Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 26303 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 4 17 CFR 240.17d–2. 5 15 U.S.C. 78f(b)(5). 

available publicly. All submissions 

should refer to File No. SR–BATS– 

2010–009 and should be submitted on 

or before June 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11095 Filed 5–10–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62034; File No. SR–CBOE– 

2010–035] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending CBOE Rules 

9.11, 9.18 and 9.21 To Correspond and 

Harmonize With Rules of the Financial 

Industry Regulatory Authority, Inc. 

May 4, 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 the Chicago 

Board Options Exchange, Incorporated 

(‘‘Exchange’’ or ‘‘CBOE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) on April 9, 2010, 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been substantially prepared by the 

Exchange. The Exchange has designated 

the proposed rule change as constituting 

a ‘‘non-controversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 under the 

Act,3 which renders the proposal 

effective upon receipt of the filing by 

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 Exchange proposes to amend its 

guarantees and profit sharing, 

confirmation to customers, and options 

communication rules to harmonize the 

Exchange’s requirements with those of 

the Financial Industry Regulatory 

Authority (‘‘FINRA’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site at http:// 

www.cboe.org/Legal, at the Exchange’s 

Office of the Secretary, 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, 

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 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 

Pursuant to Rule 17d–2 under the 

Act,4 the BATS Exchange, Inc. 

(‘‘BATS’’), CBOE, C2 Options Exchange, 

Incorporated (‘‘C2’’), the International 

Securities Exchange, LLC (‘‘ISE’’), 

FINRA, the New York Stock Exchange 

LLC (‘‘NYSE’’), NYSE Amex LLC 

(‘‘Amex’’), NYSE Arca, Inc. (‘‘Arca’’), The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’), NASDAQ OMX BX, Inc. 

(‘‘BX’’), and NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’), (collectively the ‘‘Options Self 

Regulatory Council’’), entered into an 

agreement dated February 9, 2010 (the 

‘‘17d–2 Agreement’’) to allocate 

regulatory responsibility for common 

rules. 

First, by this proposal, the Exchange 

seeks to harmonize its ‘‘Sharing in 

Accounts’’ rule with FINRA’s rule 

pursuant to the terms of the 17d–2 

Agreement. In order to maintain 

substantial similarity with FINRA rules, 

the Exchange proposes to amend CBOE 

Rule 9.18(a) to clarify that the 

prohibition against guarantees also 

applies to persons associated with a 

member and to delete the language of 

CBOE Rule 9.18 related to profit sharing 

of a customer account, and replace it 

with the language of FINRA Rule 

2150(c), Sharing in Accounts; Extent 

Permissible. FINRA Rule 2150(c) 

contains the same prohibition against 

sharing in accounts as CBOE Rule 9.18, 

but with additional limited exceptions. 

The general prohibition contained in 

CBOE Rule 9.18 against sharing in the 

profits or losses of a customer account 

is currently covered by the 17d–2 

Agreement. However, the limited 

exceptions of FINRA Rule 2150(c) are 

not covered by the 17d–2 Agreement. 

The Exchange proposes to add those 

limited exceptions to CBOE Rule 9.18 to 

harmonize its rule with the FINRA rule 

and add those limited exceptions 

pursuant to the 17d–2 Agreement. The 

portion of the rule prohibiting the 

guarantee of a customer against loss will 

remain unchanged. 

Second, CBOE proposes to amend its 

confirmation rule, CBOE Rule 9.11, to 

add a requirement that confirmations 

disclose whether the transaction was an 

opening or closing transaction to 

harmonize the rule with FINRA Rule 

2360(b)(12). 

Third, CBOE proposes to amend its 

options communication rule, CBOE 

Rule 9.21, by deleting the term ‘‘market 

letters’’ in the definition of ‘‘sales 

literature’’ and adding the term ‘‘market 

letters’’ to the definition of 

‘‘correspondence’’ to harmonize the rule 

with FINRA Rule 2220 and NASD Rule 

2210(a)(2). 

2. Statutory Basis 

CBOE believes that the proposed rule 

change is consistent with the provisions 

of, and furthers the objectives of, 

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

requires, among other things, that the 

Exchange’s rules must be 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, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. Specifically, the 

proposed rule changes, by harmonizing 

CBOE rules with FINRA rules, would 

provide CBOE Members with a clearer 

regulatory scheme. The Exchange 

further notes that the proposed rule 

changes are neither novel nor 

controversial and are modeled on 

existing FINRA rules. 

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. 


emcdonald on DSK2BSOYB1PROD with NOTICES
26304 Federal Register / Vol. 75, No. 90 / Tuesday, May 11, 2010 / Notices 

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

7 17 CFR 240.19b–4(f)(6). 

8 Id. 

9 17 CFR 240.19b–4(f)(6)(iii). 

10For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change 

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, the 

proposed rule change has become 

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

of the Act 6 and Rule 19b–4(f)(6) 

thereunder.7 A proposed rule change 

filed under Rule 19b–4(f)(6) 8 normally 

does not become operative prior to 30 

days after the date of filing. However, 

pursuant to Rule 19b–4(f)(6)(iii),9 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. CBOE has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. Because the proposed rule change 

will harmonize the CBOE rules 

pertaining to guarantees and profit 

sharing, confirmations to customers, 

and options communications with the 

comparable FINRA rules pursuant to the 

17d–2 Agreement, the Commission 

finds that it is consistent with the 

protection of investors and the public 

interest to waive the 30-day operative 

delay, and hereby grants such waiver.10

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–2010–035 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–2010–035. 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 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–2010–035 and 

should be submitted on or before June 

1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–11096 Filed 5–10–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62032; File No. SR– 

NYSEArca-2010–31] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NYSE Arca, Inc. Amending NYSE Arca 

Rule 3.3(a) and Section 401(a) of the 

Exchange’s Bylaws to Eliminate the 

Exchange’s Audit Committee, 

Compensation Committee, and 

Regulatory Oversight Committee 

May 4, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 2 thereunder, 

notice is hereby given that on April 20, 

2010, NYSE Arca, Inc. (‘‘Exchange’’ or 

‘‘NYSE Arca’’) 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 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 

NYSE Arca Rule 3.3 to eliminate its 

audit committee (the ‘‘NYSE Arca Audit 

Committee’’), its compensation 

committee (the ‘‘NYSE Arca 

Compensation Committee’’) and its 

regulatory oversight committee (‘‘ROC’’) 

as committees of the board of directors 

of the Exchange. References to those 

board committees will also be deleted 

from Section 4.01(a) of the Exchange’s 

Bylaws. The formal responsibilities of 

the NYSE Arca Audit Committee and 

the NYSE Arca Compensation 

Committee will, following elimination, 

be exercised by the committees of the 

board of directors of the Exchange’s 

ultimate parent company, NYSE 

Euronext. The formal responsibilities of 

the ROC will be exercised by the board 

of directors of NYSE Regulation, Inc. 

(‘‘NYSER’’) in part, pursuant to the terms 

of a regulatory services agreement with 

the Exchange, and the board of directors 

of the Exchange in other respects. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nyse.com, at the principal 

office of the Exchange, on the 

Commission’s Web site at http:// 

www.sec.gov, and at the Commission’s 

Public Reference Room. 


emcdonald on DSK2BSOYB1PROD with NOTICES