‘NYSE 

Amex’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory 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 revise 

NYSE Amex Rule 915 to amend the 

definition of Futures-Linked Securities 

for the trading of options on IndexLinked Securities. 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 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 

NYSE Amex Rule 915, Commentary 

.11 designates the listing and trading of 

options on equity index-linked 

securities (‘‘Equity Index-Linked 

Securities’’), commodity-linked 

securities (‘‘Commodity-Linked 

Securities’’), currency-linked securities 

(‘‘Currency-Linked Securities’’), fixed 

income index-linked securities (‘‘Fixed 

Income Index-Linked Securities’’), 

futures-linked securities (‘‘FuturesLinked Securities’’) and multifactor 

index-linked securities (‘‘Multifactor 

Index-Linked Securities’’), collectively 

known as ‘‘Index-Linked Securities’’ (as 

defined in NYSE Amex Company Guide 

Section 107(H)) that are principally 

traded on a national securities exchange 

and an ‘‘NMS Stock’’ (as defined in Rule 

600 of Regulation NMS under the 


cprice-sewell on DSKGBLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 46827 

4See Securities Exchange Act Release No. 34– 

58968 (November 17, 2008), 73 FR 64647 (SR– 

NYSEArca–2008–111). 

5For the purposes of Rule 915 Commentary .11, 

Equity Reference Assets, Commodity Reference 

Assets, Currency Reference Assets, Fixed Income 

Reference Assets, Futures Reference Assets and 

Combination Reference Assets, will be collectively 

referred to as ‘‘Reference Assets’’, as defined in 

‘‘Reference Asset’’ as defined in Sections 107D, 

107E, 107F, 107G, 107H and 107I, respectively, of 

the NYSE Amex Options Company Guide. 

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

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

Securities and Exchange Act of 1934). 

The Exchange proposes to amend the 

definition of Futures-Linked Securities 

for the trading of options on IndexLinked Securities to include products 

linked to CBOE Volatility Index (VIX) 

Futures. This proposal is substantially 

similar to the previously approved 

NYSE Arca Equities Rule 5.2(j)(6)(v).4

Specifically, the Exchange proposes to 

add the CBOE Volatility Index (VIX) 

Futures to the definition of a Futures 

Reference Asset in NYSE Amex Rule 

915 Commentary .11(5). 

Index-Linked Securities are designed 

for investors who desire to participate in 

a specific market segment by providing 

exposure to one or more identifiable 

underlying securities, commodities, 

currencies, derivative instruments or 

market indexes of the foregoing 

(‘‘Underlying Index’’ or ‘‘Underlying 

Indexes’’). Index-Linked Securities are 

the non-convertible debt of an issuer 

that have a term of at least one (1) year 

but not greater than thirty (30) years. 

Despite the fact that Index-Linked 

Securities are linked to an underlying 

index, each trade as a single, exchangelisted security. Accordingly, rules 

pertaining to the listing and trading of 

standard equity options apply to IndexLinked Securities. 

Currently, the Exchange will consider 

listing and trading options on IndexLinked Securities provided the IndexLinked Securities meet the criteria for 

underlying securities set forth in Rule 

915 Commentary .01. 

Index-Linked Securities must meet 

the criteria and guidelines for 

underlying securities set forth in Rule 

915 Commentary .01; or the IndexLinked Securities must be redeemable at 

the option of the holder at least on a 

weekly basis through the issuer at a 

price related to the applicable 

underlying Reference Asset.5 In 

addition, the issuing company is 

obligated to issue or repurchase the 

securities in aggregation units for cash 

or cash equivalents satisfactory to the 

issuer of Index-Linked Securities which 

underlie the option as described in the 

Index-Linked Securities prospectus. 

Options on Index-Linked Securities 

will continue to be subject to all 

Exchange rules governing the trading of 

equity options. The current continuing 

or maintenance listing standards for 

options traded on NYSE Amex will 

continue to apply. 

The VIX 

The information in this filing relating 

to the VIX was taken from the Web site 

of the Chicago Board Options Exchange 

(the ‘‘CBOE’’). 

The VIX was originally developed by 

the CBOE in 1993 and was calculated 

using S&P 100® Index options. The 

current methodology for the VIX was 

introduced by the CBOE in September 

2003 and it is now an index that uses 

the quotes of certain S&P 500® Index 

(‘‘SPX’’) option series to derive a 

measure of the volatility of the U.S. 

equity market. The VIX measures 

market expectations of near term 

volatility conveyed by the prices of 

options on the SPX. It provides 

investors with up-to-the-minute market 

estimates of expected stock market 

volatility over the next 30 calendar days 

by extracting implied volatilities from 

real-time index option bid/ask quotes. 

VIX Futures 

Information regarding VIX Futures 

can be found on the Web site of the 

CBOE Futures Exchange (the ‘‘CFE’’). 

The CFE began listing and trading VIX 

Futures since March 26, 2004 under the 

ticker symbol VX. VIX Futures trade 

between the hours of 8:30 a.m.–3:15 

p.m. Central Time (Chicago Time). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 6 of the Securities Exchange 

Act of 1934 (‘‘Act’’) in general, and 

furthers the objectives of Section 

6(b)(5) 7 in particular in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of 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 proposed 

rules applicable to trading pursuant to 

generic listing and trading criteria, 

together with the Exchange’s 

surveillance procedures applicable to 

trading in the securities covered by the 

proposed rules, serve to foster investor 

protection. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: 

A. By order approve such proposed 

rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NYSEAmex–2009–59 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–NYSEAmex–2009–59. 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 


cprice-sewell on DSKGBLS3C1PROD with NOTICES
46828 Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For example, FINRA records show that since 

2000, the average number of registered persons per 

year has been approximately 667,680 and that for 

each of the past three years the population has been 

669,626 (2009), 676,927 (2008) and 662,742 (2007) 

(based on numbers at the end of the preceding 

calendar year). 

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 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–NYSEAmex–2009–59 and 

should be submitted on or before 

October 2, 2009. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21887 Filed 9–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60624; File No. SR–FINRA– 

2009–057] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change Relating to 

Section 1(c) of Schedule A to the 

FINRA By-Laws To Amend the 

Personnel Assessment and Gross 

Income Assessment 

September 3, 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 

20, 2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. 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 

FINRA is proposing to change Section 

1(c) of Schedule A to the FINRA ByLaws (‘‘Schedule A’’) to amend the 

Personnel Assessment and Gross 

Income Assessment paid by each FINRA 

member. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

FINRA’s primary member regulatory 

pricing structure consists of the 

following fees: the Personnel 

Assessment (‘‘PA’’); the Gross Income 

Assessment (‘‘GIA’’); the Trading 

Activity Fee; and the Branch Office 

Assessment. These fees are used to fund 

FINRA’s regulatory activities, including 

rulemaking and FINRA’s examination 

and enforcement programs. 

The proposed rule change would 

amend the PA and GIA to achieve a 

more consistent and predictable funding 

stream to carry out FINRA’s regulatory 

mandate. The economic and industry 

downturns experienced in 2008 and 

2009 have strained FINRA’s resources, 

yet its regulatory responsibilities remain 

constant and its programs robust. 

FINRA believes the proposed rule 

change is needed to stabilize its 

revenues and provide protection against 

future industry downturns. 

To those ends, the proposed rule 

change first would increase the PA for 

all members. The PA is currently 

assessed on a three-tiered rate structure: 

members with one to five registered 

representatives and principals are 

assessed $75 for each such registered 

person; 6–25 registered persons, $70 

each; and 26 or more registered persons, 

$65 each. The proposed rule change 

would increase those rates to $150, $140 

and $130, respectively, based on the 

same tiered structure. This proposal 

would represent the first PA rate 

increase in over five years. Moreover, 

given the correlation between the cost of 

FINRA’s regulatory programs and the 

number of registered persons within a 

firm, FINRA notes that the population of 

registered persons has remained fairly 

stable, even throughout the recent 

economic downturn.3 Accordingly, 

FINRA believes an increase of the PA is 

both a fair and appropriate means to 

achieve a more consistent and reliable 

foundation to fund its regulatory 

operations. 

Even with the proposed increase of 

the PA, the GIA remains the most 

important component of FINRA’s 

regulatory funding. The GIA is currently 

assessed through a seven-tier rate 

structure with a minimum GIA of 

$1,200.00. Under the existing GIA rate 

structure, members are required to pay 

an annual GIA as follows: 

(1) $1,200.00 on annual gross revenue 

up to $1 million; 

(2) 0.1215% of annual gross revenue 

greater than $1 million up to $25 

million; 

(3) 0.2599% of annual gross revenue 

greater than $25 million up to $50 

million; 

(4) 0.0518% of annual gross revenue 

greater than $50 million up to $100 

million; 

(5) 0.0365% of annual gross revenue 

greater than $100 million up to $5 

billion; 

(6) 0.0397% of annual gross revenue 

greater than $5 billion up to $25 billion; 

and 

(7) 0.0855% of annual gross revenue 

greater than $25 billion. 

For 2010, the current year GIA would 

be subject to the cap set forth in 

Regulatory Notice 08–07 (February 

2008), which describes the new funding 

structure that resulted from the 

consolidation of NASD’s and the New 

York Stock Exchange’s member 

regulation operations. FINRA states in 

the Notice that it will apply a tenpercent cap on any increase or decrease 

to a firm’s 2010 current year GIA 

resulting from the new pricing structure 

implemented in January 2008. 


cprice-sewell on DSKGBLS3C1PROD with NOTICES