16018 Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices 

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

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

6 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). 

vendors under Section 603(a)(2) of 

Regulation NMS. 

NYSE OpenBook is subject to 

significant competitive forces and the 

establishment of the Monthly Maximum 

represents a response to that 

competition. As the Exchange stated in 

the Unit of Count Filing, the Exchange 

competes intensely for order flow, 

competing with the other 10 national 

securities exchanges, with ECNs, with 

quotes posted in FINRA’s ADF and 

TRFs, with alternative trading systems, 

and with securities firms that primarily 

trade as principal with their customer 

order flow. The competition is free 

produce [sic] depth-of-book products, 

and Nasdaq, NYSE Arca, and BATS are 

among those who currently do. 

In addition, the Exchange believes 

that no substantial countervailing bases 

exists to support a finding that the 

Monthly Maximum for NYSE OpenBook 

fails to meet the requirement of the Act. 

In sum, the Exchange believes that the 

proposed Monthly Maximum is fair and 

reasonable. 

2. Statutory Basis 

The bases under the Act for this 

proposed rule change are the 

requirement under Section 6(b)(4) 4 that 

an exchange have rules that provide for 

the equitable allocation of reasonable 

dues, fees and other charges among its 

members and other persons using its 

facilities and the requirements under 

Section 6(b)(5) 5 that the rules of an 

exchange be designed to promote just 

and equitable principles of trade and to 

remove impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system. 

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 Exchange 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 

No. SR–NYSE–2009–37 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2009–37. 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 such 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–NYSE– 

2009–37 and should be submitted on or 

before April 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7868 Filed 4–7–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59676; File No. SR–CBOE– 

2009–020] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Change the Close of 

Trading Hours on the Last Day of 

Trading in Expiring Quarterly Index 

Expirations 

April 1, 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 18, 

2009, the Chicago Board Options 

Exchange, Incorporated (‘‘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 

Exchange filed the proposal as a ‘‘noncontroversial’’ 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 

CBOE proposes to amend Rule 24.6 to 

change the close of trading hours from 

3:15 p.m. (Chicago time) to 3 p.m. 

(Chicago time) on the last day of trading 

in expiring Quarterly Index Expirations 

(‘‘QIXs’’). The filing also proposes to 

amend Rule 24.9(c) by adding the MiniSPX Index to the list of broad-based 

indices on which the Exchange may list 

QIXs. In addition, the filing proposes to 

amend Rule 24.9 by making technical 


rwilkins on PROD1PC63 with NOTICES
Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices 16019 

5See Securities and Exchange Act Release No. 

31800 (February 1, 1993), 58 FR 7274 (February 5, 

1993) (SR–CBOE–92–13) (QIX approval order). 

6See id. and Rule 24.9(c). 

7See Rule 24.4(b). 

8 In the original filing to list and trade Mini-SPX 

Index options, the Exchange inadvertently omitted 

to add the Mini SPX-Index to the lists of Europeanstyle exercise and A.M settled options approved for 

trading on the Exchange. See Securities Exchange 

Act Release No. 32893 (September 14, 1993) 58 FR 

49070 (September 21, 1993) (SR–CBOE–93–12) 

(Mini-SPX Index option approval order). Options 

on the reduced-value version of the Standard & 

Poor’s S&P 500 Stock Index are known as ‘‘MiniSPX Index options.’’ 

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

10 15 U.S.C. 78f(b)(5). 

11The Exchange has fulfilled this requirement. 

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

13 17 CFR 240.19b–4(f)(6). 

changes that add the Mini-SPX Index to 

the lists of European-style exercise and 

A.M. settled options approved for 

trading on the Exchange. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend Rule 24.6 to change 

the close of trading hours from 3:15 p.m. 

(Chicago time) to 3 p.m. (Chicago time) 

on the last day of trading in expiring 

Quarterly Index Expirations (‘‘QIXs’’). 

The Exchange proposes that the change 

to the close of trading hours on the last 

trading day applies to all outstanding 

expiring QIXs that expire at the end of 

the second calendar quarter in 2009 and 

thereafter. 

QIXs were introduced in 1993 and are 

separate from the Quarterly Option 

Series Pilot Program provided for in 

Rule 5.5 and 24.9.5 QIXs are cash-settled 

options on certain specified broad-based 

indices that expire on the first business 

day of the month following the end of 

a calendar quarter.6 QIXs trade 

simultaneously with, not independent 

of, traditional options on the same 

underlying index. QIXs are subject to 

the same rules that currently govern the 

trading of traditional index options, 

including sales practice rules, margin 

requirements, and floor trading 

proceedings. Contract terms for QIXs are 

similar to traditional index options, 

with one general exception: the exercise 

settlement value is based on the index 

value derived from the closing prices of 

component stocks. In addition, the 

contract multiplier for QIXs may be set 

at 500 rather than the customary 100. 

Positions in QIXs are aggregated with 

option contracts on the same broadbased index and are subject to the 

applicable overall position limit.7

Generally, QIXs are priced in the 

market based on corresponding futures 

values. On the last day of trading, the 

closing prices of the component stocks 

(which are used to derive the exercise 

settlement value) are known at 3 p.m. 

(Chicago time) (or soon after) when the 

equity markets close. Despite the fact 

that the exercise settlement value is 

fixed after 3 p.m. (Chicago time), trading 

in expiring QIXs continues, however, 

for an additional fifteen minutes until 

3:15 p.m. (Chicago time) and are not 

priced on corresponding futures values, 

but rather the known cash value. At the 

same time, the prices of non-expiring 

QIX series continue to move and be 

priced in response to changes in 

corresponding futures prices. 

Because of the pricing divergence that 

occurs between 3 and 3:15 p.m. on the 

final trading day in expiring QIXs (e.g., 

switch from pricing off of futures to 

cash), the Exchange believes that there 

is a risk to allow investors to continue 

trading expiring QIX contracts after 3 

p.m. (Chicago time) on the last day of 

trading. As a result, the Exchange seeks 

to remedy any confusion by changing 

the close of trading hours from 3:15 p.m. 

(Chicago time) to 3 p.m. (Chicago time) 

for expiring QIXs on the last day of 

trading. 

It is expected that other options 

exchanges that have adopted QIX rules 

will submit similar proposals. 

The Exchange is also proposing to 

amend Rule 24.9(c) by adding the MiniSPX Index to the list of broad-based 

indices on which the Exchange may list 

QIXs, which offers an additional 

method of tailoring portfolio hedges that 

expires on the last day of the calendar 

quarter. Finally, the Exchange is 

proposing to amend Rule 24.9 by 

making technical changes that add the 

Mini-SPX Index to the lists of Europeanstyle exercise and A.M. settled options 

approved for trading on the Exchange.8

2. Statutory Basis 

Because the Exchange believes that 

the current rule proposal will lessen 

investor confusion, the Exchange 

believes the rule proposal is consistent 

with the Act and the rules and 

regulations under the Act applicable to 

a national securities exchange and, in 

particular, the requirements of Section 

6(b) of the Act.9 Specifically, the 

Exchange believes that the proposed 

rule change is consistent with the 

Section 6(b)(5) Act 10 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts and, in general, to 

protect investors and the public interest. 

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 

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 

Because the foregoing proposed 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 self-regulatory 

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,11 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 


rwilkins on PROD1PC63 with NOTICES
16020 Federal Register / Vol. 74, No. 66 / Wednesday, April 8, 2009 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56145 

(July 26, 2007), 72 FR 42169 (August 1, 2007), as 

amended by Securities Exchange Act Release No. 

56145A (May 30, 2008), 73 FR 32377 (June 6, 2008) 

(File No. SR–NASD–2007–023). 

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–2009–020 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–2009–020. 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 the CBOE. 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–2009–020 and 

should be submitted on or before 

April 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–7974 Filed 4–7–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59696; File No. SR–FINRA– 

2009–020] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change Relating to the 

FINRA Regulation Board Composition 

and Conforming Changes to the FINRA 

Regulation By-Laws 

April 2, 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 27, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) 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 FINRA. 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 

FINRA is proposing to amend the ByLaws of FINRA’s regulatory subsidiary 

(‘‘FINRA Regulation’’) to modify the 

FINRA Regulation Board (‘‘FINRA 

Regulation Board’’) composition, to 

adopt changes to conform the FINRA 

Regulation By-Laws to the FINRA ByLaws, and to reflect the corporate name 

change and similar matters. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

Background on FINRA and Its 

Regulatory Subsidiary 

On July 30, 2007, NASD and the New 

York Stock Exchange consolidated their 

member firm regulation operations into 

a combined organization, FINRA. As 

part of the consolidation, the SEC 

approved amendments to the NASD ByLaws to implement governance and 

related changes.3 The approved changes 

included a FINRA Board governance 

structure that balanced public and 

industry representation and designated 

seven governor seats to represent 

member firms of various sizes based on 

the criteria of firm size. 

FINRA Regulation (formerly known as 

NASD Regulation) is a subsidiary of 

FINRA that operates according to the 

Plan of Allocation and Delegation of 

Functions by NASD to Subsidiaries, as 

amended, which NASD adopted first in 

1996 when it formed NASD Regulation. 

FINRA Regulation’s By-Laws were not 

amended at the time of the 

consolidation, other than in a few 

sections where those By-Laws conflicted 

with the new FINRA By-Laws. On 

November 6, 2008, the Commission 

approved a proposed rule change to 

amend Articles I, II, III, V, VI, VII, IX, 

X and XIII, Section 4.16 of Article IV, 

and all of Article VIII except Section 8.7 

and all of Article XII except Section 

12.3, to realign the representation of 

industry members on the National 

Adjudicatory Council to follow more 

closely the categories of industry 

representation on the FINRA Board. See 

SR–FINRA 2008–046, Securities 

Exchange Act Release No. 58909 

(November 6, 2008), 73 FR 68467 

(November 18, 2008). 

Changes to the FINRA Regulation Board 

Composition To Parallel the FINRA 

Board 

The proposed rule change would 

make limited modifications to Article IV 


rwilkins on PROD1PC63 with NOTICES