58006 Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–44152 

(April 5, 2001), 66 FR 19262 (April 13, 2001) (SR– 

CBOE–2000–13). 4Securities Exchange Act Release No. 34–43984 

(February 20, 2001), 66 FR 12574 (February 27, 

2001) (SR–CBOE–2000–13). 

5 15 U.S.C. 78i. 

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

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

All submissions should refer to File 

Number SR–FINRA–2010–046. 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 website 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 

FINRA. 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 publicly available. All 

submissions should refer to File 

Number SR–FINRA–2010–046 and 

should be submitted on or before 

October 14, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23773 Filed 9–22–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62933; File No. SR–CBOE– 

2010–082] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated: Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Withdraw Regulatory 

Circular RG01–61 

September 17, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

noitce is hereby given that on 

September 9, 2010, Chicago Board 

Options Exchange, Incorporated 

(‘‘CBOE’’ or 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 CBOE. 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 

CBOE is proposing to withdraw 

Regulator Circular RG01–61 regarding 

transactions between related entities. 

The text of the proposed rule change 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, 

CBOE 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. CBOE 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, Proposed Rule 

Change 

1. Purpose 

In 2001, the Securities and Exchange 

Commission (the ‘‘Commission’’) 

approved SR–CBOE–2000–13 regarding 

transactions between related entities.3

In connection with the approval of that 

filing, the Exchange promulgated CBOE 

Regulatory Circular RG01–61 (‘‘RG01– 

61’’) to act as guidance for such trading. 

At the time the Exchange adopted SR– 

CBOE–2000–13 and RG01–61, CBOE’s 

restrictions on transactions between 

related entities were more restrictive 

than the rules in place at other national 

securities exchanges and under the 

Securities Exchange Act of 1934, as 

amended (the ‘‘Act’’).4

CBOE is proposing to eliminate 

RG01–61 and defer to the requirements 

set forth in Section 9(a)(1) of the Act,5

which provides, in relevant part: 

It shall be unlawful for any person, directly 

or indirectly * * * for the purpose of 

creating a false or misleading appearance of 

active trading in any security registered on a 

national securities exchange, or a false or 

misleading appearance with respect to the 

market for any such security, (A) to effect any 

transaction in such security which involves 

no change in the beneficial ownership 

thereof, or (B) to enter an order or orders for 

the purchase of such security with the 

knowledge that an order or orders of 

substantially the same size, at substantially 

the same time, and at substantially the same 

price, for the sale of any such security, has 

been or will be entered by or for the same 

or different parties, or (C) to enter any order 

or orders for the sale of any such security 

with the knowledge that an order or orders 

of substantially the same size, at substantially 

the same time, and at substantially the same 

price, for the purchase of such security, has 

been or will be entered by or for the same 

or different parties. 

This is consistent with the 

requirements in place at other national 

securities exchanges and this proposal 

eliminates distinctions between the 

Exchange’s rules regarding transactions 

between related entities and similar 

requirements in place at other national 

securities exchanges, as well as the 

Commission. Notwithstanding the 

withdrawal of Regulatory Circular 

RG01–61, CBOE will continue to 

conduct surveillance for pre-arranged 

trading between related entities that 

violates Section 9(a) of the Exchange 

Act. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

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

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

of the Act,7 which requires, among other 

things, that the Exchange’s rules be 

designed to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and protect investors and the 

public interest. The Exchange believes 

that the proposed rule change is 

designed to promote just and equitable 

principles of trade and to protect 

investors and the public interest by 

eliminating differences between the 

Exchange’s rules regarding transactions 

between related entities and similar 

requirements in place at other national 

securities exchanges, as well as the 

Commission. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices 58007 

8The Exchange fulfilled this requirement. 

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

10 17 CFR 240.19b–4(f)(6). 

11 Id. 

12For purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). See also 17 CFR 200.30–3(a)(59). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 that is not 

necessary or appropriate in furtherance 

of 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 

Because the foregoing rule 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 from the date on which it 

was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given the 

Commission written notice of its intent 

to file 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,8 the proposed rule change 

has become effective pursuant to 

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

19b–4(f)(6) thereunder.10

Under Rule 19b–4(f)(6) of the Act,11 a 

proposal does not become operative for 

30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange requests that the 

Commission waive the 30-day operative 

delay of this filing. The Exchange 

believes that the proposed rule change 

does not present any novel or unique 

issues because the elimination of RG01– 

61 merely brings the Exchange’s rules 

regarding transactions between related 

entities in line with the requirements in 

place at other national securities 

exchanges and the Commission. The 

Exchange also believes that acceleration 

of the operative date will allow market 

participants to realize the benefits of the 

rule change sooner. The benefits include 

providing a policy that is consistent 

with other exchanges’ and Commission 

requirements, which will reduce 

unnecessary complexity and confusion. 

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Based on the above, the 

Commission designates the proposal as 

operative upon filing.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–CBOE–2010–082 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. 

All submissions should refer to File 

Number SR–CBOE–2010–082. 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 website 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 CBOE. 

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–2010–082 and 

should be submitted on or before 

October 14, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23775 Filed 9–22–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62930; File No. SR–FINRA– 

2010–036] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change to Amend the 

Codes of Arbitration Procedure to 

Permit Arbitrators to Make Mid-case 

Referrals 

September 17, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 12, 

2010, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by FINRA. 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 

FINRA is proposing to broaden an 

arbitrators’ authority to make referrals 

during an arbitration proceeding by 

amending Rule 12104 of the Code of 

Arbitration Procedure for Customer 

Disputes (‘‘Customer Code’’) and by 

creating new Rule 12902(e) to address 

the assessment of hearing session fees, 

costs, and expenses if an arbitrator 


srobinson on DSKHWCL6B1PROD with NOTICES