Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59303 

14The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov/rules/sro.shtml. 

15 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. 62329 

(June 21, 2010), 75 FR 36724. 

4The specific language of the new interpretation 

can be found on OCC’s Web site at http:// 

www.theocc.com/about/publications/bylaws.jsp. 

5Securities and Exchange Commission Release 

Nos. 57895 (May 30, 2008), 73 FR 32066 (June 5, 

2008) (SPDR Gold Trust); 59054 (Dec. 4, 2008), 73 

FR 75159 (Dec. 10, 2008) (iShares COMEX Gold 

Shares and iShares Silver Shares); 61591 (Feb. 25, 

2010), 75 FR 9979 (Mar. 4, 2010) (ETFS Physical 

Gold Shares and ETFS Physical Silver Shares); 

61958 (Apr. 22, 2010), 75 FR 22673 (Apr. 29, 2010) 

(ETFS Palladium Shares And ETFS Platinum 

Shares). 

6 15 U.S.C. 78q–1(b)(3)(F). 

Commission designates the proposal 

operative upon filing. 

At any time within the 60-day period 

beginning on the date 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–NYSE–2010–53 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–NYSE–2010–53. 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,14 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, 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–NYSE–2010–53 and should 

be submitted on or before October 18, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24176 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62956; File No. SR–OCC– 

2010–09] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of Proposed Rule 

Change Relating to Sprott Physical 

Gold Shares 

September 20, 2010. 

I. Introduction 

On June 7, 2010, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission the proposed rule change 

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

Securities Exchange Act of 1934 1 and 

Rule 19b–4 thereunder 2 to clarify that 

OCC will clear and treat as options on 

securities any option contract on Sprott 

Physical Gold Shares that are traded on 

a securities exchange and will clear and 

treat as security futures any futures 

contracts on Sprott Physical Gold 

Shares. The proposed rule change was 

published for comment in the Federal 

Register on June 28, 2010.3 No comment 

letters were received on the proposal. 

This order approves the proposal. 

II. Description of the Proposal 

The proposed rule change will add an 

interpretation following the definition 

of ‘‘fund share’’ in Article I, Section 

1(F)(8), of OCC’s By-Laws to clarify that 

OCC will clear and treat as options on 

securities any option contract on Sprott 

Physical Gold Shares that is traded on 

a securities exchange and will clear and 

treat as security futures any futures 

contracts on Sprott Physical Gold 

Shares.4 This treatment is essentially 

the same as that extended to other 

options that OCC currently clears clears 

pursuant to rule changes approved by 

the Commission.5

In its capacity as a ‘‘derivatives 

clearing organization’’ registered as such 

with the CFTC, OCC also filed this 

proposed rule change for prior approval 

by the CFTC pursuant to provisions of 

the Commodity Exchange Act (‘‘CEA’’) 

in order to foreclose potential liability 

based on an argument that the clearing 

by OCC of such options as securities 

options constitutes a violation of the 

CEA. 

III. Discussion 

Section 17A(b)(3)(F) of the Act 

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions and derivative 

transactions.6 By amending its By-Laws 

to make clear that OCC will clear and 

treat as options on securities any option 

contract on Sprott Physical Gold Shares 

that is traded on a securities exchange 

and will clear and treat as security 

futures any futures contracts on Sprott 

Physical Gold Shares, OCC’s rule 

change should help clarify OCC’s 

treatment of such contracts and 

accordingly should help to promote the 

prompt and accurate clearance and 

settlement of securities transactions and 

of derivative transactions. In accordance 

with the Memorandum of 

Understanding entered into between the 

CFTC and the Commission on March 11, 

2008, and in particular the addendum 

thereto concerning Principles Governing 

the Review of Novel Derivative 

Products, the Commission believes that 

novel derivative products that implicate 

areas of overlapping regulatory concern 

should be permitted to trade in either a 

CFTC or Commission-regulated 

environment or both in a manner 

consistent with laws and regulations 

(including the appropriate use of all 

available exemptive and interpretive 

authority). 


srobinson on DSKHWCL6B1PROD with NOTICES
59304 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78s(b)(2). 

9 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

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

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Session Order duration type is not available for 

PIP Orders, Primary Improvement Orders or 

Improvement Orders. See proposed Section 16(d)(3) 

of Chapter V of the BOX Rules. 

4References herein to the term Trading Host will 

have the meaning as set forth in Section 1(a)(67) of 

Chapter I of the BOX Rules. 

5See Section 16(b) of Chapter V of the BOX Rules. 

6See Section 5(c)(ii) of Chapter VI of the BOX 

Rules. 

7See Section 5 of Chapter XII of the BOX Rules. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act 7 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (File No. SR– 

OCC–2010–09) be and hereby is 

approved.9

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24174 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62959; File No. SR–BX– 

2010–065] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Provide an 

Additional Order Type Which Will Give 

Options Participants Greater Control 

Over the Circumstances in Which Their 

Orders Are Executed 

September 21, 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 13, 2010, NASDAQ OMX 

BX, Inc. (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 self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Chapter V, Section 14 (Order Entry) of 

the Rules of the Boston Options 

Exchange Group, LLC (‘‘BOX’’) to 

provide an additional order type which 

will give Options Participants greater 

control over the circumstances in which 

their orders are executed. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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 

1. Purpose 

The purpose of this proposed rule 

change is to provide an additional order 

type, the ‘‘Session Order’’, which will 

give Options Participants greater control 

over the circumstances in which their 

orders are cancelled or executed. By 

designating the Session Order duration 

type for an order, an Options Participant 

will be able to specify on an order by 

order basis that the designated Session 

Order it has sent to BOX should be 

cancelled as soon as the Options 

Participant loses its connection to the 

BOX system and its ability to either 

directly modify or cancel the order.3

The proposal will offer protection to 

Options Participants’ orders in the event 

that they lose communication with the 

BOX Trading Host 4 due to a loss of 

connectivity between their system and 

BOX or when there is a disconnection 

between internal BOX components. 

An order sent to BOX with this 

Session Order duration type will remain 

active in the BOX trading system until 

one of the following events (‘‘Triggering 

Event’’) occurs: 

• The connection between the 

Options Participant and BOX that was 

used to enter the order is interrupted; 

• There is a disconnection between 

internal BOX components used to 

process orders, causing a component to 

lose its connection to the Options 

Participant or the Trading Host while in 

possession of the Session Order; 

• A component of the Trading Host 

experiences a system error in which it 

is unable to process open orders while 

in possession of the Session Order. 

Upon the occurrence of one of these 

Triggering Events, meaning the Options 

Participant has lost its ability to either 

directly modify or cancel the order, only 

those Session Orders residing in the 

affected BOX internal system(s) will be 

automatically cancelled by BOX. Any 

Triggering Events are connection or 

component specific. Therefore, when a 

particular external connection between 

BOX and the Options Participant is 

interrupted, only those Session Orders 

that came through the interrupted 

connection will be automatically 

cancelled by BOX. Similarly, when the 

Triggering Event is a disconnection 

between internal BOX components, the 

BOX system will only automatically 

cancel Session Orders related to the 

component that is not ‘‘responding’’. The 

cancellation of the Session Orders from 

an affected connection will neither 

impact nor determine the treatment of 

the orders of the same or other Options 

Participants entered into the Trading 

Host via a separate and distinct 

connection. All Session Orders will be 

cancelled at the end of the normal 

trading day. 

A Session Order will not be cancelled 

and shall remain active in the BOX 

market if the order is not allowed to be 

cancelled pursuant to another BOX Rule 

or it is in one of the following BOX 

system processes when a Triggering 

Event occurs: 

• The order is being exposed to the 

BOX market pursuant to the NBBO trade 

through filter process; 5

• The order is a Directed Order to 

which the Executing Participant has not 

yet responded; 6

• The order has been routed to an 

away exchange pursuant to the Routing 

Rules.7

When a Session Order is 

automatically cancelled, BOX will 

immediately generate a cancellation 

message to notify the Options 

Participant that its order is no longer 

active. After the Session Order(s) are 


srobinson on DSKHWCL6B1PROD with NOTICES