Federal Register / Vol. 74, No. 52 / Thursday, March 19, 2009 / Notices 11793 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3For purposes of this proposal, the Exchange 

defines a ‘‘dividend strategy’’ as transactions done 

to achieve a dividend arbitrage involving the 

purchase, sale and exercise of in-the-money options 

of the same class, executed prior to the date on 

which the underlying stock goes ex-dividend. See 

e.g., Securities Exchange Act Release No. 54174 

(July 19, 2006), 71 FR 42156 (July 25, 2006) (SR– 

Phlx–2006–40). 

4For purposes of this proposal, the Exchange 

defines a ‘‘merger strategy’’ as transactions done to 

achieve a merger arbitrage involving the purchase, 

sale and exercise of options of the same class and 

expiration date, executed prior to the date on which 

shareholders of record are required to elect their 

respective form of consideration, i.e., cash or stock. 

Id. 

5For purposes of this proposal, the Exchange 

defines a ‘‘short stock interest strategy’’ as 

transactions done to achieve a short stock interest 

arbitrage involving the purchase, sale and exercise 

of in-the-money options of the same class. Id. 

6The current fee caps are in effect as a pilot 

program that is scheduled to expire on March 1, 

2009. See Securities Exchange Act Release No. 

57420 (March 3, 2008), 73 FR 12790 (March 10, 

2008) (SR–Phlx–2008–16). 

7See Securities Exchange Act Release Nos. 59243 

(January 13, 2009), 74 FR 4272, (January 23, 2009) 

(SR–Phlx–2008–86) (eliminating the comparison 

charge); 58772 (October 10, 2008), 73 FR 63037 

(October 22, 2008) (SR–Phlx–2008–72) (eliminating 

reference to the $ 0.05 per contract side license fee 

for dividend strategies and short stock interest 

strategies). 

(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 rulecomments@sec.gov. Please include File 

Number SR–FINRA–2009–009 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–FINRA–2009–009. 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 FINRA. 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–FINRA–2009–009 and 

should be submitted on or before April 

9, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5929 Filed 3–18–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59566; File No. SR–Phlx– 

2009–18] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to Fee 

Caps on Equity Option Transaction 

Charges on Dividend, Merger and 

Short Stock Interest Strategies 

March 12, 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 

24, 2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III, below, which Items have been 

prepared by the Exchange. 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 make 

permanent the pilot program for the 

$1,000 and $25,000 fee caps on equity 

option transaction charges on 

dividend,3 merger,4 and short stock 

interest 5 strategies (‘‘Pilot’’) 6. This Pilot 

previously included $1,000 and $25,000 

fee caps on transaction and comparison 

charges on dividend, merger and short 

stock interest strategies as well as a 

license fee of $0.05 per contract side 

imposed on dividend and short stock 

interest strategies. The comparison 

charges as well as a license fee of $0.05 

per contract side were subsequently 

eliminated.7 Other than requesting to 

make the Pilot permanent, no other 

changes to the Exchange’s current 

dividend, merger and short stock 

interest strategy program are being 

proposed at this time. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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 

Exchange 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 

Currently, the Exchange imposes a fee 

cap on equity option transaction charges 

on dividend, merger and short stock 

interest strategies executed on the same 

trading day in the same options class. 

Specifically, Registered Options Trader 

(‘‘ROT’’) and specialist net equity option 


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11794 Federal Register / Vol. 74, No. 52 / Thursday, March 19, 2009 / Notices 

8 Id. 

9See footnote 7. 

10See footnote 7. 

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

12 15 U.S.C. 78f(b)(4). 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

transaction charges are capped at $1,000 

for dividend, merger and short stock 

interest strategies executed on the same 

trading day in the same options class.8

In addition, there is a $25,000 per 

member organization fee cap on equity 

option transaction charges incurred in 

one month for dividend, merger and 

short stock interest strategies combined. 

The purpose of making the Pilot 

permanent for the fee caps on equity 

option transaction charges on dividend, 

merger and short stock interest 

strategies is to continue to attract 

additional liquidity to the Exchange and 

to remain competitive with other 

options exchanges in connection with 

these types of options strategies. 

The Exchange’s Pilot also included 

fee caps on comparison charges on 

dividend, merger and short stock 

interest strategies, however the 

comparison charges were eliminated by 

a previous rule filing.9 Additionally, the 

Pilot also included a license fee of $0.05 

per contract side imposed on dividend 

and short stock interest strategies, 

which was also eliminated by a 

previous rule filing.10

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its schedule of fees 

is consistent with Section 6(b) of the 

Act 11 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 12

in particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. The 

Exchange believes that its proposal to 

make the Pilot permanent is beneficial 

to its members by providing additional 

trading opportunities at an efficient 

cost. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 

No written comments were either 

solicited or received. 

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)(A)(ii) of the Act 13 and 

paragraph (f)(2) of Rule 19b–4 14

thereunder. 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 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 Ccomments 

• 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–Phlx–2009–18 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–Phlx–2009–18. 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 the filing will also be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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–Phlx– 

2009–18 and should be submitted on or 

before April 9, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5930 Filed 3–18–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59562; File No. SR– 

NYSEArca–2009–20] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to the Listing 

and Trading of the Safety First Trust 

Certificates Linked to the S&P 500®

Index 

March 12, 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 March 6, 

2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 

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, through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’ or the 

‘‘Corporation’’), proposes to list under 

NYSE Arca Equities Rule 5.2(j)(7) 

(‘‘Trust Certificates’’) Safety First Trust 

Series 2009–1, Principal-Protected Trust 

Certificates Linked to the S&P 500®

Index. The text of the proposed rule 

change is available on the Exchange’s 

Web site at http://www.nyse.com, at the 


sroberts on PROD1PC70 with NOTICES