56628 Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Notices 

4See Securities Exchange Act Release No. 34– 

62758 (August 23, 2010), 75 FR 52792 [sic] (August 

27, 2010) (SR–CBOE–2010–075). 

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

6 15 U.S.C. 78f(b)(4). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On August 23, 2010, the Commission 

published an immediately effective rule 

filing to modify the transaction fees for 

24 securities currently traded on CBSX 

(the following symbols: BAC, C, DXD, 

EMC, EWJ, F, FAX, FAZ, GE, INTC, 

MOT, MSFT, MU, NOK, Q, QID, S, SIRI, 

SKF, T, TWM, UNG, UWM, XLF).4 The 

Exchange now proposes to add 51 

securities to that list of securities (the 

following symbols: AA, AMAT, AMD, 

BGZ, BP, BSX, CMCSA, COCO, CSCO, 

CX, DELL, DUK, EBAY, EEM, EWT, 

FAS, FLEX, HBAN, IYR, MDT, MGM, 

NLY, NVDA, NWSA, ORCL, PFE, 

QCOM, QQQQ, SBUX, SH, SLV, SMH, 

SSO, SYMC, TBT, TSM, TXN, UCO, 

USO, VALE, VWO, WFC, XHB, XLB, 

XLK, XLP, XLU, XLV, XLY, XRX, 

YHOO). For those securities already 

approved for the new transaction fees as 

well as those that would be added by 

this proposed rule change, assuming 

their prices do not drop below $1, the 

takers of liquidity will receive a $0.0014 

per share rebate, and makers of liquidity 

will incur a $0.0018 charge. The new 

pricing strategy is designed to incent 

order routing behavior that selects CBSX 

as the first destination. The changes will 

take effect on September 1, 2010. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),5 in general, and furthers the 

objectives of Section 6(b)(4) 6 of the Act 

in particular, in that it is designed to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among CBOE members and other 

persons using its facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

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) 

of the Act and paragraph (f) of Rule 

19b–4 thereunder. 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–CBOE–2010–079 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–CBOE–2010–079. 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 

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–CBOE– 

2010–079 and should be submitted on 

or before October 7, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–23105 Filed 9–15–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62880; File No. SR–CBOE– 

2010–080] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Trade Options 

on Leveraged Exchange-Traded Notes 

and To Broaden the Definition of 

‘‘Futures-Linked Securities’’ 

September 9, 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 

31, 2010, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’) 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. On September 9, 2010, 

the Exchange filed Amendment No. 1 to 

the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment No. 

1, from interested persons. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Notices 56629 

3These ETNs include: the Barclays Short B 

Leveraged Inverse S&P 500 TR ETN (‘‘BXDB’’), the 

Barclays Short C Leveraged Inverse S&P 500 TR 

ETN (‘‘BXDC’’) and the Barclays Short D Leveraged 

Inverse S&P 500 TR ETN (‘‘BXDD’’). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CBOE proposes to amend 

Interpretation and Policy .13 to Rule 5.3 

to: (a) permit trading options on 

leveraged (multiple or inverse) 

exchange-traded notes, and (b) broaden 

the definition of ‘‘Futures-Linked 

Securities.’’ The text of the rule proposal 

is available on the Exchange’s Web site 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary and 

at the Commission. 

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 

Amendment 1 replaces the original 

filing in its entirety. The purpose of 

Amendment 1 is to make technical 

corrections to rule references in Item 1 

and Item 3. No changes to the proposed 

rule text that was submitted in the 

original filing are being proposed by this 

Amendment 1. 

The Exchange proposes to amend 

Interpretation and Policy .13 to Rule 5.3 

to: (a) Permit trading options on 

leveraged (multiple or inverse) 

exchange-traded notes (‘‘ETNs’’), and (b) 

broaden the definition of ‘‘FuturesLinked Securities.’’ ETNs are also 

known as ‘‘Index-Linked Securities,’’ 

which are designed for investors who 

desire to participate in a specific market 

segment by providing exposure to one 

or more identifiable underlying 

securities, commodities, currencies, 

derivative instruments or market 

indexes of the foregoing. Index-Linked 

Securities are the non-convertible debt 

of an issuer that have a term of at least 

one (1) year but not greater than thirty 

(30) years. Despite the fact that IndexLinked Securities are linked to an 

underlying index, each trade as a single, 

exchange-listed security. Accordingly, 

rules pertaining to the listing and 

trading of standard equity options apply 

to Index-Linked Securities. 

Leveraged ETN Options 

The Exchange proposes to amend 

Rule 5.3.13 to permit the listing of 

options on leveraged (multiple or 

inverse) ETNs. Multiple leveraged ETNs 

seek to provide investment results that 

correspond to a specified multiple of the 

percentage performance on a given day 

of a particular Reference Asset. Inverse 

leveraged ETNs seek to provide 

investment results that correspond to 

the inverse (opposite) of the percentage 

performance on a given day of a 

particular Reference Asset by a specified 

multiple. Multiple leveraged ETNs and 

inverse leveraged ETNs differ from 

traditional ETNs in that they do not 

merely correspond to the performance 

of a given Reference Asset, but rather 

attempt to match a multiple or inverse 

of a Reference Asset’s performance. 

The Barclays Long B Leveraged S&P 

500 TR ETN (‘‘BXUB’’), the Barclays 

Long C Leveraged S&P 500 TR ETN 

(‘‘BXUC’’) and the UBS AG 2x Monthly 

Leveraged Long Exchange Traded 

Access Securities (‘‘E–TRACS’’) linked 

to the Alerian MLP Infrastructure Index 

due July 9, 2040 (‘‘MLPL’’) currently 

trade on the NYSE Arca Stock Exchange 

and are examples of multiple leveraged 

ETNs. In addition, the Barclays ETN + 

Inverse S&P 500 VIX Short-Term 

Futures ETN (‘‘XXV’’) currently trades 

on the NYSE Arca Stock Exchange and 

is an example of an inverse leveraged 

ETN. The NYSE Arca Stock Exchange 

also lists several other inverse leveraged 

ETNs for trading.3

Currently, Interpretation and Policy 

.13 to Rule 5.3 provides that securities 

deemed appropriate for options trading 

shall include shares or other securities 

(‘‘Equity Index-Linked Securities,’’ 

‘‘Commodity-Linked Securities,’’ 

‘‘Currency-Linked Securities,’’ ‘‘Fixed 

Income Index-Linked Securities,’’ 

‘‘Futures-Linked Securities,’’ and 

‘‘Multifactor Index-Linked Securities,’’ 

collectively known as ‘‘Index-Linked 

Securities’’) that are principally traded 

on a national securities exchange and an 

‘‘NMS Stock’’ (as defined in Rule 600 of 

Regulation NMS under the Securities 

Exchange Act of 1934), and represent 

ownership of a security that provides for 

the payment at maturity, as described 

below: 

• Equity Index-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of an underlying index 

or indexes of equity securities (‘‘Equity 

Reference Asset’’); 

• Commodity-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of one or more physical 

commodities or commodity futures, 

options on commodities, or other 

commodity derivatives or CommodityBased Trust Shares or a basket or index 

of any of the foregoing (‘‘Commodity 

Reference Asset’’); 

• Currency-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of one or more 

currencies, or options on currencies or 

currency futures or other currency 

derivatives or Currency Trust Shares (as 

defined in Interpretation and Policy .06 

to this Rule 5.3), or a basket or index of 

any of the foregoing (‘‘Currency 

Reference Asset’’); 

• Fixed Income Index-Linked 

Securities are securities that provide for 

the payment at maturity of a cash 

amount based on the performance of 

one or more notes, bonds, debentures or 

evidence of indebtedness that include, 

but are not limited to, U.S. Department 

of Treasury securities (‘‘Treasury 

Securities’’), government-sponsored 

entity securities (‘‘GSE Securities’’), 

municipal securities, trust preferred 

securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof or a basket or index of any of the 

foregoing (‘‘Fixed Income Reference 

Asset’’); 

• Futures-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of an index of (a) 

futures on Treasury Securities, GSE 

Securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof, or options or other derivatives 

on any of the foregoing; or (b) interest 

rate futures or options or derivatives on 

the foregoing in this subparagraph (b); 

or (c) CBOE Volatility Index (VIX) 

futures (‘‘Futures Reference Asset’’); and 

• Multifactor Index-Linked Securities 

are securities that provide for the 

payment at maturity of a cash amount 

based on the performance of any 

combination of two or more Equity 

Reference Assets, Commodity Reference 

Assets, Currency Reference Assets, 

Fixed Income References Assets, or 

Futures Reference Assets (‘‘Multifactor 

Reference Asset’’). 

For purposes of Interpretation and 

Policy .13 to this Rule 5.3, Equity 

Reference Assets, Commodity Reference 

Asset, Currency Reference Assets, Fixed 

Income Reference Assets, Futures 

Reference Assets together with 

mstockstill on DSKH9S0YB1PROD with NOTICES

56630 Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Notices 

4See Rules 4.11, Position Limits, and 4.12, 

Exercise Limits. 

5See Rule 12.3, Margin Requirements. 

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

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

Multifactor Reference Assets, 

collectively are referred to as ‘‘Reference 

Assets.’’ 

In addition, Index-Linked Securities 

must meet the criteria and guidelines for 

underlying Securities set forth in 

Interpretation and Policy .01 to this 

Rule 5.3.; or the Index-Linked Securities 

must be redeemable at the option of the 

holder at least on a weekly basis 

through the issuer at a price related to 

the applicable underlying Reference 

Asset. In addition, the issuing company 

is obligated to issue or repurchase the 

securities in aggregation units for cash, 

or cash equivalents, satisfactory to the 

issuer of Index-Linked Securities which 

underlie the option as described in the 

Index-Linked Securities prospectus. 

The Exchange proposes to amend 

Interpretation and Policy .13 to Rule 5.3 

to expand the type of Index-Linked 

Securities that may underlie options to 

include leveraged (multiple or inverse) 

ETNs. To affect this change, the 

Exchange proposes to amend Rule 

5.3.13 by adding the phrase, ‘‘or the 

leveraged (multiple or inverse) 

performance’’ to each of the 

subparagraphs ((A) through (F)) in that 

section which set forth the different 

eligible Reference Assets. 

The Exchange’s current continuing 

listing standards for ETN options will 

continue to apply. Specifically, under 

Interpretation and Policy .16 to Rule 5.4, 

ETN options shall not be deemed to 

meet the Exchange’s requirements for 

continued approval, and the Exchange 

shall not open for trading any additional 

series or option contracts of the class 

covering such Securities whenever the 

underlying Securities are delisted and 

trading in the Securities is suspended 

on a national securities exchange, or the 

Securities are no longer an ‘‘NMS Stock’’ 

(as defined in Rule 600 of Regulation 

NMS under the Securities Exchange Act 

of 1934). In addition, the Exchange shall 

consider the suspension of opening 

transactions in any series of options of 

the class covering Index-Linked 

Securities in any of the following 

circumstances: (1) The underlying 

Index-Linked Security fails to comply 

with the terms of Interpretation and 

Policy .13 to Rule 5.3; (2) in accordance 

with the terms of Interpretation and 

Policy .01 to Rule 5.4, in the case of 

options covering Index-Linked 

Securities when such options were 

approved pursuant to Interpretation and 

Policy .13 to Rule 5.3, except that, in the 

case of options covering Index-Linked 

Securities approved pursuant to 

Interpretation and Policy .13(3)(B) to 

Rule 5.3 that are redeemable at the 

option of the holder at least on a weekly 

basis, then option contracts of the class 

covering such Securities may only 

continue to be open for trading as long 

as the Securities are listed on a national 

securities exchange and are ‘‘NMS’’ 

stock as defined in Rule 600 of 

Regulation NMS; (3) in the case of any 

Index-Linked Security trading pursuant 

to Interpretation and Policy .13 to Rule 

5.3, the value of the Reference Asset is 

no longer calculated; or (4) such other 

event shall occur or condition exist that 

in the opinion of the Exchange make 

further dealing in such options on the 

Exchange inadvisable. Expanding the 

eligible types of ETNs for options 

trading under Interpretation and Policy 

.13 to Rule 5.3 will not have any effect 

on the rules pertaining to position and 

exercise limits 4 or margin.5

This proposal is necessary to enable 

the Exchange to list and trade options 

on shares of the BXUB, BXUC, XXV, 

BXDB, BXDC, BXDD and the MLPL. The 

Exchange believes the ability to trade 

options on leveraged (multiple or 

inverse) ETNs will provide investors 

with greater risk management tools. The 

proposed amendment to the Exchange’s 

listing criteria for options on ETNs is 

necessary to ensure that the Exchange 

will be able to list options on the above 

listed leveraged (multiple and inverse) 

ETNs as well as other leveraged 

(multiple and inverse) ETNs that may be 

introduced in the future. 

The Exchange represents that its 

existing surveillance procedures 

applicable to trading in options are 

adequate to properly monitor the 

trading in leveraged (multiple and 

inverse) ETN options. 

It is expected that The Options 

Clearing Corporation will seek to revise 

the Options Disclosure Document 

(‘‘ODD’’) to accommodate the listing and 

trading of leveraged (multiple and 

inverse) ETN options. 

Broaden the Definition of ‘‘FuturesLinked Securities’’ 

The second change being proposed by 

this filing is to amend the definition of 

‘‘Future [sic]-Linked Securities’’ set forth 

in Rule 5.3.13(1)(E). Currently, the 

definition of ‘‘Futures-Linked 

Securities’’ is limited to securities that 

provide for the payment at maturity of 

a cash amount based on the 

performance of an index of (a) futures 

on Treasury Securities, GSE Securities, 

supranational debt and debt of a foreign 

country or a subdivision thereof, or 

options or other derivatives on any of 

the foregoing; or (b) interest rate futures 

or options or derivatives on the 

foregoing in this subparagraph (b); or (c) 

CBOE Volatility Index (VIX) futures. 

Rule 5.3 sets forth generic listing 

criteria for securities that may serve as 

underlyings for listed options trading. 

The Exchange believes that the current 

definition of ‘‘Futures-Linked 

Securities’’ is unnecessarily restrictive 

and requires the Exchange to submit a 

filing to amend the definition each time 

a new ETN is issued that tracks the 

performance of an index of futures/ 

options on futures that is not 

enumerated in the existing rule. To 

address this issue, the Exchange is 

proposing to revise the definition of 

‘‘Futures- Linked Securities’’ to provide 

that they are securities that for the 

payment at maturity of a cash amount 

based on the performance or the 

leveraged (multiple or inverse) 

performance of an index or indexes of 

futures contracts or options or 

derivatives on futures contracts 

(‘‘Futures Reference Asset’’). The 

Exchange notes that all ETNs eligible for 

options trading must [sic] principally 

traded on a national securities exchange 

and an ‘‘NMS Stock.’’ As a result, the 

Exchange believes that broadening the 

definition of ‘‘Futures-Linked 

Securities’’ by no longer specifically 

listing the types of futures and options 

on futures contracts that may be tracked 

by an ETN is appropriate. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 

6(b)(5),7 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rules applicable to trading pursuant to 

generic listing and trading criteria serve 

to foster investor protection. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 179 / Thursday, September 16, 2010 / Notices 56631 

8 17 CFR 200.30–3(a)(12). 

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

2The Commission has modified the text of the 

summaries prepared by OCC. 3The Securities Committee is comprised of one 

designated representative of each participant 

exchange and the Chairman of OCC or his designee. 

The OCC representative is not a voting member of 

the Committee except in cases of tie votes. Article 

VI, Section 11(c) of OCC’s By-Laws. 

4 Generally speaking, a cash dividend or 

distribution would be deemed to be ‘‘ordinary’’ if it 

is declared pursuant to a policy or practice of 

paying such dividends on a quarterly or other 

regular basis. Dividends paid outside such practice 

would be considered ‘‘non-ordinary.’’ Non-ordinary 

cash dividends usually would trigger an adjustment 

to options contracts subject to the minimum size 

requirement. Article VI, Section 11A, Interpretation 

and Policy .01 of OCC’s By-Laws. See Securities 

Exchange Act Release No. 55258 (February 8, 2007). 

5Stock futures likewise are adjusted in response 

to non-ordinary cash dividends or distributions. See 

Continued 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

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. 

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–CBOE–2010–080 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–CBOE–2010–080. 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–CBOE– 

2010–080 and should be submitted on 

or before October 7, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–23107 Filed 9–15–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62879; File No. SR–OCC– 

2010–15] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Interpret 

By-Laws as to Dividend Adjustments 

September 9, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

August 31, 2010, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I and II 

below, which items have been prepared 

primarily by OCC. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the proposed rule 

change is to amend Interpretation and 

Policy .01 under Article VI, Section 11A 

of OCC’s By-Laws to allow the 

Securities Committee under certain 

conditions to cease adjusting for 

recurring cash dividends previously 

deemed to be non-ordinary dividends. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.2

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The principal purpose of this rule 

change is to amend Interpretation and 

Policy .01 under Article VI, Section 11A 

of OCC’s By-Laws. Under that 

Interpretation, cash dividends or 

distributions of an issuer which are 

deemed by the Securities Committee 3 to 

be non-ordinary will usually result in an 

adjustment to the terms of listed stock 

options.4

OCC is proposing to amend 

Interpretation .01 to allow the Securities 

Committee under certain conditions to 

cease adjusting for recurring cash 

dividends previously deemed to be nonordinary dividends. Interpretation .01 

under Section 3 of Article XII of OCC’s 

By-Laws, which provides that nonordinary (as determined by OCC) cash 

dividends or distributions of an issuer 

will usually occasion an adjustment to 

the terms of listed stock futures, would 

similarly be amended. The discussion 

below addresses the proposed 

amendments to Interpretation .01 of 

Section 11A of Article VI, but the 

purpose behind those changes is equally 

applicable to the changes proposed to 

Interpretation .01 of Section 3 of Article 

XII.5

mstockstill on DSKH9S0YB1PROD with NOTICES