Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59301 

5 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 parallel changes are 

proposed to the rules of its affiliate, NYSE Amex 

LLC. See SR–NYSEAmex–2010–71. 

4See Securities Exchange Act Release No. 36156 

(August 25, 1995), 60 FR 45756 (September 1, 1995) 

(SR–NYSE–95–22). The Wireless Policy was 

attached as an exhibit to the proposed rule change 

that most recently amended the Wireless Policy. 

See Securities Exchange Act Release No. 59626 

(March 25, 2009), 74 FR 14831 (April 1, 2009) (SR– 

NYSE–2009–33). 

5NYSE Rule 36.20. 

6NYSE Rule 36.21. 

stub quote prices, such as those on May 

6, 2010. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is 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 

Written comments were neither 

solicited nor received. 

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–FINRA–2010–049 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–FINRA–2010–049. 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 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–2010–049 and 

should be submitted on or before 

October 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24057 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62964; File No. SR–NYSE– 

2010–53] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by New York 

Stock Exchange LLC Amending NYSE 

Rule 36 

September 21, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on 

September 14, 2010, the New York 

Stock Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 proposes to amend 

NYSE Rule 36 (‘‘Communications 

Between Exchange and Members’ 

Offices’’) to incorporate the provisions of 

its current Wireless Policy. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE proposes to amend NYSE Rule 

36 (‘‘Communications Between 

Exchange and Members’ Offices’’) to 

incorporate the provisions of its current 

Wireless Policy into Supplementary 

Material .70 of the Rule.3 The Wireless 

Policy was previously approved by the 

Commission.4

Background 

Current NYSE rules permit a Floor 

broker to communicate information to a 

customer using a wired telephone line,5

NYSE approved portable telephones,6 or 

through a written electronic 

communication from the Floor brokers’ 

hand-held device as permitted by the 

NYSE’s ‘‘Wireless Data Communications 

Initiatives.’’ Wireless communications 


srobinson on DSKHWCL6B1PROD with NOTICES
59302 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

7However, Floor brokers are permitted to provide 

their customers with specific data points from 

datafeeds made available on the hand-held devices. 

8 15 U.S.C. 78f(b)(5). 

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

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

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. NYSE has satisfied this requirement. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6). 

13For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

can be sent and received directly to and 

from a Floor broker’s hand-held device 

and orders entered from off the Floor 

may be transmitted directly to a handheld device, bypassing the booth. Floor 

brokers may send order-related 

messages and information (e.g., 

cancellations and administrative 

messages, as well as market probes and 

market looks) back to the customer 

directly through the hand-held device. 

Pursuant to the Exchange’s Wireless 

Policy, a record must be established and 

maintained for transmissions that are 

sent: (1) From a member’s off-Floor 

location to a booth terminal and then 

retransmitted from the booth terminal to 

a member’s hand-held device; or (2) 

directly to the hand-held device, 

bypassing the booth. Orders sent from 

off-Floor to the booth or the hand-held 

device are first sent through a secured 

network and routed to an Exchangewired database that captures and 

records the orders. Likewise, orderrelated messages or information 

generated from the Floor broker’s booth 

or hand-held device are transmitted 

back to the Exchange-wired databases 

via the secured wireless network, where 

the information is captured and 

recorded, and then sent off-Floor to the 

customer via the Exchange’s secured 

network. The Exchange records all of 

the information sent to and transmitted 

from the hand-held devices. 

Proposed Amendments to NYSE Rule 36 

The Exchange proposes to revise 

NYSE Rule 36 to incorporate the 

provisions of its Wireless Policy, 

previously approved by the 

Commission, in Supplementary Material 

.70 of the Rule. In addition, the 

Exchange is making certain clarifying 

changes as part of the incorporation of 

the Wireless Policy into the Rule. 

First, the Exchange proposes to clarify 

the language in Supplementary Material 

.70 and the Wireless Policy by using 

consistent terminology when referring 

to the hand-held devices in the 

proposed rule change. Thus, for 

example, references in paragraph (a) of 

the current Supplementary Material to 

‘‘wireless trading devices’’ would be 

changed to ‘‘wireless hand-held 

devices.’’ The use of consistent 

terminology would make clear that the 

Exchange is referencing the same type of 

device in both paragraphs of the 

proposed rule. 

Second, the Exchange is clarifying 

that Floor brokers may send orderrelated messages outside their member 

organizations only to customers. In this 

regard, the Exchange is clarifying the 

rule text to provide that order-related 

messages and information include 

market looks. The Exchange also notes 

that a customer must be specifically 

enabled by the Floor broker to receive 

communications from the Floor broker’s 

hand-held device. 

For purposes of this proposed rule 

change, the term ‘‘customer’’ means a 

person who the Floor broker reasonably 

believes is receiving the order-related 

message(s) in consideration of a 

securities transaction or potential 

securities transaction with the Floor 

broker. Whether such a belief is 

reasonable is based on the relevant facts 

and circumstances including, without 

limitation: whether the customer is a 

bona fide market participant; any prior 

history of the customer entering orders 

with the Floor broker for execution on 

the Exchange; and acknowledgement by 

the customer (including by negative 

consent) that the customer is receiving 

order-related messages in consideration 

of a securities transaction or potential 

securities transaction with the Floor 

broker. A Floor broker may provide 

order-related messages to a customer 

pursuant to proposed Supplementary 

Material .70 notwithstanding the fact 

that the customer’s receipt of particular 

messages does not lead to an order with 

the Floor broker. 

Third, the Exchange is clarifying that 

the Wireless Policy does not allow Floor 

brokers to retransmit datafeeds received 

on hand-held devices or send orders to 

another hand-held device.7

Fourth, the Exchange is clarifying that 

Floor brokers may send trade reports on 

their hand-held devices. 

Finally, the Exchange is clarifying 

that the Wireless Policy applies not only 

to member organizations but also to 

employees of member organizations. 

As proposed, Supplementary Material 

.70 is substantially similar to the 

Exchange’s Wireless Policy as 

previously filed with and approved by 

the Commission. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 8 that an Exchange 

have rules that are 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. The instant proposal is 

in keeping with these principles 

because the incorporation of the 

Wireless Policy in the Exchange’s rules 

promotes transparency and makes clear 

what type of information may be 

communicated to and from hand-held 

devices. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is 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 

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 proposed rule 

change 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, it has 

become effective pursuant to Section 

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

4(f)(6) thereunder.10

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 11 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 12

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. NYSE requests that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative immediately upon filing. The 

Commission notes that the proposed 

rule change codifies into rule text an 

existing policy and provides certain 

other clarifications. For this reason, the 

Commission believes that waiving the 

30-day operative delay 13 is consistent 

with the protection of investors and the 

public interest. Therefore, the 


srobinson on DSKHWCL6B1PROD with NOTICES
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