Federal Register / Vol. 75, No. 201 / Tuesday, October 19, 2010 / Notices 64371 

7 15 U.S.C. 78s(b)(3)(A). 

8 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. Nasdaq has satisfied this requirement. 

9 17 CFR 240.19b–4(f)(6). 

10For 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). 

11The text of the proposed rule change is 

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

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

12 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. 62847 

(September 3, 2010), 75 FR 55383 (‘‘Notice’’). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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, as amended. 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed 

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

Act 9 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. NASDAQ requests that 

the Commission waive the 30-day 

operative delay because it currently has 

the technological changes ready to 

support the proposed rule change, and 

believes that the benefits of providing 

members with an additional option for 

routing to a new low cost trading venue 

should not be delayed. The Commission 

believes that waiving the 30-day 

operative delay 10 is consistent with the 

protection of investors and the public 

interest and 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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or 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–NASDAQ–2010–127 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–NASDAQ–2010–127. 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,11 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–NASDAQ–2010–127 and 

should be submitted on or before 

November 9, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26245 Filed 10–18–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63096; File No. SR–CBOE– 

2010–077] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting Approval 

of Proposed Rule Change To List 

Series With Up to 12 Expiration Months 

for Broad-Based Security Index 

Options Upon Which the Exchange 

Calculates a Volatility Index 

October 13, 2010. 

I. Introduction 

On August 24, 2010, the Chicago 

Board Options Exchange, Incorporated 

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

Securities and Exchange Commission 

(‘‘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 

allow the Exchange to list series with up 

to 12 expiration months for options that 

overlie broad-based security indexes for 

which options are used by the Exchange 

to calculate a volatility index. On 

September 2, 2010, the Exchange filed 

Amendment No. 1, which replaced the 

original filing in its entirety. The 

proposed rule change, as amended, was 

published for comment in the Federal 

Register on September 10, 2010.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

CBOE has proposed to amend Rule 

24.9(a)(2), Terms of Index Options, to 

allow the Exchange to list series with up 

to 12 expiration months for broad-based 

security index options upon which the 

Exchange calculates a volatility index. 

Currently, Rule 24.9(a)(2) permits the 

Exchange to list series with only seven 

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64372 Federal Register / Vol. 75, No. 201 / Tuesday, October 19, 2010 / Notices 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

6 15 U.S.C. 78s(b)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

expiration months in any index options 

upon which the Exchange calculates a 

constant three-month volatility index. 

In support of its proposal, CBOE 

stated that, since 2009, volatility trading 

has experienced significant growth in 

trading volume. In order to satisfy 

growing demand for a wider variety of 

volatility investment strategies, the 

Exchange is seeking to increase, from 

seven to 12, the number of expiration 

months for broad-based security index 

options upon which the Exchange 

calculates a volatility index. In doing so, 

the Exchange hopes to create flexibility 

that would enable it to create volatility 

indexes of varying lengths in response 

to demand for a wider variety of 

volatility investment strategies. 

Accordingly, the Exchange also 

proposes to delete language from the 

rule text restricting the volatility index 

options to indexes on which the 

Exchange calculates a constant threemonth volatility index. The Exchange 

believes that the additional expirations, 

which will be listed in monthly 

intervals over a one-year time frame, 

will provide the Exchange with the 

flexibility to create indexes that 

represent unique volatility exposures, 

and enable the Exchange to respond 

quickly to investor demand for new 

volatility-based products. 

CBOE further stated that it has 

analyzed its capacity and represents that 

it believes the Exchange and the 

Options Price Reporting Authority have 

the necessary systems capacity to 

handle the additional traffic associated 

with the ability to list series with up to 

12 expiration months for broad-based 

security index options upon which the 

Exchange calculates a volatility index. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.4 Specifically, the 

Commission finds that the proposal is 

consistent with Section 6(b)(5) of the 

Act,5 which requires, among other 

things, that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, 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 proposal will provide investors 

with added flexibility in the trading of 

volatility index options and allow 

investors to establish options positions 

that are more precisely tailored to meet 

their investment objectives. The 

Commission believes that the proposal 

strikes a reasonable balance between the 

Exchange’s desire to accommodate 

market participants by offering a wider 

array of investment opportunities and 

the need to avoid unnecessary 

proliferation of options series and the 

corresponding increase in quotes. The 

Commission expects the Exchange to 

monitor the trading volume associated 

with the additional options series listed 

as a result of this proposal and the effect 

of these additional series on market 

fragmentation and on the capacity of the 

Exchange’s, OPRA’s, and vendors’ 

automated systems. 

In addition, the Commission notes 

that CBOE has represented that it 

believes the Exchange and the Options 

Price Reporting Authority have the 

necessary systems capacity to handle 

the additional traffic associated with the 

newly permitted listings. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (SR–CBOE–2010– 

077) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–26279 Filed 10–18–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63095; File No. SR–MSRB– 

2010–10] 

Self-Regulatory Organizations; 

Municipal Securities Rulemaking 

Board; Notice of Filing of Proposed 

Rule Change Consisting of 

Amendments to Rule A–13 To Increase 

Transaction Assessments for Certain 

Municipal Securities Transactions 

Reported to the Board and To Institute 

a New Technology Fee on Reported 

Sales Transactions 

October 13, 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 30, 2010, the Municipal 

Securities Rulemaking Board (‘‘Board’’ 

or ‘‘MSRB’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the MSRB. 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 MSRB has filed with the 

Commission a proposed rule change 

relating to assessments for brokers, 

dealers, and municipal securities 

dealers (‘‘dealers’’) under MSRB Rule A– 

13. The proposed rule change consists 

of amendments to Rule A–13 to increase 

transaction assessments for certain 

municipal securities transactions 

reported to the Board and to institute a 

new technology fee on reported sales 

transactions. The proposed rule change 

would amend Rule A–13 to (a) Increase 

the existing transaction assessments for 

inter-dealer and customer sales from 

.0005% to .001% of the total par value 

of inter-dealer sales and sales to 

customers that are reported by dealers to 

the MSRB (the ‘‘transaction fee’’), and (b) 

impose a technology fee of $1.00 per 

transaction for inter-dealer and 

customer sales reported to the Board 

(the ‘‘technology fee’’). The technology 

fee would be transitional in nature and 

would be reviewed by the Board 

periodically to determine whether it 

should continue to be assessed. The 

MSRB proposes an effective date for this 

proposed rule change of January 1, 

2011. 

The text of the proposed rule change 

is available on the MSRB’s Web site at 

http://www.msrb.org/Rules-andInterpretations/SEC-Filings/2010- 

Filings.aspx 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 

MSRB 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 Board has 

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