53010 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(1). 

4 17 CFR 240.19b–4. 

5The proposal is not intended to limit the 

Exchange to these factors in determining whether 

exceptional circumstances exist. 

6Rule 1066(f) defines a hedge order is any spread 

type order (including a spread, straddle and 

combination order) for the same account or tied 

hedge order as defined below: 

(1) Spread Order. A spread order is an order to 

buy a stated number of option contracts and to sell 

a stated number of option contracts in a different 

series of the same option and may be bid for or 

offered on a total net debit or credit basis. 

(A) Inter-Currency Spread Order. In the case of 

foreign currency options, a spread order may 

consist of an order to buy a stated number of option 

contracts in one foreign currency and to sell the 

same number of option contracts in a different 

foreign currency option. 

(2) Straddle Order. A straddle order is an order 

to buy a number of call option contracts and the 

same number of put option contracts with respect 

to the same underlying security (in the case of 

options on a stock or Exchange-Traded Fund Share) 

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–Phlx–2010–111 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–Phlx–2010–111. 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 Number SR–Phlx– 

2010–111 and should be submitted on 

or before September 20, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21473 Filed 8–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62760; File No. SR–Phlx– 

2010–112] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NASDAQ OMX PHLX, Inc. Relating to 

Trade Reporting 

August 24, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on August 

10, 2010, NASDAQ OMX PHLX, Inc. 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 the Substance 

of the Proposed Rule Change 

The Exchange, pursuant to Section 

19(b)(1) of the Act 3 and Rule 19b–4 

thereunder,4 proposes to amend 

Exchange Options Floor Procedure 

Advice (‘‘OFPA’’) F–2 Allocation, Time 

Stamping, Matching and Access to 

Matched Trades, and Exchange Rule 

1051, General Comparison and 

Clearance Rule, to state that late reports 

of transactions in complex spread 

transactions executed in open outcry 

may be considered ‘‘exceptional 

circumstances’’ under the rule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, 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 

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 codify certain factors that 

the Exchange may consider to be 

‘‘exceptional circumstances’’ when 

determining whether an Exchange 

member has engaged in a pattern or 

practice of late trade reporting.5

Currently, OFPA F–2 and Rule 1051 

require a member or member 

organization initiating an options 

transaction, whether acting as principal 

or agent, to report or ensure that the 

transaction is reported within 90 

seconds of the execution to the tape. 

Each also states that a pattern or 

practice of late reporting without 

exceptional circumstances may be 

considered conduct inconsistent with 

just and equitable principles of trade. 

The Exchange proposes to modify 

OFPA F–2 and Rule 1051 to state that, 

in determining whether exceptional 

circumstances exist, the Exchange may 

consider late reports resulting from 

open outcry executions in: (i) A hedge 

order (as defined in Rule 1066(f)); 6 (ii) 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Notices 53011 

or the same underlying foreign currency (in the case 

of options on a foreign currency) and having the 

same exercise price and expiration date; or an order 

to sell a number of call option contracts and the 

same number of put option contracts with respect 

to the same underlying security (in the case of 

options on a stock or Exchange-Traded Fund Share) 

or the same underlying foreign currency (in the case 

of options on a foreign currency) and having the 

same exercise price and expiration date (e.g., an 

order to buy two XYZ July 50 calls and to buy two 

XYZ July 50 puts is a straddle order). In the case 

of adjusted stock option contracts, a straddle order 

need not consist of the same number of put and call 

contracts if such contracts both represent the same 

number of shares at option. 

(3) Combination Order. A combination order is an 

order involving a number of call option contracts 

and the same number of put option contracts in the 

same underlying security and representing the same 

number of shares at option (if the underlying 

security is a stock or Exchange-Traded Fund Share) 

or the same number of foreign currency units (if the 

underlying security is a foreign currency). A 

combination order includes a conversion (generally, 

buying a put, selling a call and buying the 

underlying stock or Exchange-Traded Fund Share) 

and a reversal (generally, selling a put, buying a call 

and selling the underlying stock or ExchangeTraded Fund Share). In the case of adjusted option 

contracts, a combination order need not consist of 

the same number of shares at option. 

(4) Tied Hedge Order. A tied hedge order is an 

option order that is tied to a hedge transaction as 

defined in Commentary .04 to Rule 1064, following 

the receipt of an option order in a class determined 

by the Exchange as eligible for ‘‘tied hedge’’ 

transactions. 

A tied hedge order involves buying or selling a 

stock, security futures or futures position following 

receipt of an option order, including a complex 

order, but prior to announcing such order to the 

trading crowd, provided that certain conditions are 

met. See Rule 1064, Commentary .04. 

7Rule 1066(g) defines a synthetic option order as 

an order to buy or sell a stated number of units of 

an underlying stock or a security convertible into 

the underlying stock (‘‘convertible security’’) 

coupled with either (i) the purchase or sale of 

option contract(s) on the opposite side of the market 

representing either the same number of units of the 

underlying stock or convertible security or the 

number of units of the underlying stock or 

convertible security necessary to create a delta 

neutral position, or (ii) the purchase or sale of an 

equal number of put and call option contracts, each 

having the same exercise price, expiration date, and 

each representing the same number of units of stock 

as, and on the opposite side of the market from, the 

stock or convertible security portion of the order. 

8Exchange Rule 970.01 states that, for purposes 

of imposing fines under the Options Floor 

Procedure Advices (‘‘OFPAs’’), when the number of 

violations under Exchange Rules is determined 

based upon an exception-based surveillance 

program the Exchange may aggregate, or ‘‘batch,’’ 

individual violations of order handling OFPAs, and 

consider such ‘‘batched’’ violations as a single 

Occurrence only in accordance with the guidelines 

set forth in the Exchange’s Numerical Criteria for 

Bringing Cases for Violations of Phlx Order 

Handling Rules. In addition, the Exchange may 

batch individual violations of Rule 1014(c)(i)(A) 

pertaining to quote spread parameters (and 

corresponding Options Floor Procedure Advice F– 

6). In the alternative, the Exchange may refer the 

matter to the Business Conduct Committee for 

possible disciplinary action when (i) the Exchange 

determines that there exists a pattern or practice of 

violative conduct without exceptional 

circumstances, or (ii) any single instance of 

violative conduct without exceptional 

circumstances is deemed to be so egregious that 

referral to the Business Conduct Committee for 

possible disciplinary action is appropriate. 

9This proposal applies only to executions in 

open outcry, and not to complex orders executed 

and reported automatically by the Exchange’s 

Complex Order System. See Exchange Rule 

1080.08. 

10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). 

a synthetic option (as defined in Rule 

1066(g)); 7 or (ii) any other order 

consisting of multiple option and/or 

stock components. 

Currently, in order to establish 

whether a member or member 

organization has engaged in a pattern or 

practice of violating a specific order 

handling rule the Exchange may 

aggregate, or ‘‘batch,’’ individual 

violations of order handling OFPAs, and 

consider such ‘‘batched’’ violations as a 

single occurrence of a violation by a 

member or member organization over a 

specific time period.8 Late trade 

reporting is currently included in the 

Exchange’s ‘‘batching’’ program. The 

Exchange has observed that a 

disproportionate number of late trade 

reports are due to transactions in 

complex spread transactions executed 

in open outcry.9

Hedge orders and synthetic options 

are presented as a single order [sic] in 

the crowd, often including multiple 

option and/or stock components, on a 

net debit or credit basis. It is not 

unusual for the individual components 

of such an order to be executed at 

different times (especially in situations 

involving the execution of a stock 

component on an away equity market). 

Therefore, some components of the 

order may be executed while other 

components are pending execution. In 

many cases execution of the entire 

hedge or synthetic option order takes 

longer than 90 seconds to complete, 

resulting in late reporting for the 

individual components upon 

completion of the entire order at the net 

debit or credit price. 

The Exchange believes that the 

inclusion of late trade reporting 

violations in the ‘‘batch’’ of violations 

respecting hedge or synthetic order 

transactions in open outcry unfairly 

penalizes a member or member 

organization engaging in legitimate 

hedge and synthetic option orders and 

thus proposes, when determining 

whether exceptional circumstances 

exist, to consider late reports of 

transactions in such orders executed in 

open outcry to be ‘‘exceptional 

circumstances’’ under the rule. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 10 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 11

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. 

Specifically, the Exchange believes that 

the proposal benefits customers by 

encouraging Exchange Floor Brokers, 

market makers and specialists to 

introduce and/or participate in 

legitimate complex transactions in open 

outcry without being penalized for late 

trade reporting in the specific instances 

described above. 

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 Regarding 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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the 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–Phlx–2010–112 on the 

subject line. 


jlentini on DSKJ8SOYB1PROD with NOTICES
53012 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Notices 

12 17 CFR 200.30–3(a)(12). 

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–Phlx–2010–112. 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– 

2010–112 and should be submitted on 

or before September 20, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–21474 Filed 8–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SELECTIVE SERVICE SYSTEM 

Form Submitted to the Office of 

Management and Budget for Extension 

of Clearance 

AGENCY: Selective Service System. 

ACTION: Notice. 

The following form has been 

submitted to the Office of Management 

and Budget (0MB) for extension of 

clearance in compliance with the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35): 

SSS FORM—22 

Title: Claim Documentation Form— 

Conscientious Objector. 

Need and/or Use: The form will be 

used to document a claim for 

classification as a conscientious objector 

in the event that inductions into the 

Armed Forces are resumed. 

Respondents: Registrants who claim 

to be conscientious objectors. 

Burden: A burden of one hour per 

individual respondent. 

Copies of the above identified form 

can be obtained upon written request to 

the Selective Service System, Reports 

Clearance Officer, 1515 Wilson 

Boulevard, Arlington, Virginia 22209– 

2425. 

Written comments and 

recommendations for the proposed 

extension of clearance of the form 

should be sent within 30 days of the 

publication of this notice to the 

Selective Service System, Reports 

Clearance Officer, 1515 Wilson 

Boulevard, Arlington, Virginia 22209– 

2425. 

A copy of the comments should be 

sent to the Office of Information and 

Regulatory Affairs, Attention: Desk 

Officer, Selective Service System, Office 

of Management and Budget, New 

Executive Office Building, Room 3235, 

Washington, DC 20503. 

Dated: August 19, 2010. 

Lawrence G. Romo, 

Director. 

[FR Doc. 2010–21416 Filed 8–27–10; 8:45 am] 

BILLING CODE 8015–01–M 

DEPARTMENT OF STATE 

[Public Notice 7136] 

Culturally Significant Object Imported 

for Exhibition Determinations: ‘‘Ivory 

Mirror Case’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000, 

I hereby determine that the object to be 

included in the exhibition ‘‘Ivory Mirror 

Case,’’ imported from abroad for 

temporary exhibition within the United 

States, is of cultural significance. The 

object is imported pursuant to a loan 

agreement with the foreign owner or 

custodian. I also determine that the 

exhibition or display of the exhibit 

object at the Metropolitan Museum of 

Art, New York, New York, from on or 

about September 15, 2010, until on or 

about September 15, 2015, and at 

possible additional exhibitions or 

venues yet to be determined, is in the 

national interest. I have ordered that 

Public Notice of these Determinations 

be published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a 

description of the exhibit object, contact 

Paul W. Manning, Attorney-Adviser, 

Office of the Legal Adviser, U.S. 

Department of State (telephone: 202– 

632–6469). The mailing address is U.S. 

Department of State, SA–5, L/PD, Fifth 

Floor (Suite 5H03), Washington, DC 

20522–0505. 

Dated: August 23, 2010. 

Ann Stock, 

Assistant Secretary, Bureau of Educational 

and Cultural Affairs, Department of State. 

[FR Doc. 2010–21590 Filed 8–27–10; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7140] 

Culturally Significant Objects Imported 

for Exhibition Determinations: 

‘‘Treasures of Moscow: Icons From the 

Andrey Rublev Museum’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, and Delegation of 

Authority No. 236–3 of August 28, 2000, 

I hereby determine that the objects to be 

included in the exhibition ‘‘Treasures of 

Moscow: Icons from the Andrey Rublev 

Museum,’’ imported from abroad for 

temporary exhibition within the United 

States, are of cultural significance. The 

objects are imported pursuant to a loan 

agreement with the foreign owner or 

custodian. I also determine that the 

exhibition or display of the exhibit 

objects at the Museum of Russian Icons, 

Clinton, MA, from on or about October 

23, 2010, until on or about July 25, 

2011, and at possible additional 

exhibitions or venues yet to be 

determined, is in the national interest. 

I have ordered that Public Notice of 


jlentini on DSKJ8SOYB1PROD with NOTICES