Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61547 

43See Regal. 

44See ABA. 

45See id. 

46 15 U.S.C. 78s(b)(2). 

47 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

include a mandatory ban prohibiting 

members from seeking or providing 

investment banking services to a 

company for a period of 12 months 

following any allocation of IPO shares to 

an account of an executive officer or 

director of such company and whether 

such a ban would facilitate compliance. 

One commenter strongly supported a 

12-month prohibition.43 However, 

another commenter opposed such a 

prohibition, saying that it ‘‘would—by 

rule—impose an automatic sanction for 

even inadvertent allocations of IPO 

securities’’ and ‘‘would, in all cases, be 

financially disproportionate to the value 

of the securities involved in any 

violation, would not take into account 

the specific facts of each situation, 

deprive the FINRA member of its 

statutory right to a fair hearing before 

the imposition of any disciplinary 

sanction, and would unfairly deprive 

the company of the right to select the 

services of the FINRA member.’’ 44

According to this commenter, in each 

case, the imposition of a mandatory ban, 

as suggested by the Commission, would 

be an excessive penalty in light of the 

facts and circumstances underlying the 

potential violation of the proposed 

rule.45 Nevertheless, this commenter 

noted that the 12-month prohibition 

‘‘should not in any event be approved 

without an opportunity for review of 

and comment on the text of the 

proposed rule,’’ with commenter 

requesting that the Commission 

republish for comment any proposal to 

adopt such a mandatory ban on 

investment banking services with a 

sixty-day comment period. In light of 

these comments, the Commission will 

continue to consider the commenters’ 

recommendations and concerns in 

considering whether any future action is 

warranted. However, the Commission 

does not believe this issue should 

preclude approval of the proposal. 

V. Accelerated Approval 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,46 for approving the proposed rule 

change, as modified by Amendment 

Nos. 1 through 4 thereto, prior to the 

30th day after the date or publication of 

Amendment No. 4 in the Federal 

Register. The changes proposed in 

Amendment No. 4 respond to specific 

concerns raised. Moreover, accelerating 

approval of this proposal should benefit 

FINRA members by aiding them in 

avoiding misconduct in new issue 

distributions and should benefit 

investors by taking a step to enhance 

investor protection in the capital raising 

process. 

VI. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Amendment No. 

4, 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–NASD–2003–140 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–NASD–2003–140. 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 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 available publicly. All 

submissions should refer to File 

Number SR–NASD–2003–140 and 

should be submitted on or before 

October 26, 2010. 

VII. Conclusion 

It is therefore ordered pursuant to 

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

proposed rule change (SR–NASD–2003– 

140), as modified by Amendment Nos. 

1 through 4, be, and hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.47

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24899 Filed 10–4–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63004; File No. SR–Phlx2010–126] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding 

Individual Stock Trading Pauses 

September 29, 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 22, 2010, NASDAQ OMX 

PHLX LLC (‘‘PHLX’’ 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 proposes to amend 

PHLX Rule 3100(a)(4) to add securities 

included in the Russell 1000 Index 

(‘‘Russell 1000’’) and specified Exchange 

Traded Products (‘‘ETP’’) to the 

definition of Circuit Breaker Securities. 

The text of the proposed rule change is 

available from the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com, at 

the Exchange’s principal office, and at 

the Commission’s Public Reference 

Room. 

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61548 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

3An ETF is an open-ended registered investment 

company under the Investment Company Act of 

1940 that has received certain exemptive relief from 

the Commission to allow secondary market trading 

in the ETF shares. ETFs are generally index-based 

products, in that each ETF holds a portfolio of 

securities that is intended to provide investment 

results that, before fees and expenses, generally 

correspond to the price and yield performance of 

the underlying benchmark index. 

4An ETV tracks the underlying performance of an 

asset or index, allowing investor’s exposure to 

underlying assets such as futures contracts, 

commodities, and currency without actually trading 

futures or taking physical delivery of the underlying 

asset. An ETV is traded intraday like an ETF. An 

ETV is an open-ended trust or partnership unit that 

is registered under the Securities Act of 1933. 

5An ETN is a senior unsecured debt obligation 

designed to track the total return of an underlying 

index, benchmark or strategy, minus investor fees. 

ETNs are registered under the Securities Act of 

1933 and are redeemable to the issuer. 6Securities Exchange Act Release No. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR– 

BATS–2010–014; SR–EDGA–2010–01; SR–EDGX– 

2010–01; SR–BX–2010–037; SR–ISE–2010–48; SR– 

NYSE–2010–39; SR–NYSEAmex–2010–46; SR– 

NYSEArca–2010–41; SR–NASDAQ–2010–061; SR– 

CHX–2010–10; SR–NSX–2010–05; SR–CBOE–2010– 

047). 

7Securities Exchange Act Release No. 62877 

(September 9, 2010), 75 FR 56633 (September 16, 

2010) (SR–PHLX–2010–79). 

8Securities Exchange Act Release No. 62884 

(September 10, 2010), 75 FR 56618 (September 16, 

2010) (SR–BATS–2010–018; SR–BX–2010–044; SR– 

CBOE–2010–065; SR–CHX–2010–14; SR–EDGA– 

2010–05; SR–EDGX–2010–05; SR–ISE–2010–66; 

SR–NASDAQ–2010–079; SR–NYSE–2010–49; SR– 

NYSEAmex–2010–63; SR–NYSEArca–2010–61; SR– 

NSX–2010–08). 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(5). 11 15 U.S.C. 78k–1(a)(1). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to submit to the Commission written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of 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. The 

Exchange has satisfied this requirement. 

14 17 CFR 240.19b–4(f)(6). 

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 

Exchange included statements 

concerning the purpose of, and basis for, 

the proposed rule change. The text of 

these statements may be examined at 

the places specified in Item IV below, 

and is set forth in Sections A, B, and C 

below. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 3100(a)(4) to add securities 

included in the Russell 1000 Index 

(‘‘Russell 1000’’) and specified Exchange 

Traded Products (‘‘ETPs’’) to the 

definition of Circuit Breaker Securities. 

For purposes of this filing, ETPs include 

Exchange Traded Funds (‘‘ETFs’’),3

Exchange Traded Vehicles (‘‘ETVs’’),4

and Exchange Traded Notes (‘‘ETNs’’).5

The primary listing markets for U.S. 

stocks recently amended their rules so 

that they may, from time to time, issue 

a trading pause for an individual 

security if the price of such security 

moves 10% or more from a sale in a 

preceding five-minute period.6 In 

connection with its resumption of 

trading of NMS Stocks through the 

NASDAQ OMX PSX (‘‘PSX’’) system, the 

Exchange recently adopted Rule 

3100(a)(4) 7 to pause trading in an 

individual stock when the primary 

listing market for such stock issues a 

trading pause in any Circuit Breaker 

Securities, as defined in the rule. The 

rule is in effect on a pilot basis until 

December 10, 2010. Originally, the pilot 

list of Circuit Breaker Securities 

comprised all securities included in the 

S&P 500 Index (‘‘S&P 500’’). On 

September 10, 2010, the Commission 

approved filings by exchanges other 

than the Exchange to expand the list of 

Circuit Breaker Securities.8

Accordingly, the Exchange is submitting 

this filing to conform its pilot list to the 

list just approved for other exchanges. 

Specifically, the Exchange proposes to 

add the securities included in the 

Russell 1000 and specified ETPs to the 

pilot. The pilot list of ETPs is provided 

in Exhibit 3. The Exchange believes that 

adding these securities would begin to 

address concerns raised by some parties 

that the scope of the original pilot may 

be too narrow, while at the same time 

recognizing that during the pilot period, 

the markets will continue to review 

whether and when to add additional 

securities to the pilot and whether the 

parameters of the rule should be 

adjusted for different securities. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,9

in general, and with Sections 6(b)(5) of 

the Act,10 in particular, in that the 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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 is also designed to 

support the principles of Section 

11A(a)(1) 11 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 uniformity across 

markets concerning decisions to pause 

trading in a security when there are 

significant price movements. 

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 

Written comments were neither 

solicited nor received. 

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, if consistent with the 

protection of investors and the public 

interest, it has become effective 

pursuant to Section 19(b)(3)(A) of the 

Act 12 and Rule 19b–4(f)(6) 

thereunder.13

A proposed rule change filed 

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

Act 14 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange requests 

that the Commission waive the 30-day 

operative delay as it has recently 

received approval to initiate trading on 

PSX and plans to do so on October 8, 

2010. In order to ensure that the 

Exchange’s rules on individual stock 

trading pauses are consistent with the 

recently approved changes to the rules 

of other markets, the Exchange wants to 

be able to implement these pauses 

concurrent with the initiation of trading 

on PSX. For this reason, the 

Commission believes that waiving the 

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Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61549 

15For 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). 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 34– 

62758 (August 23, 2010), 75 FR 166 (August 27, 

2010) (SR–CBOE–2010–075). 

4See Securities Exchange Act Release No. 34– 

62878 (September 9, 2010), 75 FR 179 (September 

16, 2010) (SR–CBOE–2010–079). 

30-day operative delay 15 is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission designates the proposal 

operative upon filing. 

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–Phlx–2010–126 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–Phlx–2010–126. 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 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 available publicly. All 

submissions should refer to File 

Number SR–Phlx–2010–126 and should 

be submitted on or before October 26, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24896 Filed 10–4–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63000; File No. SR–CBOE– 

2010–089] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Modify the Fee 

Schedule for the CBOE Stock 

Exchange 

September 28, 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 22, 2010, the Chicago Board 

Options Exchange, Incorporated (the 

‘‘Exchange’’ or ‘‘CBOE’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 modify the 

Fees Schedule for its CBOE Stock 

Exchange (‘‘CBSX’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/legal), at the Exchange’s 

principal office, and at the 

Commission’s Public Reference Room. 

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 

On August 23, 2010, the Commission 

published an immediately effective rule 

filing to modify the transaction fees for 

24 securities currently traded on CBSX 

(the following symbols: BAC, C, DXD, 

EMC, EWJ, F, FAX, FAZ, GE, INTC, 

MOT, MSFT, MU, NOK, Q, QID, S, SIRI, 

SKF, T, TWM, UNG, UWM, XLF).3 On 

September 9, 2010, the Commission 

published an immediately effective rule 

filing to modify the transaction fees for 

51 more securities currently traded on 

CBSX (the following symbols: AA, 

AMAT, AMD, BGZ, BP, BSX, CMCSA, 

COCO, CSCO, CX, DELL, DUK, EBAY, 

EEM, EWT, FAS, FLEX, HBAN, IYR, 

MDT, MGM, IYR, MDT, MGM, NLY, 

NVDA, NWSA, ORCL, PFE, QCOM, 

QQQQ, SBUX, SH, SLV, SMH, SSO, 

SYMC, TBT, TSM, TXN, UCO, USO, 

VALE, VWO, WFC, XHB, XLB, XLK, 

XLP, XLU, XLV, XLY, XRX, YHOO).4

The Exchange now proposes to add 50 

more securities to that list of securities 

(the following symbols: ARNA, ATML, 

BKC, BRCD, CIM, DOW, DRYS, EFA, 

EWZ, FITB, FXI, GBG, GDX, GLD, GLW, 

HPQ, IDIX, IWM, JPM, KEY, LVLT, LVS, 

MFE, MO, MRVL, ONNN, PBR, PCBC, 

QLD, RF, RFMD, RIMM, RRI, RSCR, 

SDS, SNDK, SPLS, SPY, TEVA, TLT, 

TNA, TZA, UYG, VXX, VZ, X, XLE, XLI, 

XOM, XRT). 

For those securities already approved 

for the new transaction fees as well as 

those that would be added by this 

proposed rule change, assuming their 

prices do not drop below $1, the takers 

of liquidity will receive a $0.0014 per 

share rebate, and makers of liquidity 

mstockstill on DSKH9S0YB1PROD with NOTICES