Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Notices 51633 

8See SEC Release No. 34–60531 (August 19, 

2009), approving Amendment No. 3 to the OLPP. 

CBOE’s proposal to list $1 strikes in LEAPs to $5 

would not be subject to the exercise price range 

limitations contained in new paragraph (3)(g)(ii) of 

the OLPP. 

9See CBOE Information Circular IC09–172. 

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

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

12 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). 

4 17 CFR 240.19b–4(f)(2). 

to adopt objective, exercise price range 

limitations applicable to equity option 

classes, options on ETFs and options on 

trust issued receipts.8 CBOE believes 

that these price range limitations will 

have a meaningful quote mitigation 

impact. CBOE also notes that it recently 

delisted 216 option classes as part of its 

mandatory class delisting policy.9

The margin requirements set forth in 

Chapter XII of the Exchange’s rules and 

the position and exercise requirements 

set forth in Rule 4.11 and Rule 4.12 will 

continue to apply to these new series, 

and no changes are being proposed to 

those requirements by this rule change. 

With regard to the impact on system 

capacity, CBOE has analyzed its 

capacity and represents that it and the 

Options Price Reporting Authority have 

the necessary systems capacity to 

handle the additional traffic associated 

with the listing and trading of an 

expanded number of series as proposed 

by this filing. 

2. Statutory Basis 

The Exchange believes the rule 

proposal 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.10 Specifically, the Exchange 

believes that the proposed rule change 

is consistent with the Section 6(b)(5) 

Act 11 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. The Exchange 

believes that the listing of the $1 strike 

price in LEAPS series will benefit 

investors by giving them more flexibility 

to closely tailor their investment 

decisions. 

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 

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 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 

No. SR–CBOE–2009–068 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–2009–068. 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–2009–068 and should be 

submitted on or before October 28, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24079 Filed 10–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60753; File No. SR–CHX– 

2009–14] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Related to 

the Fees and Rebates in Various 

Trading Sessions 

September 30, 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 22, 2009, the Chicago Stock 

Exchange, Inc. (‘‘CHX’’ or ‘‘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 Exchange. 

CHX has filed the proposal pursuant to 

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

19b–4(f)(2) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 


erowe on DSK5CLS3C1PROD with NOTICES
51634 Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Notices 

5SR–CHX–2009–13 (Sept. 1, 2009). 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

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

9 17 CFR 240.19b–4(f)(2). 

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 CHX proposes to amend its 

Schedule of Participant Fees and 

Assessments (the ‘‘Fee Schedule’’), 

effective September 28, 2009, to provide 

for separate trading activity fees for its 

new Early and Late Trading Sessions. 

The text of this proposed rule change is 

available on the Exchange’s Web site at 

http://www.chx.com/rules/ 

proposed_rules.htm and in the 

Commission’s Public Reference Room, 

100 F Street, NE., Washington, DC 

20549. 

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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Changes 

1. Purpose 

In a separate filing, the Exchange has 

created a new Early Trading Session 

beginning at 6 a.m. CT on days the 

Exchange is open for trading and a Late 

Trading Session from 3 p.m. to 3:15 

p.m. CT.5 We plan to implement these 

two new sessions on September 28, 

2009. 

In furtherance of this initiative, the 

Exchange proposes to amend its 

Schedule of Participant Fees and 

Assessments. We propose to charge a 

trading activity fee for single-sided 

orders of $0.003 per share for liquidity 

taken in Tape A, B and C securities 

priced at or above $1 per share in the 

new early and late trading sessions. A 

corresponding rebate of $0.0022 per 

share for liquidity provided in such 

securities would also be added to the 

Fee Schedule. Fees and rebates will be 

assessed based upon the session in 

which the underlying transactions were 

executed. We believe that these fees and 

charges are appropriate to meet the 

Exchange’s objective of attracting 

sufficient trading activity in these 

sessions on a profitable basis. The 

increased differential reflects, in part, 

our expectation of a lower amount of 

market data revenue for trades executed 

in the Early and Late Trading Sessions, 

and a corresponding reliance on trading 

activity fee revenue to support the 

operational costs associated with these 

two sessions. 

The Exchange acknowledges that 

these charges differ from the fees and 

rebates for such securities in the Regular 

Trading Session. Trading activity fees 

and rebates, however, are often not 

uniform at a given exchange depending 

on the circumstances. For example, 

Nasdaq and NYSE Arca have different 

Tiers for take/provide fees for a member 

depending on the average number of 

shares transacted and liquidity provided 

to their exchanges. Trading activity fees 

and rebates frequently vary depending 

on whether the security is reported as 

Tape A, B or C. Provide rebates may 

vary depending on the nature of the 

order, e.g., if the order was not 

displayed (Nasdaq) or was a Market-onClose/Limit-on-Close order (NYSE 

Arca). Finally, a number of exchanges, 

including the CHX, have different take/ 

provide rates for securities trading 

under $1. Our charges for trading 

activity are and will continue to be 

disclosed in the Fee Schedule posted on 

our public Web site and in a Legal 

Notice to our Participants. 

The current fee and rebate structure 

for stocks trading under $1 would be 

extended to the Early and Late Trading 

Sessions. All other current tradingrelated fees and charges would extend 

equally to the Early and Late Trading 

Sessions. Fees and charges relating to 

cross transactions executed in the Late 

Crossing Session would remain 

unchanged. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 6 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 7 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members. Among other 

things, the change to the fee schedule 

would provide a reasonable amount of 

expected revenue to the Exchange to 

offset the expenses of operating these 

new trading sessions. 

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 Regarding the 

Proposed Rule Changes Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Changes and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(B)(3)(A)(ii) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 9 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 

Accordingly, the proposal is effective 

upon Commission receipt of the filing. 

At any time within 60 days of the filing 

of such 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 purpose of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal 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–CHX–2009–14 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–CHX–2009–14. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Notices 51635 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 34– 

53238 (July 28, 2006), 71 FR 44758 (August 7, 2006) 

(order approving SR–NYSEArca–2006–13); see also, 

Securities Exchange Act Release No. 52497 

(September 22, 2005), 70 FR 56949 (September 29, 

2005) (SR–PCX–2005–90); see also, Securities 

Exchange Act Release No. 44983 (October 25, 2001), 

66 FR 55225 (November 1, 2001) (SR–PCX–00–25); 

see also, Securities Exchange Act Release No. 58681 

(September 29, 2008), 73 FR 58285 (October 6, 

2008) (order approving NYSEArca–2008–90). 

4See Securities Exchange Act Release No. 34– 

55590 (April 5, 2007), 72 FR 18707 (April 13, 2007) 

(notice of immediate effectiveness of SR–NYSE– 

2007–29); see also, Securities and Exchange Act 

Release No. 34–58680 (September 29, 2008), 73 FR 

58283 (October 6, 2008) (order approving SR– 

NYSE–2008–76). See Securities Exchange Act 

Release No. 59009 (November 24, 2008), 73 FR 

73363 (December 2, 2008) (order approving SR– 

NYSEALTR–2008–07); see also, Securities and 

Exchange Act Release No. 34–59473 (February 27, 

2009) 74 FR 9853 (March 6, 2009) (order approving 

SR–NYSEALTR–2009–18). 

5See Securities Exchange Act Release No. 58681 

(September 29, 2008), 73 FR 58285 (October 6, 

2008) (order approving NYSEArca–2008–90); see 

also, Securities and Exchange Act Release No. 34– 

59010 (November 24, 2008), 73 FR 73373 

(December 2, 2008) (order approving SR– 

NYSEArca–2008–130). 

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

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

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 will also be 

available for inspection and copying at 

the principal office of the CHX. 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–CHX–2009–14 and should be 

submitted on or before October 28, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24082 Filed 10–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60750; File No. SR– 

NYSEArca–2009–87] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Pilot 

Period to Receive Inbound Routes of 

Orders From Archipelago Securities 

LLC 

September 30, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) and Rule 19b–4 thereunder,2

notice is hereby given that, on 

September 30, 2009, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘Exchange’’) 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 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 extend the 

pilot period of the Exchange’s prior 

approvals to receive inbound routes of 

equities orders from Archipelago 

Securities LLC (‘‘Arca Securities’’), an 

NYSE Arca affiliated ETP Holder. A 

copy of this filing is available on the 

Exchange’s Web site at http:// 

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 

Currently, Arca Securities is the 

approved outbound order routing 

facility of the Exchange.3 Arca 

Securities is also the approved 

outbound order routing facility of the 

New York Stock Exchange (‘‘NYSE’’) 

and NYSE Amex LLC (‘‘NYSE Amex’’).4

The Exchange, through its whollyowned subsidiary, NYSE Arca Equities, 

Inc., has also been previously approved 

to receive inbound routes of equities 

orders by Arca Securities in its capacity 

as an order routing facility of NYSE 

Amex and the NYSE.5 The Exchange’s 

authority to receive inbound routes of 

equities orders by Arca Securities was 

subject to a pilot period ending 

September 29, 2009. The Exchange 

hereby seeks to extend the previously 

approved pilot period (with the 

attendant obligations and conditions) 

for an additional 3 months, through 

December 31, 2009. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 6 of the 

Securities Exchange Act of 1934 (the 

‘‘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 

mechanism of a free and open market 

and a national market system. 

Specifically, the proposed rule change 

will allow the Exchange to continue 

receiving inbound routes of equities 

orders from Arca Securities acting in its 

capacity as a facility of the NYSE and 

NYSE Amex, in a manner consistent 

with prior approvals and established 

protections. The Exchange believes that 

extending the previously approved pilot 

period for three months is of sufficient 

length to permit both the Exchange and 

the Commission to assess the impact of 

the Exchange’s authority to receive 

direct inbound routes of equities orders 

via Arca Securities (including the 

attendant obligations and conditions). 

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 


erowe on DSK5CLS3C1PROD with NOTICES