Federal Register / Vol. 75, No. 178 / Wednesday, September 15, 2010 / Notices 56155 

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 Chapter VI, Section 6(d) of the BOX Rules. 

6For example, Market Maker A posts a valid bid 

with a size of 15 contracts in a particular series. An 

order for 8 contracts executes against that bid and 

depletes the bid size to 7 contracts. Under the 

proposal the bid remains valid. Subsequently the 

Market Makers appointed to that class receive an 

RFQ message or are called upon by an Options 

Official to post a quote in that series. Market Maker 

A’s bid of 7 contracts would be considered valid, 

and he does not need to respond. Market Maker B, 

who was not already posting a valid quote in that 

series, responds by posting an initial valid bid with 

a size of 10 contacts within 3 seconds of receiving 

the request. Then within the next 30 seconds an 

order for 10 contracts executes against all of Market 

Maker A’s bid for 7 contracts. The remaining 3 

contracts of the order execute against the bid of 

Market Maker B, depleting his bid size to 7 

contracts. Since Market Maker A no longer has a bid 

and does not have a valid quote, he updates his 

quote for an initial bid of 10 contracts. Market 

Maker B’s bid of 7 contracts remains valid. 

7See Rule 6.37B (Market Maker Quotations-OX) 

of the Rules of NYSE Arca, Inc (‘‘NYSE Arca’’). 

8The term ‘‘Options Official’’ means an officer of 

BOX Regulation vested by the BOX Regulation 

Board with certain authority to supervise option 

trading on BOX. See BOX Rules Chapter I, Section 

1(a)(44). 

9See BOX Rules Chapter VI, Section 6(b)(iv). 

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

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

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62869; File No. SR–BX– 

2010–062] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Market Maker Obligations 

September 8, 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 

September 7, 2010, NASDAQ OMX BX, 

Inc. (the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act,3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. 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 

Chapter VI, Section 6 (Market Maker 

Quotations) of the Rules of the Boston 

Options Exchange Group, LLC (‘‘BOX’’). 

The text of the proposed rule change is 

available from the principal office of the 

Exchange, on the Commission’s Web 

site at http://www.sec.gov, at the 

Commission’s Public Reference Room, 

and also on the Exchange’s Internet Web 

site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 this proposed rule 

change is to amend certain existing 

quoting obligations of Market Makers. 

Presently, a Market Maker must 

participate in the pre-opening phase and 

thereafter make markets consistent with 

the applicable quoting requirements 

specified in the BOX Rules, such that on 

a daily basis a Market Maker must post 

valid quotes at least sixty percent (60%) 

of the time that the class(es) are open for 

trading.5 Under the existing rules, any 

time a Market Maker’s quote size falls 

below the ten (10) contract minimum 

size requirement, even after an 

execution which decrements the 

remaining size of the quote, the quote is 

deemed invalid for meeting the Market 

Maker’s quoting obligations. The 

Exchange believes that its policy of the 

meaning of a ‘‘valid’’ quote should be 

updated to include an exception for 

quotes that have been depleted by 

executions below the ten (10) contract 

minimum size requirement. Modifying 

the quotations requirements in this 

manner will encourage more options 

trading firms to register as Market 

Makers on BOX and to provide more 

liquidity to BOX Options Participants. 

Under proposed Section 6, in order to 

be deemed ‘‘valid’’ a Market Maker’s 

initial quoted size must be for at least 

ten (10) contracts. This initial minimum 

size shall apply regardless of whether a 

Market Maker receives an RFQ message, 

is called upon by an Options Official to 

post a quote, or otherwise. The initial 

size of the Market Maker’s valid quote 

may subsequently be depleted in size 

below the minimum size due to 

executions with the quote and the quote 

shall remain valid as long as the Market 

Maker has not changed or updated the 

quote as to price or size. This depleted 

quote size shall remain valid until (1) 

the Market Maker’s quoted size is 

completely exhausted, whereupon the 

Market Maker must once again post a 

valid quote with a valid initial size of 

ten (10) contracts, or (2) the Market 

Maker updates or changes the posted 

quote, whereupon such quote must meet 

the minimum initial size of ten (10) 

contracts in order to be deemed valid.6

The Exchange notes that its minimum 

initial size of ten (10) contracts is ten 

times the market maker minimum quote 

size requirement (one contract) at some 

other options exchanges 7 and that no 

changes are being proposed regarding 

Market Makers’ obligations, including 

obligations to participate in the preopening phase. Furthermore, a Market 

Maker may continue to be called upon 

by an Options Official 8 to submit a 

single valid two-sided quote in one or 

more of the series of an options class to 

which the Market Maker is appointed 

whenever, in the judgment of such 

official, it is necessary to do so in the 

interest of fair and orderly markets.9

Because the Market Makers’ obligations, 

including those mentioned above, will 

continue, the Exchange believes this 

justifies any benefits they receive due to 

their appointment as Market Maker on 

BOX. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,10 in general, and Section 6(b)(5) of 

the Act,11 in particular, in that it is 

designed to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. Modifying the 

quotations requirements in this manner 

will encourage more options trading 

firms to register as Market Makers on 

BOX and to provide more liquidity to 

BOX Options Participants. An overall 


srobinson on DSKHWCL6B1PROD with NOTICES
56156 Federal Register / Vol. 75, No. 178 / Wednesday, September 15, 2010 / Notices 

12Rule 19b–4(f)(6)(iii) requires the self-regulatory 

organization to 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 the fiveday pre-filing requirement. 13 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. 62620 

(July 30, 2010), 75 FR 47655 (‘‘Notice’’). 

4See the registration statement for the Trust on 

Form S–1, filed with the Commission on May 27, 

2010 (No. 333–167166) (‘‘Registration Statement’’). 

increase in liquidity will benefit 

investors and serve the public interest. 

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 on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

This 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 days after the 

date of the filing, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest.12

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–BX–2010–062 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–BX–2010–062. 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 

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–BX– 

2010–062 and should be submitted on 

or before October 6, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22946 Filed 9–14–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62875; File No. SR– 

NYSEArca–2010–71] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

Proposed Rule Change To List and 

Trade Shares of the ETFS White Metals 

Basket Trust 

September 9, 2010. 

I. Introduction 

On July 22, 2010, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares (‘‘Shares’’) 

of the ETFS White Metals Basket Trust 

(‘‘Trust’’) pursuant to NYSE Arca 

Equities Rule 8.201. The proposed rule 

change was published for comment in 

the Federal Register on August 6, 2010.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade Shares pursuant to NYSE Arca 

Equities Rule 8.201, which governs the 

listing and trading of Commodity-Based 

Trust Shares. ETFS Services USA LLC is 

the sponsor of the Trust (‘‘Sponsor’’), 

The Bank of New York Mellon is the 

trustee of the Trust (‘‘Trustee’’), and 

JPMorgan Chase Bank, N.A. is the 

custodian of the Trust (‘‘Custodian’’). 

The Shares represent units of 

fractional undivided beneficial interest 

in and ownership of the Trust. The 

investment objective of the Trust is for 

the Shares to reflect the performance of 

the price of physical silver, platinum, 

and palladium in the proportions held 

by the Trust, less the expenses of the 

Trust’s operations.4

The Exchange deems the Shares to be 

equity securities, which subjects trading 

in the Shares to the Exchange’s existing 

rules governing the trading of equity 

securities, and has represented that 

trading in the Shares on the Exchange 

will occur in accordance with NYSE 

Arca Equities Rule 7.34(a). The 

Exchange has also represented that it 

has appropriate rules to facilitate 


srobinson on DSKHWCL6B1PROD with NOTICES