Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 30081 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange assesses its members a Real-time 

Risk Management Fee of $.003 per contract for 

receiving this information. The Exchange is not 

proposing to amend this fee. 

4The information includes, among other things, 

the following: (i) The Clearing Member Trade 

Agreement or ‘‘CMTA’’ or The Options Clearing 

Corporation or ‘‘OCC’’ number; (ii) Exchange badge 

or house number; and (iii) the Exchange internal 

firm identifier. 

5The information related to complex order 

strategy messages includes information that lists the 

legs and the leg ratios, which uniquely defines this 

strategy for an underlying. 

6The Exchange will post the technical 

specifications on its Web site and testing will be 

available. The Exchange intends to send an Options 

Technical Update to notify members of the new 

interface and testing availability. 

7Electronically delivered orders do not include 

orders delivered through the Floor Broker 

Management System, but rather are delivered 

utilizing PHLX XL II. 

8An order that is represented on the trading floor 

by a floor broker. See Exchange Rule 1063. 

9Members that apply for this interface will 

continue to receive only their own trade data and 

data for their customers. Members utilizing RMP 

only receive their own trade data and data for their 

customers. 

10The Exchange assesses a Real-Time Risk 

Management Fee of $.003 per contract to receive 

this information. Currently RMP is available to all 

members. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

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–Phlx– 

2010–72 and should be submitted on or 

before June 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12871 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62155; File No. SR–Phlx– 

2010–67] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

the Risk Management Interface 

May 24, 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 17, 

2010, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or ‘‘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 Exchange. 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 effect an 

information-related enhancement to the 

current Risk Management Feed Interface 

in Phlx XL II. The Exchange is not 

proposing any rule changes. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqtrader.com/ 

micro.aspx?id=PHLXfilings, at the 

principal office of the Exchange, 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, the 

Exchange 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 

The purpose of the proposed rule 

change is to propose a series of 

enhancements to the interface for 

receiving real-time clearing trade 

updates. A real-time clearing trade 

update is a message that is sent to a 

member after an execution has occurred 

and contains trade details. The message 

containing the trade details is also 

simultaneously sent to the The Options 

Clearing Corporation. 

The Exchange currently provides 

Exchange members with real-time 

clearing trade updates through a Risk 

Management Feed known as the 

‘‘RMP’’.3 The updates include the 

members clearing trade messages on a 

low latency, real-time basis. The trade 

messages are routed to a member’s 

connection containing certain 

information.4 The administrative and 

market event messages include, but are 

not limited to: System event messages to 

communicate operational-related 

events; options directory messages to 

relay basic option symbol and contract 

information for options traded on the 

Exchange; complex strategy messages to 

relay information for those strategies 

traded on the Exchange;5 and trading 

action messages to inform market 

participants when a specific option or 

strategy is halted or released for trading 

on the Exchange. This existing RMP 

interface will be retired in September 

2010. 

In connection with these 

enhancements, the Exchange proposes 

to rename the RMP interface as the 

Clearing Trade Interface (‘‘CTI’’). This 

proposed interface will provide 

increased throughput and significantly 

lower latency for clearing trade 

updates.6 In addition, the new interface 

will contain an indicator which will 

distinguish electronic 7 and nonelectronically 8 delivered orders.9 This 

information will be available to 

members on a real-time basis. 

The Exchange is proposing to 

continue to provide real-time clearing 

trade updates, referred to as CTI, with 

significantly lower latency as well as 

additional information, such as trade 

detail information that distinguishes 

electronically and non-electronically 

delivered orders. This new CTI will be 

made available to users promptly after 

successful testing with the Exchange. 

CTI will be available to all members.10

The Exchange is not proposing any rule 

changes. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 11 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 12

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

providing members more efficient realtime clearing trade updates. This 

proposal is not a burden on competition 

and serves to protect investors and the 

public interest, in that CTI is a tool for 

members to receive real-time trade 

details and utilize that information to 


jlentini on DSKJ8SOYB1PROD with NOTICES
30082 Federal Register / Vol. 75, No. 103 / Friday, May 28, 2010 / Notices 

13 15 U.S.C. 78s(b)(3)(A). 

14 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 

designated by the Commission. The Exchange has 

met this requirement. 

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. 

3The term ‘‘Restructuring Transaction’’ is defined 

in proposed CBOE Rule 1.1(hhh) as ‘‘the 

restructuring of the Exchange from a non-stock 

corporation to a stock corporation and whollyowned subsidiary of CBOE Holdings, Inc.’’ 

capture fees on a real-time basis and 

also receive information on whether the 

orders were electronically or nonelectronically delivered. This 

information will provide members more 

transparency on the fees assessed on 

transactions. The clearing trade updates 

are and will continue to be available to 

all members. 

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 

No written comments were either 

solicited or received. 

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 13 and Rule 19b– 

4(f)(6) thereunder.14

Phlx has requested that the 

Commission waive the 30-day operative 

delay. The Commission hereby grants 

that request.15 The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest. The 

Commission notes that the Exchange 

proposes to allow members to test the 

CTI immediately, and to migrate to the 

CTI upon successful testing. The 

Exchange proposes to retire the RMP in 

September 2010. Waiving the operative 

delay will thus allow the Exchange to 

provide members an increased period of 

time to test and migrate to the CTI 

before the retirement of the RMP in 

September 2010. 

At any time within 60 days of the 

filing of such 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 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–Phlx–2010–67 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2010–67. 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–Phlx– 

2010–67 and should be submitted on or 

before June 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12873 Filed 5–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62158; File No. SR–CBOE– 

2008–88] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Amendment No. 1 and Order Granting 

Accelerated Approval of Proposed 

Rule Change as Modified by 

Amendment No. 1 Relating to the 

Demutualization of Chicago Board 

Options Exchange, Incorporated 

May 24, 2010. 

I. Introduction 

On August 21, 2008, pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’),1 and Rule 

19b–4 thereunder,2 the Chicago Board 

Options Exchange, Incorporated 

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

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

in connection with its plan to 

demutualize and restructure from a 

Delaware non-stock corporation to a 

Delaware stock corporation that would 

be a wholly-owned subsidiary of CBOE 

Holdings, Inc. (‘‘CBOE Holdings’’), a 

holding company organized as a 

Delaware stock corporation (the 

‘‘Restructuring Transaction’’).3 To 

accommodate the Restructuring 

Transaction, CBOE proposed a 

Certificate of Incorporation and Bylaws 

for the newly formed CBOE Holdings, a 

new Certificate of Incorporation for 

CBOE, and to replace CBOE’s existing 

Constitution with new Bylaws. Finally, 

CBOE proposed amendments to its rules 

to address, among other things, trading 


jlentini on DSKJ8SOYB1PROD with NOTICES