Federal Register / Vol. 75, No. 104 / Tuesday, June 1, 2010 / Notices 30451 

1 17 CFR 240.9b–1. 

2See letter from Jean M. Cawley, Senior Vice 

President and Deputy General Counsel, OCC, to 

Sharon Lawson, Senior Special Counsel, Division of 

Trading and Markets (‘‘Division’’), Commission, 

dated October 27, 2009. 

3See letter from Jean M. Cawley, Senior Vice 

President and Deputy General Counsel, OCC, to 

Sharon Lawson, Senior Special Counsel, Division, 

Commission, dated May 14, 2010. 

4BATS Exchange, Inc. (‘‘BATS’’), Chicago Board 

Options Exchange, Incorporated, International 

Securities Exchange, LLC, NASDAQ OMX BX, Inc, 

NASDAQ OMX PHLX, Inc., NASDAQ Stock 

Market, LLC, NYSE Amex LLC, and NYSE Arca, 

Inc. each have provisions in their respective rules 

for the listing and trading of options on 

conventional index-linked securities. See e.g., 

Securities Exchange Act Release Nos. 58203 (July 

22, 2008), 73 FR 43812 (July 28, 2008) (SR– 

NYSEArca–2008–57) (approving listing and trading 

options on conventional index-linked securities); 

58204 (July 22, 2008), 73 FR 43807 (July 28, 2008) 

(SR–CBOE–2008–64); and 58985 (November 20, 

2008), 73 FR 72538 (November 28, 2008) (SR–ISE– 

2008–86); and see e.g., Securities Exchange Act 

Release Nos. 60822 (October 14, 2009), 74 FR 54114 

(October 21, 2009) (SR–NYSEArca–2009–77) 

(permitting the listing and trading of options on 

conventional index-linked securities linked to 

CBOE VIX); 60823 (October 14, 2009), 74 FR 54112 

(October 21, 2009) (SR–NYSEAmex–2009–59); and 

60857 (October 21, 2009), 74 FR 55611 (October 28, 

2009) (SR–CBOE–2009–74). 

5See Securities Exchange Act Release No. 61419 

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

(SR–BATS–2009–31). 

6The proposed May 2010 Supplement to the ODD 

amends the February 1994 version of the booklet 

entitled ‘‘Characteristics and Risks of Standardized 

Options,’’ and portions of the May 2007, June 2007, 

June 2008, and September 2008 Supplement 

thereto. 

7For purposes of the ODD, conventional indexlinked securities refer to non-convertible debt of an 

issuer (with a term of at least one year but not 

greater than thirty years) that provides for the 

payment at maturity of a cash amount based 

directly on the performance of a specified 

underlying ‘‘reference asset.’’ Unlike conventional 

index-linked securities, leveraged or inverse indexlinked securities provide for a cash payment at 

maturity based on a multiple or inverse of the 

performance of a specified underlying ‘‘reference 

asset.’’ The Commission notes that, to date, it has 

only approved trading of options on conventional 

index-linked securities, and not on leveraged or 

inverse index-linked securities. Accordingly, the 

ODD disclosure only covers the characteristics and 

risks of options on conventional index-linked 

securities. 

8The Commission notes that the options markets 

must continue to ensure that the ODD is in 

compliance with the requirements of Rule 9b– 

1(b)(2)(i) under the Act, 17 CFR 240.9b–1(b)(2)(i), 

including when future changes regarding options 

on conventional index-linked securities are made. 

Any future changes to the rules of the options 

markets concerning options on index linked 

securities would need to be submitted to the 

Continued 

Facility Operating License No. NPF– 

43: Amendment revises the technical 

specifications and the operating license. 

Public comments requested as to 

proposed no significant hazards 

consideration (NSHC): No. 

The Commission’s related evaluation 

of the amendment, finding of emergency 

circumstances, state consultation, and 

final NSHC determination are contained 

in a safety evaluation dated May 15, 

2010. 

Attorney for licensee: David G. 

Pettinari, Attorney—Corporate Matters, 

One Energy Plaza, Detroit, MI 48226. 

NRC Branch Chief: Terry A. Beltz 

(Acting). 

Dated at Rockville, Maryland, this 24th day 

of May 2010. 

For the Nuclear Regulatory Commission. 

Joseph G. Giitter, 

Director, Division of Operating Reactor 

Licensing, Office of Nuclear Reactor 

Regulation. 

[FR Doc. 2010–12888 Filed 5–28–10; 8:45 am] 

BILLING CODE 7590–01–P 

NUCLEAR REGULATORY 

COMMISSION 

[Docket Nos. 52–018 and 52–019] 

Duke Energy Carolinas, LLC; Duke 

Energy Carolinas, LLC; William States 

Lee III Combined License Application; 

Notice of Intent To Conduct a 

Supplemental Scoping Process for the 

Supplement to the Environmental 

Report 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Notice of Intent; Correction. 

SUMMARY: This document corrects a 

notice appearing in the Federal Register 

on May 24, 2010 (75 FR 28822), that 

announces a supplemental scoping 

process for the environmental review of 

the William States Lee III Nuclear 

Station, Units 1 and 2 combined 

licenses application. This action is 

necessary to correct the project web 

address. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Sarah Lopas, Project Manager, Office of 

New Reactors via telephone at (301) 

415–1147 or via e-mail to 

Sarah.Lopas@nrc.gov. 

SUPPLEMENTARY INFORMATION: On page 

28822, in the second column, 

nineteenth through twenty-first lines, 

the web address is corrected to read 

from ‘‘http://www.nrc.gov/reactors/newlicensing/col/lee.html’’ to ‘‘http:// 

www.nrc.gov/reactors/new-reactors/col/ 

lee.html’’. 

Dated at Rockville, Maryland, this 25th day 

of May 2010. 

For the Nuclear Regulatory Commission. 

Nilesh C. Chokshi, 

Deputy Director, Division of Site and 

Environmental Reviews, Office of New 

Reactors. 

[FR Doc. C1–2010–13012 Filed 5–28–10; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of Accelerated 

Delivery of Supplement to the Options 

Disclosure Document Reflecting 

Certain Changes to Disclosure 

Regarding Options on Conventional 

Index-Linked Securities and 

Amendment to the Options Disclosure 

Document Inside Front Cover 

May 24, 2010. 

On October 27, 2009, The Options 

Clearing Corporation (‘‘OCC’’) submitted 

to the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Rule 9b–1 under the Securities and 

Exchange Act of 1934 (‘‘Act’’),1 five 

preliminary copies of a supplement to 

its options disclosure document 

(‘‘ODD’’) reflecting certain changes to 

disclosure regarding options on 

conventional index-linked securities.2

The ODD would also be amended to 

update its front inside cover page so that 

it contains a current list of the U.S. 

exchanges that trade options issued by 

the OCC. On May 18, 2010, the OCC 

submitted to the Commission five 

definitive copies of the supplement.3

The ODD currently contains general 

disclosures on the characteristics and 

risks of trading standardized options. 

Since July 2008, eight options 

exchanges amended their respective 

rules to permit the listing and trading of 

options on conventional index-linked 

securities.4 Further, BATS began trading 

options in February of 2010.5 The 

proposed supplement amends the ODD 

to accommodate these changes by 

providing disclosures regarding options 

on conventional index-linked securities 

and to update the inside front cover 

page of the ODD to include BATS.6

Specifically, the proposed 

supplement to the ODD adds new 

disclosure regarding the characteristics 

of options on conventional index-linked 

securities,7 as well as the special risks 

of these options. In addition, the ODD 

is amended to add BATS, which 

currently trades options issued by the 

OCC, and its corporate address to the 

front inside cover page of the ODD. This 

change will ensure that the ODD 

accurately identifies the markets on 

which options currently trade. The 

proposed supplement is intended to be 

read in conjunction with the more 

general ODD, which, as described 

above, discusses the characteristics and 

risks of options generally.8


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30452 Federal Register / Vol. 75, No. 104 / Tuesday, June 1, 2010 / Notices 

Commission under Section 19(b) of the Act. 15 

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

9 17 CFR 240.9b–1(b)(2)(i). 

10This provision permits the Commission to 

shorten or lengthen the period of time which must 

elapse before definitive copies may be furnished to 

customers. 

11 17 CFR 240.9b–1. 

12 17 CFR 200.30–3(a)(39). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58425 

(August 26, 2008), 73 FR 51652 (September 4, 2008) 

(noticing for comment SR–CBOE–2008–88), which 

sets forth a description of CBOE’s proposed 

demutualization. 

4See Securities Exchange Act Release No. 58425 

(August 26, 2008), 73 FR 51652 (September 4, 2008) 

(noticing for comment SR–CBOE–2008–88), which 

sets forth a description of the post-demutualization 

trading permit application process. 

5The effective date of demutualization is the date 

that CBOE completes its restructuring of the 

Exchange from a non-stock corporation to a stock 

corporation and wholly-owned subsidiary of CBOE 

Holdings, Inc. This should be distinguished from 

the date of approval by the SEC of SR–CBOE–2008– 

088, as the filing may be approved some period of 

time prior to the actual effectiveness of the 

demutualization. 

Rule 9b–1(b)(2)(i) under the Act 9

provides that an options market must 

file five copies of an amendment or 

supplement to the ODD with the 

Commission at least 30 days prior to the 

date definitive copies are furnished to 

customers, unless the Commission 

determines otherwise, having due 

regard to the adequacy of information 

disclosed and the public interest and 

protection of investors.10 In addition, 

five copies of the definitive ODD, as 

amended or supplemented, must be 

filed with the Commission not later than 

the date the amendment or supplement, 

or the amended options disclosure 

document, is furnished to customers. 

The Commission has reviewed the 

proposed supplement and amendment 

and finds, having due regard to the 

adequacy of information disclosed and 

the public interest and protection of 

investors, that they may be furnished to 

customers as of the date of this order. 

It is therefore ordered, pursuant to 

Rule 9b–1 under the Act,11 that 

definitive copies of the proposed 

supplement and amendment to the ODD 

(SR–ODD–2010–01), reflecting changes 

to disclosure regarding certain options 

on conventional index-linked securities 

and to the inside front cover of the ODD, 

may be furnished to customers as of the 

date of this order. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12986 Filed 5–28–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62148; File No. SR–CBOE– 

2010–045] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the 

Establishment of a PostDemutualization Trading Permit 

Application Fee 

May 21, 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 14, 

2010, the 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. 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 the CBOE 

and CBOE Stock Exchange (‘‘CBSX’’) 

Fees Schedules to establish a PostDemutualization Trading Permit 

Application Fee. The text of the 

proposed rule change 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, 

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 amend the CBOE and CBSX 

Fees Schedules to establish a PostDemutualization Trading Permit 

Application Fee. Following CBOE’s 

proposed demutualization,3 access to 

CBOE and CBSX will be provided 

through the issuance of Trading Permits. 

Issuance of these Trading Permits will 

require an application process for all 

current members with trading privileges 

and related functions on the Exchange 

(including member organizations, 

individual members, temporary 

members, interim trading permit 

holders and CBSX trading permit 

holders). To apply for trading permits, 

all such CBOE members will be required 

to submit a Post-Demutualization 

Trading Permit Application to request 

the type of access desired following 

demutualization. The PostDemutualization Trading Permit 

Application will need to be submitted 

prior to the effectiveness of the 

demutualization for trading access to 

CBOE and CBSX to continue without 

interruption at demutualization. The 

Exchange will administer the 

application process in the manner that 

has already been proposed to the 

Commission, contingent upon the 

approval of that process by the 

Commission.4

Due to the significant amount of time 

required to process all of the PostDemutualization Trading Permit 

Applications, CBOE proposes to 

establish a $1,000 Post-Demutualization 

Trading Permit Application Fee that 

would be assessed to any member 

organization or individual member that 

is not associated with a member 

organization that submits a PostDemutualization Trading Permit 

Application after May 21, 2010. 

Specifically, the fee would only be 

assessed for Post-Demutualization 

Trading Permit Applications received 

after the close of business on May 21, 

2010 and prior to the close of business 

on the effective date of 

demutualization.5

The Post-Demutualization Trading 

Permit Application Fee would not be 

assessed for Post-Demutualization 

Trading Permit Applications received 

on or prior to May 21, 2010. The PostDemutualization Trading Permit 

Application Fee would also not be 

assessed to new CBOE members that are 

not approved and active until after May 

21, 2010. In addition, the PostDemutualization Trading Permit 

Application Fee would not be assessed 

for any amendments submitted after 

May 21, 2010 to Post-Demutualization 


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