19254 Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(2). 8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The proposed filing is being done pursuant to 

an industry-wide initiative under the auspices of 

the Options Self-Regulatory Council (‘‘OSRC’’), 

which is a committee comprised of representatives 

from each of the options exchanges functioning 

pursuant to the OSRC Plan (the ‘‘Plan’’). See 

Securities Exchange Act Release No. 20158 

(September 8, 1983), 48 FR 41256 (September 14, 

1983). The Plan is not a National Market System 

(‘‘NMS’’) plan under Section 11A of the Act, but 

rather is a plan to allocate regulatory 

responsibilities under Rule 17d–2 under the Act. 17 

CFR 240.17d–2. As a result of the introduction of 

multiply listed options and the introduction of the 

Plan for the Purpose of Creating and Operating an 

Intermarket Options Market Linkage (‘‘Options 

Linkage Plan’’), the contracts in a customer options 

order could be executed on more than one options 

exchange, and the significance of the options 

exchange, or exchanges, that execute a particular 

options transaction has diminished significantly. 

See Securities Exchange Act Release No. 43086 

(July 28, 2000), 65 FR 48023 (August 4, 2000). 

Furthermore, the OSRC believes that in light of the 

best execution and disclosure requirements, the 

usefulness of including on an options confirmation 

the name of the options exchange, or exchanges, on 

which the options transaction was effected does not 

outweigh the operational difficulties of capturing 

the information given the multiple trading of 

options and the application of the Options Linkage 

Plan industry wide. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and Section 6(b)(4) of 

the Act, in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. The 

proposed rates are part of the 

Exchange’s continued effort to attract 

and enhance participation on the 

Exchange, by offering attractive rebates 

for liquidity providers and volumebased incentives. The Exchange believes 

that the proposed changes to the 

Schedule are equitable in that they 

apply uniformly to our Users. 

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 

The foregoing proposed rule change is 

effective upon filing pursuant to Section 

19(b)(3)(A) 6 of the Act and 

subparagraph (f)(2) of Rule 19b–4 7

thereunder, because it establishes a due, 

fee, or other charge imposed by NYSE 

Arca on its members. 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 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–2009–31 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–NYSEArca–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 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–NYSEArca–2009–31 and 

should be submitted on or before May 

19, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9573 Filed 4–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59806; File No. SR–ISE– 

2009–19] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness by International 

Securities Exchange, LLC of a 

Proposed Rule Change To Amend 

Exchange Rules Related to 

Confirmations to Customers 

April 21, 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 April 8, 

2009, the International Securities 

Exchange, LLC (‘‘Exchange’’ or ‘‘ISE’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change, as described in 

Items I and II below, which items have 

been substantially 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 ISE proposes to amend Rule 

612—Confirmation to Customers to 

clarify that written confirmations 

relating to options transactions do not 

need to specify the exchange or 

exchanges on which an option contract 

is executed.3 The text of the proposed 


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Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices 19255 

4See Securities Exchange Act Release Nos. 58814 

(October 20, 2008), 73 FR 63527 (October 24, 2008) 

(approval order); 58932 (November 12, 2008), 73 FR 

69696 (November 19, 2008) (approval order); and 

58980 (November 19, 2008), 73 FR 72091 

(November 26, 2008) (approval order). 

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

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

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

8 17 CFR 240.19b–4(f)(6). 

9See supra note 4, and related text. 

10 17 CFR 240.19b4(f)(6). 

rule change is available on the 

Exchange’s Web site http:// 

www.ise.com, 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 (‘‘SRO’’) 

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. 

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 amend Exchange Rule 612 

to eliminate the requirement that the 

market on which an options transaction 

is executed be disclosed on a written 

confirmation furnished to a customer of 

a member. Pursuant to Rule 612, the 

member will continue to be required to 

furnish a written confirmation that 

contains a description of each 

transaction in the option contracts 

which shall show: the type of option; 

the underlying security (e.g., stock or 

exchange traded fund); the expiration 

month; the exercise price; the number of 

option contracts; the premium and 

commissions; the transaction and 

settlement dates; whether the 

transaction was a purchase or a sale 

(writing) transaction; and whether the 

transaction was effected on a principal 

or agency basis. 

The Exchange believes that with the 

expansion of multi-listing of options 

and the introduction of new options 

exchanges, it has become operationally 

inefficient to require the disclosure of 

the market center on which an order 

was executed on the confirmation. As 

an example, a customer may have a 

single option order containing 

numerous option contracts executed on 

multiple exchanges. As such, it would 

be inefficient for the member to be 

required to identify the exchange 

symbol for each contract executed on 

that customer’s order. This proposal 

would clarify that written confirmations 

furnished by a member to a customer 

will not need to specify the exchange or 

exchanges on which such option 

contracts were executed. 

This proposal is similar to rule change 

proposals that have been filed by the 

American Stock Exchange LLC 

(‘‘Amex’’), the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’), 

and the Chicago Board Options 

Exchange (‘‘CBOE’’), and approved by 

the Commission.4 The Exchange 

believes that similar proposals will be 

filed with the Commission by other 

exchanges, and if adopted, would 

continue to provide a uniform approach 

with respect to confirmations to 

customers regarding standardized 

options. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,5

in general, and furthers the objectives of 

Section 6(b)(5) of the Act,6 in particular, 

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, and to protect 

investors and the public interest in that 

it is designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, and 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism for a free 

and open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, this proposed rule change 

will promote consistency between ISE 

and other SRO rules and clarify the 

Exchange’s options confirmation 

procedure rules to better reflect the 

realities of the modern options market. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change: 

(1) Does not significantly affect the 

protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition and 

(3) by its terms, does not 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 Exchange 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, the 

proposed rule change has become 

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

of the Act 7 and Rule 19b–4(f)(6) 8

thereunder. 

The Exchange believes that the 

proposal to amend the Exchange’s rule 

with regard to written confirmations 

relating to options transactions will 

promote consistency between ISE and 

other SRO rules. The proposed rule 

change is substantially similar to Amex, 

FINRA, and CBOE rules that provide 

that written confirmations relating to 

options transactions are not required to 

specify the options exchange or 

exchanges on which such options were 

executed.9 The Exchange believes that 

this proposed rule change does not raise 

any new, unique or substantive issues 

from those raised in the approved 

Amex, FINRA and CBOE filings. The 

Exchange also believes that acceleration 

of the operative date is consistent with 

the protection of investors and the 

public interest. For the foregoing 

reasons, this rule filing qualifies for 

immediate effectiveness as a 

‘‘noncontroversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 10 does not become 

operative prior to 30 days after the date 

of filing or such shorter time as the 

Commission may designate if such 

action is consistent with the protection 

of investors and the public interest. 

Because the proposed rule change is 

based on rule changes previously 

approved by the Commission and the 

proposed rule change does not present 

any novel issues, the Exchange has 

requested that the Commission waive 

the 30-day operative delay period to 


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19256 Federal Register / Vol. 74, No. 80 / Tuesday, April 28, 2009 / Notices 

11For purposes only of waiving the operative date 

of this proposal, the Commission has considered 

the proposed rule’s impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3One example of such a circumstance is an 

execution resulting from that quote. 

permit the proposed rule change to be 

implemented immediately. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because the rule change 

is substantially similar to rule changes 

by other SROs previously approved by 

the Commission, and will promote 

consistency between the rules of the ISE 

and other SROs. Thus, the Commission, 

consistent with the protection of 

investors and the public interest, has 

determined to waive the 30-day 

operative delay so that the proposal may 

take effect immediately.11

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 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–ISE–2009–19 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–ISE–2009–19. 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 Commissions 

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 ISE. 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–ISE–2009–19 and should be 

submitted on or before May 19, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9560 Filed 4–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59804; File No. SR–BX– 

2009–020] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

of Proposed Rule Change Regarding 

Market Maker Obligations 

April 21, 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 April 8, 

2009, NASDAQ OMX BX, Inc. (the 

‘‘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 purpose of the proposed rule 

change is to amend Chapter VI, Section 

6 (Market Maker Quotations) of the BOX 

Rules to amend certain Market Maker 

obligations. The text of the proposed 

rule change is available from the 

principal office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s Internet Web 

site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 

The purpose of the proposed rule 

change is to amend Chapter VI, Section 

6 (Market Maker Quotations) of the BOX 

Rules to amend certain Market Maker 

obligations. As proposed, the Exchange 

will amend the obligations of a Market 

Maker regarding the Request for Quote 

(‘‘RFQ’’) process. The new language 

found in section 6(b) clarifies that 

within three seconds of receiving an 

RFQ that a Market Maker must 

continuously maintain, without 

interruption, a valid two-sided quote for 

at least thirty seconds. However, if 

during that thirty second time span, the 

quote becomes invalid,3 the Market 

Maker must as soon as practicable, but 

within five seconds, post a valid two 

sided quote. In addition, current section 

6(d)(ii), which provided for a Market 

Maker to submit a quote in the interests 

of a fair and orderly market when called 

upon by Options Official will be 

removed. Instead, as proposed, section 

6(b)(iv) will be used for circumstances 

where an Options Official determines, 

that a Market Maker should be called 

upon to quote in the interests of a fair 

and orderly market. Specifically, this 

new section will provide that an 

Options Official may, whenever on the 

judgment of such official, in the interest 

of a fair and orderly market, call upon 

Market Makers to post a quote in the 


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