Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 15551 

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

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

trading the Shares. Specifically, the 

Bulletin will discuss the following: (1) 

The procedures for purchases and 

redemptions of Shares in Creation Unit 

aggregations (and that Shares are not 

individually redeemable); (2) NYSE 

Arca Equities Rule 9.2(a), which 

imposes a duty of due diligence on its 

ETP Holders to learn the essential facts 

relating to every customer prior to 

trading the Shares; (3) the risks involved 

in trading the Shares during the 

Opening and Late Trading Sessions 

when an updated Portfolio Indicative 

Value will not be calculated or publicly 

disseminated; (4) how information 

regarding the Portfolio Indicative Value 

is disseminated; (5) the requirement that 

ETP Holders deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (6) 

trading information. 

In addition, the Bulletin will 

reference that the Fund is subject to 

various fees and expenses described in 

the Registration Statement. The Bulletin 

will discuss any exemptive, no-action, 

and interpretive relief granted by the 

Commission from any rules under the 

Exchange Act. The Bulletin will also 

disclose that the NAV for the Shares 

will be calculated after 4 p.m. Eastern 

Time each trading day. 

2. Statutory Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(5) 15

that an exchange have rules that are 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rule change will facilitate the listing and 

trading of an additional type of actively 

managed exchange-traded product that 

will enhance competition among market 

participants, to the benefit of investors 

and the marketplace. 

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. 

The Exchange has requested accelerated 

approval of this proposed rule change 

prior to the 30th day after the date of 

publication of notice in the Federal 

Register. The Commission is 

considering granting accelerated 

approval of the proposed rule change at 

the end of a 15-day comment period. 

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–2009–22 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–2009–22. 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 NYSE 

Arca’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 Number SR– 

NYSEArca–2009–22 and should be 

submitted on or before April 27, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7585 Filed 4–3–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59654; File No. SR–BX– 

2009–008] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Order 

Approving Proposed Rule Change 

Allowing Entry of Orders Into the PIP 

at a Price Matching the National Best 

Bid or Offer 

March 30, 2009. 

I. Introduction 

On February 9, 2009, NASDAQ OMX 

BX, Inc. (the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

allow Exchange Options Participants to 

enter orders into the Price Improvement 

Period (‘‘PIP’’) at a price that matches 


pwalker on PROD1PC71 with NOTICES
15552 Federal Register / Vol. 74, No. 64 / Monday, April 6, 2009 / Notices 

3See Securities Exchange Act Release No. 59407 

(February 13, 2009), 74 FR 8132. 

4See BOX Rules Chapter V, Section 18(e). 

5BOX has clarified that there are two types of 

quotes/orders that could have a price better than the 

PIP start price: (1) An Auto Auction Order 

(‘‘AAO’’); and (2) an order that is in the process of 

being filtered by the BOX Trading Host pursuant to 

BOX Rules Chapter V, Section 16. Electronic mail 

from Wayne Pestone, Chief Legal Officer, Boston 

Options Exchange, dated March 30, 2009. 

6These proprietary quotes or orders will continue 

to be available for execution with all other types of 

quotes and orders as currently permissible under 

BOX Rules. 

7See proposed BOX Rules Chapter V, Section 

18(e)(i). Orders on the BOX Book will include AAO 

Limit Orders on the BOX Book. The AAO will 

immediately execute against the PIP Order at the 

AAO Limit Order Price (i.e. the displayed price at 

the minimum trading increment). 

8See proposed BOX Rules Chapter V, Section 

18(e)(iii). 

9 15 U.S.C. 78f(b)(5). 

10 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

11The Commission notes that it also recently 

approved an ISE proposed rule change that permits 

ISE members to enter an order into the PIM at a 

price that is equal to the NBBO when the ISE’s best 

bid or offer is inferior to the NBBO. See Securities 

Exchange Act Release No. 57847 (May 21, 2008), 73 

FR 30987 (May 29, 2008) (SR–ISE–2008–29). 

12See BOX Rules Chapter V, Section 18(e)(ii). 

13See BOX Rules, Chapter V, Section 18(e)(i). 

Specifically, BOX’s PIP permits market-makers to 

submit competing orders for their own account and 

all non-market-maker members (referred to as 

‘‘Order Flow Providers’’) to submit competing 

orders for their own account or for the account of 

public customers or non-market-maker brokerdealers. 

14See BOX Rules, Chapter V, Section 17. 

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

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

the national best bid or offer (‘‘NBBO’’). 

The proposed rule change was 

published for comment in the Federal 

Register on February 23, 2009.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange’s PIP currently allows 

Options Participants to enter two-sided 

orders for execution at a price that 

improves upon the NBBO.4 The 

customer side of the order (‘‘PIP Order’’) 

is submitted to the PIP with a matching 

guaranteed contra order (the ‘‘Primary 

Improvement Order’’), equal to the full 

size of the PIP Order. Under the current 

rules of the Boston Options Exchange 

Group, LLC (‘‘BOX’’), the Primary 

Improvement Order must represent a 

higher bid (lower offer) than that of the 

NBBO at the time of the commencement 

of the PIP. The PIP Order is then 

exposed to all Options Participants to 

give them an opportunity to participate 

in the trade at the proposed cross price 

or better. 

The Exchange proposes to modify its 

rules to permit an Options Participant to 

enter a Primary Improvement Order into 

the PIP at a price that is equal to the 

NBBO at the time of the commencement 

of the PIP. In addition, the Exchange 

proposes that, at the commencement of 

the PIP, all quotes and orders on the 

BOX Book prior to the PIP Broadcast 

that are equal to or better than 5 the 

Primary Improvement Order price (i.e., 

the PIP start price), except any 

proprietary quote or order from the 

Options Participant who submitted the 

Primary Improvement Order,6 will be 

immediately executed against the PIP 

Order in price/time priority.7 At the 

conclusion of the PIP, the PIP Order will 

be matched against the best prevailing 

quote(s) or order(s) on BOX in 

accordance with the current PIP rule, 

except the Exchange proposes that any 

pre-PIP Broadcast proprietary quote or 

order from the Options Participant who 

submitted the Primary Improvement 

Order will not be executed against the 

PIP Order.8

III. Discussion 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange and, in particular, 

with Section 6(b)(5) of the Act,9 which 

requires, among other things, that the 

rules of a national securities exchange 

be designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, 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.10

The Commission believes that the 

proposed rule change will continue to 

provide customers with an opportunity 

for price improvement over the NBBO.11

The Commission notes that once a 

Primary Improvement Order is 

submitted into the PIP auction, the 

Primary Improvement Order may not be 

cancelled.12 Therefore, the PIP Order 

submitted to the PIP auction will be 

guaranteed an execution price of at least 

the NBBO and, moreover, will be given 

an opportunity for execution at a price 

better than the NBBO. Further, BOX’s 

current rules provide for broad 

participation in a PIP auction,13 which 

should provide the opportunity for a 

meaningful, competitive auction. 

Moreover, the Commission believes that 

the proposal may encourage increased 

participation in the PIP by BOX 

members willing to trade with the PIP 

Order at the NBBO but not better than 

the NBBO. Increased participation 

would decrease the proportion of a PIP 

Order that would be internalized by the 

submitting Options Participant. 

The Commission also notes that the 

proposal will maintain the priority of 

pre-existing orders on the BOX Book by 

providing that all quotes and orders on 

the BOX Book prior to the PIP Broadcast 

that are equal to or better than the 

Primary Improvement Order price will 

be immediately executed against the PIP 

Order in price/time priority (except any 

proprietary quote or order from the 

Options Participant that submitted the 

Primary Improvement Order). Further, 

the Commission notes that by 

precluding these proprietary orders and 

quotes from immediately executing 

against the PIP Order, the proposal is 

consistent with BOX rules that provide 

that an Options Participant may not 

execute as principal an order it 

represents as agent unless the agency 

order is given an opportunity to first 

interact with other trading interest.14

Accordingly, the Commission finds 

that the proposed rule change is 

consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,15 that the 

proposed rule change (SR–BX–2009– 

008) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7588 Filed 4–3–09; 8:45 am] 

BILLING CODE 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59663; File No. SR– 

NASDAQ–2009–018] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Revisions and Restructuring of the 

NASDAQ Listing Rules 

March 31, 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 12, 

2009, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change as described 


pwalker on PROD1PC71 with NOTICES