26828 Federal Register / Vol. 75, No. 91 / Wednesday, May 12, 2010 / Notices 

national securities exchange, including the rules 

governing the EDGA Exchange. See Securities 

Exchange Act Release No. 61698, 75 FR 13151 

(March 18, 2010). In the approval order, the 

Commission noted that EDGA Exchange Rule 8.15 

provides for the imposition of fines for minor rule 

violations pursuant to a minor rule violation plan. 

Accordingly, the Commission noted that, EDGA 

Exchange Rule 8.15 provides for the imposition of 

fines for minor rule violations pursuant to a minor 

rule violation plan. Accordingly, the Commission 

noted that as a condition to the operation of EDGA 

Exchange, the Exchange must file a minor rule 

violation plan with the Commission. 

7EDGA Exchange attached a sample form of the 

quarterly report with its submission to the 

Commission. 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

10 15 U.S.C. 78f(b)(7) and 78f(d)(1). 

11 17 CFR 240.19d–1(c)(2). 

12 Id. 

13 17 CFR 200.30–3(a)(44). 

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

2 17 CFR 240.19b–4. 

Pursuant to the Exchange’s proposed 

MRVP, under Rule 8.15, the Exchange 

may impose a fine (not to exceed 

$2,500) on a member, an associated 

person of a member, or a registered or 

non-registered employee of a member 

with respect to any rule listed in Rule 

8.15.01. The Exchange shall serve the 

person against whom a fine is imposed 

with a written statement setting forth 

the rule or rules allegedly violated, the 

act or omission constituting each such 

violation, the fine imposed, and the date 

by which such determination becomes 

final or by which such determination 

must be contested. If the person against 

whom the fine is imposed pays the fine, 

such payment shall be deemed to be a 

waiver of such person’s right to a 

disciplinary proceeding and any review 

of the matter under Exchange rules. Any 

person against whom a fine is imposed 

may contest the Exchange’s 

determination by filing with the 

Exchange a written response, at which 

point the matter shall become a 

disciplinary proceeding. 

Upon approval of the plan, the 

Exchange will provide the Commission 

a quarterly report of actions taken on 

minor rule violations under the plan. 

The quarterly report will include the 

Exchange’s internal file number for the 

case, the name of the individual and/or 

organization, the nature of the violation, 

the specific rule provision violated, the 

sanction imposed, the number of times 

the rule violation has occurred, and the 

date of disposition.7

The Commission finds that the 

proposed MRVP is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange. In 

particular, the Commission believes that 

the proposal is consistent with Section 

6(b)(5) of the Act,8 which requires that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to remove impediments and to 

perfect the mechanism of a free and 

open market and national market 

system, and, in general, to protect 

investors and the public interest. The 

Commission also believes that the 

proposal is consistent with Sections 

6(b)(1) and 6(b)(6) of the Act9 which 

require that the rules of an exchange 

enforce compliance with, and provide 

appropriate discipline for, violations of 

the Commission and Exchange rules. In 

addition, because the MRVP offers 

procedural rights to a person sanctioned 

under Rule 8.15, the Commission 

believes that Rule 8.15 provides a fair 

procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d)(1) of the Act.10

Finally, the Commission finds that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act, as required by Rule 19d– 

1(c)(2) under the Act,11 because the 

MRVP strengthens EDGA Exchange’s 

ability to carry out its oversight and 

enforcement responsibilities as an SRO 

in cases where full disciplinary 

proceedings are unsuitable in view of 

the minor nature of the particular 

violation. 

In approving this proposal, the 

Commission in no way minimizes the 

importance of compliance with 

Exchange rules and all other rules 

subject to the imposition of sanctions 

under Rule 8.15. The Commission 

believes that the violation of an SRO’s 

rules, as well as Commission rules, is a 

serious matter. However, Rule 8.15 

provides a reasonable means of 

addressing violations that do not rise to 

the level of requiring formal 

disciplinary proceedings, while 

providing greater flexibility in handling 

certain violations. The Commission 

expects that EDGA Exchange will 

continue to conduct surveillance with 

due diligence and make determinations 

based on its findings, on a case-by-case 

basis, whether a sanction under the 

MRVP is appropriate, or whether a 

violation requires formal disciplinary 

action. 

It is therefore ordered, pursuant to 

Rule 19d–1(c)(2) under the Act,12 that 

the proposed MRVP for EDGA 

Exchange, File No. 4–595, be, and 

hereby is, approved and declared 

effective. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11260 Filed 5–11–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62040; File No. SR–CBOE– 

2010–040] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Adding 75 Options 

Classes to the Penny Pilot Program 

May 5, 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 29, 

2010, 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 

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 proposes to 

amend [sic] its rules relating to the 

Penny Pilot Program. 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, at the 

Commission’s Public Reference Room 

and on the Commission’s Web site at 

http://www.sec.gov. 

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, 

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Federal Register / Vol. 75, No. 91 / Wednesday, May 12, 2010 / Notices 26829 

3See Securities Exchange Act Release No. 60864 

(October 22, 2009), granting immediate 

effectiveness to SR–CBOE–2009–76. The 

Commission notes that this proposed rule change 

was submitted pursuant to Section 19(b)(3)(A)(iii) 

of the Act and was, therefore, effective upon filing. 

The Commission does not approve proposed rule 

changes submitted pursuant to this section of the 

Act. 

4The classes to be added are among the most 

actively-traded, multiply-listed option classes that 

are not currently in the Pilot Program, excluding 

option classes with high premiums. An option class 

would be designated as ‘‘high premium’’ if, at the 

time of selection, the underlying security was 

priced at $200 per share or above, or the underlying 

index level was at 200 or above. 

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

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

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 

CBOE proposes to identify the 75 

option classes that will be added to the 

Penny Pilot Program on May 3, 2010, 

consistent with CBOE’s rule filing to 

extend and expand the Program that 

was approved on October 22, 2010.3 As 

described in SR–CBOE–2009–76, the 

Pilot Program will be expanded by 

adding 300 option classes, in groups of 

75 classes each quarter on the following 

dates: November 2, 2009, February 1, 

2010, May 3, 2010, and August 2, 2010.4

The option classes will be identified 

based on national average daily volume 

in the six calendar months preceding 

their addition to the Pilot Program using 

data compiled by The Options Clearing 

Corporation, except that the month 

immediately preceding their addition to 

the Pilot Program will not be utilized for 

purposes of the six month analysis. 

The following 75 option classes will 

be added to the Pilot Program beginning 

on May 3, 2010: 

Symbol Security name Symbol Security name 

GFI .................... Gold Fields Ltd .......................................................... JCP ................... JC Penney Co Inc. 

XLV ................... Health Care Select Sector SPDR Fund .................... ACL .................. Alcon IncCo Inc. 

CIEN ................. Ciena Corp ................................................................ STP .................. Suntech Power Holdings Co Ltd. 

AMLN ................ Amylin Pharmaceuticals Inc ...................................... TLB ................... Talbots Inc. 

CTIC ................. Cell Therapeutics Inc ................................................ SYMC ............... Symantec Corp. 

MDT .................. Medtronic Inc ............................................................. AMED ............... Amedisys Inc.

TIVO ................. TiVo Inc ..................................................................... TM .................... Toyota Motor Corp. 

MNKD ............... MannKind Corp ......................................................... HK .................... Petrohawk Energy Corp. 

MDVN ............... Medivation Inc ........................................................... ENER ................ Energy Conversion Devices Inc. 

BRKB ................ Berkshire Hathaway Inc ............................................ STT ................... State Street Corp. 

APOL ................ Apollo Group Inc ....................................................... BHP .................. BHP Billiton Ltd. 

BSX ................... Boston Scientific Corp ............................................... NFLX ................ NetFlix Inc. 

XLY ................... Consumer Discretionary Sel. Sec. SPDR Fund ....... LDK .................. LDK Solar Co Ltd. 

CLF ................... Cliffs Natural Resources Inc ..................................... SPG .................. Simon Property Group Inc. 

ZION ................. Zions Bancorporation ................................................ TIF .................... Tiffany & Co. 

IOC ................... InterOil Corp .............................................................. BUCY ................ Bucyrus International Inc. 

ITMN ................. InterMune Inc ............................................................ WAG ................. Walgreen Co. 

GME .................. GameStop Corp ........................................................ IP ...................... International Paper Co. 

XLK ................... Technology Select Sector SPDR Fund ..................... XME .................. SPDR S&P Metals & Mining ETF.

AKS ................... AK Steel Holding Corp .............................................. KGC .................. Kinross Gold Corp. 

GRMN ............... Garmin Ltd ................................................................. EP ..................... El Paso Corp. 

MRVL ................ Marvell Technology Group Ltd .................................. SEED ................ Origin Agritech Ltd. 

XLP ................... Consumer Staples Select Sector SPDR Fund ......... WIN ................... Windstream Corp. 

UNP .................. Union Pacific Corp .................................................... DHI ................... DR Horton Inc.

DTV ................... DIRECTV ................................................................... ADBE ................ Adobe Systems Inc. 

WMB ................. Williams Cos Inc/The ................................................ PCX .................. Patriot Coal Corp.

MEE .................. Massey Energy Co .................................................... SPWRA ............ SunPower Corp. 

CELG ................ Celgene Corp ............................................................ LCC .................. US Airways Group Inc. 

GMCR ............... Green Mountain Coffee Roasters Inc ....................... PRU .................. Prudential Financial Inc. 

WDC ................. Western Digital Corp ................................................. LEN .................. Lennar Corp. 

DAL ................... Delta Air Lines Inc ..................................................... EWT ................. iShares MSCI Taiwan Index Fund. 

FXE ................... CurrencyShares Euro Trust ...................................... KBH .................. KB Home. 

COST ................ Costco Wholesale Corp ............................................ CREE ................ Cree Inc. 

MJN .................. Mead Johnson Nutrition Co ...................................... SIRI .................. Sirius XM Radio Inc. 

ALL ................... Allstate Corp/The ....................................................... MMR ................. McMoRan Exploration Co. 

SII ..................... Smith International Inc .............................................. CENX ............... Century Aluminum Co. 

RTN .................. Raytheon Co ............................................................. MT .................... ArcelorMittal. 

DVN .................. Devon Energy Corp ...................................................

The minimum increments for all 

classes in the Penny Pilot (except for the 

QQQQs, IWM and SPY) are: $0.01 for all 

option series below $3 (including 

LEAPS), and $0.05 for all option series 

$3 and above (including LEAPS). The 

minimum increment for all option series 

in QQQQ, IWM and SPY is $.01. 

2. Statutory Basis 

The Exchange believes the rule 

proposal is consistent with the 

Securities Exchange Act of 1934 (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.5 Specifically, the Exchange 

believes that the proposed rule change 

is consistent with the Section 6(b)(5) 

Act 6 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. In particular, the 

proposed rule change allows for an 

expansion of the Penny Pilot Program 

for the benefit of market participants 

and identifies the option classes to be 

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26830 Federal Register / Vol. 75, No. 91 / Wednesday, May 12, 2010 / Notices 

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

8 17 CFR 240.19b–4(f)(1). 

9 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

added to the Pilot Program in a manner 

consistent with CBOE’s rule filing SR– 

CBOE–2009–76 to extend and expand 

the Pilot Program. 

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 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 proposed rule change is filed for 

immediate effectiveness pursuant to 

Section 19(b)(3)(A) 7 of the Securities 

Exchange Act of 1934 and Rule 19b– 

4(f)(1) 8 thereunder as it constitutes a 

stated policy, practice, or interpretation 

with respect to the meaning, 

administration, or enforcement of an 

existing rule. 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–CBOE–2010–040 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–2010–040. 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 CBOE’s principal office and 

on its Web site at http://www.cboe.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 No. 

SR–CBOE–2010–040 and should be 

submitted on or before June 2, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11257 Filed 5–11–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62048; File No. SR–ISE– 

2010–43] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

May 6, 2010. 

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 May 3, 

2010, International Securities Exchange, 

LLC (‘‘ISE’’ or ‘‘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. ISE has 

designated this proposal as one 

establishing or changing a member due, 

fee, or other charge imposed under 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 is proposing to amend its 

Schedule of Fees in order to (i) increase 

the number of options classes to be 

included in the Exchange’s current 

schedule of transaction fees and rebates 

for adding and removing liquidity; and 

(ii) adopt a rebate for certain orders 

executed in the Exchange’s Price 

Improvement Mechanism. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.ise.com), at the principal office of 

the Exchange, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 Exchange proposes to increase 

liquidity and attract order flow by 

amending its transaction fees and 

rebates for adding and removing 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES