15528 Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3The daily values can be accessed on Bloomberg 

under the symbol: SPXDIV <Index>. 

4The contract multiplier will be $100. 

5When the strike price exceeds 200 scaled index 

points, strike price intervals will be no less than 2.5 

points. 

Resources Corp. because it has not filed 

any periodic reports since the period 

ended December 31, 1993. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Filene’s 

Basement Corp. (n/k/a FBC Distribution 

Corp.) because it has not filed any 

periodic reports since the period ended 

October 30, 1999. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Film & 

Music Entertainment, Inc. because it has 

not filed any periodic reports since the 

period ended September 30, 2005. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of the above-listed companies 

is suspended for the period from 9:30 

a.m. EDT on April 2, 2009, through 

11:59 p.m. EDT on April 16, 2009. 

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7817 Filed 4–2–09; 4:15 pm] 

BILLING CODE 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59667; File No. SR–CBOE– 

2009–022] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposal To List and Trade S&P 500 

Dividend Index Options 

March 31, 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 25, 

2009, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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 

proposal from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

certain of its rules to provide for the 

listing and trading of options that 

overlie the S&P 500 Dividend Index, 

which will be cash-settled and will have 

European-style exercise. The text of the 

rule proposal 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 

The purpose of the proposed rule 

change is to permit the Exchange to list 

and trade cash-settled options that 

overlie the S&P 500 Dividend Index, 

which will be cash-settled and will have 

European-style exercise. 

Index Design 

The S&P 500 Dividend Index, which 

is currently being calculated, represents 

the accumulated ex-dividend amounts 

of all S&P 500 Index component 

securities over a specified quarterly 

accrual period. Each day Standard & 

Poor’s calculates the aggregate daily 

dividend totals for the S&P 500 Index 

component securities, which are 

summed over any given calendar 

quarter and are the basis of the S&P 500 

Dividend Index. On any given day, the 

index dividend is calculated as the total 

dividend value for all constituents of 

the S&P 500 Index divided by the S&P 

500 Index divisor. The total dividend 

value is calculated as the sum of 

dividends per share multiplied by the 

shares outstanding for all constituents of 

the S&P 500 Index that are trading ‘‘exdividend’’ on that day. 

Each accrual period will run from the 

business day after the third Friday of a 

quarterly expiration month (March, 

June, September or December) through 

the third Friday of the next quarterly 

expiration month. An example of a 

quarterly accrual period is one that will 

run from Monday, March 23, 2009 

through Friday, June 19, 2009. The S&P 

500 Dividend Index is expressed in S&P 

500 Index points and is reset to zero at 

the end of each quarterly accrual period. 

The S&P 500 Dividend Index is 

currently calculated by Standard & 

Poor’s and is disseminated by Standard 

and Poor’s once per day.3 The S&P 500 

Dividend Index is reported in absolute 

numbers (e.g., 3, 5, 7), and the Exchange 

proposes to trade option contracts on 

the S&P 500 Dividend Index level with 

an applied scaling factor of 10. To 

illustrate, where the S&P 500 Dividend 

Index is 3, the underlying will have an 

index value of 30 (3 × 10). Once daily, 

CBOE will disseminate the underlying 

S&P 500 Dividend Index value with the 

applied scaling factor of 10 through the 

Options Price Reporting Authority 

(‘‘OPRA’’) and/or one or more major 

market data vendors. 

Options Trading 

The exercise-settlement value for S&P 

500 Dividend Index options will be the 

S&P 500 Dividend Index that is 

calculated by Standard & Poor’s with an 

applied scaling factor that will be set by 

the Exchange at listing. The underlying 

S&P Dividend Index will be quoted in 

decimals and one point will be equal to 

$100.4 The minimum tick size for 

options trading at or below 3.00 be 0.05 

point ($5.00) and for all other series, 

0.10 ($10.00). Exhibit 3 presents 

proposed contract specifications for S&P 

500 Dividend Index options. 

The Exchange is proposing to list 

series at 1 point ($1.00) or greater strike 

price intervals if the strike price is equal 

to or less than 200 scaled index points 

on S&P 500 Dividend Index options.5

Because the S&P 500 Dividend Index 

will fluctuate around a limited index 

value range, the Exchange believes that 

a granular strike price increment will 

provide investors with greater flexibility 

by allowing them to establish positions 

that are better tailored to meet their 

investment objectives. 

Initially, the Exchange will list in-, atand out-of-the-money strike prices and 

may open for trading up to five series 

above and five series below the price of 

the related S&P 500 Dividend Index 

futures contract. The Exchange is 


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Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 15529 

6See Rule 4.13, Reports Related to Position 

Limits. 

proposing to use the forward index level 

rather than the current index for setting 

strikes because the current index level 

is reset to zero at the end of each 

quarterly accrual period. The Exchange 

believes that the related S&P 500 

Dividend Index futures price is a good 

proxy for the forward index level. 

As for additional series, either in 

response to customer demand or as the 

price of the related S&P 500 Dividend 

Index futures contract moves from the 

initial exercise prices of options and 

LEAPs series that have been opened for 

trading, the Exchange may open for 

trading up to an additional twenty 

series. The Exchange will not be 

permitted to open for trading series with 

1 point ($1.00) intervals within 0.50 of 

an existing 2.5 point ($2.50) strike price 

with the same expiration month. The 

Exchange will not be permitted to list 

LEAPS on S&P 500 Dividend Index 

options at intervals less than 1 point. 

The Exchange also proposes to add 

new Interpretation and Policy .13 to 

Rule 5.5, Series of Option Contracts 

Open for Trading, which will be an 

internal cross reference stating that the 

intervals between strike prices for S&P 

500 Dividend Index option series will 

be determined in accordance with 

proposed new Interpretation and Policy 

.01(h) to Rule 24.9. 

Exercise and Settlement 

The proposed options will expire on 

the Saturday following the third Friday 

of the expiring month. Trading in the 

expiring contract month will normally 

cease at 3:15 p.m. Chicago time on the 

last day of trading (ordinarily the 

Thursday before expiration Saturday, 

unless there is an intervening holiday). 

When the last trading day is moved 

because of an Exchange holiday (such as 

when CBOE is closed on the Friday 

before expiration), the last trading day 

for expiring options will be Wednesday. 

Exercise will result in delivery of cash 

on the business day following 

expiration. S&P 500 Dividend Index 

options will be A.M.-settled. The 

exercise-settlement amount will be 

equal to the difference between the 

exercise-settlement value and the 

exercise price of the option, multiplied 

by the contract multiplier ($100). 

If the exercise settlement value is not 

available or the normal settlement 

procedure cannot be utilized due to a 

trading disruption or other unusual 

circumstance, the settlement value will 

be determined in accordance with the 

rules and bylaws of the OCC. 

Surveillance 

The Exchange will use the same 

surveillance procedures currently 

utilized for each of the Exchange’s other 

index options to monitor trading in S&P 

500 Dividend Index options. The 

Exchange further represents that these 

surveillance procedures shall be 

adequate to monitor trading in options 

on these option products. For 

surveillance purposes, the Exchange 

will have complete access to 

information regarding trading activity in 

the pertinent underlying securities (i.e., 

S&P 500 Index component securities). 

Position Limits 

The Exchange is not proposing to 

establish any position limits for S&P 500 

Dividend Index options. Because the 

S&P 500 Dividend Index represents the 

accumulated ‘‘ex-dividend’’ amounts of 

all S&P 500 Index component securities, 

the Exchange believes that the position 

and exercise limits for these new 

products should be the same as those for 

other broad-based index options, e.g., 

SPX, for which there are no position 

limits. S&P 500 Dividend Index options 

will be subject to the same reporting and 

other requirements triggered for other 

options dealt in on the Exchange.6

Exchange Rules Applicable 

Except as modified herein, the rules 

in Chapters I through XIX, XXIV, 

XXIVA, and XXIVB will equally apply 

to S&P 500 Dividend Index options. 

S&P 500 Dividend Index options will 

be margined as ‘‘broad-based index’’ 

options, and under CBOE rules, 

especially, Rule 12.3(c)(5)(A), the 

margin requirement for a short put or 

call shall be 100% of the current market 

value of the contract plus up to 15% of 

the aggregate contract value. Additional 

margin may be required pursuant to 

Exchange Rule 12.10. 

The Exchange hereby designates S&P 

500 Dividend Index options as eligible 

for trading as Flexible Exchange Options 

as provided for in Chapters XXIVA 

(Flexible Exchange Options) and XXIVB 

(FLEX Hybrid Trading System). 

Capacity 

CBOE has analyzed its capacity and 

represents that it believes the Exchange 

and OPRA have the necessary systems 

capacity to handle the additional traffic 

associated with the listing of new series 

that will result from the introduction of 

S&P 500 Dividend Index options. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act 

in general and furthers the objectives of 

Section 6(b)(5) in particular in that it 

will permit trading in options based on 

the index pursuant to rules designed to 

prevent fraudulent and manipulative 

acts and practices and to promote just 

and equitable principles of trade, and 

thereby will provide investors with the 

ability to invest in options that settle to 

an index that represents the 

accumulated ex-dividend amounts of all 

S&P 500 Index component securities 

over a specified quarterly accrual 

period. 

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 

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 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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2009–022 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 


pwalker on PROD1PC71 with NOTICES
15530 Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission has previously approved the 

establishment of the continuing disclosure service 

of EMMA, which will commence operation on July 

1, 2009. See Securities Exchange Act Release No. 

59061 (December 5, 2008), 73 FR 75778 (December 

12, 2008) (File No. SR–MSRB–2008–05) (approving 

the continuing disclosure service of EMMA with an 

effective date of July 1, 2009). The EMMA 

continuing disclosure service is designed to 

commence operation simultaneously with the 

effectiveness of certain amendments to Exchange 

Act Rule 15c2–12 adopted by the Commission. See 

Securities Exchange Act Release No. 59062 

(December 5, 2008), 73 FR 76104 (December 15, 

2008) (adopting amendments to Exchange Act Rule 

15c2–12). 

4The EMMA portal began operation on March 31, 

2008 as a pilot facility and is accessible at http:// 

emma.msrb.org. See Securities Exchange Act 

Release No. 57577 (March 28, 2008), 73 FR 18022 

(April 2, 2008) (File No. SR–MSRB–2007–06) 

(approving operation of the EMMA pilot to provide 

free public access to the MSIL system collection of 

official statements and advance refunding 

documents and to the MSRB’s Real-Time 

Transaction Reporting System historical and realtime transaction price data) (the ‘‘EMMA portal 

pilot filing’’). 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2009–022. 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 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–2009–022 and 

should be submitted on or before April 

27, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7663 Filed 4–3–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59643; File No. SR–MSRB– 

2009–03] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing of Proposed 

Rule Change Relating to the 

Establishment of a Pilot Phase of Its 

Upcoming Continuing Disclosure 

Service of the Electronic Municipal 

Market Access system (EMMA®) 

March 27, 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 25, 

2009, the Municipal Securities 

Rulemaking Board (‘‘MSRB’’) 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 substantially prepared by the 

MSRB. 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 MSRB has filed with the 

Commission a proposed rule change to 

establish a pilot phase (the ‘‘continuing 

disclosure pilot’’) of the continuing 

disclosure service of the MSRB’s 

Electronic Municipal Market Access 

system (‘‘EMMA’’). The continuing 

disclosure pilot would receive 

electronic submissions of, and would 

make publicly available on the Internet, 

continuing disclosure documents and 

related information voluntarily 

submitted by issuers, obligated persons 

and their agents. The MSRB has 

requested approval of the continuing 

disclosure pilot to commence operation 

on May 11, 2009, or such later date as 

may be announced by the MSRB in a 

notice published on the MSRB Web site, 

which date shall be no later than 30 

days after Commission approval of the 

proposed rule change. In addition, the 

MSRB has requested approval of the 

continuing disclosure pilot for a period 

ending on July 1, 2009.3

The text of the proposed rule change 

is available on the MSRB’s Web site 

(http://www.msrb.org/msrb1/sec.asp), at 

the MSRB’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 

MSRB 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 MSRB 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 proposed rule change would 

establish a pilot phase of the continuing 

disclosure service of EMMA to provide, 

pending the commencement of 

operation of the permanent EMMA 

continuing disclosure service on July 1, 

2009, for the voluntary electronic 

submission to the MSRB of continuing 

disclosure documents and related 

information by issuers, obligated 

persons and their agents and to provide 

for the free public access to such 

documents through the EMMA portal.4

Under Exchange Act Rule 15c2– 

12(b)(5), an underwriter for a primary 

offering of municipal securities subject 

to the rule currently is prohibited from 

underwriting the offering unless the 

underwriter has determined that the 

issuer or an obligated person for whom 

financial information or operating data 

is presented in the final official 

statement, or a designated agent, has 

undertaken in writing to provide certain 


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