Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59309 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that no change is necessary 

to the text related to CBSX LMM obligations as 

existing Rule 53.51, CBSX LMM Defined, already 

provides that CBSX LMMs will have the same 

obligations of CBSX Remote Market-Makers plus 

those additional obligations of CBSX DPMs. 

4A CBSX Remote Market-Maker would be 

obligated to provide continuous quotes only when 

the CBSX Remote Market-Maker is quoting in a 

particular security during CBSX Regular Trading 

Hours after the primary listing market has 

disseminated an opening quote in the stock on a 

given trading day. See proposed Rule 53.23.01(a), 

which is similar to CBOE’s existing rule for options 

Market-Makers, Rule 8.7(d)(iii). A CBSX DPM or 

CBSX LMM would be obligated to provide 

continuous quotes during the CBSX Regular 

Trading Hours after the primary listing market has 

disseminated an opening quote in the stock on a 

given trading day. See proposed Rule 53.56.01(a), 

which is similar to CBOE’s existing rules for 

options DPMs and LMMs, Rules 8.85(a)(i) and 

8.15A(b)(i). 

5See Exchange Act Release Nos. 62252 (June 10, 

2010), 75 FR 34186 (June 16, 2010) and 62886 

(September 10, 2010). 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying 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 publicly available. All 

submissions should refer to File 

Number SR–BX–2010–066 and should 

be submitted on or before October 18, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24059 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62951; File No. SR–CBOE– 

2010–087] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change Related to 

CBSX Market-Maker Obligations 

September 20, 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 

September 17, 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 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 is proposing to amend 

CBOE Stock Exchange’s (‘‘CBSX’’, the 

CBOE’s stock trading facility) rules to 

enhance quotation requirements. 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 

The Exchange proposes to adopt rules 

to enhance minimum quotation 

requirements for CBSX Remote MarketMakers, CBSX Designated Primary 

Market-Makers (‘‘CBSX DPMs’’), and 

CBSX Lead Market-Makers (‘‘CBSX 

LMMs’’) (collectively ‘‘CBSX MarketMakers’’). Under the proposal, the 

Exchange will amend Rules 53.23, 

Obligations of CBSX Remote MarketMakers, and Rule 53.56, CBSX DPM 

Obligations,3 to require CBSX MarketMakers for each stock in which they are 

registered to continuously maintain a 

two-sided quotation within a designated 

percentage of the National Best Bid and 

National Best Offer as appropriate 

during CBSX Regular Trading Hours 

after the primary listing market has 

disseminated an opening quote in the 

stock on a given trading day.4 These 

enhanced market maker quotation 

obligations and [sic] are intended to 

eliminate trade executions against 

market maker placeholder quotations 

traditionally priced far away from the 

inside market, commonly known as 

‘‘stub quotes.’’ They are also intended to 

augment and work in relation to the 

single stock pause standards already in 

place on a pilot basis for stocks in the 

S&P 500, the Russell 1000 and certain 

exchange-trade products.5

Under the proposal, the Exchange will 

require CBSX Market-Makers to enter 

and maintain quotes priced at no more 

than a certain percentage away from the 

national inside bid and offer. 

Permissible quotes are determined by 

the individual character of the security, 

the time of day in which the quote is 

entered, and other factors which are 

summarized below: 

For issues subject to an individual 

stock trading trigger pause, a 

permissible quote is determined by first 

looking at the applicable stock trading 

pause trigger percentage of the security 

and then reducing that number by 2%. 

Since currently the stock pause trigger 

percentage across all exchanges is 10%, 

a CBSX Market-Maker’s quote in a such 

a security may not be more than 8% 

away from the national best bid or best 

offer as appropriate. Once a compliant 

quote is entered, it may rest without 

adjustment until such time as it moves 

to within 1⁄2 of 1% of the applicable 

trigger pause percentage (i.e., currently 

9.5%) whereupon the CBSX MarketMaker must immediately move its quote 

back to at least the permissible default 

level of 8% away from the national best 

bid or best offer. During times in which 

a trigger pause percentage is not 

applicable (e.g., before 8:45 a.m. and 

after 2:35 p.m. Chicago Time), a market 

maker must maintain a quote no further 

than 20% away from the inside (i.e., it 

may rest without adjustment until it 

reaches 21.5%). In the absence of 

national best or best offer, the above 

calculations will remain the same, but 

will use the national last sale instead of 

the absent bid or offer. 

For securities not subject to any 

individual stock pause trigger, the 

proposal will a [sic] assume a 

hypothetical 32% trigger pause, apply a 

2% reduction, and require CBSX 

Market-Makers in those issues to 

maintain quotes no more than 30% 

away from the national best and 

national best offer. Like securities 

subject to stock trading pauses, once a 

compliant quote is entered, it may rest 

without adjustment until such time as it 

moves to within 1⁄2 of 1% of its 


srobinson on DSKHWCL6B1PROD with NOTICES
59310 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78k–1(a)(1). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR240.19b–4. 

3See Securities Exchange Act Release No. 62732 

(Aug 16, 2010), 75 FR 51512 (‘‘Notice’’). 

4For the purposes of this filing, the term ‘‘Users’’ 

includes any ‘‘member organization,’’ as that term is 

defined in NYSE Rule 2(b) and any ‘‘Sponsored 

Participant,’’ as that term is defined in NYSE Rule 

123B.30(a)(ii)(B). 

5The Exchange represented that it also allows 

Users, for a monthly fee (i.e., 40% of the applicable 

monthly per kW fee), to obtain an option for future 

use on available, unused cabinet space in proximity 

to their existing cabinet space. Specifically, Users 

may reserve cabinet space of up to 30% of the 

applicable trigger pause percentage 

(31.5%) whereupon the CBSX MarketMaker must immediately move its quote 

back to at least the permissible default 

level of 30%. These requirements shall 

apply to Regulation NMS stocks during 

CBSX Regular Trading Hours after the 

primary listing market has disseminated 

an opening quote in the stock for the 

given trading day. 

Nothing in the above precludes a 

CBSX Market-Maker from voluntarily 

quoting at price levels that are closer to 

the national best bid and best offer than 

required under the proposal. 

2. Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act,6 which requires the rules of an 

exchange to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. The proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 7 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets. The 

Exchange believes that the proposed 

rule meets these requirements in that it 

promotes transparency and uniformity 

across markets concerning minimum 

market maker quotation requirements. 

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 

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 (i) 

as the Commission may designate up to 

90 days of such date 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–2010–087 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2010–087. 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 inspection and copying 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 publicly available. All 

submissions should refer to File 

Number SR–CBOE–2010–087 and 

should be submitted on or before 

October 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24055 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62960; File No. SR–NYSE– 

2010–56] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving a Proposed Rule Change 

Amending Its Price List To Reflect 

Fees Charged for Co-Location 

Services 

September 21, 2010. 

On August 3, 2010, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) 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 

amend its Price List to reflect fees 

charged for co-location services. The 

proposed rule change was published for 

comment in the Federal Register on 

August 20, 2010.3 The Commission 

received no comment letters on the 

proposal. This order approves the 

proposed rule change. 

In its proposal, NYSE proposed to 

amend its Price List to identify fees 

pertaining to co-location services, which 

allow Users 4 of the Exchange to rent 

space on premises controlled by the 

Exchange so that they may locate their 

electronic servers in close physical 

proximity to the Exchange’s trading and 

execution systems. NYSE represented 

that it planned to begin operating a data 

center in Mahwah, New Jersey, from 

which it will offer co-location services. 

The Exchange represented that it will 

offer space at the data center in cabinets 

with power usage capability of either 

four or eight kilowatts (kW).5 In 


srobinson on DSKHWCL6B1PROD with NOTICES