3772 Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 

as designated by the Commission. The Commission 

has waived the pre-filing requirement in this case. 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3This change will allow members to submit 

reports of trade cancellations on the trade date until 

the close of the facilities at 8 p.m. Previously, 

FINRA rules prohibited members from reporting 

trade cancellations after 5:15 p.m. on the trade date 

for these two reporting facilities. 

4Among other changes, the proposed 

amendments to Rule 6282(j)(2) provide that if a 

normal market hours trade is cancelled during 

market hours on trade date, the cancellation must 

be reported within 90 seconds. 

5See Securities Exchange Act Release No. 61105 

(December 3, 2009), 74 FR 65578. 

6 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). 

7 15 U.S.C. 78o–3(b)(6). 

A proposed rule change filed under 

Rule 19b–4(f)(6) 12 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),13 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has requested the Commission 

to waive the 30-day operative delay so 

that the proposal may become operative 

immediately upon filing. In making this 

request, the Exchange stated that waiver 

of this period will permit the text of the 

Exchange’s rules to exactly match the 

corresponding text of the NYSE’s rules 

as soon as possible and will eliminate 

any potential confusion to investors and 

others that might result from the more 

generalized reference to the effective 

date of the new rule that is in the 

current rule text. 

The Commission believes that the 

waiver of the 30-day operative delay 

period is consistent with the protection 

of investors and the public interest.14

The proposal would correctly insert the 

effective date, as described in the 

Exchange’s prior proposed rule change, 

into the text of the Exchange’s rules to 

ensure that investors and issuers are 

aware that the Exchange’s rule is 

operative on the same date as NYSE’s 

rule change. Based on the foregoing, the 

Commission deems the proposal 

operative upon filing. 

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–NYSEAmex–2010–03 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–NYSEAmex-2010–03. 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 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–NYSEAmex–2010–03 and 

should be submitted on or before 

February 12, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1144 Filed 1–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61359; File No. SR–FINRA– 

2009–082] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving a 

Proposed Rule Change Relating To 

Reporting of Trade Cancellations to 

FINRA 

January 14, 2010. 

On November 24, 2009, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) 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: (1) Amend 

FINRA trade reporting rules to permit 

members to report trade cancellations 

after 5:15 p.m. Eastern Time on the 

trade date to the FINRA/Nasdaq Trade 

Reporting Facility (‘‘FINRA/Nasdaq 

TRF’’) and the OTC Reporting Facility 

(‘‘ORF’’); 3 and (2) make certain 

conforming changes to the rules relating 

to the submission of trade cancellations 

to the Alternative Display Facility 

(‘‘ADF’’).4 Notice of the proposed rule 

change was published for comment in 

the Federal Register on December 10, 

2009.5 The Commission received no 

comments on the proposal. 

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 association.6 In particular, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of Section 15A(b)(6) of the 

Act,7 which requires, among other 

things, that FINRA’s rules be designed 

to prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 / Notices 3773 

8The ADF, FINRA/Nasdaq TRF, FINRA/NYSE 

TRF and ORF are collectively referred to herein as 

the ‘‘FINRA Facilities.’’ 

9 17 CFR 200.30–3(a)(12). 

1See Securities Exchange Act Release No. 54804 

(November 21, 2006), 71 FR 69150 (November 29, 

2006). The Quoting Fee was amended three times. 

See Securities Exchange Act Release No. 56602 

(October 3, 2007), 72 FR 57620 (October 10, 2007); 

Securities Exchange Act Release No. 56927 

(December 7, 2007), 72 FR 70912 (December 13, 

2007); and Securities Exchange Act Release No. 

58513 (September 11, 2008), 73 FR 54186 

(September 18, 2008). 

2See CBOE Fees Schedule, Section 17. 

3See Securities Exchange Act Release No. 55154 

(January 23, 2007), 72 FR 4743 (February 1, 2007). 

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

5 15 U.S.C. 78f(b)(4). 

general, to protect investors and the 

public interest. 

The proposed amendments are 

identical to the current rules relating to 

the FINRA/NYSE Trade Reporting 

Facility (‘‘FINRA/NYSE TRF’’) and 

would make FINRA rules governing the 

submission of trade cancellations 

consistent across the ‘‘FINRA 

Facilities.’’ 8 The Commission believes 

such consistency should enhance 

market transparency and eliminate 

systematically imposed delays in the 

reporting of trade cancellations to the 

FINRA/Nasdaq TRF and ORF. 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–FINRA– 

2009–082), be and hereby is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–1143 Filed 1–21–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61357; File No. SR–CBOE– 

2010–001] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change, and Amendment No. 1 

Thereto, Relating to the Elimination of 

the Hybrid Electronic Quoting Fee 

January 14, 2010. 

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

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1), notice is hereby given 

that on January 4, 2010, Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or 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 CBOE. On 

January 12, 2010, CBOE filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) 

proposes to amend its Fees Schedule to 

eliminate the Hybrid Electronic Quoting 

Fee. The text of the proposed rule 

change is available on the Exchange’s 

website (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, 

CBOE 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. CBOE 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 this proposed rule 

change is to eliminate the Hybrid 

Electronic Quoting Fee (‘‘Quoting Fee’’), 

which is applicable to all MarketMakers, DPMs, and e-DPMs (collectively 

‘‘liquidity providers’’). The Quoting Fee 

was implemented in February 2007 with 

the purpose of promoting and 

encouraging more efficient quoting.1

Under the Quoting Fee, CBOE assesses 

all liquidity providers who are 

submitting electronic quotations to 

CBOE in Hybrid option classes a 

monthly amount of $450 per 

membership utilized. CBOE also 

assesses or credits fees on liquidity 

providers that vary depending on: (i) 

The quality of the liquidity provider’s 

quotation (a quotation is a bid and an 

offer); and (ii) the value of the 

underlying security and CBOE’s bid in 

the option series.2 If a liquidity provider 

is assessed (or credited) the Quoting 

Fee, the liquidity provider does not pay 

a member dues fee under Section 10 of 

the Fees Schedule. 

The Exchange believes the Quoting 

Fee is no longer necessary to help 

mitigate quote message traffic. The 

Exchange believes liquidity providers 

generally are quoting more efficiently in 

response to the expansion of the Penny 

Pilot Program in order to remain 

competitive in the penny classes. In 

addition, the Exchange believes the 

other quote mitigation strategies it 

implemented at the inception of the 

Penny Pilot Program should continue to 

be effective in mitigating quotations.3

Also, since the adoption of the Quoting 

Fee the Exchange has invested heavily 

to increase its options system capacity 

to handle greater quote message traffic. 

Accordingly, the Exchange believes it 

would be appropriate to eliminate the 

Quoting Fee. 

Liquidity providers will continue to 

be charged $450 per month as member 

dues under Section 10 of the Fees 

Schedule instead of as a Hybrid 

Electronic Quoting Fee. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’),4 in general, and furthers 

the objectives of Section 6(b)(4) 5 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. The Exchange 

believes it is appropriate to eliminate 

the Quoting Fee because it is no longer 

necessary to help mitigate quote 

message traffic. 

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 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 rule change has become 

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


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