15426 Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 

24 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). 

5On July 12, 2005, the Commission approved the 

Weeklys Program on a pilot basis. See Securities 

Exchange Act Release No. 52011 (July 12, 2005), 70 

FR 41451 (July 19, 2005) (SR–CBOE–2004–63). The 

Weeklys Program was made permanent on April 27, 

2009. See Securities Exchange Act Release No. 

59824 (April 27, 2009), 74 FR 20518 (May 4, 2009) 

(SR–CBOE–2009–018). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 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 or disapprove 

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 email to rulecomments@sec.gov. Please include File 

Number SR–EDGX–2012–07 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–EDGX–2012–07. This file 

number should be included on the 

subject line if email 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 Web site viewing and 

printing 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–EDGX– 

2012–07 and should be submitted on or 

before April 5, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6256 Filed 3–14–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66563; File No. SR–CBOE– 

2012–026] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Expand the Weeklys 

Program 

March 9, 2012. 

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 March 7, 

2012, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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. 

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 

CBOE proposes to amend Rules 5.5 

and 24.9 to allow the Exchange to open 

Short Term Option Series (‘‘Weeklys 

options’’) that are opened by other 

securities exchanges in option classes 

selected by such exchanges under their 

respective short term option rule. 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend Rules 5.5 and 24.9 

to allow the Exchange to open Short 

Term Option Series (‘‘Weeklys options’’) 

that are opened by other securities 

exchanges in option classes selected by 

other exchanges under their respective 

short term option rules.5

Currently, the Exchange may select up 

to 30 currently listed option classes on 

which Weekly options may be opened 

in the Weeklys Program and the 

Exchange may also match any option 

classes that are selected by other 

securities exchanges that employ a 

similar program under their respective 

rules. For each option class eligible for 

participation in the Weeklys Program, 

the Exchange may open up to 30 Short 

Term Option Series for each expiration 

date in that class. 

This proposal seeks to allow the 

Exchange to open Weekly option series 

that are opened by other securities 

exchanges in option classes selected by 

other exchanges under their respective 

short term option rules. This change is 

being proposed notwithstanding the 

current cap of 30 series per class under 

the Weeklys Program. This is a 

competitive filing and is based on 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 15427 

6See Securities Exchange Act Release Nos. 65775 

(November 17, 2011), 76 FR 72476 (November 23, 

2011) (SR–NASDAQ–2011–138) and 65776 

(November 17, 2011), 76 FR 72482 (November 23, 

2011) (SR–PHLX–2011–131). 

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

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

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 Exchange to give the 

Commission written notice of the Exchange’s 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. 

11See supra note 6. 

12For 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). 

approved filings and existing rules of 

The NASDAQ Stock Market LLC for the 

NASDAQ Options Market (‘‘NOM’’) and 

NASDAQ OMX PHLX, Inc. (‘‘PHLX’’).6

CBOE is competitively disadvantaged 

since it operates a substantially similar 

Weeklys Program as NOM and PHLX 

but is limited to listing a maximum of 

30 series per options class that 

participates in its Weeklys Program 

(whereas PHLX and NOM are not 

similarly restricted). 

The Exchange is not proposing any 

changes to the Weeklys Program other 

than the ability to open Weekly option 

series that are opened by other 

securities exchanges in option classes 

selected by other exchanges under their 

respective short term option rules. 

The Exchange notes that the Weeklys 

Program has been well-received by 

market participants, in particular by 

retail investors. The Exchange believes 

that the current proposed revision to the 

Weeklys Program will permit the 

Exchange to meet increased customer 

demand and provide market 

participants with the ability to hedge in 

a greater number of option classes and 

series. 

With regard to the impact of this 

proposal on system capacity, the 

Exchange has analyzed its capacity and 

represents that it and the Options Price 

Reporting Authority (‘‘OPRA’’) have the 

necessary systems capacity to handle 

the potential additional traffic 

associated with trading of an expanded 

number of series for the classes that 

participate in the Weeklys Program. 

The proposed increase to the number 

of series per classes eligible to 

participate in the Weeklys Program is 

required for competitive purposes as 

well as to ensure consistency and 

uniformity among the competing 

options exchanges that have adopted 

similar Weeklys Programs. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 7 of the Act and the rules 

and regulations under the Act, in 

general, and furthers the objectives of 

Section 6(b)(5),8 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 expanding the 

Weeklys Program will result in a 

continuing benefit to investors by giving 

them more flexibility to closely tailor 

their investment decisions and hedging 

decisions in a greater number of 

securities. The Exchange also believes 

that expanding the Weeklys Program 

will provide the investing public and 

other market participants with 

additional opportunities to hedge their 

investment thus allowing these 

investors to better manage their risk 

exposure. While the expansion of the 

Weeklys Program will generate 

additional quote traffic, the Exchange 

does not believe that this increased 

traffic will become unmanageable since 

the proposal remains limited to a fixed 

number of classes. 

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. In this regard and 

as indicated above, the Exchange notes 

that the rule change is being proposed 

as a competitive response to existing 

NOM and PHLX rules. CBOE believes 

this proposed rule change is necessary 

to permit fair competition among the 

options exchanges with respect to their 

short term options programs. 

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 foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to those of other exchanges that 

have been approved by the Commission 

and permit such exchanges to open 

Weekly option series that are opened by 

other securities exchanges under their 

respective short term option rules.11

Therefore, the Commission designates 

the proposal operative upon filing.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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 email to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2012–026 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–2012–026. This file 

number should be included on the 

subject line if email 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/ 


srobinson on DSK4SPTVN1PROD with NOTICES
15428 Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 

13 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. 66096 

(January 4, 2012), 77 FR 1524 (January 10, 2012) 

(Order Approving File No. SR–FINRA–2011–044). 

5FINRA will announce the effective date of SR– 

FINRA–2011–044 in a Regulatory Notice to be 

published no later than March 4, 2012. The 

effective date will be no later than 30 days 

following publication of the Regulatory Notice. See 

id. 

6 15 U.S.C. 78o–3(b)(6). 

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

8 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 

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 Web site viewing and 

printing 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–CBOE– 

2012–026 and should be submitted on 

or before April 5, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6241 Filed 3–14–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66562; File No. SR–FINRA– 

2012–019] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend FINRA Rule 

9313 to Conform to FINRA Rule 9136 

Regarding the Authority of Counsel to 

the National Adjudicatory Council 

March 9, 2012. 

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 February 

29, 2012, 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 and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by 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 

FINRA is proposing to amend FINRA 

Rule 9313 to conform to FINRA Rule 

9136 regarding the authority of counsel 

to the National Adjudicatory Council. 

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 

On January 4, 2012, the SEC approved 

a proposed rule change to FINRA’s Code 

of Procedure.4 As part of the proposed 

rule change, FINRA amended FINRA 

Rule 9313 to give counsel to the 

National Adjudicatory Council (‘‘NAC’’) 

the authority to establish the number of 

copies of all papers that shall be filed 

with the Adjudicator and specifications 

of such papers under FINRA Rule 9136. 

While FINRA Rule 9313 gives counsel 

to the NAC authority to establish the 

specifications of papers that shall be 

filed with the Adjudicator under FINRA 

Rule 9136, FINRA Rule 9136 does not 

provide discretion regarding the 

specifications for such papers. The 

proposed rule change amends FINRA 

Rule 9313(a)(8) to conform to FINRA 

Rule 9136 and removes counsel to the 

NAC’s authority to establish the 

specifications of papers that are filed 

with the NAC. Nevertheless, counsel to 

the NAC will continue to have the 

authority to take the actions specified in 

the other subsections of FINRA Rule 

9313(a). 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date for the proposed 

rule change will be the effective date of 

SR–FINRA–2011–044.5

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,6 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change will provide 

greater clarity to members and the 

public regarding FINRA’s rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change 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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8


srobinson on DSK4SPTVN1PROD with NOTICES