51890 Federal Register / Vol. 74, No. 194 / Thursday, October 8, 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

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

6 15 U.S.C. 78f(b)(4) 

7 15 U.S.C. 78f(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

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 FINRA. 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–FINRA– 

2009–062 and should be submitted on 

or before October 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24265 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60779; File No. SR–CBOE– 

2009–73] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend on CBSX the 

Taker Fees and Maker Rebates 

October 2, 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 October 

1, 2009, the Chicago Board Options 

Exchange, Incorporated (the ‘‘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. CBOE has designated 

this proposal as one establishing or 

changing a due, fee, or other charge 

applicable only to a member under 

Section 19(b)(3)(A)(ii) 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 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 

CBOE Stock Exchange (‘‘CBSX’’) Fees 

Schedule. 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 

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 

CBSX proposes to make fee 

modifications in order to better attract 

business to the exchange. Specifically, 

CBSX proposes to change to $0.0010 per 

share its Taker Fee applicable to 

transactions of securities priced at $1 or 

greater (including for ISO and IOC 

orders). CBSX proposes to change to 

0.29% its Taker Fee for transactions in 

securities priced less than $1. CBSX 

proposes to change to $0.0005 per share 

the rebate for Makers, applicable to 

transactions in securities priced at $1 or 

greater. 

CBSX also proposes to eliminate its 

enhanced Maker rebate for MarketMakers when Liquidity Provider 

Guidelines (‘‘LPGs’’) are met regarding 

transactions in securities priced at $1 or 

greater. Indeed, CBSX proposes to 

eliminate from its Fees Schedule all 

references to LPGs, including current 

footnote 2 and the LPG table. Without 

the enhanced rebate, the LPG table is no 

longer necessary. 

CBSX also proposes to change its 

Maker rebate for transactions in 

securities priced less than $1 to 0.20% 

of the dollar value of the transaction. 

CBSX proposes to change the fee for the 

sweep portion of cross and sweep orders 

for transactions in securities priced less 

than $1 to 0.40% of the dollar value of 

the sweep portion. CBSX proposes to 

change the fees for orders routed away 

to $0.0029 per share for transactions in 

securities priced at $1 or greater and 

0.29% of the dollar value of the 

transaction for transactions in securities 

priced less than $1. 

Finally, CBSX also proposes to 

modify its pricing for NBBO Step-Up 

trades. The order that is flashed will be 

charged $0.0005 per share executed, and 

there will be no Maker rebates. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),5 in general, and furthers the 

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

in particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members and other 

persons using its facilities. 

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 

The proposed rule change is 

designated by the Exchange as 

establishing or changing a due, fee, or 

other charge, thereby qualifying for 

effectiveness on filing pursuant to 

Section 19(b)(3)(A)(ii) of the Act 7 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.8 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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 51891 

9 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). 

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–2009–73 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–2009–73. 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–2009–73 and should 

be submitted on or before October 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24267 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60776; File No. SR– 

NASDAQ–2009–086] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposal To Amend NASDAQ Rule 

11890 Governing Clearly Erroneous 

Executions 

October 2, 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 October 

1, 2009, The NASDAQ Stock Market 

LLC (‘‘Exchange’’ or ‘‘NASDAQ’’) 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. 

NASDAQ 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 

NASDAQ is proposing to amend 

NASDAQ Rule 11890 governing clearly 

erroneous executions. The text of the 

filing is available at http:// 

nasdaqomx.cchwallstreet.com 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. 

NASDAQ 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 

NASDAQ proposes to amend 

NASDAQ Rule 11890 in order to 

improve the exchange’s rule regarding 

clearly erroneous executions. The 

proposed changes are part of a marketwide effort designed to provide 

transparency and finality with respect to 

clearly erroneous executions. This effort 

seeks to achieve consistent results for 

participants across U.S. equities 

exchanges while maintaining a fair and 

orderly market, protecting investors and 

protecting the public interest. In 

addition, NASDAQ has attempted to 

shorten and combine existing sections 

of Rule 11890 and has incorporated all 

of the prior Interpretive Materials into 

the body of the rule. NASDAQ believes 

this will create a clearer and more 

concise rule that will assist market 

participants in complying with its 

terms. The proposed changes are more 

fully discussed below. 

Definition 

NASDAQ will amend the meaning of 

the definition of a clearly erroneous 

execution, to add clarifying language 

with respect to cancelled trades. The 

proposed change identifies that a 

transaction made in error and agreed to 

be canceled by both parties or 

determined by NASDAQ to be clearly 

erroneous will be removed from the 

Consolidated Tape. A trade will only be 

removed from the Consolidated Tape 

when the determination is deemed final 

and any applicable appeals have been 

exhausted. 

Member Initiated Review Requests 

NASDAQ proposes to amend Rule 

11890 to update the procedures for 

requesting a review of a clearly 

erroneous transaction. NASDAQ 

proposes that requests for review must 

be received by the exchange within 30 

minutes of the execution time for orders 

initially routed to and executed on 

NASDAQ. This is consistent with 

NASDAQ’s current practice and will be 

applied uniformly by other markets to 

provide a level of consistency and 

certainty across market centers. As is 

the case under the current rule, 

NASDAQ proposes that members 

submit certain essential identifying 

information with the request including 

the time of the transaction(s), security 

mstockstill on DSKH9S0YB1PROD with NOTICES