47844 Federal Register / Vol. 74, No. 179 / Thursday, September 17, 2009 / Notices 

10 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). 

5FLEX Equity Options are flexible exchangetraded options contracts which overlie equity 

securities. FLEX Equity Options provide investors 

with the ability to customize basic option features 

including size, expiration date, exercise style, and 

certain exercise prices. 

among its listed companies, as all 

companies will be subject to the same 

fee schedule. The proposed new initial 

listing fees for the listing of new classes 

of securities are not inequitable or 

unfairly discriminatory, as all 

companies will be subject to the same 

fee schedule. While companies that are 

subject to the $250,000 maximum fee 

under both the current and the proposed 

fee schedule do not benefit from the 

reduction in fees, this is appropriate 

because these companies already benefit 

from a lower effective listing fee per 

share than other companies. 

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 self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the 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–NYSE–2009–83 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–2009–83. 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. 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–2009–83 and should 

be submitted on or before October 8, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–22368 Filed 9–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60641; File No. SR–CBOE– 

2009–064] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to FLEX Equity 

Option Opening Transactions 

September 9, 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 

September 2, 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 a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) 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 extend the 

period for its pilot program regarding 

the minimum value size for an opening 

transaction in FLEX Equity Option 5

series (‘‘Pilot Program’’), which would 

otherwise expire on September 4, 2009, 

through February 28, 2010. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.cboe.org/Legal), at the Exchange’s 

Office of the Secretary and at the 

Commission. 

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 


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Federal Register / Vol. 74, No. 179 / Thursday, September 17, 2009 / Notices 47845 

6See Securities Exchange Act Release No. 57429 

(March 4, 2008), 73 FR 13058 (March 11, 2008) (SR– 

CBOE–2006–36). 

7Under this prior formula, an opening transaction 

in a FLEX Equity series in a stock priced at $40 or 

more would reach the $1 million limit before it 

would reach the contract size limit, i.e., 250 

contracts times the multiplier (100) times the stock 

price ($40) equals $1 million in underlying value. 

For a FLEX Equity series in a stock priced at less 

than $40, the 250 contract size limit applies. 

8Under the Pilot Program formula, an opening 

transaction in a FLEX Equity series in a stock priced 

at approximately $66.67 or more would reach the 

$1 million limit before it would reach the contract 

size limit, i.e., 150 contracts times the multiplier 

(100) times the stock price ($66.67) equals just over 

$1 million in underlying value. For a FLEX Equity 

series in a stock priced at less than $66.67, the 150 

contract size limit would apply. 

9 15 U.S.C. 78s(b)(1). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12The Exchange fulfilled this five day 

requirement. 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). 

15 Id. 

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 

On March 4, 2008, the Commission 

approved the Pilot Program.6 The Pilot 

Program modifies the minimum value 

size for an opening transaction (other 

than FLEX Quotes responsive to a FLEX 

Request for Quotes) in any FLEX Equity 

Option series in which there is no open 

interest at the time the Request for 

Quotes is submitted. Prior to the 

initiation of the Pilot Program, the 

minimum opening transaction value 

size in the case of a FLEX Equity 

Options series was the lesser of (i) 250 

contracts or (ii) the number of contracts 

overlying $1 million in the underlying 

securities.7 The Pilot Program modifies 

the minimum opening size formula by 

reducing the ‘‘250 contracts’’ 

component to ‘‘150 contracts’’ (the $1 

million underlying value component 

continues to apply unchanged).8

The Pilot Program is set to expire on 

September 4, 2009. CBOE believes the 

Pilot Program has been successful and 

well received by its members and the 

investing public. Thus, the purpose of 

this proposed rule change is to extend 

the Pilot Program through February 28, 

2010. This is merely an extension. The 

Exchange is not seeking any other 

changes to the Pilot Program at this 

time. 

In support of the proposed rule 

change, the Exchange is submitting to 

the Commission a Pilot Program report 

(the ‘‘Report’’) detailing the Exchange’s 

experience with the Pilot Program. 

Specifically, the Report contains (i) data 

and analysis on the open interest and 

trading volume in FLEX Equity Options 

for which series were opened with a 

minimum opening size of 150 to 249 

contracts and less than $1 million in 

underlying value; and (ii) analysis on 

the types of investors that initiated 

opening FLEX Equity Options 

transactions (i.e., institutional, high net 

worth, or retail, if any). The Exchange 

is submitting the Report under separate 

cover and seeking confidential 

treatment under the Freedom of 

Information Act. 

If the Exchange were to propose 

another extension or an expansion of 

the Pilot Program, or should the 

Exchange propose to make the Pilot 

Program permanent, the Exchange 

would submit, along with any filing 

proposing such amendments to the Pilot 

Program, another Report that would 

provide an analysis of the program 

covering the extended period during 

which the Pilot Program is in effect. The 

Report would include the same data and 

analysis as described in the paragraph 

above for the extended Pilot Program 

period. The Report, along with any 

filing to extend or permanently 

implement the Pilot Program, would be 

submitted to the Commission at least 

forty-five (45) days prior to the new 

expiration date of the Pilot Program. 

The Exchange believes there is 

sufficient investor interest and demand 

to extend the Pilot Program. The 

Exchange believes that the Pilot 

Program has provided investors with 

additional means of managing their risk 

exposures and carrying out their 

investment objectives. 

2. Statutory Basis 

In providing FLEX-participating 

members and their customers greater 

flexibility to trade FLEX Equity Options 

by lowering from 250 to 150 the 

minimum number of contracts required 

to open a series, the Exchange believes 

the proposed rule change is consistent 

with the Act 9 and the rules and 

regulations thereunder and, in 

particular, the requirements of Section 

6(b) of the Act.10 Specifically, the 

Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 11 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 extension of the 

Pilot Program will result in a continuing 

benefit to investors, by allowing them 

additional means to manage their risk 

exposures and carry out their 

investment objectives, and will allow 

the Exchange to further study investor 

interest in the Pilot Program. 

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 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule 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 consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization 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,12 the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 13 and 

Rule 19b–4(f)(6) thereunder.14

Under Rule 19b–4(f)(6) of the Act,15 a 

proposal does not become operative for 

30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative date so that the pilot may 

continue without interruption. 

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest. The 

Commission notes that the original pilot 

program was published for notice and 

comment and no comments were 


cprice-sewell on DSK2BSOYB1PROD with NOTICES
47846 Federal Register / Vol. 74, No. 179 / Thursday, September 17, 2009 / Notices 

16Securities Exchange Act Release No. 57429 

(March 4, 2008), 73 FR 13058 (March 11, 2008). 

17For purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). See also 17 CFR 200.30–3(a)(59). 

14 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). 

4See Securities Exchange Act Release No. 57323 

(February 13, 2008), 73 FR 9371 (February 20, 2008) 

(SR–NYSE–2008–09). 

received.16 In addition, extending the 

pilot through February 28, 2010 does 

not raise any new or novel regulatory 

issues that were not previously 

considered in approving the original 

pilot. Based on the above, the 

Commission designates the proposal as 

operative upon filing.17

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–2009–064 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–2009–064. 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 CBOE. 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–2009–064 and 

should be submitted on or before 

October 8, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–22367 Filed 9–16–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60649; File No. SR–NYSE– 

2009–93] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Extending Until 

September 15, 2009, the Operation of 

Interim NYSE Rule 128 Which Permits 

the Exchange To Cancel or Adjust 

Clearly Erroneous Executions if They 

Arise Out of the Use or Operation of 

Any Quotation, Execution or 

Communication System Owned or 

Operated by the Exchange, Including 

Those Executions That Occur in the 

Event of a System Disruption or 

System Malfunction 

September 10, 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 

September 8, 2009, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. NYSE has designated 

the proposed rule change as constituting 

a 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 

The Exchange proposes to extend 

until September 15, 2009, the operation 

of interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend 

until September 15, 2009, the operation 

of interim NYSE Rule 128 (‘‘Clearly 

Erroneous Executions for NYSE 

Equities’’) which permits the Exchange 

to cancel or adjust clearly erroneous 

executions if they arise out of the use or 

operation of any quotation, execution or 

communication system owned or 

operated by the Exchange, including 

those executions that occur in the event 

of a system disruption or system 

malfunction. 

Prior to the implementation of NYSE 

Rule 128 on January 28, 2008,4 the 


cprice-sewell on DSK2BSOYB1PROD with NOTICES