Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 59779 

10 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78f(b)(5). 

13See supra note 4. 

14See Securities Exchange Act Release Nos. 

62663 (August 9, 2010), 75 FR 49543 (August 13, 

2010) (SR–NASDAQ–2010–77) (Order approving a 

NASDAQ Stock Market, LLC proposed rule change 

relating to pricing for direct circuit connections); 

62639 (August 4, 2010), 75 FR 48391 (August 10, 

2010) (SR–Phlx–2010–89) (Order approving a 

NASDAQ OMX PHLX, Inc. proposed rule change 

relating to pricing for direct circuit connections). 

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

16 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 62658 

(Aug. 5, 2010), 75 FR 49010 (Aug. 12, 2010). 3OCC’s By-laws and Rules already accommodate 

equity and index options that expire on a day other 

than a Saturday following the third Friday of the 

month. For example, they accommodate quarterly 

options, which expire on the last business day of 

a calendar quarter, and short term options, which 

expire a week after their introduction for trading. 

Quarterly index options and short term index 

options are also subject to automatic exercise 

procedures. 

exchange.10 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,11 which requires that 

the rules of a national securities 

exchange provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

issuers and other persons using its 

facilities, and with Section 6(b)(5) of the 

Act,12 which requires, among other 

things, that the rules of a national 

securities exchange be designed 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, and 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Commission believes that the 

proposed fees for 10Gb and 1Gb direct 

circuit connections are reasonable and 

equitably allocated insofar as they are 

applied on the same terms to similarlysituated market participants. In 

addition, the Commission believes that 

the connectivity options described in 

the proposed rule change are not 

unfairly discriminatory because BX 

makes the 10Gb and 1Gb direct circuit 

connections uniformly available to all 

non-co-located customers who 

voluntarily request them and pay the 

fees as detailed in the proposal. As 

represented by BX, these fees are 

uniform for all such customers and are 

either the same as fees charged to colocated customers, or vary due to 

different costs incurred by BX 

associated with providing service to the 

two different customer types. Finally, 

the Commission believes that the 

proposal will further the protection of 

investors and the public interest 

because it will provide greater 

transparency regarding the connectivity 

options available to market participants. 

The substance of the proposed rule 

has already been subject to full notice 

and public comment, and no comments 

were received.13 Moreover, similar 

pricing is already in effect for these 

same services being offered by BX’s 

sister markets, the NASDAQ Stock 

Market, LLC and NASDAQ OMX PHLX, 

Inc.14 Accordingly, the Commission 

finds good cause, pursuant to Section 

19(b)(2) of the Act, for approving the 

proposed rule change prior to the 

thirtieth day after the date of 

publication of notice of filing thereof in 

the Federal Register. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,15 that the 

proposed rule change (SR–BX–2010– 

064) be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading & Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24259 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISION 

[Release No. 34–62942; File No. SR–OCC– 

2010–16] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Relating to Weekly Options And 

Monthly Options 

September 20, 2010. 

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

Securities Exchange Act of 1934 

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

September 15, 2010, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission the proposed rule change 

as 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 persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The proposed rule change would 

accommodate options that expire on (a) 

any Friday of a calendar month other 

than the third Friday of a calendar 

month (‘‘Weekly Options’’) or (b) on the 

last trading day of a calendar month 

(‘‘Monthly Options’’). 

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 such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of this proposed rule 

change is to accommodate Weekly 

Options and Monthly Options. The 

Chicago Board Options Exchange, Inc. 

(‘‘CBOE’’), is proposing to trade Weekly 

Options and Monthly Options on broadbased indexes (‘‘Weekly Index Options’’ 

and ‘‘Monthly Index Options,’’ 

respectively).2 Series of Weekly Index 

Options will expire on a Friday of a 

calendar month other than the third 

Friday and Monthly Index Options will 

expire on the last trading day of a 

calendar month. If the last trading day 

of the month is a Friday, CBOE would 

opt to list Monthly Index Options over 

Weekly Index Options. Weekly Index 

Options and Monthly Index Options 

would be European-style, P.M.-settled 

contracts. CBOE proposes for these 

contracts to be subject to ‘‘automatic 

exercise procedures,’’ meaning that 

these contracts would automatically be 

exercised at expiration without the 

opportunity for the clearing member to 

submit contrary exercise instructions if 

immediately prior to expiration the 

contract’s settlement amount or exceeds 

a certain predetermined amount. 

Weekly Options and Monthly Options 

can be cleared and settled by OCC with 

relatively minor revisions to current Bylaws and Rules to provide for options 

that expire on a monthly or weekly 

schedule as proposed by CBOE.3

Therefore, OCC proposes amending 

Article I, Section 1 of its by-laws to 

include definitions covering Weekly 


srobinson on DSKHWCL6B1PROD with NOTICES
59780 Federal Register / Vol. 75, No. 187 / Tuesday, September 28, 2010 / Notices 

4 Interpretation .03 would also be amended to 

clarify that it covers equity options with nonconventional expiration dates as opposed to index 

options with nonconventional expiration dates, 

which are subject to automatic exercise as described 

in Rule 1804. 

5 15 U.S.C. 78q–1. 6 17 CFR 200.30–3(a)(12). 

and Monthly Options. Changes to Rule 

801, which relates to the submission of 

exercise notices, would be made to 

permit a Weekly or Monthly Option to 

be exercised on the business day before 

the expiration date and to include 

Weekly Index Options and Monthly 

Index Options in the listing of options 

series subject to automatic exercise. 

Changes to Interpretation and Policy .03 

to Rule 805, which relates to expiration 

date exercise processing, would be 

made to permit OCC to specify time 

frames for submitting exercise 

instructions and furnishing reports with 

respect to Weekly and Monthly Options 

on equity interests that are different 

than those time frames effect for 

conventional options.4 A conforming 

change to Rule 1804, which 

supplements Rule 805, also would be 

made to add Weekly Index Options and 

Monthly Index Options to the list of 

options series subject to automatic 

exercise. 

OCC states that the proposed changes 

to OCC’s By-Laws and Rules are 

consistent with the purposes and 

requirements of Section 17A of the Act 5

because they are designed to permit 

OCC to perform clearing services for 

products that are subject to the 

jurisdiction of the SEC without 

adversely affecting OCC’s obligations 

with respect to the prompt and accurate 

clearance and settlement of securities 

transactions or the protection of 

investors and the public interest. They 

accomplish this purpose by applying 

substantially the same rules and 

procedures to transactions in Monthly 

Index Options and Weekly Index 

Options as OCC applies to transactions 

in other options with a nonconventional 

expiry date, including Quarterly Index 

Options. The proposed rule change is 

not inconsistent with any rules of OCC, 

including any rules proposed to be 

amended. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants or Others 

OCC has not solicited or received 

written comments relating to the 

proposed rule change. OCC will notify 

the Commission of any written 

comments it receives. 

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 

ninety 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 

the 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 

No. SR–OCC–2010–16 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 

No. SR–OCC–2010–16. 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 OCC’s principal office and on 

OCC’s Web site at http:// 

www.theocc.com/publications/rules/ 

proposed_changes/ 

proposed_changes.jspU. 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 submission 

should refer to File No. SR–OCC–2010– 

16 and should be submitted on or before 

October 19, 2010 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24199 Filed 9–27–10; 8:45 am] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA 2010–0040] 

Privacy Act of 1974, as Amended; 

Computer Matching Program (SSA/ 

Railroad Retirement Board (RRB))— 

Match Number 1006 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of a renewal of an 

existing computer matching program 

that is scheduled to expire on March 1, 

2011. 

SUMMARY: In accordance with the 

provisions of the Privacy Act, as 

amended, this notice announces a 

renewal of an existing computer 

matching program that we are currently 

conducting with RRB. 

DATES: We will file a report of the 

subject matching program with the 

Committee on Homeland Security and 

Governmental Affairs of the Senate; the 

Committee on Oversight and 

Government Reform of the House of 

Representatives, and the Office of 

Information and Regulatory Affairs, 

Office of Management and Budget 

(OMB). The renewal of the matching 

program will be effective as indicated 

below. 

ADDRESSES: Interested parties may 

comment on this notice by either 

telefaxing to (410) 966–0869 or writing 

to the Executive Director, Office of 


srobinson on DSKHWCL6B1PROD with NOTICES