8594 Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices 

26The expiration of the contracts for stock index 

futures, stock index options, and stock options all 

expire on the same days occurring on the third 

Friday of March, June, September, and December 

(which is referred to as ‘‘triple witching’’). The 

Exchange’s proposed limitations on p.m. exercise 

settlement values and exercise settlement values 

based on a specified average would apply during 

triple witching expirations, as well as on all other 

Expiration Fridays. 

27 15 U.S.C. 78f(b)(5). 

28See supra note 21. 

29 15 U.S.C. 78s(b)(2). 

30 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Premium Products is defined in the Schedule of 

Fees as the products enumerated therein. 

4 ‘‘Dow Jones,’’ AIG‘‘®’’, ‘‘The Dow Jones–AIG 

Crude Oil Sub-Index SM’’ and ‘‘DJ–AIGCL SM’’ are 

service marks of Dow Jones & Company, Inc. and 

American International Group, Inc. (‘‘American 

International Group’’), as the case may be, and have 

been licensed for use by ProShares Capital 

Management. The ProShares UltraShort DJ–AIG 

Crude Oil ETF (‘‘SCO’’) and the ProShares Ultra DJ– 

AIG Crude Oil ETF (‘‘UCO’’) are based on the Dow 

Jones-AIG Crude Oil Index SM and are not 

sponsored, endorsed, sold or promoted by Dow 

Jones, AIG Financial Products Corp. (‘‘AIG–FP’’), 

American International Group, or any of their 

respective subsidiaries or affiliates. Dow Jones, 

settlements.26 Because CBOE, for the 

most part, has not set any average 

pricing parameters, the Commission is 

unclear what the potential market 

impact could be on or around 

Expiration Friday. Therefore, it is 

reasonable and consistent with Section 

6(b)(5) of the Act 27 for CBOE to restrict 

average pricing during the Blackout 

Period until it sets forth a specific 

proposal and the potential market 

impact can be adequately addressed.28

Based on the above, the Commission 

finds good cause for approving the 

CBOE’s proposal, as modified by 

Amendments No. 1 and 2, on an 

accelerated basis, pursuant to Section 

19(b)(2) of the Act. 

V. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning Amendments No. 

1 and 2 to File No. SR–CBOE–2008–115, 

including whether Amendments No. 1 

and 2 are 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–2008–115 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

and 100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2008–115. 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 Amex. 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–2008–115 and 

should be submitted on or before March 

18, 2009. 

VI. Conclusion 

For the foregoing reasons, the 

Commission finds that the proposed 

rule changes are consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,29 that the 

proposed rule change (SR–CBOE–2008– 

115), as modified by Amendments No. 

1 and 2 thereto, be and hereby is 

approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.30

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4036 Filed 2–24–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59410; File No. SR–ISE– 

2009–06] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fee Changes 

February 17, 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 February 

11, 2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 ISE is proposing to amend its 

Schedule of Fees to establish fees for 

transactions in options on 7 Premium 

Products.3 The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), at the 

principal office of the Exchange, 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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

The Exchange is proposing to amend 

its Schedule of Fees to establish fees for 

transactions in options on the ProShares 

Ultra DJ–AIG Crude Oil ETF (‘‘UCO’’), 

the ProShares UltraShort DJ–AIG Crude 

Oil ETF (‘‘SCO’’),4 the ProShares 


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Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 2009 / Notices 8595 

AIG–FP, and American International Group have 

not licensed or authorized ISE to (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on SCO and 

UCO or (ii) to use and refer to any of their 

trademarks or service marks in connection with the 

listing, provision of a market for trading, marketing, 

and promotion of options on SCO and UCO or with 

making disclosures concerning options on SCO and 

UCO under any applicable federal or state laws, 

rules or regulations. Dow Jones, AIG–FP, and 

American International Group do not sponsor, 

endorse, or promote such activity by ISE and are 

not affiliated in any manner with ISE. 

5 ‘‘Standard & Poor’s’’, ‘‘S&P’’, ‘‘S&P 400’’, and 

‘‘Standard & Poor’s 400’’ are trademarks of The 

McGraw-Hill Companies, Inc. (‘‘McGraw-Hill’’) and 

have been licensed for use for certain purposes by 

ProShares Trust. All other trademarks and service 

marks are the property of their respective owners. 

The ProShares UltraShort MidCap 400 ETF 

(‘‘MZZ’’) is not sponsored, endorsed, sold or 

promoted by Standard & Poor’s, (‘‘S&P’’), a division 

of McGraw-Hill. S&P has not licensed or authorized 

ISE to (i) engage in the creation, listing, provision 

of a market for trading, marketing, and promotion 

of options on MZZ or (ii) to use and refer to any 

of their trademarks or service marks in connection 

with the listing, provision of a market for trading, 

marketing, and promotion of options on MZZ or 

with making disclosures concerning options on 

MZZ under any applicable federal or state laws, 

rules or regulations. S&P does not sponsor, endorse, 

or promote such activity by ISE and is not affiliated 

in any manner with ISE. 

6 ‘‘Barclays Capital’’ and ‘‘Barclays Capital Inc.’’ 

are trademarks of Barclays Capital Inc. (‘‘Barclays’’) 

and have been licensed for use for certain purposes 

by ProShares Trust. All other trademarks and 

service marks are the property of their respective 

owners. The ProShares UltraShort 7–10 Treasury 

ETF (‘‘PST’’) is not sponsored, endorsed, sold or 

promoted by Barclays. Barclays has not licensed or 

authorized ISE to (i) engage in the creation, listing, 

provision of a market for trading, marketing, and 

promotion of options on PST or (ii) to use and refer 

to any of their trademarks or service marks in 

connection with the listing, provision of a market 

for trading, marketing, and promotion of options on 

PST or with making disclosures concerning options 

on PST under any applicable federal or state laws, 

rules or regulations. Barclays does not sponsor, 

endorse, or promote such activity by ISE and is not 

affiliated in any manner with ISE. 

7 iShares ® is a registered trademark of Barclays 

Global Investors, N.A. (‘‘BGI’’), a wholly owned 

subsidiary of Barclays Bank PLC. ‘‘GSCI ®’’ is a 

registered trademark of Goldman, Sachs & Co. 

(‘‘Goldman’’) and has been licensed for use for 

certain purposes by BGI. All other trademarks and 

service marks are the property of their respective 

owners. The iShares GSCI Commodity Indexed 

Trust (‘‘GSG’’) is not sponsored, sold, endorsed or 

promoted by Goldman. Goldman and BGI have not 

licensed or authorized ISE to (i) engage in the 

creation, listing, provision of a market for trading, 

marketing, and promotion of options on GSG or (ii) 

to use and refer to any of their trademarks or service 

marks in connection with the listing, provision of 

a market for trading, marketing, and promotion of 

options on GSG or with making disclosures 

concerning options on GSG under any applicable 

federal or state laws, rules or regulations. Goldman 

and BGI do not sponsor, endorse, or promote such 

activity by ISE and are not affiliated in any manner 

with ISE. 

8These fees will be charged only to Exchange 

members. Under a pilot program that is set to expire 

on July 31, 2009, these fees will also be charged to 

Linkage Principal Orders (‘‘Linkage P Orders’’) and 

Linkage Principal Acting as Agent Orders (‘‘Linkage 

P/A Orders’’). The amount of the execution fee 

charged by the Exchange for Linkage P Orders and 

Linkage P/A Orders is $0.24 [sic] per contract side 

and $0.15 [sic] per contract side, respectively. See 

Securities Exchange Act Release No. 58143 (July 11, 

2008), 73 FR 41388 (July 18, 2008) (SR–ISE–2008– 

52). The Commission notes that the Exchange failed 

to accurately reflect the increased execution fees for 

linkage orders, which are now $0.27 for Linkage P 

orders and $0.18 for Linkage P/A orders. See 

Securities Exchange Act Release No. 58139 (July 10, 

2008), 73 FR 41142 (July 17, 2008) (SR–ISE–2008– 

54). 

9Public Customer Order is defined in Exchange 

Rule 100(a)(39) as an order for the account of a 

Public Customer. Public Customer is defined in 

Exchange Rule 100(a)(38) as a person or entity that 

is not a broker or dealer in securities. 

10The Exchange applies a sliding scale, between 

$0.01 and $0.18 per contract side, based on the 

number of contracts an ISE market maker trades in 

a month. 

11The amount of the execution fee for non-ISE 

Market Maker transactions executed in the 

Exchange’s Facilitation and Solicitation 

Mechanisms is $0.19 per contract. 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

UltraShort MidCap 400 ETF (‘‘MZZ’’),5

the ProShares UltraShort 7–10 Year 

Treasury ETF (‘‘PST’’),6 the iShares 

GSCI Commodity Indexed Trust ETF 

(‘‘GSG’’),7 the ProShares Ultra Gold ETF 

(‘‘UGL’’) and the ProShares UltraShort 

Gold ETF (‘‘GLL’’). The Exchange 

represents that UCO, SCO, MZZ, PST, 

GSG, UGL and GLL are eligible for 

options trading because they constitute 

‘‘Exchange-Traded Fund Shares,’’ as 

defined by ISE Rule 502(h). 

All of the applicable fees covered by 

this filing are identical to fees charged 

by the Exchange for all other Premium 

Products. Specifically, the Exchange is 

proposing to adopt an execution fee for 

all transactions in options on UCO, 

SCO, MZZ, PST, GSG, UGL and GLL.8

The amount of the execution fee for 

products covered by this filing shall be 

$0.18 per contract for all Public 

Customer Orders 9 and $0.20 per 

contract for all Firm Proprietary orders. 

The amount of the execution fee for all 

ISE Market Maker transactions shall be 

equal to the execution fee currently 

charged by the Exchange for ISE Market 

Maker transactions in equity options.10

Finally, the amount of the execution fee 

for all non-ISE Market Maker 

transactions shall be $0.45 per 

contract.11 Further, since options on 

UCO, SCO, MZZ, PST, GSG, UGL and 

GLL are multiply-listed, the Exchange’s 

Payment for Order Flow fee shall apply 

to all these products. The Exchange 

believes the proposed rule change will 

further the Exchange’s goal of 

introducing new products to the 

marketplace that are competitively 

priced. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,12

in general, and furthers the objectives of 

Section 6(b)(4),13 in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 14 and Rule 19b–4(f)(2) 15

thereunder. 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 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–ISE–2009–06 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–ISE–2009–06. This file number 


pwalker on PROD1PC71 with NOTICES
8596 Federal Register / Vol. 74, No. 36 / Wednesday, February 25, 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). 

4 17 CFR 240.19b–4(f)(6). 

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

6 15 U.S.C. 78f(b)(5). 

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 ISE. 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–ISE–2009–06 and should be 

submitted on or before March 18, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–3979 Filed 2–24–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59419; File No. SR–BX– 

2009–011] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

the $3 Underlying Price Requirement 

for Continued Listing and Listing of 

Additional Series on the Boston 

Options Exchange Facility 

February 19, 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 February 

18, 2009, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) 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 self-regulatory organization. The 

Exchange filed the proposed rule change 

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

Act,3 and Rule 19b–4(f)(6) 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 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Chapter IV, Section 4 (Withdrawal of 

Approval of Underlying Securities) of 

the Rules of the Boston Options 

Exchange Group, LLC (‘‘BOX’’) to 

eliminate the $3 market price per share 

requirement from the requirements for 

continued approval of an underlying 

security and the prohibition against 

listing additional series of options on an 

underlying security at any time when 

the price per share of such underlying 

security is less than $3. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

The purpose of this proposed rule 

change is to eliminate the $3 market 

price per share requirement from the 

requirements for continued approval for 

an underlying security from Chapter IV, 

Section 4(b)(iv) of the BOX Rules. This 

proposed rule change also amends 

Chapter IV, Section 4(c) by eliminating 

the prohibition against listing additional 

series or options on an underlying 

security at any time when the price per 

share of such underlying security is less 

than $3. The Exchange also proposes to 

make technical changes throughout 

Section 4 to eliminate references to 

Section 4(b)(iv). 

The BOX rules require that the market 

price for a security be at least $3 on the 

previous trading day for the continued 

listing of options on that underlying 

security. If the price of an underlying 

security falls below $3, BOX can 

continue to trade then-listed series on 

that underlying security, but is unable 

to list new series of options. The 

Exchange believes that the $3 market 

price per share requirement is no longer 

necessary or appropriate, and that only 

those underlying securities meeting the 

remaining continued listing criteria set 

forth in Chapter IV, Section 4 will be 

eligible for continued listing and the 

listing of additional options series. The 

Exchange believes that the current $3 

market price per share requirement 

could have a negative effect on 

investors. For example, in the current 

volatile market environment in which 

the market price for a large number of 

securities has fallen below $3, BOX is 

currently unable to list new series on 

underlying securities trading below $3. 

If there is market demand for series 

below $3, BOX would be unable to 

accommodate such requests and 

investors would be unable to hedge 

their positions with options series with 

strikes below $3. 

2. Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,5

in general, and Section 6(b)(5) of the 

Act,6 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

proposed rule change will permit BOX 

to make options on underlying 

securities available even if the price of 

the underlying security is less than $3, 


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