51208 Federal Register / Vol. 74, No. 191 / Monday, October 5, 2009 / Notices 

16 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). 

5Pursuant to Rule 1.1(aaa), reference to Hybrid 

Trading System includes the Hybrid 3.0 Platform 

unless otherwise specified. 

6See Securities Exchange Act Release No. 58828 

(October 21, 2008), 73 FR 63749 (October 27, 2008), 

granting immediate effectiveness to SR–CBOE– 

2008–107. 

submissions should refer to File 

Number SR–NYSEAmex–2009–64 and 

should be submitted on or before 

October 26, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23851 Filed 10–2–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60727; File No. SR–CBOE– 

2009–067] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Bid/Ask 

Differentials 

September 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 

September 21, 2009, 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, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ 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 amend its 

rules relating to bid/ask differentials. 

The text of the proposed rule change is 

available on the Exchange’s Web site 

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

Office of the Secretary, CBOE 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 

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 

CBOE proposes to amend its rules 

pertaining to the bid/ask differential 

requirements. Currently, Rule 8.7(b)(iv) 

specifies the bid/ask differential 

requirements applicable to MarketMakers when bidding and offering in 

open outcry, during opening rotations 

and when quoting electronically on the 

Hybrid Trading System.5 With respect 

to bidding and offering in open outcry 

and during opening rotations, the 

requirements vary depending on the 

price of the bid. For example, Rule 

8.7(b)(iv)(A) states that the quote widths 

shall not be more than: $0.25 if the bid 

is less than $2; $0.40 where the bid is 

at least $2 but does not exceed $5; $0.50 

where the bid is more than $5 but does 

not exceed $10; $0.80 where the bid is 

more than $10 but does not exceed $20; 

and $1 where the bid is more than $20. 

With respect to electronic quoting on 

the Hybrid Trading System, the bid/ask 

differential requirement is $5. Rule 

8.7(b)(iv) also provides that CBOE may 

establish quote width differences other 

than those set forth above for one or 

more option series. Some or all of these 

quote width differentials are also 

applicable to LMMs in Hybrid 3.0 

classes (see Rule 8.15), LMMs in Hybrid 

classes (see Rule 8.15A), DPMs (see Rule 

8.85), and e-DPMs (see Rule 8.93), 

depending on the manner in which the 

market participant functions. 

CBOE proposes to amend its rules to 

allow the Exchange to set the bid/ask 

differential requirements on a class by 

class basis, and delete from its rules the 

specific differentials identified in Rule 

8.7(b)(iv). CBOE would announce the 

bid/ask differentials to its members via 

circular. Although CBOE at this time 

does not anticipate materially changing 

the bid/ask differentials from their 

current levels, it believes that this 

change provides it with additional 

flexibility to tailor the bid/ask 

differential requirements to particular 

option classes and to take into 

consideration the market conditions and 

the trading and liquidity in a particular 

option class and its underlying security 

when setting the bid/ask differentials. 

Under its existing rules, CBOE from 

time to time grants bid/ask relief in 

various option classes based on market 

conditions and it has not experienced 

any negative effects from such actions. 

CBOE believes that the proposed rule 

change will allow CBOE to continue to 

set the bid/ask differentials at an 

appropriate level which may be 

different than the existing bid/ask 

differentials, rather than waiting for 

market participants to request bid/ask 

relief as it traditionally has been done. 

CBOE notes that the rules of the Nasdaq 

Options Market do not contain any bid/ 

ask differential requirements, even 

though CBOE does not anticipate 

mimicking that market structure. 

Accordingly, CBOE believes that this 

proposed change is consistent with the 

Act. 

In connection with this proposal, 

CBOE proposes to make related changes 

to Rules 6.2B, 6.13, 6.25, 6.53C, 8.14, 

8.15, 8.15A, 8.85, and 8.93, which 

currently reference the bid/ask 

differentials in Rule 8.7(b)(iv). 

Finally, CBOE proposes to amend 

Rule 8.93(iv) to state that an e-DPM is 

obligated to assure that its market 

quotations comply with the minimum 

size requirements prescribed by CBOE, 

which minimum shall be at least one 

contract. Last year, CBOE amended its 

rules to allow the Exchange to set a 

minimum quotation size requirement 

for electronic and open outcry quotes on 

a class by class basis, provided the 

minimum set by the Exchange is at least 

one contract.6 In that filing, changes to 

Rule 8.93 were inadvertently omitted. 

2. Statutory Basis 

The proposed rule change would 

permit the Exchange to set the bid/ask 

differential requirements on a class by 

class basis. CBOE believes that this 

flexibility will enable the Exchange to 

tailor the bid/ask differential 

requirements to particular classes and to 

take into consideration the market 

conditions and the trading and liquidity 


cprice-sewell on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 191 / Monday, October 5, 2009 / Notices 51209 

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

8 15 U.S.C. 78f(b)(5). 

9The Exchange has fulfilled this requirement. 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

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. 

in a particular option class and its 

underlying security. Accordingly, the 

Exchange believes the proposed rule 

change is consistent with the Securities 

Exchange Act of 1934 (the ‘‘Act’’) and 

the rules and regulations under the Act 

applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the Act.7

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) Act 8 requirements 

that the rules of an exchange be 

designed to promote just and equitable 

principles of trade, to prevent 

fraudulent and manipulative acts and, 

in general, to protect investors and the 

public interest. 

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 forgoing rule change does 

not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) 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, 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,9 it has become effective 

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

Act10 and Rule 19b–4(f)(6) thereunder.11

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 

No. SR–CBOE–2009–067 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 No. 

SR–CBOE–2009–067. 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 changes 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 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 No. 

SR–CBOE–2009–067 and should be 

submitted on or before October 26, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23852 Filed 10–2–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60737; File No. SR–NYSE– 

2009–96] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

New York Stock Exchange LLC 

Permitting Affiliation With NYFIX 

Millennium L.L.C. and NYFIX Securities 

Corporation 

September 29, 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 

September 22, 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, II, and 

III below, which Items have been 

prepared by the self-regulatory 

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 be 

affiliated with two registered brokerdealer subsidiaries of NYFIX, Inc. 

(‘‘NYFIX’’), NYFIX Millennium L.L.C. 

(‘‘NYFIX Millennium’’) and NYFIX 

Securities Corporation (‘‘NYFIX 

Securities’’), for a period not to exceed 

six months and subject to certain 

limitations and obligations relating to 

the relationship. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

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 


cprice-sewell on DSK2BSOYB1PROD with NOTICES