Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 54685 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities and Exchange Act Release No. 

34–56941 (December 11, 2007). 

4See Securities and Exchange Act Release No. 

34–57649 (April 11, 2008). 

5See Securities and Exchange Act Release No. 

34–58765 (October 9, 2008). 

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

7 15 U.S.C. 78f(b)(5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22290 Filed 9–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62817; File No. SR–ISE– 

2010–92] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Exchange’s 

MRVP 

September 1, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on August 

26, 2010, the International Securities 

Exchange, LLC (‘‘ISE’’ 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 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 ISE 

Rule 1614 (Imposition of Fines for 

Minor Rule Violations) to incorporate a 

violation of ISE Rule 415 (Reports 

Related to Position Limits) into the 

Minor Rule Violation Plan. The text of 

the proposed rule change is available on 

the Exchange’s Web site (http:// 

www.ise.com), 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 

self-regulatory organization 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend ISE Rule 1614 to 

incorporate violations for failing to 

accurately report position and account 

information in accordance with ISE 

Rule 415 into the Minor Rule Violation 

Plan. The Exchange believes most of 

these violations are inadvertent and 

technical in nature. Processing routine 

violations under the Minor Rule 

Violation Plan would decrease the 

administrative burden of regulatory and 

enforcement staff as well as that of the 

Business Conduct Committee. In 

addition, staff would be able to more 

expeditiously process routine violations 

under the Minor Rule Violation Plan. 

ISE is proposing to assess a $500 fine 

for a first offense, a $1,000 fine for a 

second offense and a $2,500 fine for a 

third offense. Any subsequent offenses 

would be assessed a $5,000 fine. The 

number of offenses will be calculated on 

a rolling twenty-four month period. ISE 

believes that establishing a rolling 

twenty-four month period for 

cumulative violations will serve as an 

effective deterrent to future violative 

conduct. As with other violations 

covered under the Exchange’s Minor 

Rule Violation Plan, any egregious 

activity may be referred to the 

Exchange’s Business Conduct 

Committee. 

Among other things, ISE Rule 415 

requires each member to report to the 

Exchange the account and position 

information of any customer who, acting 

alone, or in concert with others, on the 

previous business day maintained 

aggregate long or short positions on the 

same side of the market of 200 or more 

contracts of any single class of option 

contracts dealt in on the Exchange. 

Members report this information on the 

Large Option Position Report. ISE, as a 

member of the Intermarket Surveillance 

Group (the ‘‘ISG’’), as well as certain 

other self-regulatory organizations 

(‘‘SROs’’) executed and filed on October 

29, 2007 with the Commission, a final 

version of the Agreement pursuant to 

Section 17(d) of the Act (the 

‘‘Agreement’’) 3 and as amended on April 

11, 2008 4 and October 9, 2008.5 The 

participants to the Agreement 

incorporated the surveillance and 

sanctions of large options position 

reporting violations into the Agreement 

as of November 1, 2008. As such, the 

SROs have agreed that their respective 

rules concerning the reporting of large 

options positions are common rules. As 

a result, this amendment to the Minor 

Rule Violation Plan will further result in 

the consistency of the sanctions among 

the SROs who are signatories to the 

Agreement with respect to regulatory 

actions arising from large option 

position reporting surveillance. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 6 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act 7 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, and 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, 

allowing the Exchange to have 

consistency between its Minor Rule 

Violation Plan and the Minor Rule 

Violation Plan of other SROs. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 


jlentini on DSKJ8SOYB1PROD with NOTICES
54686 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12); 17 CFR 200.30– 

3(a)(44). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58877 

(October 29, 2008), 73 FR 65904 (November 5, 2008) 

(SR–NYSE–2008–108) (establishing the SLP Pilot). 

See also Securities Exchange Act Release No. 59869 

(May 6, 2009), 74 FR 22796 (May 14, 2009) (SR– 

NYSE–2009–46) (extending the operation of the 

SLP Pilot to October 1, 2009). See also Securities 

Exchange Act Release No. 60756 (October 1, 2009), 

74 FR 51628 (October 7, 2009) (SR–NYSE–2009– 

100) (extending the operation of the New Market 

Model and the SLP Pilots to November 30, 2009). 

See also Securities Exchange Act Release No. 61075 

(November 30, 2009), 74 FR 64112 (December 7, 

2009) (SR–NYSE–2009–119) (extending the 

operation of the SLP Pilot to March 30, 2010). See 

also Securities Exchange Act Release No. 61840 

(April 5, 2010), 75 FR 18563 (April 12, 2010) (SR– 

NYSE–2010–28) (extending the operation of the 

SLP Pilot to September 30, 2010). 

4The information contained herein is a summary 

of the NMM Pilot and the SLP Pilot, for a fuller 

description of those pilots see supra notes 1 [sic] 

and 2 [sic]. 

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) 8 of the Act and Rule 19b– 

4(f)(6) 9 thereunder. The Exchange 

provided the Commission with written 

notice of its intent to file the proposed 

rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing the proposed 

rule change. 

At any time within the 60-day period 

beginning on the date of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

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–ISE–2010–92 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–ISE–2010–92. 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 website viewing and 

printing in the Commission’s Public 

Reference Room, 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–ISE–2010–92 and should be 

submitted on or before September 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22295 Filed 9–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62813; File No. SR–NYSE– 

2010–62] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Extending the 

Operation of NYSE’s Supplemental 

Liquidity Providers Pilot 

September 1, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on August 

27, 2010, 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 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 extend the 

operation of its Supplemental Liquidity 

Providers Pilot (‘‘SLP Pilot’’ or ‘‘Pilot’’) 

(see Rule 107B), currently scheduled to 

expire on September 30, 2010, until the 

earlier of the Securities and Exchange 

Commission’s (‘‘SEC’’ or ‘‘Commission’’) 

approval to make such pilot permanent 

or January 31, 2011. The text of the 

proposed rule change is available on the 

Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

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 those 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

operation of its Supplemental Liquidity 

Providers Pilot,3 currently scheduled to 

expire on September 30, 2010, until the 

earlier of Commission approval to make 

such pilot permanent or January 31, 

2011. 

Background 4

In October 2008, the NYSE 

implemented significant changes to its 

market rules, execution technology and 

the rights and obligations of its market 


jlentini on DSKJ8SOYB1PROD with NOTICES