Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices 60369 

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

2 17 CFR 240.19b–4. 

3Exchange Act Release No. 58341 (August 11, 

2008), 73 FR 48258. 

4The Exchange commenced the trading of FROs 

on May 8, 2008. In August 2007, the Commission 

approved the Exchange proposal to list and trade 

FROs based on individual stocks and exchangetraded funds (‘‘ETFs’’). See Exchange Act Release 

No. 56251 (August 14, 2007), 72 FR 46523 (August 

20, 2007). 

5A ‘‘Finish High’’ FRO is defined in Rule 900 

FRO(b)(2) as an option contract which returns $100 

if the underlying security closes above the strike 

price at expiration. 

6A ‘‘Finish Low’’ FRO is defined in Rule 900 

FRO(b)(3) as an option contract which returns $100 

if the underlying security closes below the strike 

price at expiration. 

Stat. 4097, as amended, and in 

accordance with the Trust’s bylaws, 

informing the public that the public 

meeting of the Trust Board of Directors 

is now rescheduled for November 13, 

2008. 

SUPPLEMENTARY INFORMATION: In 

accordance with the National 

Environmental Policy Act, the Trust is 

requesting public comment on the 

Presidio Trust Management Plan 

(PTMP) Main Post Update Draft SEIS. 

The Draft SEIS evaluates alternatives to 

the planning concept for the 120-acre 

Main Post district at the Presidio of San 

Francisco identified in the 2002 PTMP, 

the Trust’s comprehensive land use plan 

and policy framework. The Draft SEIS 

considers planning proposals that were 

not anticipated in the PTMP, including 

a contemporary art museum and a 

lodge, and identifies Alternative 2 as the 

proposed action, which is further 

described in the Draft Main Post Update 

of the PTMP. By extending the comment 

period, the Trust anticipates more indepth comments on the Draft SEIS that 

will promote a better-informed decision. 

The Draft PTMP Main Post Update and 

Draft SEIS can be reviewed at local 

libraries, at the Trust headquarters at 34 

Graham Street, San Francisco, CA 

94129, and on the Trust Web site at 

http://www.Presidio.gov in the Major 

Projects section. Although the time for 

comments has been extended, the Trust 

requests that interested parties provide 

comments as soon as possible. 

The purposes of the public meeting 

are to provide an Executive Director’s 

report, to receive public comment at a 

second public meeting of the Trust’s 

Board of Directors on the Draft PTMP 

Main Post Update and Draft SEIS, and 

to receive public comment on other 

matters in accordance with the Trust’s 

Public Outreach Policy. The meeting 

will be held on Thursday, November 13, 

2008, at 6:30 p.m., at a location to be 

announced in a future notice. 

Individuals requiring special 

accommodation at the public meeting, 

such as needing a sign language 

interpreter, should contact Mollie 

Matull at 415.561.5300 prior to 

November 7, 2008. 

DATES: The public meeting will begin at 

6:30 p.m. on Thursday, November 13, 

2008. Written comments must be 

received by November 17, 2008. 

ADDRESSES: The location of the public 

meeting will be announced in a future 

notice. Written comments should be 

submitted to Main Post, Attn: 

Compliance Coordinator, The Presidio 

Trust, 34 Graham Street, P.O. Box 

29052, San Francisco, CA 94129–0052. 

Electronic comments can be sent to 

Mainpost@Presidiotrust.gov. Please be 

aware that all comments and 

information submitted will be made 

available to the public, including, 

without limitation, any postal address, 

e-mail address, phone number or other 

information contained in each 

submission. 

FOR FUTHER INFORMATION CONTACT: John 

Pelka, 415.561.4183. 

Dated: October 6, 2008. 

Karen A. Cook, 

General Counsel. 

[FR Doc. E8–24134 Filed 10–9–08; 8:45 am] 

BILLING CODE 4310–4R–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58716; File No. SR–Amex– 

2008–60] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Granting Approval of a Proposed Rule 

Change Relating to Margin 

Requirements for Fixed Return 

Options 

October 2, 2008. 

On July 21, 2008, the American Stock 

Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’ or 

‘‘Exchange Act’’),1 and Rule 19b–42

thereunder, a proposed rule change to 

amend its margin requirements for fixed 

return options. The proposal was 

published in the Federal Register on 

August 18, 2008.3 The Commission 

received no comments on the proposal. 

This order approves the proposed rule 

change. 

The Exchange proposed to amend 

Rule 462(d)10 to clarify the margin 

requirements applicable to Fixed Return 

Options (‘‘FROs’’ or ‘‘Fixed Return 

Options’’).4 The Exchange stated that 

the purpose of this proposal is to add 

clarity regarding the application of FRO 

margin requirements in connection with 

‘‘spreads’’ and ‘‘straddle/combination’’ 

strategies. In addition, the proposal also 

seeks to clarify the use of ‘‘cover’’ and 

a ‘‘cash account’’ in connection with 

FROs. The Exchange stated that it 

believes that the proposed revision 

reducing the customer margin 

applicable to ‘‘spread’’ and ‘‘straddle/ 

combination’’ positions in FROs is 

appropriate because risk exposure is 

reduced under these strategies. 

Amex Rule 462(d)10 is silent 

regarding the use of ‘‘spread’’ and 

‘‘straddle/combination’’ positions. With 

respect to a ‘‘spread’’ position in FROs, 

the Amex proposes that no margin be 

required on a Finish High5 FRO (Finish 

Low 6 FRO) carried short in a customer’s 

account that is offset by a long Finish 

High FRO (Finish Low FRO) for the 

same underlying security or instrument 

that expires at the same time and has an 

exercise or strike price that is less than 

(greater than) the exercise or strike price 

of the short Finish High (Finish Low). 

As set forth in Rule 462(d)10(B), the 

long Finish High (Finish Low) must be 

paid for in full. 

In connection with a straddle/ 

combination, when a Finish High FRO 

is carried short in a customer’s account 

and there is also carried a short Finish 

Low FRO that expires at the same time 

and has an exercise price or strike price 

that is less than or equal to the exercise 

or strike price of the short Finish High, 

the initial and maintenance margin 

required would be the exercise 

settlement amount applicable to one 

contract. 

With respect to the concept of ‘‘cover’’ 

the Exchange proposed a clarification 

that ‘‘cover’’ is applicable only to ‘‘cash 

accounts.’’ In such a case, a FRO carried 

short in a customer’s account will be 

deemed a covered position, and eligible 

for the cash account, if either one of the 

following is held in the account at the 

time the FRO is written or is received 

into the account promptly thereafter: 

• Cash or cash equivalents equal to 100% 

of the exercise settlement amount; 

• A long FRO of the same type (Finish 

High or Finish Low) for the same underlying 

security or instrument that is paid for in full 

and expires at the same time, and has an 

exercise or strike price that is less than the 

exercise or strike price of the short in the 

case of a Finish High or greater than the 

exercise or strike price of the short in the 

case of a Finish Low; or 

• An escrow agreement. 

The escrow agreement must certify 

that the bank holds for the account of 

the customer as security for the 

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60370 Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices 

7 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). 

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

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 56458 

(September 18, 2007), 72 FR 54309 (September 24, 

2007) (SR–CBOE–2007–107) for a description of the 

Temporary Membership status under Rule 3.19.02. 

4See Securities Exchange Act Release No. 58178 

(July 17, 2008), 73 FR 42634 (July 22, 2008) (SR– 

CBOE–2008–40) for a description of the Interim 

Trading Permits under Rule 3.27. 

5Rule 3.27(b) defines the clearing firm floating 

monthly rate as the floating monthly rate that a 

Clearing Member designates, in connection with 

transferable membership leases that the Clearing 

Member assisted in facilitating, for leases that 

utilize that monthly rate. 

6The concepts of an indicative lease rate and of 

a clearing firm floating month rate were previously 

utilized in the CBOE rule filings that set and 

adjusted the Temporary Member access fee. Both 

concepts were also recently codified in Rule 3.27(b) 

in relation to ITPs. 

agreement (A) cash, (B) cash 

equivalents, (C) one or more qualified 

equity securities, or (D) a combination 

thereof having an aggregate market 

value of not less than 100% of the 

exercise settlement amount and that the 

bank will promptly pay the member 

organization the cash settlement amount 

in the event the account is assigned an 

exercise notice. 

After careful review of the proposal, 

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.7 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,8 which requires, 

among other things, that the rules of an 

exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to and to perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission 

believes that the proposal will benefit 

the marketplace and provide market 

participants with greater clarity in 

connection with their responsibilities in 

the trading and handling of FRO 

transactions. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–Amex–2008– 

60), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–24116 Filed 10–9–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58735; File No. SR–CBOE– 

2008–104] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Temporary 

Membership Status and Interim 

Trading Permit Access Fees 

October 6, 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 30, 2008, the Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or ‘‘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 the CBOE. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to adjust (1) the 

monthly access fee for persons granted 

temporary CBOE membership status 

(‘‘Temporary Members’’) pursuant to 

Interpretation and Policy .02 under 

CBOE Rule 3.19 (‘‘Rule 3.19.02’’) and (2) 

the monthly access fee for Interim 

Trading Permit (‘‘ITP’’) holders under 

CBOE Rule 3.27. 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, 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, 

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. The 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, 

andStatutory Basis for, the Proposed 

Rule Change 

1. Purpose 

The current access fee for Temporary 

Members under Rule 3.19.02 3 and the 

current access fee for ITP holders under 

Rule 3.27 4 are both $10,800 per month. 

Both access fees are currently set at the 

indicative lease rate (as defined below) 

for September 2008. The Exchange 

proposes to adjust both access fees 

effective at the beginning of October 

2008 to be equal to the indicative lease 

rate for October 2008 (which is 

$10,118). Specifically, the Exchange 

proposes to revise both the Temporary 

Member access fee and the ITP access 

fee to be $10,118 per month 

commencing on October 1, 2008. 

The indicative lease rate is defined 

under Rule 3.27(b) as the highest 

clearing firm floating monthly rate 5 of 

the CBOE Clearing Members that assist 

in facilitating at least 10% of the CBOE 

transferable membership leases.6 The 

Exchange determined the indicative 

lease rate for October 2008 by polling 

each of these Clearing Members and 

obtaining the clearing firm floating 

monthly rate designated by each of 

these Clearing Members for that month. 

The Exchange used the same process 

to set the proposed Temporary Member 

and ITP access fees that it used to set 

the current Temporary Member and ITP 

access fees. The only difference is that 

the Exchange used clearing firm floating 

monthly rate information for the month 

of October 2008 to set the proposed 

access fees (instead of clearing firm 

floating monthly rate information for the 

month of September 2008 as was used 

to set the current access fees) in order 

to take into account changes in clearing 

firm floating monthly rates for the 

month of October 2008. 

The Exchange believes that the 

process used to set the proposed 

mstockstill on PROD1PC66 with NOTICES