Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 54925 

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 Rules of the Nasdaq Options Market 

(‘‘NOM’’) Chapter III, Section 8 and Chapter XIV, 

Section 8; Phlx 1001 and 1001A; and NYSE Arca 

5.17 and 6.8. 

6Additionally, the Exchange member would have 

to fulfill all conditions precedent for such 

exemption grant and comply with the requirements 

of such exemption with respect to trading on the 

Exchange. 

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

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62815; File No. SR–ISE– 

2010–86] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Amending Rules 413 and 2006 

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 

23, 2010, the International Securities 

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

‘‘ISE’’) filed with the Securities and 

Exchange Commission (the ‘‘SEC’’ or the 

‘‘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 proposes to amend ISE 

Rules 413 (Exemptions from Position 

Limits) and 2006 (Exemptions from 

Position Limits) to enable Exchange 

members to rely on position limit 

exemptions granted by other options 

exchanges. 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, on the 

Commission’s Web site at http:// 

www.sec.gov, 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend ISE Rules 413 and 

2006 to enable Exchange members to 

rely on position limit exemptions 

granted by other options exchanges 

under specified circumstances. This 

proposed rule change is based on 

similar rules of The NASDAQ Stock 

Market LLC (‘‘Nasdaq’’), NASDAQ OMX 

PHLX (‘‘Phlx’’) and NYSE Arca.5

ISE Rule 413 governs position limit 

exemptions for equity options and ISE 

Rule 2006 governs position limit 

exemptions for index options. These 

rules include a number of position limit 

exemptions available to Exchange 

members. Rules 413 and 2006, however, 

do not have a provision that recognizes 

position limit exemptions that are 

granted to Exchange members by other 

option exchanges, as provided for in 

NOM, Phlx and NYSE Arca rules. In 

light of the desirability to have similar 

position limit standards, the Exchange 

proposes to add a similar an exemption 

to both Rule 413 and Rule 2006. 

Specifically, the Exchange proposes to 

add a new subsection to both ISE Rule 

413 and Rule 2006 to address position 

limit exemptions granted by other 

options exchanges. This proposed 

addition will provide that an Exchange 

member may rely upon any valid 

exemption from applicable position 

limits that has been granted by another 

options exchange for any options 

contract traded on ISE, provided that 

such Exchange member provides the 

Exchange either with a copy of any 

written exemption issued by another 

options exchange or with a written 

description of any exemption issued by 

another options exchange that is not in 

writing, where such description 

contains sufficient detail for Exchange 

to verify the validity of that exemption 

with the issuing options exchange. In 

addition, such Exchange member must 

fulfill all conditions precedent for such 

exemption and comply at all times with 

the requirements of such exemption 

with respect to trading on the Exchange. 

The Exchange notes that position 

limits tend to be similar across options 

exchanges, which is desirable in light of 

cross option exchange membership(s) 

and multiple listing and trading of 

similar product(s) on different 

exchanges. Because Exchange members 

frequently have membership and/or 

trading privileges on other options 

exchanges, it is important that ad hoc 

position limit exemptions granted by 

other options exchanges (‘‘exemption 

grants’’) are available to Exchange 

members to the extent that such 

exemption grants are reduced to writing 

and verifiable by the Exchange. 

These new proposed rules do not give 

the Exchange the ability to alter the 

scope of these exemptions but only to 

recognize the exemption so that the 

position limit process would be the 

same across the exchanges. 

For example, an Exchange member 

may go to another options exchange of 

which it is a member, such as the NYSE 

Arca or NOM to request a position limit 

exemption (exemption grant) for option 

contracts in the SPDRs (SPY). The other 

exchange provides the exemption grant 

until expiration in the same month to 

this particular firm for this particular 

issue (SPY). Should the same Exchange 

member want to trade SPY on the ISE 

to the extent of the exemption grant, the 

Exchange’s proposed rule change would 

allow it to do so, but only to the extent 

that the firm provides the Exchange 

with a copy of the written exemption 

grant provided by the issuing exchange 

or, if the exemption is not in writing, to 

the extent that said Exchange member 

provides the Exchange with sufficient 

detail for Exchange regulatory staff to be 

able to verify the validity of the 

exemption grant with the issuing 

options exchange.6

The Exchange believes that by adding 

uniformity and predictability to the 

position limit process, the proposed rule 

change should be beneficial to the 

Exchange members, and their 

customers. Moreover, the proposed rule 

change should promote competition by 

allowing trades across options 

exchanges that are similar in respect of 

position limits. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 7 in general, and 

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

of the Act 8 in particular, because it is 

designed to prevent fraudulent and 

manipulative acts and practices, and to 

promote just and equitable principles of 

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54926 Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission 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 of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

12 Id. 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

14 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. 

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, by 

allowing the Exchange to have uniform 

position limit procedures. 

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: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.11 However, Rule 19b– 

4(f)(6)(iii) 12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing, 

thereby giving the Exchange a position 

limit process that can recognize 

exemptions granted by other exchanges. 

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver will 

afford Exchange members the benefit of 

the proposal—the ability to rely on 

exemptions granted by other exchanges, 

when appropriately documented— 

without unnecessary delay. For this 

reason, the Commission designates the 

proposed rule change as operative under 

upon filing.13

At any time within 60 days 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–2010–86 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–2010–86. 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 the filing also 

will be available for inspection and 

copying at the principal office of the 

ISE. 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–2010–86 and should be 

submitted on or before September 30, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22443 Filed 9–8–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62825; File No. SR– 

NYSEAmex–2010–90] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC To Amend the Exchange 

Price List 

September 1, 2010. 

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 August 

30, 2010, NYSE Amex LLC (‘‘NYSE 

Amex’’ 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 amend its 

2010 Price List for equities to modify 

the fees it charges for all market at-theclose (‘‘MOC’’) and limit at-the-close 

(‘‘LOC’’) orders executed in the 

Exchange’s closing transaction. For 

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