Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices 8591 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59060 

(December 5, 2008), 73 FR 76075 (‘‘Notice’’). 

4 In Amendment No. 1, the Exchange: (1) Further 

amended Rules 24A.7, 24A.8, 24B.7 and 24B.8 to 

clarify the applicable exercise limits for FLEX 

Options that expire on a third Friday-of-the-month 

expiration day (‘‘Expiration Friday’’); (2) made a 

typographical correction to the rule text proposed 

to be added to Rule 24A.7. 

5 In Amendment No. 2, the Exchange (1) further 

amended Rules 24A.4 and 24B.4 to impose 

additional restrictions on FLEX Options that expire 

on any business day that falls on, or within two 

business days of, an Expiration Friday by specifying 

that they may only have an a.m. exercise settlement 

value: (2) made a technical correction to the 

reference to the Exchange Rules contained in 

footnote 6 of the original proposed rule change. 

6FLEX Options (FLEX Index Options and FLEX 

Equity Options) provide investors with the ability 

to customize basic option features including size, 

expiration date, exercise style, and certain exercise 

prices. FLEX Index Options and Flex Equity 

Options are index options and options on specified 

equity securities, respectively, that are subject to 

the FLEX rules in Chapters XXIVA or XXIVB of the 

CBOE Rules. FLEX Index Options Series may be 

approved and open for trading on any index that 

has been approved for Non-FLEX Options trading 

or for warrant trading on the Exchange. FLEX 

Equity Options transactions are limited to 

transactions in options on underlying securities that 

have been approved by the Exchange in accordance 

with CBOE Rule 5.3, which includes, but is not 

limited to, stock options and exchange-traded fund 

options. In addition, other products are permitted 

to be traded pursuant to the FLEX trading 

procedures. For example, credit options are eligible 

for trading as FLEX Options pursuant to the FLEX 

rules in Chapters XXIVA and XXIVB. See CBOE 

Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1), 

24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 28.19. 

7For example, under the current rule, a FLEX 

Option could expire on the Tuesday before 

Expiration Friday, but could not expire on the 

Wednesday or Thursday before Expiration Friday. 

Similarly, a FLEX Option could expire on the 

Wednesday after Expiration Friday, but could not 

expire on the Monday or Tuesday after Expiration 

Friday. However, subject to certain aggregation 

requirements for cash settled options, the current 

FLEX Rules do permit the expiration of FLEX 

Options on the same day that Non-FLEX quarterly 

index options (‘‘QIX’’) and Non-FLEX Weeklys 

Options expire. 

8FLEX Index Options overlying all industry 

indexes, all micro narrow-based indexes, and 

certain broad-based indexes are subject to position 

and exercise limits under CBOE Rules 24A.7, 

24A.8, 24B.7, and 24B.8 and will continue to be 

under the proposal. FLEX Index Options on certain 

other broad-based indexes (specifically the BXM, 

DJX, NDX, OEX, RUT, SPX, VIX, VXD, VXN, XEO, 

CBOE S&P 500 Three-Month Realized Variance and 

S&P 500 Three-Month Realized Volatility), and 

FLEX Equity Options are not subject to position 

limits but would remain subject to reporting 

requirements under CBOE Rules 24A.7 and 24B.7, 

Continued 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

Comments should be directed to (i) 

Desk Officer for the Securities and 

Exchange Commission, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 

Room 10102, New Executive Office 

Building, Washington, DC 20503 or by 

sending an e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Charles Boucher, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Shirley 

Martinson, 6432 General Green Way, 

Alexandria, VA 22312 or send an e-mail 

to: PRA_Mailbox@sec.gov. Comments 

must be submitted within 30 days of 

this notice. 

Dated: February 18, 2009. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4035 Filed 2–24–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, February 26, 2009 at 2 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The Acting General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Casey, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in closed session and 

determined that no earlier notice thereof 

was possible. 

The subject matter of the Closed 

Meeting scheduled for Thursday, 

February 26, 2009 will be: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: February 20, 2009. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–3993 Filed 2–24–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59417; File No. SR–CBOE– 

2008–115] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Amendments No. 1 and 2 and Order 

Granting Accelerated Approval to a 

Proposed Rule Change, as Modified by 

Amendments No. 1 and 2 Thereto, 

Relating to FLEX Options Expirations 

February 18, 2009. 

I. Introduction 

On November 19, 2008, Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘Exchange’’), filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend its rules regarding permissible 

expiration dates for Flexible Exchange 

Options (‘‘FLEX Options’’). On 

December 15, 2008, the proposed rule 

change was published for comment in 

the Federal Register.3 On January 28, 

2009, the Exchange filed Amendment 

No. 1 4 and on February 12, 2009, the 

Exchange filed Amendment No. 2.5 The 

Commission received no comments on 

the proposed rule change. This order 

provides notice of filing of Amendments 

No. 1 and 2 to the proposed rule change 

and grants accelerated approval to the 

proposed rule change, as modified by 

Amendments No. 1 and 2. 

II. Description of the Proposal 

Under current CBOE Rules 24A.4 and 

24B.4, FLEX Options 6 may not expire 

on any business day that falls on, or 

within two business days of, an 

Expiration Friday.7

In this proposed rule change, the 

Exchange proposed to eliminate the 

expiration date restriction on FLEX 

Options expiring on or within two 

business days of Expiration Friday 

(‘‘Blackout Period’’) so that FLEX 

Options may expire on any business 

day. Under its proposal, position and 

exercise limits, as applicable under 

CBOE Rules, and reporting requirements 

would continue to apply.8 The 


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