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 


erowe on DSK5CLS3C1PROD with NOTICES
Federal Register / Vol. 75, No. 104 / Tuesday, June 1, 2010 / Notices 30453 

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

7 15 U.S.C. 78f(b)(4). 

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

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 34–61575 (Feb. 

23, 2010); 75 FR 9459 (Mar. 2, 2010). 

4See letter from Barry D. Estell, Esq., dated March 

24, 2010 (‘‘Estell Letter’’). 

Trading Permit Applications where the 

initial application was submitted prior 

to the close of business on May 21, 

2010. 

The existing CBOE Membership 

application fees are set forth in Section 

11 of the CBOE Fees Schedule as well 

as in a regulatory circular (‘‘Membership 

Fees Circular’’). The Exchange proposes 

to add the Post-Demutualization 

Trading Permit Application Fee to 

Section 11 of the CBOE Fees Schedule 

and to revise the Membership Fees 

Circular. The proposed changes to the 

CBOE Fees Schedule are included as 

part of Exhibit 5 to the 19b–4. The 

proposed changes to the Membership 

Fees Circular are included as Exhibit 2 

to the 19b–4. 

CBOE proposes to add a new Section 

8 to the CBSX Fees Schedule for 

Membership Fees that includes the PostDemutualization Trading Permit 

Application Fee. The proposed changes 

to the CBSX Fees Schedule are included 

as part of Exhibit 5 to the 19b–4. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Securities Exchange Act of 

1934 (‘‘Act’’) 6, in general, and furthers 

the objectives of Section 6(b)(4) 7 of the 

Act in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. In particular, the 

proposed fee would be assessed to all 

members in a consistent manner and 

encourage the submission of PostDemutualization Trading Permit 

Applications with sufficient time to 

allow for the efficient processing of 

these applications. CBOE believes this 

fee is reasonable as compared to other 

application fees assessed by the 

Exchange and is reflective of the amount 

of work necessary to process the 

applications. 

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 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 rule change 

establishes or changes a due, fee, or 

other charge imposed by the Exchange, 

it has become effective pursuant to 

Section 19(b)(3)(A) of the Act 8 and 

subparagraph (f)(2) of Rule 19b–4 9

thereunder. 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–2010–045 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–2010–045. 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 

available publicly. All submissions 

should refer to File No. SR–CBOE– 

2010–045 and should be submitted on 

or before June 22, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–13038 Filed 5–28–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62156; File No. SR–FINRA– 

2010–007] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Amend the 

By-Laws of NASD Dispute Resolution 

May 24, 2010. 

On January 22, 2010, Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association of 

Securities Dealers, Inc. (‘‘NASD’’)) filed 

with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’), 

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

Securities Exchange Act of 1934 

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

proposed rule change to amend the bylaws of NASD Dispute Resolution. The 

proposed rule change was published for 

comment in the Federal Register on 

March 2, 2010.3 The Commission 

received one comment on the proposed 

rule change.4 This order approves the 

proposed rule change. 

I. Description of Proposed Rule Change 

FINRA proposed to amend the NASD 

Dispute Resolution By-Laws to: (1) 

Modify the composition of the FINRA 

Dispute Resolution Board; (2) adopt 

changes to conform the NASD Dispute 


erowe on DSK5CLS3C1PROD with NOTICES