Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 13279 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange believes that the proposed 

initial and annual listing fees for all 

securities listed under Section 102.03 

and traded on NYSE Bonds are 

reasonable to cover the costs incurred 

for the administrative and regulatory 

services provided by the Exchange. 

These fees are applicable to both NYSE 

and non-NYSE issuers that seek to have 

their Section 102.03 bonds or securities 

listed on the Exchange. 

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 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 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 

90 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 the 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 rulecomments@sec.gov. Please include File 

Number SR–NYSE–2009–31 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–NYSE–2009–31. 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 

NYSE’s principal office and on its 

Internet Web site at http:// 

www.nyse.com. 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–NYSE– 

2009–31 and should be submitted on or 

before April 16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6720 Filed 3–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59603; File No. SR– 

NYSEArca–2009–21] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Arca, Inc. Amending Rule 6.62 To 

Provide Additional Order Types 

March 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 March 10, 

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

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 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 amend 

Rule 6.62 to provide additional order 

types which will give investors greater 

control over the circumstances in which 

their orders are executed. Changes to the 

rule text are shown in the attached 

Exhibit 5. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office 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 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 

The purpose of this proposed rule 

change is to provide additional order 

types which will give market 

participants greater control over the 

circumstances in which their orders are 

executed. 

NYSE Arca’s options market has a 

price-time priority market structure, 

with automated routing if an incoming 

order is marketable against the National 

Best Bid/Offer (‘‘NBBO’’), but not 

immediately marketable on the 

Exchange. While the Exchange 

considers this to be a highly desirable 

market structure, some investors and 

market participants wish to provide 

13280 Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 

3See NYSE Arca Rule 6.62(p). 

4See NYSE Arca Rule 6.62(d)(3). 

5See NYSE Arca Rule 6.62(s). 

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

liquidity in some but not all 

circumstances; others wish to not have 

orders routed but still be available for 

execution on NYSE Arca. To help meet 

these desires, the Exchange proposes the 

following order types: 

Tracking Order 

A Tracking Order is an undisplayed 

limit order that is eligible for execution 

in the Working Order Process against 

orders equal to or less than the size of 

the Tracking Order. While Tracking 

Orders are ranked at their limit price, 

they are only eligible for execution at a 

price that matches the NBBO. A 

Tracking Order is intended only to 

provide liquidity in the event a 

marketable order would otherwise route 

to another exchange. 

Tracking Orders have no standing 

with regard to open outcry trading, as 

they are not displayed, nor (unlike a 

Price Improving Order or Quote) are 

they represented in the disseminated 

bid or offer at an indicative price. 

Tracking Orders only have standing if 

contra interest in the NYSE Arca System 

would otherwise be routed to another 

market center at the NBBO. If a Floor 

Broker needs to enter an order into the 

System in order to clear the NBBO prior 

to executing at a worse price on the 

Floor, that order will trade with any 

eligible Tracking Orders. 

For instance, the NBBO market in a 

series is 2.05–2.15, with a 2.10 Tracking 

Order to buy 10 contracts, but the NYSE 

Arca displayed bid is 2.00. An order is 

received to sell 6 contracts at 2.05; this 

order will be matched against the 2.10 

buy Tracking Order at a price of 2.05, 

matching the NBBO. 

Similarly, with the same initial 

scenario, a second Tracking Order to 

buy 20 contracts paying 2.05 is placed 

in the Consolidated Book. An order is 

received to sell 15 contracts at 2.05. 

This order is matched against the 

second Tracking Order, rather than the 

first Tracking Order, because it is greater 

in size than the first Tracking Order, but 

not greater in size than the second 

Tracking Order. It will be executed at 

2.05, the NBBO price. 

If a Tracking Order is executed but 

not exhausted, the remaining portion of 

the order shall be cancelled, without 

routing the order to another market 

center or market participant. A Tracking 

Order shall not trade-through the NBBO. 

Attempts to use a Tracking Order to 

execute a cross transaction would be 

considered a violation of NYSE Arca 

Rule 6.47A, as that rule requires an 

order to be exposed (displayed) if it is 

part of a cross transaction. 

Liquidity Adding Order 

A Liquidity Adding Order is a limit 

order that will only be accepted if it is 

not marketable at the time of receipt. It 

is intended to provide liquidity and also 

will receive a liquidity adding credit if 

entered into an issue that credits a Post 

Liquidity Fee. Liquidity Adding Orders 

are not eligible for routing, but will be 

rejected if marketable against the NBBO. 

If a Liquidity Adding Order will lock or 

cross the market at the time of entry it 

will be rejected. Liquidity Adding 

Orders that, at the time of entry, would 

otherwise interact with undisplayed 

orders will be rejected. Liquidity 

Adding Orders may have a time-in-force 

of Day or GTC, but not IOC. 

PNP-Blind Order 

NYSE Arca has an existing order type 

known as PNP (Post No Preference) 3

which is a limit order that is only to be 

executed on the Exchange, and may be 

ranked in the Consolidated Book if not 

marketable, but is never to be routed. A 

PNP order that is marketable against the 

NBBO when entered is cancelled back 

to the entering OTP Holder. 

Certain OTP Holders have asked for a 

similar order type that will also not 

route if marketable against the NBBO, 

but, unlike a PNP order, will not be 

cancelled if similarly marketable. 

A PNP Blind order is a limit order 

that is to be executed on the Exchange, 

but never routed to another market. The 

unexecuted portion of a PNP Blind 

order is to be ranked in the 

Consolidated Book. Unlike a 

conventional PNP order, a PNP Blind 

Order that is marketable against the 

NBBO will not be cancelled; however, 

the price and size will not be 

disseminated to OPRA. If the NBBO 

moves so that the PNP Blind Order no 

longer locks or crosses the NBBO, the 

order’s price and size will be 

disseminated. When a PNP Blind order 

is not displayed, it provides price 

improvement to any incoming contraside order. A PNP Blind order will be 

executed at its limit price, if displayed, 

or at a price that matches the contra side 

of the NBBO, if undisplayed. 

PNP Light Order 

A conventional PNP Order is a Limit 

Order that is to be executed in whole or 

in part on the Exchange, and the portion 

that is not so executed is to be ranked 

in the Consolidated Book, without 

routing any portion of the order to 

another market center; provided, 

however, the Exchange shall cancel a 

PNP Order that would lock or cross the 

NBBO. A PNP Order is eligible for 

execution against any displayed and 

undisplayed trading interest in the 

Consolidated Book, such as a PNP Blind 

Order, or the undisplayed portion of a 

Reserve Order.4

A PNP Light Order is a PNP order that 

carries the added instruction to cancel 

the order if it is marketable against 

interest that is not displayed in the 

Consolidated Book. This provides OTP 

Holders greater ability to control the 

circumstances in which their orders are 

executed. 

As with a conventional PNP order, a 

PNP Light order is to be executed in 

whole or in part on the Exchange, and 

the portion not so executed is to be 

ranked in the Consolidated Book, 

without routing any portion of the order 

to another market center; provided, 

however, the Exchange shall cancel a 

PNP-Light Order that would (i) lock or 

cross the NBBO, or (ii) be marketable 

against undisplayed interest in the 

Consolidated Book. For example, if 

there is a resting PNP Blind order in the 

Consolidated Book that is not displayed, 

a contra sided PNP Light order will be 

cancelled. 

A PNP Light order will execute 

against a Price Improving Order or 

Quote,5 or against the displayed portion 

of a Reserve Order, since such orders are 

represented and displayed in the 

Consolidated Book. 

A PNP Light order will be executed at 

the NBBO if executed upon receipt, or 

else at its limit price (unless priceimproved by a Price Improving Order or 

Quote). 

PNP, PNP Blind, and PNP Light 

orders will never execute against 

Tracking Orders. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

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

of the Act,6 in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest, by 

providing investors with additional 

order types that allow greater flexibility 

in managing the circumstances in which 

their orders are executed. 

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 that is not 

Federal Register / Vol. 74, No. 57 / Thursday, March 26, 2009 / Notices 13281 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(6). 

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

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied the pre-filing requirement. 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 7 and Rule 

19b–4(f)(6) thereunder.8 Because the 

proposed rule change does not: (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 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, the 

proposed rule change has become 

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

of the Act 9 and Rule 19b–4(f)(6)(iii) 

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–NYSEArca-2009–21 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–NYSEArca-2009–21. 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 also will 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– 

NYSEArca-2009–21 and should be 

submitted on or before April 16, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–6702 Filed 3–25–09; 8:45 am] 

BILLING CODE 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59601; File No. SR–CBOE– 

2009–018] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change Related to 

Short Term Option Series 

March 19, 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 13, 

2009, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) 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 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 is proposing to make 

permanent its Short Term Option Series 

pilot program (the ‘‘Weeklys Program’’). 

In addition, the Exchange is proposing 

certain non-substantive changes to 

reorganize its rule text related to the 

Weeklys Program so that applicable 

terms are located within a single section 

of the relevant rules. Conforming, nonsubstantive changes are being proposed 

to the text of the Exchange’s Quarterly 

Option Series Pilot Program (the 

‘‘Quarterlys Program’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/Legal), at the Office of the 

Secretary, CBOE 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.