28088 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(3). 

11 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). 

4 17 CFR 240.19b–4(f)(6). 

5The Commission notes that the text of the 

proposed rule change is attached as Exhibit 5 to the 

Form 19b–4, but is not attached to this Notice. 

6The term ‘‘BOXR’’ or ‘‘BOX Regulation’’ means 

Boston Options Exchange Regulation LLC, a 

wholly-owned subsidiary of the Exchange. See 

Chapter I, Section 1(a)(9) of the BOX Rules. 

7The term ‘‘Market Maker’’ means an Options 

Participant registered with the Exchange for the 

purpose of making markets in options contracts 

traded on the Exchange and that is vested with the 

rights and responsibilities specified in Chapter VI 

of the BOX Rules. All Market Makers are designated 

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)(iii) of the Act 9 and 

subparagraph (f)(3) of Rule 19b–4 

thereunder.10 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–2010–042 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–2010–042. 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 

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–2010–042 and 

should be submitted on or before June 

9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11944 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62103; File No. SR–BX– 

2010–036] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Reduce the 

Required Number of Market Makers 

Appointed in a Particular Class for the 

Opening of Trading 

May 13, 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 4, 

2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act,3 and Rule 19b–4(f)(6) 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 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) proposes to amend Chapter 

IV, Section 5 (Minimum Participation 

Requirement for Opening Trading of 

Option Classes) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to reduce the required number 

of Market Makers appointed in a 

particular class for the opening of 

trading in series of an options class from 

at least two (2) Market Makers to at least 

one (1) Market Maker. The text of the 

proposed rule change is attached as 

Exhibit 5.5 The text of the proposed rule 

change is available from the principal 

office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s Internet Web 

site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 Exchange 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 

Chapter IV, Section 5(a) of the BOX 

Rules currently provides, in relevant 

part, that after a particular class of 

options has been approved for listing on 

BOX, BOXR6 will open trading in series 

of options in that class only if there are 

at least two (2) Market Makers 7


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Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 28089 

as specialists on the Exchange for all purposes 

under the Exchange Act or Rules thereunder. See 

Chapter I, Section 1(a)(31) of the BOX Rules. The 

term ‘‘Options Participant’’ or ‘‘Participant’’ means a 

firm, or organization that is registered with the 

Exchange pursuant to Chapter II of the BOX Rules 

for purposes of participating in options trading on 

BOX as an ‘‘Order Flow Provider’’ or ‘‘Market 

Maker’’. See Chapter I, Section 1(a)(48) of the BOX 

Rules. 

8 If an Options Official makes an affirmative 

determination that halting of trading in such class 

is detrimental to the remaining Market Maker, and 

that continued trading in such class by one Market 

Maker is in the interest of maintaining a fair and 

orderly marketplace and would not create adverse 

consequence to an existing Customer of BOX or an 

Options Participant. The term ‘‘Options Official’’ 

means an officer of BOXR vested by the BOXR 

Board with certain authority to supervise option 

trading on BOX. See Chapter I, Section 1(a)(44) of 

the BOX Rules. 

9The term ‘‘Away Exchange’’ means a national 

securities exchange that trades listed options, other 

than the Exchange. See Chapter XII, Section 1(a) of 

the BOX Rules. 

10The Exchange proposes inserting this rule text 

as new Section 5(b). This proposed insertion 

requires that current Sections 5(b) and (c) be renumbered as Sections 5(c) and (d), respectively. 

11See Securities Exchange Act Release No. 57478 

(March 12, 2008), 73 FR 14521 (March 18, 2008) 

(SR–NASDAQ–2007–004). As the Commission 

noted in its approval order for the NOM market, in 

its release adopting Regulation ATS, the 

Commission rejected the suggestion that a 

guaranteed source of liquidity was a necessary 

component of an exchange. See Securities Exchange 

Act Release No. 40760 (December 8, 1998), 63 FR 

70844 (December 22, 1998) (‘‘Regulation ATS 

Release’’). The Exchange notes that NASDAQ 

recently submitted a proposed rule change with the 

Commission which, among other things, would 

eliminate, in its entirety, the requirement that at 

least one options market maker be registered for 

trading a particular series before it may be opened 

for trading on NOM. 

12See Securities Exchange Act Release No. 61419 

(January 26, 2010), 75 FR 5157 (February 1, 2010) 

(SR–BATS–2009–031) (Order Granting Accelerated 

Approval of a Proposed Rule Change, as Modified 

by Amendment No. 1 Thereto, to Establish Rules 

Governing the Trading of Options on the BATS 

Options Exchange). 

13See Chapter IV, Section 5 of the NOM Rules 

and BATS Options Rule 19.5, respectively. 

14 15 U.S.C. 78f(b). 

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

appointed for trading that particular 

class. Additionally, Chapter IV, Section 

5(c) of the BOX Rules currently 

provides, in relevant part, that BOXR 

may continue trading in a class where 

subsequently only one (1) Market Maker 

remains appointed to that class.8

The Exchange is proposing to reduce 

the requirement of Section 5(a), from at 

least two (2) Market Makers to at least 

one (1) Market Maker, in order to 

expand the number of options classes 

available to investors for trading on 

BOX and for hedging risks associated 

with securities underlying those options 

classes, as well as to enhance the BOX 

Market in products which are likely to 

receive customer order flow. Reducing 

this listing requirement on BOX to one 

(1) Market Maker would provide BOX 

with the opportunity to trade options 

classes that may have interest but that 

do not have the presently required 

interest to meet the two (2) Market 

Maker requirement. 

Additionally, the reduction of the 

requirement of Section 5(a), from at 

least two (2) Market Makers to at least 

one (1) Market Maker, requires that 

Section 5(c) be amended to reflect that 

once a class is opened for trading and 

subsequently zero (0) Market Makers 

remain appointed to that class, an 

Options Official shall halt trading in 

such options class until such time when 

at least one (1) Market Maker is again 

appointed for trading in that particular 

class. In such a case BOX will not 

execute any orders whatsoever, whether 

against the BOX Book, or otherwise, and 

will not accept any incoming orders 

from BOX Options Participants or from 

Away Exchanges.9

The Exchange also proposes adding 

new rule text to Section 5 to address the 

circumstance where a particular class of 

options has been approved for listing on 

BOX and there is not at least one (1) 

series of options in that class open for 

trading. In this circumstance the class 

shall be halted from trading until such 

time as a series of options in that class 

may be opened for trading and BOX will 

neither execute orders on its book nor 

accept inbound orders from BOX 

Options Participants or from away 

markets.10

The Commission previously stated, in 

its approval order for the proposed rule 

change establishing the NASDAQ 

Options Market (‘‘NOM’’), that it does 

not believe that the Act requires an 

exchange to have market makers and 

that although market makers could be 

an important source of liquidity on 

NOM, they likely would not be the only 

source.11 Furthermore, the Commission 

also recently approved a proposed rule 

change establishing rules governing the 

trading of standardized options 

contracts on the BATS Exchange 

(‘‘BATS’’). Specifically, after a particular 

class of options has been approved for 

listing on BATS Options a series of 

options in that class will be opened for 

trading only if there is at least one 

(emphasis added) options market maker 

registered for trading that particular 

series.12 Both NOM and BATS Options 

trading rules also place an options class 

in a ‘regulatory execution suspension,’ 

or halt, when there are no longer any 

NOM Market Makers or BATS Options 

Members, respectively, registered or 

appointed in the particular class as well 

in a ‘non-regulatory suspension,’ or halt, 

in the circumstance where a particular 

class of options has been approved for 

listing and there is not at least one (1) 

series of options in that class open for 

trading.13

With regard to the impact on system 

capacity, the Exchange has analyzed 

BOX’s capacity and represents that BOX 

and the Options Price Reporting 

Authority have the necessary systems 

capacity to handle any additional traffic 

associated with the listing and trading 

of an expanded number of options 

classes, and series within those classes, 

which may result from approval of this 

proposal. 

2. Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,14 in general, and Section 6(b)(5) of 

the Act,15 in particular, in that it is 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

proposal would expand the ability of 

investors to hedge risks associated with 

securities underlying options which are 

currently not listed on BOX and allow 

the BOX Rules to more closely conform 

to the rules of other options exchanges. 

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 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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 


jlentini on DSKJ8SOYB1PROD with NOTICES
28090 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Notices 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 designated by the Commission. The 

Commission deems this requirement to have been 

met. 

18The text of the proposed rule change is 

available on the Commission’s Web site at 

https://www.sec.gov. 

19 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). 

4 17 CFR 240.19b–4(f)(2). 

5 ‘‘Trade value’’ is defined in our Fee Schedule as 

‘‘a dollar amount equal to the price per share 

multiplied by the number of shares executed.’’ 

6For example, National Stock Exchange raised its 

provide credit to 0.25% for transactions under $1 

in Tape A, B and C securities beginning in the 

month of February 2010. 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 16 of the Act and 

Rule 19b–4(f)(6) thereunder.17

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–BX–2010–036 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–BX–2010–036. 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,18 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 

available publicly. All submissions 

should refer to File Number SR–BX– 

2010–036 and should be submitted on 

or before June 9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11941 Filed 5–18–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62087; File No. SR–CHX– 

2010–09] 

Self-Regulatory Organizations; The 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change to Decrease 

the Provide Credit for Transactions 

Involving Issues Priced Less Than One 

Dollar 

May 12, 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, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or ‘‘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 Exchange. CHX has filed the 

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

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 the Substance 

of the Proposed Rule Change 

The CHX proposes to amend its 

Schedule of Participant Fees and 

Assessments (the ‘‘Fee Schedule’’), 

effective May 3, 2010, to change its 

transaction fees and rebates to Exchange 

Participants for transactions involving 

issues priced less than one dollar that 

occur within the Exchange’s Matching 

System. The text of this proposed rule 

change is available on the Exchange’s 

Web site at http://www.chx.com/rules/ 

proposed_rules.htm and in the 

Commission’s Public Reference Room, 

100 F Street, NE., Washington, DC 

20549. 

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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Through this filing, the Exchange 

would amend its Fee Schedule to 

decrease the provide credit to Exchange 

Participants for transactions involving 

issues priced less than one dollar that 

occur within the Exchange’s Matching 

System. 

The Exchange proposes to decrease 

the provide credit in the transactions 

described above from 0.25% to 0.20% of 

the trade value.5 The Exchange notes 

that the provide credit was increased 

earlier this year in response to similar 

increases by some of our competitors for 

transactions in securities priced under 

$1.6 Since that time, some of our 

competitors have again changed their 

pricing for transactions in securities 


jlentini on DSKJ8SOYB1PROD with NOTICES