Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Notices 24769 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 57894 

(May 30, 2008), 73 FR 32061 (June 5, 2008) (order 

approving SR–Amex-2008–15). 

5See Securities Exchange Act Release No. 59055 

(December 4, 2008), 73 FR 238 [sic] (December 10, 

2008) (order approving SR–Amex-2008–68). 

6See Securities Exchange Act Release No. 61483 

(February 3, 2010), 75 FR 6753 (February 10, 2010). 7See Commentary .06 to Rule 915. 

[FR Doc. 2010–10491 Filed 5–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61989; File No. SR– 

NYSEAmex-2010–37] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of 

Proposed Rule Change Amending 

Commentary to Rule 915 and Rule 916 

April 27, 2010. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on April 8, 

2010, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) 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 self-regulatory 

organization. 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 

Commentary .10 to Rule 915 and 

Commentary .11 to Rule 916 for the 

purpose of listing and trading options 

on the shares of the ETFS Palladium 

Trust and the ETFS Platinum Trust. The 

text of the proposed rule change is 

available on the Commission’s Web Site 

at http://www.sec.gov. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Recently, the U.S. Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) authorized the Exchange 

to list and trade options on the SPDR 

Gold Trust 4 (‘‘GLD’’) the iShares 

COMEX Gold Trust (‘‘IAU’’) the iShares 

Silver Trust (‘‘SLV’’),5 the ETFS Silver 

Trust (‘‘SIVR’’) and the ETFS Gold Trust 

(‘‘SGOL’’).6 Now, the Exchange proposes 

to list and trade options on the ETFS 

Palladium Trust (‘‘PALL’’) and the ETFS 

Platinum Trust (‘‘PPLT’’). 

Currently, Amex Rule 915 deems 

appropriate for options trading 

Exchange-Traded Fund Shares (‘‘ETFs’’ 

or ‘‘Fund Shares’’) that are traded on a 

national securities exchange and are 

defined as an ‘‘NMS stock’’ in Rule 600 

of Regulation NMS and that represent (i) 

Interests in registered investment 

companies (or series thereof) organized 

as open-end management investment 

companies, unit investment trusts or 

similar entities that hold portfolios of 

securities and/or financial instruments 

including, but not limited to, stock 

index futures contracts, options on 

futures, options on securities and 

indexes, equity caps, collars and floors, 

swap agreements, forward contracts, 

repurchase agreements and reverse 

purchase agreements (the ‘‘Financial 

Instruments’’), and money market 

instruments, including, but not limited 

to, U.S. government securities and 

repurchase agreements (the ‘‘Money 

Market Instruments’’) comprising or 

otherwise based on or representing 

investments in indexes or portfolios of 

securities and/or Financial Instruments 

and Money Market Instruments (or that 

hold securities in one or more other 

registered investment companies that 

themselves hold such portfolios of 

securities and/or Financial Instruments 

and Money Market Instruments); or (ii) 

interests in a trust or similar entity that 

holds a specified non-U.S. currency 

deposited with the trust or similar entity 

when aggregated in some specified 

minimum number may be surrendered 

to the trust by the beneficial owner to 

receive the specified non-U.S. currency 

and pays the beneficial owner interest 

and other distributions on deposited 

non-U.S. currency, if any, declared and 

paid by the trust; or (iii) commodity 

pool interests principally engaged, 

directly or indirectly, in holding and/or 

managing portfolios or baskets of 

securities, commodity futures contracts, 

options on commodity futures contracts, 

swaps, forward contracts and/or options 

on physical commodities and/or nonU.S. currency (‘‘Commodity Pool 

Units’’), or (iv) represents an interest in 

a registered investment company 

(‘‘Investment Company’’) organized as an 

open-end management investment 

company or similar entity, that invests 

in a portfolio of securities selected by 

the Investment Company’s investment 

adviser consistent with the Investment 

Company’s investment objectives and 

policies, which is issued in a specified 

aggregate minimum number in return 

for a deposit of a specified portfolio of 

securities and/or a cash amount with a 

value equal to the next determined net 

asset value (‘‘NAV’’), and when 

aggregated in the same specified 

minimum number, may be redeemed at 

a holder’s request, which holder will be 

paid a specified portfolio of securities 

and/or cash with a value equal to the 

next determined NAV (‘‘Managed Fund 

Share’’).7 In addition, pursuant to 

Commentary .10 to Rule 915 the 

Exchange may also list options based on 

shares of GLD, IAU, SLV, SIVR, and 

SGOL. This proposed rule change seeks 

to expand the current exception set 

forth in Commentary .10 to Rule 915 for 

Exchange-Traded Fund Shares that may 

be approved for options trading on the 

Exchange to include PALL and PPLT. 

Apart from allowing PALL and PPLT 

to be underlyings for options traded on 

the Exchange as described above, the 

listing standards for Exchange-Traded 

Fund Shares will remain unchanged 

from those that apply under current 

Exchange rules. Exchange-Traded Fund 

Shares on which options may be listed 

and traded must still be listed and 

traded on a national securities exchange 

and must satisfy the other listing 

standards set forth in Commentary .06 

to Rule 915. Specifically, in addition to 

satisfying the listing requirements set 

forth above, Exchange-Traded Fund 

Shares must meet either (1) the criteria 

and guidelines under Commentary .01 

to Rule 915; or (2) be available for 

creation or redemption each business 

day from or through the issuer in cash 

or in kind at a price related to net asset 

value, and the issuer must be obligated 

to issue Exchange-Traded Fund Shares 

in a specified aggregate number even if 

some or all of the investment assets 

required to be deposited have not been 


sroberts on DSKD5P82C1PROD with NOTICES
24770 Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Notices 

8See NYSE Amex Rules 904 and 905. 

9See NYSE Amex Rule 462. 

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

11 15 U.S.C. 78f(b)(5). 

received by the issuer, subject to the 

condition that the person obligated to 

deposit the investments has undertaken 

to deliver the investment assets as soon 

as possible and such undertaking is 

secured by the delivery and 

maintenance of collateral consisting of 

cash or cash equivalents satisfactory to 

the issuer, as provided in the respective 

prospectus. 

This proposal is intended to provide 

appropriate standards for the listing and 

trading of options on PALL and PPLT. 

The proposed revision to Commentary 

.11 to Rule 916 specifically provides 

that shares of PALL and PPLT be 

deemed ‘‘Exchange-Traded Fund 

Shares’’ for purposes of Commentary .07 

to Rule 916. Under the applicable 

continued listing criteria in 

Commentary .07 to Amex Rule 916, the 

Exchange will consider the suspension 

of opening transactions in PALL or 

PPLT in any of the following 

circumstances: (1) Following the initial 

twelve-month period beginning upon 

the commencement of trading of PALL 

or PPLT, there are fewer than 50 record 

and/or beneficial holders of PALL or 

PPLT for 30 or more consecutive trading 

days; (2) the value of the underlying 

silver or underlying gold [sic] is no 

longer calculated or available; or (3) 

such other event occurs or condition 

exists that in the opinion of the 

Exchange makes further dealing on the 

Exchange inadvisable. In addition, 

PALL or PPLT shall not be deemed to 

meet the requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series of 

option contracts of the class covering 

PALL or PPLT, respectively, if PALL or 

PPLT ceases to be an ‘‘NMS Stock’’ as 

provided for in Commentary .07(2) to 

Rule 916 or PALL or PPLT is halted 

from trading on the primary listing 

market, or if PALL or PPLT is delisted. 

The Exchange represents that the 

listing and trading of PALL options or 

PPLT options under NYSE Amex rules 

will not have any effect on the rules 

pertaining to position and exercise 

limits 8 or margin.9

The Exchange represents that it has an 

adequate surveillance program in place 

for options on PALL and PPLT. The 

Exchange may obtain trading 

information via the Intermarket 

Surveillance Group (‘‘ISG’’) from other 

exchanges who are members or affiliates 

of the ISG. The Exchange may also 

obtain trading information from various 

commodity futures exchanges 

worldwide that have entered into 

comprehensive surveillance sharing 

agreements with the Exchange. In 

connection with PALL and PPLT, the 

Exchange represents that it may obtain 

information from the New York 

Mercantile Exchange, Inc. (‘‘NYMEX’’), 

pursuant to a comprehensive 

surveillance sharing agreement, related 

to any financial instrument that is 

based, in whole or in part, upon an 

interest in or performance of silver or 

gold [sic]. Prior to listing and trading 

options on PALL or PPLT, the Exchange 

represents that it will either have the 

ability to obtain specific trading 

information via ISG or through a 

comprehensive surveillance sharing 

agreement with the marketplace or 

marketplaces with last sale reporting 

that represent(s) the highest volume in 

derivatives (options or futures) on the 

underlying palladium or platinum. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 10 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5) 11 in 

particular in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms 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 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 

No. SR–NYSEAmex–2010–37 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 No. 

SR–NYSEAmex–2010–37. 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 Web site viewing and 

printing 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 NYSE 

Amex. 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. 


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Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Notices 24771 

12 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). 

5See Exchange Act Release No. 61152 (Dec. 10, 

2009), 74 FR 66699 (Dec. 16, 2009). 

SR–NYSEAmex–2010–37 and should be 

submitted on or before May 26, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10458 Filed 5–4–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61987; File No. SR–C2– 

2010–001] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt Certain Order 

Routing and Market-Maker Rules 

April 27, 2010. 

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 23, 

2010, C2 Options Exchange, 

Incorporated (‘‘Exchange’’ or ‘‘C2’’) 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 

‘‘non-controversial’’ proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act3 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 

The Exchange proposes to adopt a 

rule relating to order routing to other 

exchanges and to adopt preferred 

market-maker rules. The text of the 

proposed rule change 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, C2 

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 

C2 was recently registered as a 

national securities exchange under 

Section 6 of the Exchange Act.5 When 

operational, C2 will operate an allelectronic marketplace for the trading of 

listed options. It will not maintain a 

physical trading floor. C2 is filing this 

proposed rule change in order to add a 

linkage order routing rule. The rule is 

identical to a rule adopted by the 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’) as part of the 

transition to the new intermarket 

linkage plan (the Options Order 

Protection and Locked/Crossed Market 

Plan). Under the new linkage, exchanges 

ensure order protection by routing 

orders to other markets through brokerdealers. The proposed rule adopts 

certain guidelines that would be 

applicable to any routing services 

provided by C2 through a broker-dealer. 

Routing services would be available to 

C2 permit holders only and are optional. 

Permit holders that do not want orders 

routed can use the Immediate or Cancel 

designation to avoid routing. 

As proposed, routing services will 

only be provided by routing brokers that 

are not affiliated with the Exchange. 

Further, the Exchange may not use a 

routing broker for which the Exchange 

or any affiliate of the Exchange is the 

designated examining authority. For 

each routing broker used by the 

Exchange, an agreement will be in place 

between the Exchange and the routing 

broker that will, among other things, 

restrict the use of any confidential and 

proprietary information that the routing 

broker receives to legitimate business 

purposes necessary for routing orders at 

the direction of the Exchange. 

The rule further requires the 

Exchange to provide routing services in 

compliance with the Securities 

Exchange Act of 1934 and the rules 

thereunder, including, but not limited 

to, the requirements in Section 6(b)(4) 

and (5) of the Act that the rules of a 

national securities exchange provide for 

the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities, and not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The rule also requires the Exchange to 

establish and maintain procedures and 

internal controls reasonably designed to 

adequately restrict the flow of 

confidential and proprietary 

information between the Exchange and 

the routing broker, and any other entity, 

including any affiliate of the routing 

broker, and, if the routing broker or any 

of its affiliates engages in any other 

business activities other than providing 

routing services to the Exchange, 

between the segment of the routing 

broker or affiliate that provides the other 

business activities and the segment of 

the routing broker that provides the 

routing services. 

Under the proposed rule, the 

Exchange will determine the logic that 

provides when, how, and where orders 

are routed away to other exchanges. 

Further, the routing broker cannot 

change the terms of an order or the 

routing instructions, nor does the 

routing broker have any discretion about 

where to route an order. Lastly, the rule 

provides that any bid or offer entered on 

the Exchange routed to another 

exchange via a routing broker that 

results in an execution shall be binding 

on the member that entered such bid/ 

offer. 

The filing also proposes to adopt a 

Preferred Market-Maker rule and a 

participation entitlement for Preferred 

Market-Makers (PMMs). The proposed 

additions are virtually identical to rules 

governing the PMM program on CBOE. 

A PMM program allows order senders to 

designate a preferred Market-Maker for 

orders sent to the Exchange. If the PMM 

meets certain requirements at the time 

the order is received, the PMM is 

entitled to an enhanced participation on 

the trade (a participation entitlement). 

Adopting a PMM program will provide 

C2 with greater flexibility in attracting 

dedicated liquidity providers. 

Proposed Rule 8.13 provides that the 

Exchange may allow, on a class-by-class 

basis, for the receipt orders that carry a 

designation specifying a Market-Maker 

in that class as the ‘‘Preferred MarketMaker’’ for that order. The PMM will 

receive a participation entitlement for 

such order if the following provisions 

are met: (i) The PMM is registered in the 

relevant option class; and (ii) the PMM 

is quoting at the best bid/offer on the 

Exchange. The participation entitlement 

shall be 40% when there are two or 

more Market-Makers also quoting at the 


sroberts on DSKD5P82C1PROD with NOTICES