46112 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

11 ‘‘Day-trading buying power’’ is defined in 

NASD Rule 2520(f)(8)(B)(iii) and Incorporated 

NYSE Rule 431(f)(8)(B)(iii) to mean the equity in 

the customer’s account at the close of business of 

the previous day, less any maintenance margin 

requirement as prescribed in the rule, multiplied by 

four for equity securities. 

12See NASD Rule 2520(f)(8)(C) and Incorporated 

NYSE Rule 431(f)(8)(C). 

13See NASD Rule 2520(g)(10)(A) and 

Incorporated NYSE Rule 431(g)(10)(A). 

14 15 U.S.C. 78o–3(b)(6). 

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

16 17 CFR 240.19b–4(f)(1). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

to the day trading requirements, 

customers are permitted to engage in 

day trading provided they day trade 

within a specific dollar limit, referred to 

as the day trading buying power.11

Customers that day trade in excess of 

their day trading buying power are 

required to deposit additional funds 

and/or securities to meet a special 

maintenance margin deficiency, also 

referred to as a day trade margin call. In 

a strategy-based margin account, day 

trade margin calls are due within five 

business days.12 In a portfolio margin 

account, margin deficiencies are due 

within three business days.13 FINRA 

believes that day trade margin calls 

incurred in a portfolio margin account 

should also be met within three 

business days. The proposed rule 

change would amend NASD Rule 

2520(g)(13) and Incorporated NYSE 

Rule 431(g)(13) to explicitly provide 

that day trade margin deficiencies are 

due within three business days. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date of the proposed 

rule change is August 1, 2008. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,14 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes it is in 

the public interest to codify its stated 

interpretation with respect to 

monitoring concentrated equity 

positions and the timing of day trading 

margin calls in the rule text. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change constitutes a stated policy, 

practice or interpretation with respect to 

the meaning, administration, or 

enforcement of an existing rule, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 15 and paragraph 

(f)(1) of Rule 19b–4 thereunder.16

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–FINRA–2008–042 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2008–042. 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 inspection and copying 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 FINRA. 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–FINRA–

2008–042 and should be submitted on 

or before August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18238 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58267; File No. SR–ISE–

2008–59] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend Rule 2009 To Permit 

the Listing and Trading of Additional 

Index Options Series That Do Not Meet 

Current Rule 2009 Requirements, if 

Such Options Series Are Listed and 

Traded on at Least One Other National 

Securities Exchange 

July 30, 2008. 

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 July 30, 

2008, the International Securities 

Exchange, LLC (‘‘ISE’’ 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 ISE. ISE filed the 

proposed rule change as a ‘‘noncontroversial’’ proposed rule change 

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


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46113 

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

4 17 CFR 240.19b–4(f)(6). 

5Rule 2009(c) provides the requirements that 

must be met before those specific options groups 

may be traded on the Exchange pursuant to Rule 

19b–4(e) under the Act. 

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

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders it 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 Substance of 

the Proposed Rule Change 

ISE proposes to amend Rule 2009 to 

permit the listing and trading of 

additional index options series that do 

not meet current Rule 2009 

requirements, if such options series are 

listed and traded on at least one other 

national securities exchange. The text of 

the proposed rule change is available at 

ISE, the Commission’s Public Reference 

Room, and http://www.ise.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ISE 

included statements concerning the 

purpose of, and basis for, the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. ISE 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 Exchange proposes to add new 

Supplementary Material .03 to Rule 

2009 to permit the listing and trading of 

additional index options series that do 

not meet current Rule 2009 

requirements, if such options series are 

listed on at least one other national 

securities exchange in accordance with 

the applicable rules of such exchange 

for the listing and trading of index 

options. For each additional options 

series listed by the Exchange pursuant 

to proposed Supplementary Material 

.03, the Exchange would submit a 

proposed rule change with the 

Commission that is effective upon filing 

within the meaning of Section 

19(b)(3)(A) under the Act. 

Rule 2009 provides the mechanism 

for the Exchange to list or open options 

expiration month series on particular 

index options classes approved for 

listing and trading on the Exchange. In 

general, up to a six expiration month 

series may be listed at any one time. 

This proposal seeks to permit the 

Exchange to list additional index 

options expiration month series if 

another options exchange does so, 

regardless of whether the additional 

series listing complies with the 

requirements of Rule 2009. 

Rule 2009 permits the Exchange to 

open options expiration month series on 

approved index options classes as 

follows: (i) Consecutive Month Series; 

(ii) Cycle Month Series; (iii) Long-Term 

Options Series; (iv) Short-Term (1 week) 

Options Series; and (v) Quarterly 

Options Series. 

Consecutive Month Series 

Under Rule 2009(a)(3), Consecutive 

Month Series options are a series of 

options, within a particular class of 

stock index options, having up to four 

consecutive expiration months which 

can be opened for simultaneous trading. 

The shortest-term series permissible are 

series initially having no more than two 

months to expiration. 

Cycle Month Series 

Under Rule 2009(a)(3), the Exchange 

may designate one expiration cycle for 

each class of stock index options, 

consisting of four calendar months 

occurring at three-month intervals. With 

respect to any particular class of stock 

index options, Cycle Month Series 

options expiring in three of the four 

cycle months designated by the 

Exchange for that class may be traded 

simultaneously with the shortest-term 

series initially having approximately 

three months to expiration. 

Long-Term Option Series 

Under Rule 2009(b), the Exchange 

may list series of options having up to 

sixty months to expiration for any 

particular class of stock index options. 

These Long-term Options Series may be 

traded simultaneously with Consecutive 

Month Series options as well as Cycle 

Month Series options. 

Short Term (1 week) Option Series 

Under Rule 2009(.01), the Exchange 

may open for trading, on any business 

Friday, series of options that expire at 

the close of business on the following 

Friday. The Exchange may select up to 

five currently listed option classes on 

which Short Term Option Series may be 

opened. Additionally, the Exchange 

may list Short Term Option Series on 

any option classes that are selected by 

other options exchanges. 

Quarterly Options Series 

Under Rule 2009(.02), the Exchange 

may list and trade options series that 

expire at the close of business on the 

last business day of a calendar quarter. 

Quarterly Options Series for up to five 

currently listed stock index options 

classes or options classes for options on 

ETFs may be listed. The Exchange may 

also list Quarterly Options Series on any 

options classes that are selected by other 

options exchanges. 

Consistent with this proposal, the 

index options class must either be 

specifically reviewed and approved by 

the Commission under Section 19(b)(2) 

of the Act and rules thereunder, or 

comply with Rule 2009(c), for the 

Exchange to be able to list the additional 

series. 

The ability of the Exchange to list and 

trade additional series of an index 

options class that may not meet the 

requirements of Rule 2009 if another 

options exchange lists such expiration 

month series, is appropriate and 

necessary in order to remain 

competitive and provide customers with 

the full offering of index option 

products. Although the proposal may 

result in an incremental increase in 

message and quote traffic for systems of 

the Exchange and the Options Price 

Reporting Authority (OPRA), the 

Exchange expects the operational 

impact of such increase in quote traffic 

to be minimal. 

In order for the Exchange to list any 

additional expiration month series of an 

index option class pursuant to new 

Supplementary Material .03 to Rule 

2009: (1) Such series must be already 

listed on another options exchange; (2) 

such series must belong to an index 

options class that has been specifically 

reviewed and approved by the 

Commission under Section 19(b)(2) of 

the Act or that complies with Rule 

2009(c); and (3) the Exchange must 

submit a proposed rule change with the 

Commission that is effective upon filing 

within the meaning of Section 

19(b)(3)(A) of the Act.5 In addition, the 

proposal would allow the Exchange the 

ability to quickly list and trade 

additional expiration month series of an 

index options class based on the listing 

of the series by another options 

exchange. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to a national 

securities exchange and, in particular, 

the requirements of Section 6(b) of the 

Act.6 Specifically, the Exchange 


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46114 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

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). 

10 In addition, Rule 19b–4(f)(6)(iii) under the Act 

requires a self-regulatory organization to give the 

Commission written notice of its intent to file 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. ISE has complied with this 

requirement. 

11 Id. 

12See Securities Exchange Act Release No. 57916 

(June 4, 2008), 73 FR 33125 (June 11, 2008) (Order, 

and Amendment No. 1 Thereto, to Amend Rule 

903C to Permit the Listing and Trading of 

Additional Index Options Series) (SR–AMEX–

2008–14). 

13See supra note 12. 

14For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

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

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

believes the proposed rule change is 

consistent with the requirement of 

Section 6(b)(5) of the Act 7 that an 

exchange have rules that are designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ISE 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

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

4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) under the Act normally 

may not become operative prior to 30 

days after the date of filing.10 However, 

Rule 19b–4(f)(6)(iii) 11 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative delay. The Exchange asserts 

that this is appropriate and necessary in 

order to remain competitive and provide 

customers with the full offering of index 

option products. Additionally, this 

proposed rule change is based on an 

American Stock Exchange rule change 

previously approved by the 

Commission.12 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 

another self-regulatory organization 

recently adopted a substantially similar 

rule change and that this filing raising 

no new regulatory issues.13 The 

Commission hereby grants the 

Exchange’s request and designates the 

proposal as operative upon filing.14

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 

No. SR–ISE–2008–59 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, Station Place, 100 F Street, 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2008–59. 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 inspection and copying in 

the Commission’s Public Reference 

Room, 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 ISE. 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–ISE–

2008–59 and should be submitted on or 

before August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18072 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58269; File No. SR–NYSE–

2008–65] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Amendments to the Portfolio Margin 

Program 

July 30, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 29, 

2008, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘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 substantially prepared by the 

self-regulatory organization. The 

Commission is publishing this notice to 


sroberts on PROD1PC70 with NOTICES