Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Notices 57539 

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

2Amendment 2 replaced Amendment 1 and the 

original filing in their entireties. The purpose of 

Amendment 2 is to broaden the definition of End 

of Week Expirations to include any Friday of the 

month, other than the third Friday of the month. 

3See Securities Exchange Act Release No. 62658 

(August 5, 2010), 75 FR 49009 (‘‘Notice’’). 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 12314 and # 12315] 

Wisconsin Disaster # WI–00025 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Wisconsin dated 09/13/ 

2010. 

Incident: Severe Storms and Flooding. 

Incident Period: 08/10/2010 through 

08/14/2010. 

DATES: Effective Date: 09/13/2010. 

Physical Loan Application Deadline 

Date: 11/12/2010. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/13/2011. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Saint Croix. 

Contiguous Counties: 

Wisconsin: Barron, Dunn, Pierce, 

Polk. 

Minnesota: Washington. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners With Credit Available Elsewhere ...................... 5.000 

Homeowners Without Credit 

Available Elsewhere .............. 2.500 

Businesses With Credit Available Elsewhere ...................... 6.000 

Businesses Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations With 

Credit Available Elsewhere ... 3.625 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives Without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations Without 

Credit Available Elsewhere 3.000 

The number assigned to this disaster 

for physical damage is 12314 B and for 

economic injury is 12315 0. 

The States which received an EIDL 

Declaration # are Wisconsin; Minnesota. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Dated: September 13, 2010. 

Karen G. Mills, 

Administrator. 

[FR Doc. 2010–23533 Filed 9–20–10; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12290 and #12291] 

Illinois Disaster Number IL–00025 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for the State of Illinois (FEMA– 

1935–DR), dated 08/19/2010. 

Incident: Severe Storms and Flooding. 

Incident Period: 07/19/2010 and 

continuing through 08/07/2010. 

DATES: Effective Date: 09/13/2010. 

Physical Loan Application Deadline 

Date: 10/18/2010. 

EIDL Loan Application Deadline Date: 

05/19/2011. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155/ 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for the State of Illinois, 

dated 08/19/2010 is hereby amended to 

re-establish the incident period for this 

disaster as beginning 07/19/2010 and 

continuing through 08/07/2010. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2010–23532 Filed 9–20–10; 8:45 am] 

BILLING CODE 8025–01–P 

OFFICE OF SCIENCE & TECHNOLOGY 

POLICY 

U.S. National Climate Assessment 

Objectives, Proposed Topics, and Next 

Steps 

Correction 

In notice document 2010–22229 

beginning on page 54403 in the issue of 

Tuesday, September 7, 2010 make the 

following correction: 

On page 54403 under the SUMMARY

section, in the second column, in the 

tenth through eleventh lines, the Web 

site is corrected to read as ‘‘(http:// 

globalchange.gov/what-we-do/ 

assessment/notices)’’. 

[FR Doc. C1–2010–22229 Filed 9–20–10; 8:45 am] 

BILLING CODE 1505–01–D?≤ 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62911; File No. SR–CBOE– 

2009–075] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving Notice 

of Proposed Rule Change, as Modified 

by Amendment Nos. 1 and 2, To 

Establish a Pilot Program To List P.M.- 

Settled End of Week and End of Month 

Expirations for Options on BroadBased Indexes 

September 14, 2010. 

On October 14, 2009, the Chicago 

Board Options Exchange, Incorporated 

(‘‘Exchange’’ or ‘‘CBOE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’),1 a proposed rule change 

to establish a pilot program that would 

permit p.m.-settled options on broadbased indexes expiring on any Friday of 

the month, other than the third Friday 

of the month, as well as the last trading 

day of the month. On May 3, 2010, the 

Exchange filed Amendment 1 to the 

proposed rule change, and on July 30, 

2010, the Exchange filed Amendment 2 

to the proposed rule change.2 The 

proposed rule change was published for 

comment in the Federal Register on 

August 12, 2010.3 The Commission 

received no comment letters on the 


srobinson on DSKHWCL6B1PROD with NOTICES
57540 Federal Register / Vol. 75, No. 182 / Tuesday, September 21, 2010 / Notices 

4A third Friday of the month expiration is 

generally referred to as ‘‘Expiration Friday.’’ 

5For example, if EOWs and EOMs were currently 

listed, the expiration dates for October 2010 would 

be: October 1 (EOW), October 8 (EOW), October 15 

(standard), October 22 (EOW) and October 29 

(EOM). If the last trading day of the month is a 

Friday, the Exchange will list an End of Month 

expiration series and not an End of Week 

expiration. See Rule 24.9(a)(2) for specific rule 

governing the expiration months that may be listed 

for index options. CBOE does not intend to list 

EOWs or EOMs that would expire on Exchange 

holidays. 

6See e.g., CBOE Rule 4.13, Reports Related to 

Position Limits and Interpretation and Policy .03 to 

Rule 24.4 which sets forth the reporting 

requirements for certain broad-based indexes that 

do not have position limits. 

7Any positions established under the Pilot would 

not be impacted by the expiration of the Pilot. If an 

EOW or EOM expiration expires after the Pilot 

expires, then those positions would continue to 

exist; however, any further trading in those series 

would be restricted to transactions where at least 

one side of the trade is a closing transaction. The 

Exchange would address this point in a circular to 

members. See Notice, supra note 3, 75 FR 49011. 

8 In the 1980s, the options and futures markets 

began moving from closing-price to opening price 

settlement procedures for stock index options and 

futures as a result of increased market and price 

volatility in underlying component stocks due to 

the unwinding of arbitrage-related positions at the 

close on expiration Friday. 

9The annual report would also contain 

information and analyses of standard Expiration 

Friday, a.m.-settled series, if applicable, for the 

period covered in the pilot report as well as for the 

six-month period prior to the initiation of the pilot. 

See Notice, supra note 3, 75 FR at 49011. 

10For each EOW and EOM Expiration that has 

open interest that exceeds certain minimum 

thresholds, the annual report will contain a 

comparison of index price changes at the close of 

trading on a given expiration date with comparable 

price changes from a control sample; and if needed, 

a calculation of share volume for a sample set of 

the component securities representing an upper 

limit on share trading that could be attributable to 

expiring in-the-money EOW and EOM expirations. 

11CBOE will also provide to the Commission 

upon request a data file containing (1) EOW and 

EOM option volume data aggregated by series, and 

(2) EOW week-ending open interest for expiring 

series and EOM month-end open interest for 

expiring series. 

12 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

13 15 U.S.C. 78f(b)(5). 

14See Securities Exchange Act Release No. 31800 

(February 1, 1993), 58 FR 7274 (February 5, 1993). 

15See Securities Exchange Act Release No. 54123 

(July 11, 2006), 71 FR 40558 (July 17, 2006). 

16See Securities Exchange Act Release No. 61439 

(January 28, 2010), 75 FR 5831 (February 4, 2010) 

(SR–CBOE–2009–087) (order approving rule change 

to establish a pilot program to modify FLEX option 

exercise settlement values and minimum value 

sizes). 

17 15 U.S.C. 78s(b)(2). 

18 17 CFR 200.30–3(a)(12). 

proposed rule change. This order 

approves the proposed rule change. 

The Exchange is proposing to 

establish a pilot program that would 

permit p.m.-settled options on broadbased indexes to expire on (a) any 

Friday of the month, other than the 

third Friday of the month 4 (‘‘End of 

Week Expirations’’ or ‘‘EOWs’’), and (b) 

the last trading day of the month (‘‘End 

of Month Expirations’’ or ‘‘EOMs’’).5

Under the End of Week/End of Month 

Expirations Pilot Program (‘‘Pilot’’), 

EOWs and EOMs will be permitted on 

any broad-based index that is eligible 

for regular options trading. EOWs and 

EOMs will be cash-settled and have 

European-style exercise, and will be 

subject to the same rules that currently 

govern the trading of traditional index 

options, including sales practice rules, 

margin requirements, and floor trading 

procedures. Contract terms for EOWs 

and EOMs will be similar to regular 

index options, except the exercise 

settlement value will be based on the 

index value derived from the closing 

prices of component stocks. EOWs and 

EOMs on the same broad-based index 

(e.g., of the same class) shall be 

aggregated for position limits (if any) 

and any applicable reporting and other 

requirements.6 The duration of the Pilot 

will be effective for a period of fourteen 

months from the next full month from 

approval.7

Currently, the vast majority of options 

in the standardized options markets are 

a.m.-settled.8 In light of historic 

Commission concerns about expanding 

p.m. settlement, CBOE has represented 

that, at least two months prior to the 

expiration of the Pilot, it will provide 

the Commission with an annual report 

analyzing EOW and EOM volume, open 

interest, and trading patterns.9 In 

addition, for series that exceed specific 

minimum open interest parameters, the 

annual report will provide an analysis 

of index price volatility and, if needed, 

underlying share trading volume.10 The 

annual report will be provided to the 

Commission on a confidential basis.11

The Commission has carefully 

reviewed CBOE’s proposed rule change 

and finds that it is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange,12 and, in 

particular, Section 6(b)(5) of the Act,13

which requires that an exchange have 

rules designed to promote just and 

equitable principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and to 

protect investors and the public interest, 

to allow CBOE to conduct limited, and 

carefully monitored, pilots as proposed. 

The Commission has had concerns 

about the adverse effects and impact of 

p.m. settlement upon market volatility 

and the operation of fair and orderly 

markets on the underlying cash market 

at or near the close of trading. Only in 

limited instances has the Commission 

previously approved p.m. settlement for 

cash-settled options. In 1993, the 

Commission approved CBOE’s listing of 

p.m.-settled, cash-settled options on 

certain broad-based indexes expiring on 

the first business day of the month 

following the end of each calendar 

quarter (‘‘Quarterly Index 

Expirations’’).14 In 2006, the 

Commission approved, on a pilot basis, 

CBOE’s listing of p.m.-settled index 

options expiring on the last business 

day of a calendar quarter (‘‘Quarterly 

Options Series’’).15 In 2010, the 

Commission approved CBOE’s listing of 

p.m.-settled FLEX options on a pilot 

basis.16

The Commission believes that it is 

appropriate to approve the proposal on 

a pilot basis. CBOE’s proposed fourteen 

month Pilot will allow for both the 

Exchange and the Commission to 

monitor the potential for adverse market 

effects. In particular, the Commission 

notes that CBOE will provide the 

Commission with the annual report 

analyzing volume and open interest of 

EOWs and EOMs, will also contain 

information and analysis of EOW and 

EOM trading patterns, and index price 

volatility and share trading activity for 

series that exceed minimum parameters. 

This information will enable the 

Commission to evaluate whether 

allowing p.m. settlement for EOW and 

EOMs will result in increased market 

and price volatility in the underlying 

component stocks. 

The p.m. settlement Pilot information 

should help the Commission assess the 

impact on the markets and determine 

whether other changes are necessary. 

Furthermore, the Exchange’s ongoing 

analysis of the Pilot should help it 

monitor any potential risks from large 

p.m.-settled positions and take 

appropriate action if warranted. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule change (SR–CBOE–2009– 

075), as modified by Amendment Nos. 

1 and 2, be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23455 Filed 9–20–10; 8:45 am] 

BILLING CODE 8010–01–P 


srobinson on DSKHWCL6B1PROD with NOTICES