Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 67153 

3 15 U.S.C. 78f. 

4 15 U.S.C. 78f(b)(4). 

5 15 U.S.C. 78s(b)(3). 

6 17 CFR 240.19b–4(f)(2). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 its 

fee schedule by eliminating all fees 

related to its equity market. The text of 

the proposed rule change is available on 

the Exchange’s Web site http:// 

www.ise.com, at the principal office of 

the Exchange, 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 

Exchange 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 

Exchange 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 Exchange has ceased trading 

equity securities in its market. 

Therefore, the Exchange is now 

proposing to eliminate all fees related to 

the trading of equity securities and its 

equity membership from its Schedule of 

Fees. The Exchange believes that 

eliminating the fees related to equities 

will simplify and clarify its Schedule of 

Fees, and thereby avoid investor 

confusion by only publishing fees for 

products that are traded on its market. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,3

in general, and furthers the objectives of 

Section 6(b)(4),4 in particular, in that it 

is designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. Since 

the Exchange no longer trades equities 

in its market, the proposed rule change 

will simply its Schedule of Fees by 

eliminating the fees related to equities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 5 and Rule 19b–4(f)(2) 6

thereunder. At any time within 60 days 

of the filing of such 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–ISE–2010–104 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–ISE–2010–104. 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 

will also 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 No. SR–ISE–2010– 

104 and should be submitted on or 

before November 22, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27494 Filed 10–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63177; File No. SR–ISE– 

2010–105] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to a Date for the 

Additional Expiration Months Pilot 

Program 

October 25, 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 October 

20, 2010, the International Securities 

Exchange, Inc. (the ‘‘Exchange’’ or ‘‘ISE’’) 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES

67154 Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 

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

4 17 CFR 240.19b–4(f)(1). 

5See Securities Exchange Act Release No. 63104 

(October 14, 2010), 75 FR 64773 (October 20, 2010) 

(Approving SR–ISE–2010–91). 

6Previously the rule text indicated that the 

Exchange would insert the date 12 months from the 

next full month from approval, which approval 

occurred on October 14, 2010. Id. 

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

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

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

10 17 CFR 240.19b–4(f)(1). 

Exchange has designated the proposed 

rule change as one constituting a stated 

policy, practice, or interpretation with 

respect to the meaning, administration, 

or enforcement of an existing rule under 

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

Rule 19b–4(f)(1) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 ISE is proposing to make 

technical amendments to its rules to 

insert the specific date for a pilot 

program. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), at the 

principal office of the Exchange, 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 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 Exchange proposes to make 

technical amendments to its rules to 

insert a specific date for a pilot program. 

The Commission recently approved 

the Exchange’s proposal to establish a 

pilot program that would permit the 

Exchange to list up to an additional two 

expiration months, for a total of six 

expiration months for each class of 

options open for trading on the 

Exchange.5 This rule change proposes to 

amend the text of Supplementary 

Material .08 to Rule 504 to insert the 

specific conclusion date of the pilot 

program, which is October 31, 2011.6

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 7 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5) 8 in 

particular, in that it 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 facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system in a 

manner consistent with the protection 

of investors and the public interest. In 

particular, the proposed rule change 

seeks to update rule text to insert 

specific dates for a pilot program in a 

manner that is consistent with the 

original approval order of the pilot 

program. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

will take effect upon filing with the 

Commission pursuant to Section 

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

4(f)(1) thereunder,10 because it 

constitutes a stated policy, practice, or 

interpretation with respect to the 

meaning, administration, or 

enforcement of an existing rule. 

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–ISE–2010–105 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–ISE–2010–105. 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–ISE– 

2010–105 and should be submitted on 

or before November 22, 2010. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 67155 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The current FINRA rulebook consists of (1) 

FINRA Rules; (2) NASD Rules; and (3) rules 

incorporated from NYSE (‘‘Incorporated NYSE 

Rules’’) (together, the NASD Rules and Incorporated 

NYSE Rules are referred to as the ‘‘Transitional 

Rulebook’’). While the NASD Rules generally apply 

to all FINRA members, the Incorporated NYSE 

Rules apply only to those members of FINRA that 

are also members of the NYSE (‘‘Dual Members’’). 

The FINRA Rules apply to all FINRA members, 

unless such rules have a more limited application 

by their terms. For more information about the 

rulebook consolidation process, see Information 

Notice, March 12, 2008 (Rulebook Consolidation 

Process). 

4NASD Rule 3110(b) (Marking of Customer Order 

Tickets) requires that members indicate on the 

order ticket for each transaction in a non-exchangelisted security the name of each dealer contacted 

and the quotations received to determine the best 

inter-dealer market as required by NASD Rule 

2320(g) (commonly referred to as the ‘‘Three Quote 

Rule’’), unless the member can establish and 

document its reliance on the exclusions to the 

Three Quote Rule. FINRA is proposing to replace 

NASD Rule 3110(b) with a more general 

documentation requirement in the supplementary 

material to proposed FINRA Rule 5310. See 

Regulatory Notice 08–80 (December 2008) 

(Proposed FINRA Rule Addressing Best Execution). 

NASD Rule 3110(i) (Holding of Customer Mail) 

specifies the circumstances under which members 

may hold mail for a customer. FINRA is proposing 

that NASD Rule 3110(i) be rewritten as a standalone 

rule and relocated to the supervision section of the 

Consolidated FINRA Rulebook. See Regulatory 

Notice 08–24 (May 2008) (Proposed Consolidated 

FINRA Rules Governing Supervision and 

Supervisory Controls). 

5For convenience, the Incorporated NYSE Rules 

are referred to as the NYSE Rules. 

6NYSE Rule Interpretation 410(a)(ii)(5)/01 was 

deleted as part of a prior rule change. See Securities 

Exchange Act Release No. 61473 (February 2, 2010), 

75 FR 6422 (February 9, 2010) (Order Approving 

File No. SR–FINRA–2009–087). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27465 Filed 10–29–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63181; File No. SR–FINRA– 

2010–052] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Adopt 

FINRA Rules Regarding Books and 

Records in the Consolidated FINRA 

Rulebook 

October 26, 2010. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

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

notice is hereby given that on October 

20, 2010, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) 

(f/k/a National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. 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 

FINRA is proposing to adopt certain 

paragraphs, as specified below, of NASD 

Rule 3110 (Books and Records), subject 

to certain amendments, as FINRA Rules 

in the consolidated FINRA rulebook and 

to adopt Incorporated NYSE Rule 

Interpretations 410/01 (Pre-Time 

Stamping) and 410/02 (Allocations of 

Block Orders), subject to certain 

amendments, as FINRA Rules in the 

consolidated FINRA rulebook. 

The proposed rule change would 

delete NASD IM–3110 (Customer 

Account Information) and Incorporated 

NYSE Rule 410 (Records of Orders). In 

addition, the proposed rule change 

would delete Incorporated NYSE Rule 

440 (Books and Records), with the 

exception of Incorporated NYSE Rules 

440.10 (Periodic Security Counts, 

Verifications, Comparisons, etc.) and 

440.20 (Identification of Suspense 

Accounts and Assignment of 

Responsibility for General Ledger 

Accounts) and NYSE Rule Interpretation 

440.20/01 (Suspense Accounts). 

The proposed rule change would 

renumber NASD Rule 3110(a) 

(Requirements) as FINRA Rule 4511 

(General Requirements), NASD Rule 

3110(c) (Customer Account Information) 

as FINRA Rule 4512 (Customer Account 

Information), NASD Rules 3110(d) 

(Record of Written Complaints) and 

3110(e) (‘‘Complaint’’ Defined) as FINRA 

Rule 4513 (Records of Written Customer 

Complaints), NASD Rule 3110(f) 

(Requirements When Using Predispute 

Arbitration Agreements for Customers 

Accounts) as FINRA Rule 2268 

(Requirements When Using Predispute 

Arbitration Agreements for Customer 

Accounts), NASD Rule 3110(g) 

(Negotiable Instruments Drawn From A 

Customer’s Account) as FINRA Rule 

4514 (Authorization Records for 

Negotiable Instruments Drawn From a 

Customer’s Account), NASD Rule 

3110(h) (Order Audit Trail System 

Record Keeping Requirements) as 

paragraph (a)(4) of FINRA Rule 7440 

(Recording of Order Information) and 

NASD Rule 3110(j) (Changes in Account 

Name or Designation) as FINRA Rule 

4515 (Approval and Documentation of 

Changes in Account Name or 

Designation) in the consolidated FINRA 

rulebook. The proposed rule change also 

would renumber NYSE Rule 

Interpretation 410/01 as FINRA Rule 

5340 (Pre-Time Stamping) and NYSE 

Rule Interpretation 410/02 as FINRA 

Rule 4515.01 (Allocations of Orders 

Made by Investment Advisers). 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

Background 

As part of the process of developing 

a new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’),3

FINRA is proposing to adopt NASD 

Rules 3110(a), 3110(c), 3110(d) and (e), 

3110(f), 3110(g), 3110(h) and 3110(j) as 

FINRA Rules 4511, 4512, 4513, 2268, 

4514, 7440(a)(4) and 4515, respectively, 

in the Consolidated FINRA Rulebook, 

with certain changes as described 

below.4 FINRA also is proposing to 

adopt Incorporated NYSE Rule 

Interpretations 410/01 and 410/02 as 

FINRA Rules 5340 and 4515.01,5

respectively, in the Consolidated FINRA 

Rulebook.6 FINRA is proposing to delete 

NASD IM–3110 and NYSE Rules 410 

and 440, provided, however, NYSE 

Rules 440.10 and 440.20 and NYSE Rule 

Interpretation 440.20/01 are being 

mstockstill on DSKH9S0YB1PROD with NOTICES