12416 Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices 

17 15 U.S.C. 78s(b)(2). 

18 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). 

5A conversion (reversal) order is an order 

involving the purchase (sale) of a put option and 

the sale (purchase) of a call option in equivalent 

units with the same strike price and expiration in 

the same underlying security, and the purchase 

(sale) of the related instrument. See Rule 

6.53C(a)(9). 

6 15 U.S.C. 78s(b)(3)(A). 

7As a result of being eligible for COB, these 

complex orders will also be eligible for electronic 

auction via the complex order auction (‘‘COA’’), the 

automated improvement mechanism (‘‘AIM’’) and/ 

or the solicitation auction mechanism (‘‘AIM 

SAM’’). See Rules 6.53C.06, 6.74A.07 and 6.74B.01. 

8 In open outcry, stock-option orders that have 

only one option leg have priority over bid (offers) 

of the trading crowd, but not over bids (offers) in 

the public customer limit order book. See, e.g., 

Rules 6.45A(b)(ii) and 6.45B(b)(ii). 

9 In open outcry, stock-option orders that have 

more than one option leg are handled in the same 

manner as other complex orders that have more 

than one option leg and, as such, have priority over 

equivalent bids (offers) in the individual series legs 

that are represented in the trading crowd or in the 

public customer limit order book provided at least 

one leg of the order betters the corresponding bid 

(offer) in the public customer limit order book by 

at least the minimum trading increment or a $0.01 

increment, which increment shall be determined by 

the Exchange on a class-by-class basis. Id. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule changes, as amended 

(SR–ISE–2009–04; SR–CBOE–2009–001; 

SR–NYSEArca–2009–10; and SR– 

NYSEALTR–2009–11) be, and they 

hereby are, approved on an accelerated 

basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6327 Filed 3–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59585; File No. SR–CBOE– 

2009–017] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to the Complex 

Order Book 

March 17, 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 13, 

2009, the Chicago Board Options 

Exchange, Incorporated (the ‘‘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 

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 

The Exchange proposes to amend 

Rule 6.53C, Complex Orders on the 

Hybrid System, to permit conversions 

and reversals 5 to be eligible for routing 

to the complex order book (‘‘COB’’). 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 

When the Exchange originally 

adopted its electronic COB rule in 2005, 

the rule contained a provision related to 

the routing of conversions and reversals. 

Specifically, the rule provided that 

conversions and reversals will not be 

eligible for routing to the COB and that, 

when the Exchange determines to allow 

conversions and reversals to route to 

COB, it will submit to the Commission 

a rule filing pursuant to Section 

19(b)(3)(A) of the Act.6

The Exchange has enhanced its COB 

system functionality and has 

determined to permit conversions and 

reversals to be routed to COB. As such, 

as provided in the rule, this rule change 

is being submitted pursuant to Section 

19(b)(3)(A) to eliminate the restriction 

on routing conversions and reversals to 

COB. Conversions and reversals, as well 

as any other complex orders with stock 

that have more than one option leg, will 

be handled by COB in the same manner 

as stock-option orders that have only 

one option leg with one exception.7

For stock-option orders that have only 

one option leg, the rule currently 

provides that the option leg will not be 

executed on the Hybrid System at the 

Exchange’s best bid (offer) in that series 

if one or more public customer orders 

are resting at that price on the electronic 

book, unless the option leg trades with 

such public customer order(s). This 

COB provision is consistent with 

CBOE’s open outcry priority rules for 

stock-option orders that have only one 

option leg.8 For conversions, reversals 

and other complex orders with stock 

that have more than one option leg, the 

rule text will clarify that this provision 

will apply only if there are public 

customer orders resting on the Hybrid 

System at the Exchange’s best bid (offer) 

in the electronic book for each of the 

options legs of the conversion, reversal 

or stock-option order. Thus, the options 

legs of such an order would not execute 

on the Hybrid System at the Exchange’s 

best bid (offer) if one or more public 

customer orders are resting at that price 

in the electronic book in each of the 

options legs, unless the options legs 

trade with such public customer orders. 

This proposed COB provision is 

consistent with CBOE’s open outcry 

priority rules for stock-option orders 

that have more than one option leg.9

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act 10 in general and furthers 

the objectives of Section 6(b)(5) of the 

Act 11 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 of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes that the addition of 

conversions and reversals to the list of 

complex orders eligible for electronic 

handling under Rule 6.53C is a 

significant enhancement for investors 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 74, No. 55 / Tuesday, March 24, 2009 / Notices 12417 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). The CBOE satisfied the 

requirement under Rule 19b–4(f)(6)(iii) that the 

CBOE give the Commission 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 of the proposed rule change. 14 17 CFR 200.30–3(a)(12). 

1 17 CFR 200.30–(a)(12). 

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

seeking automated handling of 

conversions and reversals. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule 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, 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 12 and 

Rule 19b–4(f)(6) thereunder.13 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–2009–017 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–2009–017. 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, 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– 

2009–017 and should be submitted on 

or before April 14, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6404 Filed 3–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59495A; File No. SR– 

FINRA–2008–052] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Granting 

Approval of a Proposed Rule Change 

Relating to the Adoption of FINRA Rule 

2140 (Interfering With the Transfer of 

Customer Accounts in the Context of 

Employment Disputes) in the 

Consolidated FINRA Rulebook; 

Correction 

March 18, 2009. 

In FR Doc. E9–5212, for Tuesday, 

March 11, 2009, on page 10633, third 

column, footnote 8, the text is revised to 

read: 

The text of the proposed new FINRA 

rule, marked to show changes from 

NASD IM–2110–7 and to show that 

NASD IM–2110–7 is to be deleted in its 

entirety from the Transitional Rulebook, 

is attached as Exhibit 5 to the proposed 

rule change and is available at http:// 

www.finra.org/Industry/Regulation/ 

RuleFilings/2008/P117330. FINRA has 

transferred NASD Rule 2110 to the 

Consolidated FINRA Rulebook without 

change as FINRA Rule 2010. Securities 

Exchange Act Release No. 58643 

(September 25, 2008), 73 FR 57174 

(October 1, 2008) [File No. SR–FINRA– 

2008–028]. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.1

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6353 Filed 3–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59592; File No. SR–NYSE– 

2009–29] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending the 

NYSE Rule Book To Delete References 

to Specific Exchange Systems and To 

Remove the Requirement That 

Opening Transactions Receive 

Specific Designations Pursuant to 

NYSE Rules 79A and 115A 

March 17, 2009. 

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

Securities Exchange Act of 1934 (the 

mstockstill on PROD1PC66 with NOTICES