9322 Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). The Commission notes 

that CBOE has satisfied this 5-day requirement. 

11 17 CFR 200.30–3(a)(12). 

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

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given the 

Commission written notice of its intent 

to file 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 proposed rule change 

has become effective pursuant to 

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

19b–4(f)(6) thereunder.10 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 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–2009–011 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–2009–011. 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 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 

Number SR–CBOE–2009–011 and 

should be submitted on or before March 

24, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4428 Filed 3–2–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59441; File No. 10–191] 

C2 Options Exchange, Incorporated; 

Notice of Filing of Application for 

Registration as a National Securities 

Exchange Under Section 6 of the 

Securities Exchange Act of 1934 

February 24, 2009. 

On January 21, 2009, C2 Options 

Exchange, Incorporated (‘‘C2’’) 

submitted to the Securities and 

Exchange Commission (‘‘Commission’’) 

a Form 1 application under the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’), seeking registration 

as a national securities exchange under 

Section 6 of the Exchange Act. The 

Commission is publishing this notice to 

solicit comments on C2’s Form 1. The 

Commission will take these comments 

into consideration in making its 

determination about whether to grant 

C2’s request to be registered as a 

national securities exchange. The 

Commission shall grant such 

registration if it finds that the 

requirements of the Exchange Act and 

the rules and regulations thereunder 

with respect to C2 are satisfied.1

C2’s Form 1 provides detailed 

information on its proposed structure 

and how it proposes to satisfy the 

requirements of the Exchange Act. In 

particular, C2 would be owned by its 

parent company, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’), but would operate as a 

separate self-regulatory organization 

under its own exchange license. The 

incorporator of C2 would appoint C2’s 

initial Board of Directors, which would 

be comprised of the same individuals 

who are then serving as the board of 

directors of CBOE. As specified in the 

proposed Certificate of Incorporation, 

shortly after trading commences, C2 

would undertake a petition process by 

which Trading Permit Holders could 

elect Representative Directors to the 

Board. 

Access to C2 would be available 

through trading permits. All CBOE 

members in good standing would be 

eligible to receive a C2 trading permit 

upon completion of a streamlined 

application process, while non-CBOE 

members could apply for a C2 trading 

permit in a manner similar to the 

current process for firms applying for 

membership on CBOE. 

C2 would operate an all-electronic 

marketplace for the trading of listed 

options and would not maintain a 

physical trading floor. Liquidity on C2 

would be derived from orders to buy 

and orders to sell submitted 

electronically by trading permit holders 

or their sponsored participants from 

remote locations, as well as from market 

makers, which would have certain 

affirmative and negative market making 

obligations. 

C2’s Form 1 is available at the 

Commission’s Public Reference Room 

and http://www.sec.gov. Interested 

persons are invited to submit written 

data, views, and arguments concerning 

C2’s Form 1, including whether C2’s 

application is consistent with the 

Exchange Act. Among other things, the 

Commission requests comments on C2’s 

proposed governance and Board 

composition. Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number 10–191 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number 10–191. This file number 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 40 / Tuesday, March 3, 2009 / Notices 9323 

2 17 CFR 200.30–3(a)(71)(i). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See SR–NYSE Alternext–2009–14 (to be filed 

February 18, 2009). The Commission notes that the 

referenced filing was rejected because of a 

deficiency in the proposed rule text. 

5See Securities and Exchange Act Release No. 

57295 (February 8, 2008), 73 FR 8731 (February 14, 

2008) (SR–NYSE–2008–11). 

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/other.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to C2’s Form 1 filed with 

the Commission, and all written 

communications relating to the 

application 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. 

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 10–191 and should be 

submitted on or before April 17, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.2

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4426 Filed 3–2–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59446; File No. SR–NYSE– 

2009–17] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Eliminating the 

Ability To Enter Orders on the 

Exchange With the Settlement 

Instructions of ‘‘Cash’’, ‘‘Next Day’’ 

and ‘‘Seller’s Option’’ 

February 25, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on February 

18, 2009, New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘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 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 eliminate 

the ability to enter orders on the 

Exchange with the settlement 

instructions of ‘‘cash’’, ‘‘next day’’ and 

‘‘seller’s option’’. 

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 

Through this filing the Exchange 

seeks to amend several Exchange rules 

to remove references to certain 

settlement instructions that are no 

longer compatible with the Exchange’s 

more electronic market. These include 

instructions to settle on ‘‘cash’’, ‘‘next 

day’’ or ‘‘seller’s option’’ basis. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of the NYSE Alternext Exchange 

(formerly the American Stock 

Exchange).4

Background 

Currently, in addition to regular way 

settlement (i.e., settlement on the third 

business day following trade date), a 

customer may submit an order with 

settlement instructions for cash, next 

day or seller’s option. An order with 

cash settlement instructions requires 

delivery of the securities the same day 

as the transaction in contrast to a regular 

way transaction, where the seller is 

required to deliver the securities on the 

third business day. Next day settlement 

instructions require delivery of the 

securities on the first business day 

following the transaction. Orders that 

have settlement instructions of seller’s 

option affords the seller the right to 

deliver the security or bond at any time 

within a specified period, ranging from 

not less than two business days to not 

more than 180 days for stocks and not 

less than two business days and no 

more than sixty days for U.S. 

government securities. 

Cash, next day and seller’s option 

settlement instructions are remnants of 

a time when the Exchange functioned 

completely as a manual auction market. 

While each of these settlement 

instructions may be included on order 

types that are submitted electronically 

to the Exchange, orders containing any 

of those settlement instructions cannot 

be immediately and automatically 

executed but must bypass the Exchange 

matching/execution engine, Display 

Book, and are literally printed on paper 

at the trading post for manual 

processing on the Floor. 

Proposed Elimination of Cash, Next 

Day, Seller’s Option Settlement 

Instructions 

In the Exchange’s current more 

electronic market, orders received by 

Exchange systems that are marketable 

upon entry are eligible to be 

immediately and automatically 

executed. Order types and settlement 

instructions that require manual 

intervention pose significant 

impediments to the efficient functioning 

of the Exchange’s market. To this end 

the Exchange filed with the Commission 

to remove legacy orders that require 

manual processing. Specifically, on 

January 31, 2008, the Exchange filed 

with the Commission to amend NYSE 

Rule 13 to invalidate the use of the 

manual order types ‘‘Alternative 

Order—Either/Or Order’’, ‘‘Orders Good 

Until a Specified Time’’, ‘‘Scale Order’’ 

and ‘‘Switch Order—Contingent Order’’ 

and Rule 124’s order types ‘‘Limited 

Order, With or Without Sale’’ and 

‘‘Basis Price Order’’ as being 

incompatible with the more electronic 

Exchange market environment.5

The Exchange’s commitment to 

provide its market participants with the 

ability to have their orders executed in 

the most efficient manner necessitates 

the elimination of cash, next day and 

seller’s option as valid settlement 

instructions for orders submitted to the 

mstockstill on PROD1PC66 with NOTICES