53062 Federal Register / Vol. 73, No. 178 / Friday, September 12, 2008 / Notices 

8 15 U.S.C. 78f(b)(5). 9 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. 

proposed rule change is consistent with 

the section 6(b)(5) 8 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The proposed rule 

change would help the Exchange more 

efficiently address scenarios where an 

opening transaction that does not satisfy 

the requirements of Rule 5.4 may occur 

inadvertently. 

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 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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: 

(A) By order approve such proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2008–90 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–CBOE–2008–90. 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 the 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–CBOE–2008–90 and should 

be submitted on or before September 29, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21164 Filed 9–11–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58462; File No. SR–CBOE– 

2008–91] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Inc.; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change by Chicago Board Options 

Exchange, Inc. Amending CBOE Rule 

52.3 

September 4, 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 August 

27, 2008, Chicago Board Options 

Exchange, Inc. (‘‘CBOE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change 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 amend 

CBOE Rule 52.3 in order to clarify a 

circumstance under which the Exchange 

will commence a trading halt in 

Derivative Securities Products listed 

and trading on the Exchange. 

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 parts of such 

statements. 


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Federal Register / Vol. 73, No. 178 / Friday, September 12, 2008 / Notices 53063 

4See CBOE Rule 50.3 for the definition of ‘‘CBSX 

Traders.’’ 

5Pursuant to Rule 52.3(c)(5)(i), the term 

Derivative Securities Product includes a series of 

Equity-Linked Term Notes, Index-Linked 

Exchangeable Notes, IPRs, IPSs, or TIRs, which is 

based on an underlying security or index. Those 

products are described in CBOE Rules 31.5I, 31.5O, 

31.5L, 31.5M, and 31.5N, respectively. 

6The CBOE Stock Exchange is the stock trading 

facility of CBOE. 

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). 

10See Securities Exchange Act Release No. 58111 

(July 7, 2008), 73 FR 40643 (July 15, 2008) (SR– 

Amex–2008–40; SR–NASDAQ–2008–046; SR– 

NYSE–2008–39; SR–NYSEArca–2008–50). 

11For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In order to provide clarity to CBSX 

Traders,4 the Exchange proposes to 

amend its Rules by adding new CBOE 

Rule 52.3(d), in order to clarify that the 

Exchange will halt trading in Derivative 

Securities Products 5 listed and trading 

on the CBOE Stock Exchange 6

(‘‘CBSX’’) when the Exchange becomes 

aware that the Net Asset Value (‘‘NAV’’) 

of the Derivative Securities Products 

(and in the case of managed fund shares, 

the disclosed portfolio) is not being 

disseminated to all market participants 

at the same time. 

Specifically, with respect to 

Derivative Securities Products listed on 

CBSX for which an NAV (and in the 

case of managed fund shares, a 

disclosed portfolio) is disseminated, if 

the Exchange becomes aware that the 

NAV (or in the case of managed fund 

shares, the disclosed portfolio) is not 

being disseminated to all market 

participants at the same time, it will halt 

trading in the affected Derivative 

Securities Product on CBSX until such 

time as the NAV (or in the case of 

managed fund shares, the disclosed 

portfolio, as applicable) is available to 

all market participants. The Exchange 

believes that adding this clarification to 

its rules promotes the just and equitable 

principles of trade and promotes a fair 

and transparent marketplace. 

The Exchange notes that, in the event 

the NAV (or disclosed portfolio, as 

applicable) for one of the securities 

referred to above is no longer calculated 

or disseminated, the Exchange would 

halt trading in such security and would 

resume trading at such time as the NAV 

(or disclosed portfolio, as applicable) is 

available. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

and furthers the objectives of Section 

6(b)(5) of the Act,7 in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, 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. 

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 that is not 

necessary or appropriate in furtherance 

of the purpose 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 

The Exchange has designated the 

proposed rule change as one that: (i) 

Does not significantly affect the 

protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) by its terms, does not 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. 

Additionally, the Exchange provided 

the Commission with written notice of 

its intention to file the proposed rule 

change at least five business days before 

its filing. Therefore, the foregoing rule 

change has become effective pursuant to 

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

19b–4(f)(6) thereunder.9

The Exchange has requested that the 

Commission waive the 30-day operative 

delay, which would make the rule 

change operative upon filing. The 

Exchange believes that waiver of the 30- 

day operative delay is consistent with 

the protection of investors and the 

public interest as it will clarify a 

circumstance under which the Exchange 

will halt trading in Derivative Securities 

Products listed on the Exchange. This 

proposal is similar to rule changes by 

other national securities exchanges, and 

does not raise any new or unique 

issues.10 Therefore, the Commission 

designates the proposed rule change as 

operative immediately.11

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–2008–91 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–CBOE–2008–91. 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 the filing also will be available 

for inspection and copying at the 

principal office of the self-regulatory 

organization. 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– 


ebenthall on PROD1PC60 with NOTICES
53064 Federal Register / Vol. 73, No. 178 / Friday, September 12, 2008 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amex’s initial listing standards for EquityLinked Notes are set forth in Section 107A of the 

Amex Company Guide, which was approved by the 

Commission in March 1990, and Section 107B of 

the Amex Company Guide, which was approved by 

the Commission in May 1993. These sections have 

been amended several times. The filings that are 

relevant to the topics discussed in this filing follow. 

See Securities Exchange Act Release Nos. 27753 

(March 1, 1990), 55 FR 8626 (March 8, 1990) (SR– 

Amex–89–29); 32343 (May 20, 1993), 58 FR 30833 

(May 27, 1993) (SR–Amex–92–42); 34549 (August 

18, 1994), 59 FR 43873 (August 25, 1994) (SR– 

Amex–93–46); 36990 (March 20, 1996), 61 FR 

13545 (March 27, 1996) (SR–Amex–95–44); 37783 

(October 4, 1996), 61 FR 53246 (October 10, 1996) 

(SR–Amex–96–31); 47055 (December 19, 2002), 67 

FR 79669 (December 30, 2002) (SR–Amex–2002– 

110); 55733 (May 10, 2007), 72 FR 27602 (May 16, 

2007) (SR–Amex–2007–34) (collectively, ‘‘Amex 

Releases’’). 

4See Securities Exchange Act Release No. 56924 

(December 7, 2007), 72 FR 70918 (December 13, 

2007) (SR–NYSEArca–2007–98) (‘‘NYSE Arca 

Release’’). 

5See Amex Company Guide Section 107 and 

NYSE Arca Equities Rules 5.1(b)(14) and 5.2(j)(2). 

6See Amex Company Guide Section 107 and 

NYSE Arca Equities Rule 5.2(j)(2)(B). 

2008–91 and should be submitted on or 

before October 3, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–21167 Filed 9–11–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58467; File No. SR–NYSE– 

2008–77] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Amend Its Rule Governing EquityLinked Debt Securities To Permit the 

Listing of Equity-Linked Debt 

Securities Linked To Baskets of Up to 

Thirty Underlying Securities and To 

Provide for Greater Flexibility in 

Listing Criteria 

September 5, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on August 26, 2008, New York Stock 

Exchange LLC (‘‘NYSE’’ 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 

and order to solicit comments on the 

proposed rule change from interested 

persons and to approve the proposal on 

an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Section 703.21 of the Exchange’s Listed 

Company Manual (the ‘‘Manual’’) to 

permit the listing of Equity-Linked Debt 

Securities (‘‘ELDS’’) related to up to 

thirty (30) underlying stocks and to 

provide for greater flexibility in the 

listing criteria for ELDS. The text of the 

proposed rule change is available at 

NYSE, http://www.nyse.com, and the 

Commission’s Public Reference Room. 

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 III below. 

The NYSE 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 amend 

Section 703.21 of the Manual to permit 

the listing of ELDS related to up to 

thirty (30) underlying stocks and to 

provide for greater flexibility in the 

listing criteria for ELDS. The Exchange 

wishes to make this change in order to 

harmonize Section 703.21 with the 

comparable rules of the American Stock 

Exchange (the ‘‘Amex’’),3 as well as the 

rules of NYSE Arca, Inc., which were 

recently conformed to the Amex rules.4

Number of Linked Securities 

Currently, the Exchange defines ELDS 

as non-convertible debt of an issuer 

where the value of the debt is based, at 

least in part, on the value of another 

issuer’s common stock, non-convertible 

preferred stock, common units of a 

master limited partnership or any other 

common equity security of a type 

classified for trading as stocks by the 

Exchange. The Exchange proposes to 

amend the definition to state that ELDS 

are defined as debt securities that are 

linked, in whole or in part, to the value 

of up to thirty (30) underlying stocks. 

This change conforms to NYSE Arca 

Equities Rule 5.1(b)(14), NYSE Arca 

Equities Rule 5.2(j)(2), and Section 107B 

of the Amex Company Guide.5 The 

Exchange proposes to expand the 

number of stocks that may be linked to 

ELDS in order to accommodate the 

varying types of ELDS products that are 

currently offered in the marketplace. 

The Exchange believes that expanding 

the number of stocks that may be linked 

to ELDS will also provide investors with 

enhanced investment flexibility. The 

Exchange also believes that there would 

be no investor protection concerns with 

expanding the number of stocks linked 

to ELDS because each linked stock is 

required to individually satisfy the 

applicable listing standards set forth in 

Section 703.21. 

Equity-Linked Debt Security Listing 

Standards 

Section 703.21(B) currently provides 

that an issue of ELDS must have a 

minimum public distribution of one 

million ELDS, a minimum of 400 

holders, a minimum market value of $4 

million, and a minimum term of one 

year. 

The Exchange proposes to add an 

exception to the minimum holders 

standard in Section 703.21(B) to provide 

that, if the ELDS is traded in $1,000 

denominations, there will be no 

minimum number of holders. The 

Exchange also proposes to add an 

exception to the public distribution 

standard to provide that, if an issuance 

of ELDS is traded in $1,000 

denominations, there will be no 

minimum public distribution 

requirement. These changes correspond 

to NYSE Arca Equities Rule 5.2(j)(2)(B) 

and Section 107A(b) of the Amex 

Company Guide.6 The Exchange notes 

that, without the exception to the one 

million ELDS minimum public 

distribution requirement, the Exchange 

would be unable to list ELDS in $1,000 

dollar denominations having a market 

value of less than $1 billion. The 

Exchange believes that the proposed 

exception is a reasonable 

accommodation for those issuances in 

$1,000 denominations. 

In addition, the Exchange proposes to 

add an exception to the holders 

requirement in Section 703.21(B) to 

provide that, if the ELDS are redeemable 

at the option of the holders thereof on 


ebenthall on PROD1PC60 with NOTICES