Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 28091 

7For example, National Stock Exchange changed 

its rebate to the lesser of 0.25% of trade value and 

25% of the quote spread. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that Amendment No. 1 

replaces the original filing in its entirety. 

priced under $1.7 The proposed 

decrease in the provide credit will help 

us remain competitive while 

maximizing the income derived from 

transactions in securities priced under 

$1. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 8 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 9 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among its members. Among other 

things, the change to the fee schedule 

would provide incentives to 

Participants to increase the amount of 

liquidity provided on our trading 

facilities for securities priced less than 

$1, which may contribute to an increase 

in trading volume on the Exchange and 

in the income derived there from. 

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 either 

solicited or received. 

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)(ii) of the Act 10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 11 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 

Accordingly, the proposal is effective 

upon Commission receipt of the filing. 

At any time within 60 days of the filing 

of such 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 purpose 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–CHX–2010–09 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–CHX–2010–09. 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 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 

publicly available. All submissions 

should refer to File Number SR–CHX– 

2010–09 and should be submitted on or 

before June 9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11939 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62084; File No. SR– 

NYSEAmex–2010–40] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Adopt Rules 

Extending the Maximum Term of FLEX 

Index and FLEX Equity Options and To 

Establish a New Pilot Program 

May 12, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’)1, and Rule 19b–42 thereunder, 

notice is hereby given that on April 22, 

2010, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’), as modified by 

Amendment No. 1 on May 12, 2010, the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization.3 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 is proposing 

Amendment No. 1 to SR–NYSEAmex2010–40 in order to revise the Statutory 

Basis section and to adopt rules 

extending the maximum term of FLEX 

Index and FLEX Equity Options, and to 

establish a new Pilot Program to permit 

FLEX Options to trade with no 

minimum size requirement, and also to 

correct a reference within the rule text. 

A copy of this filing is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 


jlentini on DSKJ8SOYB1PROD with NOTICES
28092 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 

4See Securities Exchange Act Release No. 34– 

59305 (January 27, 2009) 74 FR 5954 (February 3, 

2009). 

5See Exchange Act Release No. 34–61439 

(January 28, 2010) 75 FR 5831 (February 4, 2010). 

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

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an Exchange is required to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of 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 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Amex is filing this Amendment 

No. 1 in order to revise the Statutory 

Basis section of the 19b–4 with 

corresponding changes to the Exhibit 1. 

The Exchange is not proposing any 

revisions to the Exhibit 5. This 

amendment replaces the original filing 

in its entirety. 

The purpose of the filing is to modify 

Rule 903G to extend the maximum term 

of FLEX Index and FLEX Equity options 

to the same term permissible on NYSE 

Arca Inc. (‘‘Arca’’); and replace the 

minimum value size Pilot Program for 

FLEX Equity options with a new Pilot 

Program to eliminate minimum value 

sizes for both FLEX Equity options and 

FLEX Index options by adopting rule 

provisions similar to those in use by the 

Chicago Board Options Exchange 

(‘‘CBOE’’). The Exchange also proposes 

to correct a rule reference. 

Extension of the Maximum Term Of 

FLEX Index and FLEX Equity Options 

The Exchange is proposing to adopt a 

provision to allow a maximum term of 

fifteen years for both FLEX Equity and 

FLEX Index options, based on a 

provision in NYSE Arca Rule 

5.32(d)(1).4 This change will allow 

NYSE Amex to remain competitive and 

offer the same terms for FLEX options 

as other markets. 

Minimum Value Size Requirements for 

All FLEX Options 

Presently, under an existing Pilot 

Program, the Exchange has reduced the 

minimum value size requirements for an 

opening FLEX Equity transaction to the 

lesser of 150 contracts or the number of 

contracts overlying $1 million in 

underlying securities. An opening FLEX 

Index transaction requires a minimum 

size of $10 million Underlying 

Equivalent Value in the case of Broad 

Stock Index Group FLEX Index Options 

and $5 million Underlying Equivalent 

Value in the case of Stock Index 

Industry Group FLEX Index Options. 

The Exchange proposes to replace the 

existing minimum size Pilot Program 

with a new pilot program that 

eliminates the minimum value size 

requirements for both FLEX Equity and 

FLEX Index options. If, in the future, the 

Exchange proposes an extension of the 

new minimum value size Pilot Program, 

or should the Exchange propose to make 

the new Program permanent, the 

Exchange will submit, along with any 

filing proposing such amendments to 

the Program, a Pilot Program report that 

would provide an analysis of the Pilot 

covering the period during which the 

Program was in effect. This minimum 

value size report would include: (i) data 

and analysis on the open interest and 

trading volume in (a) FLEX Equity 

Options with opening transaction with 

a minimum size of 0 to 249 contracts 

and less than $1 million in underlying 

value; (b) FLEX Index Options with 

opening transaction with a minimum 

opening size of less than $10 million in 

underlying equivalent value; and (ii) 

analysis on the types of investors that 

initiated opening FLEX Equity and 

Index Options transactions (i.e., 

institutional, high net worth, or retail). 

The report would be submitted to the 

Commission at least two months prior to 

the expiration date of the Pilot Program 

and would be provided on a 

confidential basis. 

The Exchange notes that any positions 

established under this Pilot would not 

be impacted by the expiration of the 

Pilot. For example, a 10-contract FLEX 

Equity Option opening position that 

overlies less than $1 million in the 

underlying security and expires in 

January 2015 could be established 

during the Pilot. If the Pilot Program 

were not extended, the position would 

continue to exist and any further trading 

in the series would be subject to the 

minimum value size requirements for 

continued trading in that series. The 

proposed minimum opening transaction 

size elimination is based on a similar 

pilot approved for use on CBOE.5

Correction To A Rule Reference 

In preparing this filing the Exchange 

discovered an incorrect rule reference in 

Rule 903G(c)(2). The reference is to Rule 

952 that has been eliminated and 

replaced with Rule 960NY; as such we 

are amending our rules to make this 

correction. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 6 of the Securities Exchange Act of 

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

the objectives of Section 6(b)(5) 7 in 

particular in that it is designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest by eliminating a 

minimum size for FLEX transactions 

and also to allow a term of up to fifteen 

years for FLEX transactions. The 

Exchange believes that these proposed 

changes provide greater opportunities 

for investors to manage risk through the 

use of FLEX options. 

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 

Because the foregoing proposed rule 

change does not: (1) Significantly affect 

the protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) 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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 8 and Rule 19b– 

4(f)(6) thereunder.9


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 28093 

designated by the Commission. The Exchange has 

met this requirement. 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 Id. 

12See NYSE Arca Equities Rule 5.32(d)(1); CBOE 

Rule 24A.4(a)(4)(i). 

13See CBOE Rule 24A.4 Interpretations and 

Policies .01(b); see also Securities Exchange Act 

Release No. 61439 (January 28, 2010) 75 FR 5831 

(February 4, 2010) (SR–CBOE–2009–087). 

14See Securities Exchange Act Release No. 61439 

(January 28, 2010) 75 FR 5831 (February 4, 2010) 

(SR–CBOE–2009–087). 

15For the 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. See 

15 U.S.C. 78c(f). 

16 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). 

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.10 However, Rule 19b– 

4(f)(6) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. NYSE 

Amex has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission believes that 

waiving the 30-day operative delay with 

respect to the proposed rule change to 

the maximum term of FLEX options is 

consistent with the protection of 

investors and the public interest. The 

Commission notes that this proposed 

rule change will make the Amex rule 

substantially similar to the 

corresponding provisions of the Arca 

and CBOE rules, and may provide 

investors with greater flexibility when 

conducting transactions in FLEX 

options.12

The Commission has also considered 

NYSE Amex’s request to waive the 30- 

day operative delay with respect to the 

minimum size pilot. Because, however, 

the Commission does not believe, 

practically speaking, that a pilot should 

retroactively commence, the 

Commission is only waiving the 

operative delay as of the date of this 

notice for the reasons discussed below. 

The Commission believes that 

shortening the 30-day operative delay to 

allow the commencement of the pilot as 

of the date of this notice is consistent 

with the protection of investors and the 

public interest. The Commission notes 

that the proposed rule change is 

substantially similar to a pilot that was 

previously approved by the Commission 

and is currently in existence for 

CBOE.13 The Commission also notes 

that the corresponding CBOE pilot was 

subject to full notice and comment in 

the Federal Register, and that the 

Commission only received comments 

that supported that proposal.14

Moreover, waiving the operative date as 

of the date of this notice is consistent 

with approval of CBOE’s pilot, which 

allowed implementation as of the date 

of the Commission’s approval order. For 

these reasons, the Commission 

designates the portion of the proposal to 

establish a minimum size pilot to be 

operative upon the date of issuance of 

this notice.15

At any time within 60 days of the 

filing of Amendment No. 1, 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 the 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–2010–40 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–2010–40. 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 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– 

NYSEAmex–2010–40 and should be 

submitted on or before June 9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11937 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62080; File No. SR–BX– 

2010–035] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify Fees 

for Members Using the NASDAQ OMX 

BX Equities System 

May 11, 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, NASDAQ OMX BX, Inc. (‘‘BX’’) 

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 BX. Pursuant to 

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

Rule 19b–4(f)(2) thereunder,4 BX has 

designated this proposal as establishing 

or changing a due, fee, or other charge, 

which renders the proposed rule change 

effective upon filing. 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 

BX proposes to modify pricing for BX 

members using the NASDAQ OMX BX 

Equities System. BX will implement the 

proposed change on May 3, 2010. The 

text of the proposed rule change is 


jlentini on DSKJ8SOYB1PROD with NOTICES