Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices 55575 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(e). 

proposing that certain of its rules 

relating to membership requirements be 

temporarily suspended so that BCI can 

be provisionally approved as an Amex 

member organization. The proposed 

relief does not exempt BCI from 

Exchange rule requirements governing 

member organizations. BCI would have 

a 60-day grace period within which to 

apply for and be approved under 

relevant Exchange rules. Moreover, the 

Commission believes that immediate 

effectiveness is appropriate to ensure a 

smooth transition of the LBI businesses 

to another entity. In particular, with 

respect to BCI, time is of the essence as 

it has been announced that BCI may 

succeed to LBI’s assets as early as 

September 19, 2008. Therefore, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates the 

proposed rule change as operative upon 

filing. 

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–Amex–2008–72 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 No. 

SR–Amex–2008–72. 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 at (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 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–Amex– 

2008–72 and should be submitted on or 

before October 16, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E8–22505 Filed 9–24–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58568; File No. SR–CHX– 

2008–12) 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Order Granting 

Accelerated Approval of Proposed 

Rule Change Consolidating Into a 

Single Rule Certain Requirements for 

Securities Traded on the Exchange 

Pursuant to Unlisted Trading 

Privileges 

September 17, 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 

September 15, 2008, the Chicago Stock 

Exchange, Inc. (‘‘Exchange’’ or ‘‘CHX’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by the 

Exchange. This order provides notice of 

the proposed rule change and approves 

the proposal on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The CHX proposes to amend its rules 

to add and consolidate into a single rule 

certain requirements for products traded 

on the Exchange pursuant to unlisted 

trading privileges (‘‘UTP’’) that have 

been established in various new 

products proposals previously approved 

by the Commission. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.chx.com) and at 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received on the 

proposal. The text of these statements 

may be examined at the places specified 

in Item III below. The CHX 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 its 

rules to add and consolidate into a 

single rule certain requirements for 

products traded on the Exchange 

pursuant to UTP that have been 

established in various new products 

proposals previously approved by the 

Commission. The Exchange proposes to 

add CHX Article 22, Rule 6 to set forth 

rules regarding the extension of UTP to 

a security that is listed on another 

national securities exchange. Any such 

security will be subject to all Exchange 

trading rules applicable to NMS Stocks, 

unless otherwise noted. The Exchange 

will file with the Commission a Form 

19b–4(e) with respect to any such 

security that is a ‘‘new derivative 

securities product’’ as defined in Rule 

19b–4(e) under the Act.3 In addition, 

any new derivative securities product 

traded on the Exchange pursuant to 

proposed CHX Article 22, Rule 6 will be 

subject to the following criteria. 

Proposed CHX Article 22, Rule 6(a)(i) 

provides that the Exchange will 

distribute an information circular prior 

to the commencement of trading in such 

new derivative securities product which 

generally will include the same 

information as the information circular 

provided by the listing exchange, 

including: (1) The special risks of 

trading the new derivative securities 

product; (2) the Exchange’s rules that 

will apply to the new derivative 

securities product, including the 

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55576 Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices 

4 15 U.S.C. 78f(b)(5). 

suitability rule; (3) information about 

the dissemination of value of the 

underlying assets or indexes; and (4) the 

risk of trading during irregular trading 

hours due to the lack of calculation or 

dissemination of the Intraday Indicative 

Value or a similar value. 

Proposed CHX Article 22, Rule 6(a)(ii) 

reminds Participants that they are 

subject to the prospectus delivery 

requirements under the Securities Act of 

1933, as amended (‘‘Securities Act’’), 

unless the new derivative securities 

product is the subject of an order by the 

Commission exempting the product 

from certain prospectus delivery 

requirements under Section 24(d) of the 

Investment Company Act of 1940 

(‘‘1940 Act’’) and the product is not 

otherwise subject to prospectus delivery 

requirements under the Securities Act. 

The Exchange will inform its 

Participants regarding the application of 

the provisions of this subparagraph to a 

particular series of exchange-traded 

funds governed by the 1940 Act by 

means of an information circular. 

Proposed CHX Article 22, Rule 

6(a)(iii) addresses trading halts in the 

new derivative securities products 

traded on the Exchange pursuant to 

UTP. Proposed CHX Article 22, Rule 

6(a)(iii) provides that the Exchange, 

upon notification by the listing market 

of a halt due to a temporary interruption 

in the calculation or wide dissemination 

of the Intraday Indicative Value (or a 

similar value) or the value of the 

underlying index or instrument, will 

immediately halt trading in that product 

on the Exchange. If the Intraday 

Indicative Value (or a similar value) or 

the value of the underlying index or 

instrument continues not to be 

calculated or widely available as of 

trading on the Exchange on the next 

business day, the Exchange shall not 

commence trading of the product that 

day. If an interruption in the calculation 

or wide dissemination of the Intraday 

Indicative Value (or a similar value) or 

the value of the underlying index or 

instrument continues, the Exchange 

may resume trading in the product only 

if calculation and wide dissemination of 

the Intraday Indicative Value (or a 

similar value) or the value of the 

underlying index or instrument resumes 

or trading in such series resumes in the 

listing market. 

Additionally, proposed CHX Article 

22, Rule 6(a)(iii) provides that for a new 

derivative securities product where a 

net asset value (and, in the case of 

managed fund shares or actively 

managed exchange-traded funds, a 

‘‘disclosed portfolio’’) is disseminated, 

the Exchange will immediately halt 

trading such security upon notification 

by the listing market that the net asset 

value and, if applicable, such disclosed 

portfolio is not being disseminated to all 

market participants at the same time. 

The Exchange will resume trading in the 

new derivative securities product only 

when the net asset value and, if 

applicable, such disclosed portfolio is 

disseminated to all market participants 

at the same time or trading in the new 

derivative securities product resumes on 

the listing market. 

CHX represents that the Exchange’s 

surveillance procedures for new 

derivative securities products traded on 

the Exchange pursuant to UTP will be 

similar to the procedures used for equity 

securities traded on the Exchange and 

will incorporate and rely upon existing 

Exchange surveillance systems. The 

Exchange will closely monitor activity 

in new derivative securities products 

traded on the Exchange pursuant to UTP 

and deter any potential improper 

trading activity. Proposed CHX Article 

22, Rule 6(b) also provides that the 

Exchange will enter into a 

comprehensive surveillance sharing 

agreement (‘‘CSSA’’) with a market 

trading components of the index or 

portfolio on which the new derivative 

securities product is based to the same 

extent as the listing exchange’s rules 

require the listing market to enter into 

a CSSA with such market. 

Finally, proposed CHX Article 22, 

Rule 6(c) provides for restrictions for 

Participants registered as Market Makers 

(‘‘Restricted Market Maker’’) in an new 

derivative securities product that 

derives its value from one or more 

currencies, commodities, or derivatives 

based on one or more currencies or 

commodities, or is based on a basket or 

index comprised of currencies or 

commodities (collectively, ‘‘Reference 

Assets’’). Specifically, proposed CHX 

Article 22, Rule 6(c)(i) provides a 

Restricted Market Maker in an new 

derivative securities product is 

prohibited from acting or registering as 

a market maker in any Reference Asset 

of that new derivative securities product 

or any derivative instrument based on a 

Reference Asset of that new derivative 

securities product (collectively, with 

Reference Assets, ‘‘Related 

Instruments’’). Proposed CHX Article 

22, Rule 6(c)(ii) provides a Restricted 

Market Maker shall, in a manner 

prescribed by CHX, file with CHX and 

keep current a list identifying any 

accounts (‘‘Related Instrument Trading 

Accounts’’) for which Related 

Instruments are traded: (a) In which the 

Restricted Market Maker holds an 

interest; (b) over which it has 

investment discretion; or (c) in which it 

shares in the profits and/or losses. In 

addition, a Restricted Market Maker 

may not have an interest in, exercise 

investment discretion over, or share in 

the profits and/or losses of a Related 

Instrument Trading Account which has 

not been reported to CHX as required by 

this Rule. Proposed CHX Article 22, 

Rule 6(c)(iii) provides that in addition to 

the existing obligations under CHX rules 

regarding the production of books and 

records, a Restricted Market Maker 

shall, upon request by CHX, make 

available to CHX any books, records, or 

other information pertaining to any 

Related Instrument Trading Account or 

to the account of any registered or nonregistered employee affiliated with the 

Restricted Market Maker for which 

Related Instruments are traded. Finally, 

proposed CHX Article 22, Rule 6(c)(iv) 

provides that a Restricted Market Maker 

shall not use any material nonpublic 

information in connection with trading 

a Related Instrument. 

2. Statutory Basis 

The CHX believes the proposal is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder that are applicable to a 

national securities exchange, and, in 

particular, with the requirements of 

Section 6(b).4 The proposed rule change 

is consistent with Section 6(b)(5) of the 

Act because it would promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest by allowing the CHX to add and 

consolidate into a single rule certain 

requirements for products traded on the 

Exchange pursuant to UTP. 

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. 

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. 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: 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 187 / Thursday, September 25, 2008 / Notices 55577 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

6See Securities Exchange Act Release Nos. 57806 

(May 9, 2008), 73 FR 28541 (May 16, 2008) (SR– 

Phlx–2008–34) (approving amendment to Phlx Rule 

136 and adoption of Phlx Rule 803(o)) and 57448 

(March 6, 2008), 73 FR 13597 (March 13, 2008) (SR– 

NSX–2008–05) (approving NSX Rule 15.9). 

7 15 U.S.C. 78s(b)(2). 

8 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. 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6NYSE gave the Commission written notice of its 

intention to file the proposed rule change on 

September 19, 2008. The Commission reviewed the 

proposed rule change and gave NYSE permission to 

file the proposed the rule change on the same day. 

NYSE asked the Commission to waive the 30-day 

operative delay. See Rule 19b–4(f)(6)(iii). 17 CFR 

240.19b–4(f)(6)(iii). 

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–CHX–2008–12 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–CHX–2008–12. 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 CHX. 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–CHX–2008–12 and should 

be submitted on or before October 16, 

2008. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.5 In particular, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

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. 

This proposal would consolidate into 

a single rule various provisions related 

to UTP that have been established in 

other new products proposals 

previously approved by the 

Commission. Proposed CHX Rule 6 is 

closely modeled after similar rules of 

other national securities exchanges 6

and does not raise any novel issues. The 

Commission finds good cause for 

approving the proposed rule change 

prior to the 30th day after the date of 

publication of the notice of filing thereof 

in the Federal Register. Accelerated 

approval of this proposal will expedite 

the trading of additional products by the 

Exchange, subject to consistent and 

reasonable standards. Therefore, the 

Commission finds good cause, 

consistent with Section 19(b)(2) of the 

Act, to approve the proposed rule 

change on an accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–CHX–2008– 

12) is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E8–22463 Filed 9–24–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58607 ; File No. SR–NYSE– 

2008–86] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Proposing To 

Temporarily Suspend the 

Requirements of NYSE Rule 311 and 

Related NYSE Rules Concerning the 

Approval of New Member 

Organizations in Order To Approve 

Barclays Capital Inc. as an NYSE 

Member Organization 

September 19, 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 

September 19, 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 and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act,4 and Rule 19b–4(f)(6) thereunder,5

which renders the proposal effective 

upon filing with the Commission.6 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 is proposing to 

temporarily suspend the requirements 

of NYSE Rule 311 and related NYSE 

rules concerning the approval of new 

member organizations in order to 

approve Barclays Capital Inc. (‘‘BCI’’) as 

an NYSE member organization, subject 

to BCI’s complying with Exchange rules 

for a new member organization within 

60 days of the date that BCI is 

provisionally approved as an NYSE 

member organization. 

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