Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices 11147 

6Fees may be collected multiple times in any 

given calendar year depending on the terms of the 

ADR agreement. 

7 15 U.S.C. 78q–1. 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the ADR agent fees, the ADR depositary 

banks will be required to notify DTC 

thirty calendar days prior to the record 

date that a DSF or other fee is due and 

payable.6 Moreover, DTC will require 

that the ADR depositary bank submit an 

attestation that the specific fee(s) is 

allowable under the ADR agreement 

with the issuer. The attestation will be 

in a form prescribed by DTC and may 

be changed periodically to address 

operational issues. If a participant asks 

DTC to substantiate the fee, DTC may 

require the ADR depositary to provide 

DTC with a copy of the ADR agreement 

with the issuer and highlight the fee 

schedule. DTC may at its discretion 

provide copies of the agreement to its 

participants to substantiate the fee. 

As a result of this rule filing, the fee 

schedule for assessing ADR agent fees 

will be revised. First, ADR agent fees 

will apply to all fees permitted under 

the ADR agreement; the reference to 

‘‘issues not paying periodic dividends’’ 

would be deleted. Second, as discussed 

above, the maximum ADR agent fee 

would be increased to $20,000 from 

$10,000. 

DTC has discussed this proposal with 

The Securities Industry and Financial 

Markets Association’s (‘‘SIFMA’’) 

Operations Committee and Dividend 

Division and with various participants. 

The SIFMA Operations Committee 

endorsed DTC’s plan to collect ADR 

agent fees, and the Dividend Division 

and DTC participants did not object to 

DTC moving forward. DTC states that 

the proposed ADR agent fee collection 

process will eliminate invoice and 

check processing for DTC participants 

and the depositary banks because ADR 

depositaries will no longer have to mail 

invoices and reminders to participants 

holding ADR securities at DTC. 

Participants will also have a more 

transparent view into upcoming ADR 

agent fees and a centralized source for 

information about the ADR agent fee 

and the collection process. DTC expects 

to begin collecting ADR agent fees as 

expanded by this rule filing in the first 

full month following the approval of 

this filing. 

DTC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 7

and the rules and regulations 

thereunder because it updates DTC’s fee 

schedule and provides for the equitable 

allocation of fees among its participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

DTC has not solicited or received 

written comments relating to the 

proposed rule change. DTC will notify 

the Commission of any written 

comments it receives. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five 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 

ninety 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 self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve 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 e-mail to rulecomment@sec.gov. Please include File 

No. SR–DTC–2009–05 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–DTC–2009–05. 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. to 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

DTC’s principal office and on DTC’s 

Web site at http://www.dtc.org/impNtc/ 

mor/index.html. 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–DTC–2009– 

05 and should be submitted on or before 

April 6, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5567 Filed 3–13–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59548; File No. SR–ISE– 

2009–10] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Exchange’s 

Obvious Error Rules 

March 10, 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 

25, 2009, the International Securities 

Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The Exchange 

11148 Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices 

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

4 17 CFR 240.19b–4(f)(6). 

5The Exchange notes that this proposed change 

is similar to the ‘‘no bid’’ provision in NYSE Arca 

Rule 6.87 Commentary .04. 

6The Exchange notes that this proposed change 

differs from NYSE Arca Rule 6.87 Commentary .04 

in that it proposes to look to two strikes above or 

below the options series in question in which there 

also must be no bid whereas the NYSE Arca rule 

looks to only one strike above or below the options 

series in question in which there also must be no 

bid. 7 17 CFR 240.19b–4(f)(6). 

filed the proposed rule change as a 

‘‘non-controversial’’ 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 change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE proposes to amend its Rule 

720 regarding obvious errors. The text of 

the proposed rule change is as follows, 

with deletions in [brackets] and 

additions in italics: 

Rule 720. Obvious Errors 

* * * * * 

Supplementary Material to Rule 720 

.01–.04 No Change. 

.05 Buyers of options with a zero bid [and 

$.05 offer (i.e., a Theoretical Price of $.05)] 

may request that their execution be busted if 

at least the [three] two strikes below (for 

calls) or above (for puts) in the same options 

class were quoted with a zero bid [and $.05 

offer] at the time of the execution. Such 

buyers must follow the procedures of 

paragraph (b)(1) above. 

.06–.08 No Change. 

* * * * * 

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 amend ISE Rule 720 

regarding obvious errors. Under the 

current rule, transactions in options 

series quoted no bid at a nickel, i.e., 

$0.05 offer, may be nullified provided at 

least three strikes below (for calls) or 

above (for puts) in the same options 

class was quoted zero bid at a nickel at 

the time of execution. A ‘‘no bid’’ or 

‘‘zero bid’’ option refers to an option 

where the bid price is $0.00. Series of 

options quoted no bid are usually deep 

out-of-the-money series that are 

perceived as having little if any chance 

of expiring in-the-money. For this 

reason, relatively few transactions occur 

in these series and those that do are 

usually the result of a momentary 

pricing error. 

The proposed rule change would 

eliminate the portion of the current rule 

that requires quotes to have a nickel 

offer and instead only require that the 

option series be quoted no bid.5 The 

proposed rule change would also reduce 

from three to two the number of strikes 

above or below the options series in 

question in which there also must be no 

bid.6 The reason for this change is that 

options that are priced at no bid, 

regardless of the offer, are usually deepout-of-the-money series that are 

perceived as having little if any chance 

of expiring in-the-money. This is 

especially the case when multiple series 

below (for calls) or above (for puts) in 

the same option class are quoted no bid. 

In this regard, the offer price is 

irrelevant. Therefore, transactions in 

series that are quoted no bid at a dime, 

for example, are just as likely to be the 

result of an obvious error as are 

transactions in series that are quoted no 

bid at a nickel when multiple series 

below (for calls) or above (for puts) in 

the same option class are quoted no bid. 

As is currently required, buyers must 

notify ISE’s market operations group 

within the designated timeframe to seek 

relief. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (‘‘Exchange Act’’) 

for this proposed rule change is the 

requirement under Section 6(b)(5) that 

an exchange have rules that are 

designed to promote just and equitable 

principles of trade, and 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 provides for the 

nullification of certain trades that result 

from an inaccurate pricing anomaly. 

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 

This 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 after the 

date of the filing, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest. The 

Exchange provided the Commission 

with written notice of its 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 

the proposed rule change as required by 

Rule 19b–4(f)(6).7 The proposed rule 

change will permit the Exchange to 

nullify certain trades that result from an 

inaccurate pricing anomaly. Further, the 

proposed rule change is similar to the 

rules of NYSE Arca currently in effect. 

For the foregoing reasons, this rule filing 

qualifies for immediate effectiveness as 

a ‘‘non-controversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 of the 

Act, as it does not raise any new, unique 

or substantive issues, and is beneficial 

for competitive purposes and to 

promote a free and open market for the 

benefit of investors. 

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 the 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, 

Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices 11149 

8 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). 

5See ISE Rule 502(a) and (b), which collectively 

require minimum requirements for the underlying 

security that include, but are not limited to: (1) The 

security be registered and be an ‘‘NMS stock’’ as 

defined in Rule 600 of Regulation NMS under the 

Exchange Act; (2) the security be characterized by 

a substantial number of outstanding shares that are 

widely held and actively traded; (3) 7,000,000 

underlying shares, (4) 2,000 shareholders; and (4) 

trading volume of 2,400,000 shares in the preceding 

12 months. 

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–ISE–2009–10 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–ISE–2009–10. 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–ISE–2009–10 and should be 

submitted on or before April 6, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5593 Filed 3–13–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59553; File No. SR–ISE– 

2009–11] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Enable the Listing and 

Trading of Options on Managed Fund 

Shares 

March 10, 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 March 3, 

2009, the International Securities 

Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Exchange filed the proposal 

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 

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 

Rule 502(h) to enable the listing and 

trading of options on Managed Fund 

Shares. 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 

Exchange 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 the proposed rule 

change is to revise ISE Rule 502 to 

enable the listing and trading of options 

on managed fund shares (‘‘Managed 

Fund Shares’’) that are listed and traded 

on a national securities exchange and 

are considered to be an ‘‘NMS Stock’’ 

(as defined in Rule 600 of Regulation 

NMS under the Securities and Exchange 

Act of 1934 (the ‘‘Act’’)). 

Managed Fund Shares represent an 

interest in a registered investment 

company (‘‘Investment Company’’) 

organized as an open-end management 

investment company or similar entity. 

Unlike traditional exchange traded 

funds Managed Fund Shares are actively 

managed. Managed Fund Shares, 

although, based upon a publicly 

disclosed portfolio of securities, each 

trade as a single exchange-listed equity 

security. 

Accordingly, the rules pertaining to 

the listing and trading of standardized 

equity options will apply to Managed 

Fund Shares. 

Listing Criteria 

The Exchange will consider listing 

and trading options on Managed Fund 

Shares provided the Managed Fund 

Shares meet (1) the criteria for 

underlying securities set forth in ISE 

Rule 502(a) and (b) 5, or the Managed 

Fund Shares are available for creation 

and redemption each business day as set 

forth in ISE Rule 502(h)(A)(ii). 

The Exchange proposes that Managed 

Fund Shares deemed appropriate for 

options trading represent an interest in 

an open-end management investment 

company or similar entity, as described 

below: 

• Managed Fund Shares are securities 

that represents an interest in a registered 

investment company (‘‘Investment 

Company’’) organized as an open-end 

management investment company or 

similar entity, that invests in a portfolio 

of securities selected by the Investment 

Company’s investment adviser 

consistent with the Investment 

Company’s investment objectives and