Federal Register / Vol. 75, No. 194 / Thursday, October 7, 2010 / Notices 62159 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Exchange Act Release No. 61152 (Dec. 10, 

2009), 74 FR 66699 (Dec. 16, 2009). 

operating income generated by its 

licensing and products and services 

sales activities. 

6. Dolby thus asserts that it satisfies 

the standards for an order under section 

3(b)(2) of the Act. 

Applicant’s Conditions: 

Dolby agrees that any order granted 

pursuant to the application will be 

subject to the following conditions: 

1. Dolby will continue to allocate and 

utilize its accumulated cash and 

investment securities for bona fide 

business purposes. 

2. Dolby will refrain from investing or 

trading in securities for short-term 

speculative purposes. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25292 Filed 10–6–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63021; File No. SR–C2– 

2010–004] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt Certain Rule 

Language Contained in CBOE Rules 

September 30, 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, C2 Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘C2’’) 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 Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 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 adopt 

certain rules in place at the Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’). The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.org/Legal), at 

the Exchange’s Office of the Secretary, 

at the Commission’s Public Reference 

Room, and on the Commission’s Web 

site at http://www.sec.gov. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, C2 

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 

In 2009, C2 was registered as a 

national securities exchange under 

Section 6 of the Exchange Act.5 C2 has 

yet to commence trading options, 

however a launch is anticipated in 

October 2010. The purpose of this filing 

is to modify certain C2 rules to match 

changes that have been made to 

corresponding CBOE rules, and to also 

adopt certain provisions from CBOE 

Rules 3.1 and 8.3 regarding trading 

permits and market maker 

appointments, respectively. 

The Exchange proposes to amend 

Rule 1.1 to adopt the definitions of the 

terms ‘‘Professional’’ and ‘‘Voluntary 

Professional’’ in a substantially similar 

manner as they have recently been 

adopted for use on CBOE. Thus, C2 will 

allow users that fall into the customer 

range to elect to have orders treated, for 

purposes of certain C2 rules, as broker 

dealers. Further, when a person or 

entity that is not a broker-dealer places 

more than 390 orders per day on average 

during a calendar month for its own 

beneficial account(s), such person will 

be deemed a ‘‘Professional’’ under the 

Rules and will be treated in the same 

manner as a broker-dealer for purposes 

of certain designated C2 rules. 

The Exchange proposes to amend 

Rule 3.1 to allow C2 to establish 

different types and terms of trading 

permits, and to establish guidelines and 

standards governing the Exchange’s 

authority regarding these trading 

permits. The proposed changes merely 

adopt certain language contained in 

CBOE Rule 3.1. 

The Exchange also proposes to amend 

Interpretation .03 to Rule 3.5 to expand 

the ability of the Exchange to waive the 

requirement to conduct a hearing under 

Rule 3.5 if the Exchange intends to grant 

a Permit Holder’s application to 

continue holding a Trading Permit or an 

associated person’s application for 

continued association with a Permit 

Holder. 

The Exchange also proposes to modify 

Rule 6.10 regarding order types to (i) 

make clear that the Exchange has the 

flexibility to make order types available 

on a class-by-class basis (this language 

is identical to language contained in 

CBOE Rule 6.53); (ii) add the 

Intermarket Sweep Order (identical to 

the CBOE version); add the AIM Sweep 

Order (identical to the CBOE version); 

add the Sweep and AIM Order 

(identical to the CBOE version); and add 

the C2-Only Order (identical to the 

CBOE version except it is called C2- 

Only instead of CBOE-Only). 

The Exchange also proposes to amend 

Rule 6.32 regarding trading pauses to 

conform Rule 6.32 to comparable rules 

on CBOE and other exchanges. 

The Exchange also proposes to amend 

Rule 8.2 to adopt language from CBOE 

Rule 8.3 (Appointment of MarketMakers) to provide a structure for C2 

Market-Makers to register in option 

classes. As proposed, approved C2 

Market-Makers will receive an option 

class registration credit of 1.0. Like on 

CBOE, a Market-Maker can use that 

credit to register in option classes (each 

class will have a designated registration 

cost). For now, C2 is designating every 

option traded on C2, except SPX, VIX, 

OEX, DJX, and XSP, to have a 

registration cost of .001 (with that cost 

structure, C2 Market-Makers should be 

able to register in every option class 

anticipated to be listed on C2, except for 

the specific classes listed above, with 

the registration credit of 1.0). If C2 

determines to commence trading of 

SPX, VIX, OEX, DJX, and XSP options, 

it will file a proposed rule change to 

adopt registration costs for those 

products. 

Lastly, the Exchange proposes to 

amend C2 Chapter 24 to clarify that 

CBOE Rule 24.20 (SPX Combination 

Orders) shall not apply to C2. CBOE 

Rule 24.20 relates to open-outcry 

trading of SPX combos on CBOE and is 

therefore not applicable to C2. 


jdjones on DSK8KYBLC1PROD with NOTICES
62160 Federal Register / Vol. 75, No. 194 / Thursday, October 7, 2010 / Notices 

6 15 U.S.C. 78s(b)(1). [sic] 

7 15 U.S.C. 78f(b). 

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)(iii) requires a self-regulatory organization to 

provide the Commission with 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. C2 

has satisfied this requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 6 and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.7

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 8 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. Updating the C2 rules to 

keep them in line with those of CBOE 

provides for consistency in rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

C2 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 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change 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 under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) 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 

specified in Rule 19b–4(f)(6)(iii),11

which would make the rule change 

effective and operative upon filing. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest.12 The Commission notes 

the proposal is substantively identical to 

SRO rules that were approved by the 

Commission, and does not raise any 

new regulatory issues. For these 

reasons, the Commission designates the 

proposed rule change as 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 

rule-comments@sec.gov. Please include 

File Number SR–C2–2010–004 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities Exchange Commission, 100 F 

Street, NE., Washington, DC 20549– 

1090. 

All submissions should refer to File 

Number SR–C2–2010–004. 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 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–C2– 

2010–004 and should be submitted on 

or before October 28, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25247 Filed 10–6–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63027; File No. SR–Phlx– 

2010–108] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Order 

Granting Approval to a Proposed Rule 

Change Relating to a Proposed Price 

Improvement System, Price 

Improvement XL 

October 1, 2010. 

I. Introduction 

On July 30, 2010, NASDAQ OMX 

PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘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 establish Price 

Improvement XL (‘‘PIXL’’). The 

proposed rule change was published for 


jdjones on DSK8KYBLC1PROD with NOTICES