Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 54933 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in municipal 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market in municipal securities, 

and, in general, to protect investors and 

the public interest. 

The MSRB believes that the proposed 

rule change is consistent with the Act 

because it will help to inhibit practices 

constituting real and perceived attempts 

to influence the awarding of municipal 

securities business through 

contributions made by or through 

dealer-affiliated PACs. The MSRB also 

believes that the proposed rule change 

will facilitate dealer compliance with 

Rule G–37 and Rule G–27, on 

supervision. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The MSRB does not believe that the 

proposed rule change would impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act since it would apply 

equally to all brokers, dealers and 

municipal securities dealers. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

A. By order approve or disapprove 

such proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The MSRB has requested an effective 

date for the proposed rule change of 

sixty (60) days after Commission 

approval of the proposed rule change. 

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 Comment 

• 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–MSRB–2010–07 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–MSRB–2010–07. 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 such filing 

also will be available for inspection and 

copying at the principal office of the 

MSRB. 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–MSRB–2010–07 and should 

be submitted on or before September 30, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22450 Filed 9–8–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62829; File No. SR–BX– 

2010–061] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Permit 

Concurrent Listing of $2.50 and $1 

Strikes on MNX Options 

September 2, 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 

30, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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 

Chapter XIV, Section 10 (Terms of Index 

Options Contracts) of the Rules of the 

Boston Options Exchange Group, LLC 

(‘‘BOX’’) to allow the Exchange to 

concurrently list $2.50 and $1 strikes on 

Mini- Nasdaq-100 Index (‘‘MNX’’) 

options, and that certain listing 

parameters only apply to $1 strikes on 

MNX options. 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 

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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

54934 Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 

3See Securities Exchange Act Release No. 59129 

(Dec. 22, 2008), 73 FR 79945 (Dec. 30, 2008) (SR– 

BSE–2008–57) (rule change permitting $1 strikes for 

MNX options). 

4See Chapter XIV, Section 10(c)(5)(i) of the BOX 

Rules. 

5See Chapter XIV, Section 10(c)(5)(ii) of the BOX 

Rules. 

6See Chapter XIV, Section 10(c)(1) of the BOX 

Rules. 

7See Supplementary Material .02(c) to Chapter 

IV, Section 6 of the BOX Rules. 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

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

Commission has waived the five-day pre-filing 

requirement in this case. 

12See CBOE Rules 5.5 and 24.9 and 

Interpretations and Policies .01 (j) to Rule 24.9. See 

also Securities Exchange Act Release No. 34–61270 

(Dec. 31, 2009), 75 FR 1444 (Jan. 11, 2010) (SR– 

CBOE–2009–099). 

13For 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). 

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 allow BOX to concurrently 

list $2.50 and $1 strikes on MNX 

options, and that certain listing 

parameters only apply to $1 strikes on 

MNX options. BOX believes that the 

availability of $2.50 and $1 strike price 

intervals in MNX option series will 

provide investors with greater flexibility 

by allowing them to establish positions 

that are better tailored to meet their 

investment objectives. 

Since December 2008, BOX has had 

the ability to list $1 strikes on MNX 

options.3 In connection with the 

proposal to permit $1 strikes for MNX 

options, BOX established parameters 

subject to which $1 strikes may be 

added and delisted. For example, the 

number of initial series that BOX may 

add is limited to 11 series.4 Also, the 

total number of additional series that 

may be added for $1 strikes is sixty (60) 

per expiration month for each series in 

MNX options.5

Similar parameters do not exist with 

regard to the listing of $2.50 strikes, and 

BOX now seeks to clarify that the 

parameters adopted with the proposal to 

permit $1 strikes for MNX options do 

not apply to the listing of $2.50 strikes 

for MNX options.6 In addition, BOX is 

proposing to codify a bracketing 

provision that prohibits the Exchange 

from listing strike prices with $1 

intervals within $0.50 of an existing 

strike price in the same series. This 

bracketing provision is identical to an 

existing provision in effect for the $1 

Strike Program, which permits the 

concurrent listing of $2.50 and $1 

strikes.7

Finally, the Exchange proposes to 

change Section 10(c)(5)(iii) providing 

that BOX shall not list LEAPS on MiniNDX options at intervals less than $5.00 

to provide that BOX shall not list 

LEAPS on Mini-NDX options at 

intervals less than $2.50. 

BOX has analyzed its capacity and 

represents that it believes the Exchange 

and the Options Price Reporting 

Authority have the necessary systems 

capacity to handle the additional traffic 

associated with the concurrent listing 

and trading of $1 and $2.50 strikes for 

MNX options. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,8

in general, and Section 6(b)(5) of the 

Act,9 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. In particular, the 

Exchange believes that allowing the 

concurrent listing and trading of $1 and 

$2.50 strikes for MNX options will 

result in a continuing benefit to 

investors by giving them more flexibility 

to closely tailor their investment 

decisions in a greater number of 

securities. 

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 

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 

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) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the proposal is substantially 

similar to a rule of another exchange.12

Therefore, the Commission designates 

the proposal operative 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–BX–2010–061 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–2010–061. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Notices 54935 

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. 

4NYSE Euronext acquired The Amex 

Membership Corporation (‘‘AMC’’) pursuant to an 

Agreement and Plan of Merger, dated January 17, 

2008 (the ‘‘Merger’’). In connection with the Merger, 

the Exchange’s predecessor, the American Stock 

Exchange LLC (‘‘Amex’’), a subsidiary of AMC, 

became a subsidiary of NYSE Euronext called NYSE 

Alternext US LLC. See Securities Exchange Act 

Release No. 58673 (September 29, 2008), 73 FR 

57707 (October 3, 2008) (SR–NYSE–2008–60 and 

SR–Amex–2008–62) (approving the Merger). 

Subsequently NYSE Alternext US LLC was renamed 

NYSE Amex LLC and continues to operate as a 

national securities exchange registered under 

Section 6 of the Securities Exchange Act of 1934, 

as amended (the ‘‘Act’’). See Securities Exchange 

Act Release No. 59575 (March 13, 2009), 74 FR 

11803 (March 19, 2009) (SR–NYSEALTR–2009–24). 

5See Securities Exchange Act Release No. 60758 

(October 1, 2009), 74 FR 51639 (October 7, 2009) 

(SR–NYSEAmex–2009–65). See also Securities 

Exchange Act Release No. 61030 (November 19, 

2009), 74 FR 62365 (November 27, 2009) (SR– 

NYSEAmex–2009–83). See also Securities 

Exchange Act Release No. 61725 (March 17, 2010), 

75 FR 14223 (March 24, 2010) (SR–NYSEAmex– 

2010–28). 

6See SR–NYSE–2010–61. 

7The information contained herein is a summary 

of the NMM Pilot. For a fuller description of the 

pilot see Securities Exchange Act Release No. 58845 

(October 24, 2008), 73 FR 64379 (October 29, 2008) 

(SR–NYSE–2008–46). 

8See NYSE Amex Equities Rule 103. 

9See NYSE Amex Equities Rule 104. 

10See NYSE Amex Equities Rule 60; See also 

NYSE Amex Equities Rules 104 and 1000. 

11See NYSE Amex Equities Rule 1000. 

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– 

2010–061 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. 2010–22449 Filed 9–8–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62820; File No. SR– 

NYSEAmex–2010–86] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Extending the Operation of 

Its New Market Model Pilot Until the 

Earlier of Securities and Exchange 

Commission Approval to Make Such 

Pilot Permanent or January 31, 2011 

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 

26, 2010, NYSE Amex LLC (the 

‘‘Exchange’’ or ‘‘NYSE Amex’’) 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 New Market Model 

Pilot, currently scheduled to expire on 

September 30, 2010, until the earlier of 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) approval to 

make such pilot permanent or January 

31, 2011. The text of the proposed rule 

change is available at the Exchange, the 

Commission’s Public Reference Room, 

on the Commission’s website at http:// 

www.sec.gov, and http://www.nyse.com. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

operation of its New Market Model Pilot 

(‘‘NMM Pilot’’) that was adopted 

pursuant to its merger with the New 

York Stock Exchange LLC.4 The NMM 

Pilot was approved to operate until 

October 1, 2009. The Exchange filed to 

extend the operation of the Pilot to 

November 30, 2009, March 30, 2010 and 

September 30, 2010, respectively.5 The 

Exchange now seeks to extend the 

operation of the NMM Pilot, currently 

scheduled to expire on September 30, 

2010, until the earlier of Commission 

approval to make such pilot permanent 

or January 31, 2011. 

The Exchange notes that parallel 

changes are proposed to be made to the 

rules of New York Stock Exchange 

LLC.6

Background 7

In December 2008, NYSE Amex 

implemented significant changes to its 

market rules, execution technology and 

the rights and obligations of its market 

participants all of which were designed 

to improve execution quality on the 

Exchange. These changes are all 

elements of the Exchange’s enhanced 

market model that it implemented 

through the NMM Pilot. 

As part of the NMM Pilot, NYSE 

Amex eliminated the function of 

specialists on the Exchange creating a 

new category of market participant, the 

Designated Market Maker or DMM.8 The 

DMMs, like specialists, have affirmative 

obligations to make an orderly market, 

including continuous quoting 

requirements and obligations to re-enter 

the market when reaching across to 

execute against trading interest. Unlike 

specialists, DMMs have a minimum 

quoting requirement 9 in their assigned 

securities and no longer have a negative 

obligation. DMMs are also no longer 

agents for public customer orders.10

In addition, the Exchange 

implemented a system change that 

allowed DMMs to create a schedule of 

additional non-displayed liquidity at 

various price points where the DMM is 

willing to interact with interest and 

provide price improvement to orders in 

the Exchange’s system. This schedule is 

known as the DMM Capital 

Commitment Schedule (‘‘CCS’’).11 CCS 

mstockstill on DSKH9S0YB1PROD with NOTICES