1426 Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2 17 CFR 240.19b–7. 

3NFA filed a letter from the CFTC notifying the 

NFA that it had determined not to review the 

proposed rule change. See note 4. 

4See letter from William Penner, Deputy Director, 

CFTC, to Thomas W. Sexton III, Esq., General 

Counsel, NFA, dated December 24, 2009. 

and the rules and regulations 

thereunder applicable to DTC because 

the proposed rule change updates DTC’s 

fee schedule and provides equitable 

allocation of fees among its members. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. DTC will notify 

the Commission of any written 

comments received by DTC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act 7 and Rule 19b– 

4(f)(2) 8 thereunder because the 

proposed rule change is establishing or 

changing a due, fee, or other charge 

applicable only to a member. At any 

time within sixty days of the filing of 

such rule change, the Commission may 

summarily abrogate 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 

• Electronic comments may be 

submitted by using the Commission’s 

Internet comment form (http:// 

www.sec.gov/rules/sro.shtml), or 

• Send an e-mail to rulecomment@sec.gov. Please include File 

No. SR–DTC–2009–19 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–DTC–2009–19. 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 

Section, 100 F Street, NE., Washington 

DC 20549, on official business days 

between the hours of 10 am and 3 pm. 

Copies of such filings also will be 

available for inspection and copying at 

the principal office of DTC and on 

DTC’s Web site at http://www.dtcc.com/ 

downloads/legal/rule_filings/2009/dtc/ 

2009-19.pdf. 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–DTC– 

2009–19 and should be submitted on or 

before February 1, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–188 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61280; File No. SR–NFA– 

2009–01] 

National Futures Association; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Relating to 

Amendments to Compliance Rule 

2–29(h) and the Adoption of an 

Interpretive Notice Regarding the Use 

of On-Line Social Networking Groups 

To Communicate With the Public 

January 4, 2010. 

Pursuant to Section 19b(7) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–7 under the Act,2

notice is hereby given that on December 

4, 2009, National Futures Association 

(‘‘NFA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which Items have been 

substantially prepared by the selfregulatory organization.3 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. NFA 

also has filed this proposed rule change 

concurrently with the Commodity 

Futures Trading Commission (‘‘CFTC’’). 

On December 4, 2009, the NFA 

requested that the CFTC make a 

determination that review of the 

proposed rule change of NFA is not 

necessary. On December 24, 2009, the 

CFTC notified the NFA that the CFTC 

has determined not to review the 

proposed rule change.4

I. Self-Regulatory Organization’s 

Description and Text of the Proposed 

Rule Change 

The amendments to Compliance Rule 

2–29(h) require that certain audio and 

video advertisements that appear on the 

Internet—like similar radio and 

television advertisements—be submitted 

to NFA in advance for review and 

approval. The proposed Interpretive 

Notice reminds Members that on-line 

communications are subject to the same 

standards as other types of 

communications. 

The text of the proposed rule change 

and Interpretive Notice is available on 

the NFA’s Web site 

(www.nfa.futures.org), at the NFA’s 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 1427 

5 15 U.S.C. 78o–3(k). 

6 15 U.S.C. 78o(b)(11). 

7FINRA, ‘‘Guide to the Internet for Registered 

Representatives,’’ http://www.finra.org/Industry/ 

Issues/Advertising/p006118, accessed July 20, 2009. 

8FINRA February 23, 2009 podcast on ‘‘Electronic 

Communications: Blogs, Bulletin Boards and Chat 

Rooms,’’ http://www.finra.org/Industry/Education/ 

OnlineLearning/Podcasts/index.htm, accessed July 

20, 2009. 

9FINRA March 10, 2009 podcast on ‘‘Electronic 

Communications: Social Networking Sites,’’ http:// 

www.finra.org/Industry/Education/OnlineLearning/ 

Podcasts/index.htm, accessed July 20, 2009. 

10 15 U.S.C. 78o–3(k)(2)(B). 

principal office, 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 

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 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 

Statutory Basis for the Proposed Rule 

Change 

1. Purpose 

Section 15A(k) of the Act 5 makes 

NFA a national securities association for 

the limited purpose of regulating the 

activities of NFA Members (‘‘Members’’) 

who are registered as brokers or dealers 

under Section 15(b)(11) of the Act.6

NFA Compliance Rule 2–29(h) applies 

to all Members including those 

registered under Section 15(b)(11). 

In December 2008, NFA’s FCM, IB, 

and CPO/CTA Advisory Committees 

considered the growing use of social 

networking groups such as blogs, chat 

rooms, and forums to communicate with 

and solicit customers. As a result of 

those discussions, all three committees 

felt it would be helpful to issue written 

guidance reminding Members of their 

responsibilities in connection with 

these on-line communications. 

As part of the process, NFA staff 

reviewed guidance from the Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) on the same issue. FINRA 

guidance states that blogs and bulletin 

boards are considered advertisements 

and are subject to the same 

requirements as other advertisements, 

while participating in a chat room is a 

public appearance subject to FINRA 

rules. The guidance also states that 

‘‘[m]ember firms must supervise the 

operation of any securities-related blog, 

bulletin board or chat room hosted by [a 

registered representative] or by the firm 

itself to ensure compliance with FINRA 

Conduct Rules and the Federal 

securities laws.’’ 7 The FINRA guidance 

also reminds FINRA members that their 

supervisory procedures can prohibit 

employees from using electronic media 

to discuss securities investments if the 

firm decides the medium is too hard to 

supervise. 

FINRA has also produced several 

podcasts discussing on-line 

communications. In one podcast, FINRA 

staff suggest limiting posting access to a 

firm’s blog or bulletin board to the 

firm’s registered representatives. If the 

firm opens it up to a wider audience, 

however, FINRA staff advise requiring 

users to register and agree to the firm’s 

terms of use.8 In another podcast, 

FINRA staff states that publicly 

available social networking sites are 

advertisements and those with restricted 

access are sales literature, subject to the 

same content, pre-approval, filing, and 

recordkeeping requirements applicable 

to other types of advertisements and 

sales literature.9

The proposed Interpretive Notice 

provides guidance that is similar to the 

FINRA guidance. It reminds Members 

that on-line communications are subject 

to the same standards as other types of 

communications. 

NFA has also noticed that profit 

claims that used to appear on radio and 

television are moving to the Internet and 

showing up on sites such as YouTube. 

Therefore, the proposed amendments to 

Compliance Rule 2–29(h) require that 

these videos—like similar radio and 

television advertisements—be submitted 

to NFA in advance for review and 

approval. Amendments to Compliance 

Rule 2–29 were previously filed in SR– 

NFA–2001–01. 

2. Statutory Basis 

The rule change is authorized by, and 

consistent with, Section 15A(k)(2)(B) of 

the Act.10 That section requires NFA to 

have rules that are designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public interest, 

including rules governing sales 

practices and advertising of security 

futures products. The NFA believes the 

proposed rule change accomplishes this 

by requiring that videos showing profit 

claims that appear on the Internet—like 

similar radio and television 

advertisements—be submitted to NFA 

in advance for review and approval. 

Additionally, the NFA believes the 

proposed Interpretive Notice makes 

clear that communications through online social networking groups are 

subject to the same standards as other 

types of communications. 

This proposal is not designed to 

regulate, by virtue of any authority 

conferred by the Act, matters not related 

to the purposes of the Act or the 

administration of the association. To the 

extent that this proposal regulates 

activities and transactions other than 

security futures, the authority for 

regulating those activities and 

transactions comes from the Commodity 

Exchange Act rather than the federal 

securities laws. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change will have 

little or no impact on competition. The 

proposed Interpretive Notice does not 

impose new requirements on Members, 

but rather makes clear that existing 

requirements regarding communications 

with the public are the same regardless 

of the medium used for such 

communications. Similarly, the 

proposed amendments to Compliance 

Rule 2–29(h) require that audio or video 

advertisements that would have to be 

submitted to NFA for prior approval if 

used on the radio or television must also 

be submitted to NFA if they are 

distributed through publicly accessible 

media, e.g., the Internet. Although there 

may be some burden on members who 

have avoided this requirement by only 

using the Internet to distribute such 

advertisements, it is necessary and 

appropriate to ensure that 

communications by NFA Members are 

not misleading or otherwise 

inappropriate. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

NFA worked with Member 

Committees in developing the rule 

change. NFA did not, however, publish 

the rule change to the membership for 

comment. NFA did not receive 

comment letters concerning the rule 

change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

On December 24, 2009, the CFTC 

notified the NFA that it had determined 

not to review the proposed rule change 

and, therefore, NFA, is permitted to 

make the amendments effective as of 


srobinson on DSKHWCL6B1PROD with NOTICES
1428 Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices 

11See note 4. 

12 17 CFR 200.30–3(a)(73). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See ISE Rule 716(d) (Facilitation Mechanism), 

Rule 716(e) (Solicited Order Mechanism) and Rule 

723 (Price Improvement Mechanism for Crossing 

Transactions). 

6Supplementary Material .02 to ISE Rule 713. 

this date.11 At any time within 60 days 

of the date of effectiveness of the 

proposed rule change, the Commission, 

after consultation with the CFTC, may 

summarily abrogate the proposed rule 

change and require that the proposed 

rule change be refiled in accordance 

with the provisions of Section 19(b)(1) 

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–NFA–2009–01. 

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–NFA–2009–01. 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 NFA. 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–NFA–2009–01 and should 

be submitted on or before February 1, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–222 Filed 1–8–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61287; File No. SR–ISE– 

2009–113] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Make the Exchange’s Pilot 

Program To Expose All-Or-None 

Orders Permanent 

January 5, 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 December 

24, 2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 Exchange. 

The Exchange has filed the proposal as 

a ‘‘non-controversial’’ proposed rule 

change pursuant to Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(6) thereunder.4 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 make 

permanent its pilot program regarding 

limitations on orders to include the 

exposure of all-or-none orders. The text 

of the proposed rule change is as 

follows, with deletions in [brackets] and 

additions italicized: 

Rule 717. Limitations on Orders 

* * * * * 

Supplementary Material to Rule 717 

.01–.03 No Change. 

.04 A non-marketable all-or-none limit 

order shall be deemed ‘‘exposed’’ for the 

purposes of paragraphs (d) and (e) one 

second following a broadcast notifying 

market participants that such an order to buy 

or sell a specified number of contracts at a 

specified price has been received in the 

options series. [This provision shall be in 

effect on a pilot basis expiring January 31, 

2010.] 

* * * * * 

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 

Statutory Basis for, the Proposed Rule 

Change 

(a) Purpose—The purpose of the 

proposed rule change is to make 

permanent the Exchange’s pilot program 

regarding limitations on orders to 

include the exposure of all-or-none 

orders. 

Pursuant to ISE Rule 717(d) and (e), 

Electronic Access Members must expose 

agency orders on the Exchange for at 

least one second before entering a 

contra-side proprietary order or a 

contra-side order that was solicited from 

a broker-dealer, or utilize one of the 

Exchange’s execution mechanisms that 

have one second exposure periods built 

into the functionality.5

The Exchange operates an integrated 

system that consolidates all market 

maker quotes and orders, and 

automatically disseminates the best bid 

and offer. If a limit order is designated 

as all-or-none (‘‘AON’’), the contingency 

that the order must be executed in full 

makes it ineligible for display in the 

best bid or offer. Nevertheless, such 

orders are maintained in the system and 

remain available for execution after all 

other trading interest at the same price 

has been exhausted.6 Upon the receipt 


srobinson on DSKHWCL6B1PROD with NOTICES