23912 Federal Register / Vol. 74, No. 97 / Thursday, May 21, 2009 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 The 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 FINRA 

Information Notice, March 12, 2008 (Rulebook 

Consolidation Process). 

4 For convenience, the proposed rule change 

refers to Incorporated NYSE Rules as NYSE Rules. 

organization consents, the Commission 

will: 

(A) By order approve 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–CBOE–2009–029 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–CBOE–2009–029. 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 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–CBOE–2009–029 and 

should be submitted on or before June 

11, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11811 Filed 5–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59921; File No. SR–FINRA– 

2009–028] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Adopt 

FINRA Rule 2231 (Customer Account 

Statements) in the Consolidated FINRA 

Rulebook 

May 14, 2009. 

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

Securities Exchange Act of 1934 (‘‘SEA’’ 

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

notice is hereby given that on April 22, 

2009, 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, II, 

and III 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 NASD 

Rule 2340 (Customer Account 

Statements) with certain changes as 

FINRA Rule 2231 in the new 

consolidated FINRA rulebook 

(‘‘Consolidated FINRA Rulebook’’).3 The 

proposed rule change would also delete 

NYSE Rule 409 4 (Statements of 

Accounts of Customers), except for 

paragraph (f), and certain of its related 

interpretations. 

The text of the proposed rule change 

is available at FINRA, the Commission’s 

Public Reference Room, and http:// 

www.finra.org. 

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 

As part of the process of developing 

a new consolidated rulebook, FINRA is 

proposing to adopt NASD Rule 2340 

(Customer Account Statements) with 

certain changes as FINRA Rule 2231 in 

the Consolidated FINRA Rulebook. The 

proposed rule change would also delete: 

(1) NYSE Rule 409 (Statements of 

Accounts to Customers), except for 

paragraph (f) and its related 

supplementary material; and (2) NYSE 

Rule Interpretations 409(a) and 409(b), 

except for paragraphs 409(a)/01 and 

409(a)/03, as the rule and its related 

interpretations are, in main part, 

duplicative of NASD Rule 2340. 

However, as further described herein, 

the proposed rule change would 

incorporate certain provisions of NYSE 

Rule 409 and its interpretations into 

new FINRA Rule 2231. 

PROPOSED FINRA RULE 2231 

(CUSTOMER ACCOUNT 

STATEMENTS) 

Frequency of Delivery of Account 

Statements and Disclosures 

NASD Rule 2340 generally requires 

each general securities member to send 

customers at least once each calendar 

quarter account statements containing a 

description of any securities positions, 

money balances or account activity in 

the accounts since the prior account 

statements were sent. NYSE Rule 409(a) 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 97 / Thursday, May 21, 2009 / Notices 23913 

5 17 CFR 240.15c3–1(a). 6 17 CFR 240.15c3–2. 

7 See NASD Notice to Members 98–3 (January 

1998). 

similarly requires member organizations 

to send customer account statements at 

least once each calendar quarter. 

In contrast, proposed FINRA Rule 

2231(a) would impose an additional 

requirement that each general securities 

member send account statements at 

least once every calendar month to each 

customer whose account had account 

activity during the period since the last 

statement was sent to the customer, and 

continue to require that a statement be 

sent at least once every calendar quarter 

to each customer whose account had a 

security position or money balance 

during the period since the last 

statement was sent to the customer. 

Proposed FINRA Rule 2231 would 

adopt the definitions of the terms 

‘‘general securities member’’ and 

‘‘account activity’’ set forth in NASD 

Rule 2340. A ‘‘general securities 

member’’ would be any member that 

conducts a general securities business 

and is required to calculate its net 

capital pursuant to the provisions of 

SEA Rule 15c3–1(a).5 However, as is the 

case under NASD Rule 2340 currently, 

a member that does not carry customer 

accounts and does not hold customer 

funds or securities would continue to be 

exempt from the provisions of FINRA 

Rule 2231. ‘‘Account activity’’ would 

continue to be defined broadly and 

would include, but not be limited to, 

purchases, sales, interest credits or 

debits, charges or credits, dividend 

payments, transfer activity, securities 

receipts or deliveries and/or journal 

entries relating to securities or funds in 

the possession or control of the member. 

FINRA believes the proposed 

amendment better reflects current 

industry practice as a significant 

number of members already send 

customers monthly account statements 

through their clearing firms. FINRA 

believes that receipt of monthly 

statements will allow customers to 

review their statements in a timely 

manner for errors, possible identify theft 

or other potential problems. 

Proposed FINRA Rule 2231(a) would 

also retain the requirement in NASD 

Rule 2340(a) (and NYSE Rule 409(e)) to 

include on customer account statements 

a statement advising customers to report 

promptly any inaccuracy or discrepancy 

in their account to the introducing firm 

and clearing firm (where there are two 

different firms) and to re-confirm any 

oral communications in writing to 

further protect the customer’s rights, 

including rights under the Securities 

Investor Protection Act. 

DVP/RVP Securities on Account 

Statements 

Proposed FINRA Rule 2231(b) would 

incorporate without substantive change 

the provisions in NASD Rule 2340(b) 

(and NYSE Rule 409(a)) providing that 

account statements do not need to be 

sent to a customer if the customer’s 

account is carried solely for execution 

on a Delivery versus Payment/Receive 

versus Payment (‘‘DVP/RVP’’) basis, 

subject to certain specified conditions. 

The rule would continue to provide that 

it does not qualify or condition the 

obligations of members under SEA Rule 

15c3–2 concerning quarterly notices of 

free credit balances on statements.6

Value of DPP/REIT Securities on 

Account Statements 

Proposed FINRA Rule 2231(c) would 

incorporate without substantive change 

the provisions in NASD Rule 2340(c) 

regarding the disclosure of values for 

unlisted or illiquid direct participation 

program (‘‘DPP’’) and real estate 

investment trust (‘‘REIT’’) securities on 

customer account statements. The 

proposed rule would require that 

estimated values for DPP/REIT 

securities must be disclosed under 

certain circumstances and describe how 

such estimated values must be 

determined. NYSE Rule 409 does not 

include the requirement regarding 

disclosure of values for DPPs and 

REITS. 

Definitions 

Proposed FINRA Rule 2231(d) would 

incorporate without substantive change 

the definitions of significant terms used 

in the rule, such as account activity, 

general securities member, direct 

participation program, real estate 

investment trust, annual report and 

DVP/RVP account (this last term is also 

defined in NYSE Rule 409(a)). 

Exemptions 

Proposed FINRA Rule 2231(e) would 

incorporate without substantive change 

the provision in NASD Rule 2340(e) 

authorizing FINRA to exempt members 

from the provisions of the rule pursuant 

to the Rule 9600 Series. 

PROPOSED SUPPLEMENTARY 

MATERIALS TO FINRA RULE 2231 

FINRA is proposing to adopt the 

following provisions as supplementary 

materials to FINRA Rule 2231. As 

further described below, these 

provisions are adopted largely from 

NYSE Rule 409 and its related 

interpretations. 

Proposed Supplementary Material .01 

(Transmission of Customer Account 

Statements to Other Persons or Entities) 

This provision, which is based in part 

on NYSE Rule 409(b), would expressly 

require a firm to obtain written 

instructions from the customer in order 

to send/deliver customer statements, 

confirmations or other communications 

to other persons or entities. 

Proposed Supplementary Material .02 

(Use of Electronic Media To Satisfy 

Delivery Obligations) 

This provision would allow a firm to 

satisfy its delivery obligations under the 

rule by using electronic media, subject 

to compliance with standards 

established by the SEC on the use of 

electronic media for delivery purposes. 

This provision is consistent with prior 

guidance issued by FINRA on the use of 

electronic media to satisfy delivery 

obligations.7

Proposed Supplementary Material .03 

(Information To Be Disclosed on 

Statement) 

This provision, which is based on 

NYSE Rule Interpretation 409(a)/02, 

would require the following items to be 

prominently disclosed on the front of 

the statement: (i) The identity of the 

introducing and clearing firm (if 

different) and their respective contact 

information for customer service 

(though the identity of the clearing firm 

and its contact information may appear 

on the back of the statement provided 

such information is in ‘‘bold’’ or 

‘‘highlighted’’ letters); (ii) that the 

clearing firm is a member of SIPC; and 

(iii) the opening and closing balances 

for the account. 

Proposed Supplementary Material .04 

(Assets Externally Held and Included on 

Statements Solely as a Service to 

Customers) 

This provision, which is based on 

NYSE Rule Interpretation 409(a)/04, 

would provide that account statements 

must clearly indicate those instances 

where certain assets are externally held 

but included on the statement as a 

courtesy. 

Proposed Supplementary Material .05 

(Use of Logos, Trademarks, etc.) 

This provision, which is based on 

NYSE Rule Interpretation 409(a)/05, 

would regulate the use of trademarks 

and logos of other persons on account 

statements. 


dwashington3 on PROD1PC60 with NOTICES
23914 Federal Register / Vol. 74, No. 97 / Thursday, May 21, 2009 / Notices 

8 NYSE Rule 409(f) states ‘‘[c]onfirmations of all 

transactions (including those made ‘‘over-thecounter’’ and on other exchanges) in securities 

admitted to dealings on the Exchange, sent by 

members or member organizations to their 

customers, shall clearly set forth with a suitable 

legend the settlement date of each transaction. This 

requirement also applies to confirmations or reports 

from an organization to a correspondent, but does 

not apply to reports made by floor brokers to the 

member organization from whom the orders were 

received. (See SEC Rule 10b–10).’’ 

917 CFR 240.17a–5(c). 

10 See Regulatory Notice 08–24 (May 2008). 

FINRA is not proposing to eliminate the following 

NYSE Rule Interpretations as part of this rule filing: 

409(a)/01 (Applicability), which provides that the 

member firm carrying the account is responsible for 

compliance with the rule unless responsibility has 

been allocated to a non-member broker-dealer 

carrying organization pursuant to an approved 

carrying agreement; and 409(a)/03 (Use of Third 

Party Agents), which regulates the use of third party 

agents to prepare and/or transmit statements. These 

interpretations will be reviewed as part of a later 

phase of the rulebook consolidation process. 11 15 U.S.C. 78o–3(b)(6). 

Proposed Supplementary Material .06 

(Use of Summary Statements) 

This provision, which is based on 

NYSE Rule Interpretation 409(a)/06, 

would regulate the use of aggregated 

account statements for a customer who 

has accounts with other persons. 

ELIMINATED PROVISIONS OF NYSE 

RULE 409 

FINRA is proposing to delete NYSE 

Rule 409 in its entirety (except for NYSE 

Rule 409(f) which will be reviewed as 

part of a later phase of the rulebook 

consolidation process).8 The following 

describes certain provisions that are 

found in NYSE Rule 409 and its related 

interpretations that would not be 

adopted in proposed FINRA Rule 2231: 

Duplicate Account Statements 

NYSE Rule 409(b) contains provisions 

prohibiting, without NYSE’s consent, 

the delivery of statements, 

confirmations or other communications 

to non-member customers (1) in care of 

a person holding power of attorney over 

the customer’s account unless the 

customer has provided written 

instructions to send such confirmations, 

statements or communications to such 

person, or duplicate copies are sent to 

the customer at some other address 

designated in writing; or (2) at the 

address of any member or in care of any 

partner, stockholder who is actively 

engaged in the member’s business or 

employee of the member. 

NYSE Rule 409(g) also provides that 

members carrying margin accounts for 

customers should send duplicate copies 

of monthly statements of guaranteed 

accounts to the respective guarantors 

unless such guarantors have specifically 

provided in writing that they do not 

want such statements sent to them. 

NASD Rule 2340 does not contain a 

counterpart to either provision. As 

noted above, proposed supplementary 

material .01 to proposed FINRA Rule 

2231 is based in part on NYSE Rule 

409(b), but eliminates the reference to 

non-member customers and requires 

that a member have written instructions 

from a customer to send 

communications relating to the 

customer’s account to any third parties 

designated by the customer. FINRA is 

proposing to eliminate NYSE Rule 

409(g) because it believes that the 

provision generally advising members to 

send duplicate account statements to 

guarantors, absent contrary instructions 

from the guarantor, need not be 

incorporated into proposed FINRA Rule 

2231, and the provision’s purpose is 

better addressed by the general 

requirement described above to obtain 

written instructions from the customer 

to send customer statements to any third 

parties. 

Legends on Account Statements 

NYSE Rule 409(e)(1) requires the 

inclusion of a legend on all account 

statements that notifies a customer that 

the firm’s financial statements are 

available for inspection at its offices or 

a copy can be mailed upon request. 

FINRA is proposing to eliminate this 

requirement in light of existing 

requirements under SEA Rule 17a-5(c),9

which generally requires broker-dealers 

that carry customer accounts to provide 

statements of the broker-dealer’s 

financial condition to their customers, 

and NASD Rule 2270 (Disclosure of 

Financial Condition to Customers), 

which requires a member to make 

information relative to a member’s 

financial condition available to 

inspection by customers, upon request. 

FINRA will consider NASD Rule 2270 

as part of a later phase of the rulebook 

consolidation process. 

NYSE Supplementary Material and 

Interpretations To Be Deleted 

FINRA is proposing to eliminate 

NYSE Rule Interpretation 409(b)/01 

(Standards for Holding Mail for Foreign 

Customers), which provides guidelines 

for holding confirmations, statements 

and other communications for foreign 

customers. FINRA is addressing 

members’ obligations with respect to 

customer mail as part of the 

consolidated FINRA rules governing 

supervision and the related proposal to 

adopt FINRA Rule 3150 (Holding of 

Customer Mail).10

TECHNICAL CHANGES 

In addition, the proposal reflects 

certain technical, non-substantive 

amendments to NASD Rule 2340 to 

change all references to ‘‘NASD’’ to 

‘‘FINRA,’’ and to change all references 

to ‘‘SEC’’ Rules to ‘‘SEA’’ Rules. 

As noted above, FINRA will announce 

the implementation date of the 

proposed rule change in a Regulatory 

Notice to be published no later than 90 

days following Commission approval. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,11 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change will provide 

customers with critical information 

regarding their accounts and will allow 

them to review their statements in a 

timely manner, while also clarifying and 

streamlining the customer account rules 

for adoption as FINRA Rules in the 

Consolidated FINRA Rulebook. 

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 35 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 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 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 97 / Thursday, May 21, 2009 / Notices 23915 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The BOX Fee Schedule can be found on the 

BOX Web site at http://www.bostonoptions.com. 

4Make or Take volume is excluded when 

determining a Market Maker’s monthly trading 

volume for purposes of the Volume Discount and 

is not eligible to have a Volume Discount applied 

to it. 

5See Securities Exchange Act Release No. 56948 

(December 12, 2007), 72 FR 72426 (December 20, 

2007) (SR–BSE–2007–52). 

6See Securities Exchange Act Release No. 55549 

(March 28, 2007), 72 FR 16837 (April 5, 2007) (SR– 

CHX–2007–02) (Order Granting Accelerated 

Approval of a Proposed Rule Change To Amend the 

CHX Fee Schedule on a Retroactive Basis To Clarify 

the Application of a Credit Against Specialist Fixed 

Fees). The approval order stated that the rule 

change clarified the application of a specialist fixed 

fee credit that the exchange was offering as an 

incentive for specialists and would reconcile the 

discrepancy between the manner in which the 

exchange intended to apply the credit and the 

description of the credit in a prior proposal. The 

order also stated that approval would clarify 

ambiguity about the application of the specialist 

fixed fee credit. The Commission believed that 

Continued 

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–2009–028 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–FINRA–2009–028. 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 available publicly. All 

submissions should refer to File 

Number SR–FINRA–2009–028 and 

should be submitted on or before June 

11, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11812 Filed 5–20–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59919; File No. SR–BX– 

2009–025] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

of Proposed Rule Change To 

Retroactively Amend the Fee Schedule 

To Clarify and Correct References to 

the Volume Discount Given to Market 

Makers 

May 14, 2009. 

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 May 8, 

2009, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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 purpose of the proposed rule 

change is to amend the Fee Schedule of 

the Boston Options Exchange Group, 

LLC (‘‘BOX’’) on a retroactive basis to 

clarify and correct references relating to 

the volume discount (‘‘Volume 

Discount’’) given to Market Makers. The 

text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend on 

a retroactive basis Section 3 (Market 

Maker Trading Fees) of the BOX Fee 

Schedule.3 BOX applies a Volume 

Discount to the fees charged to BOX 

Market Makers who engage in 

particularly active trading volume on 

BOX. The proposed changes will clarify 

and correct the Fee Schedule to reflect 

that trading volume in options classes 

included within the Liquidity Make or 

Take Pricing Structure (‘‘Make or 

Take’’), as set forth in Section 7 of the 

BOX Fee Schedule, is excluded when 

determining a Market Maker’s Volume 

Discount.4 The text explicitly stating 

this was inadvertently removed from the 

BOX Fee Schedule in a prior filing, SR– 

BSE–2007–52.5

The Exchange requests that the 

current proposed changes be made 

effective retroactive to November 30, 

2007, which is the date of filing and 

effectiveness of SR–BSE–2007–52. The 

Exchange believes that the proposed 

changes will eliminate any gap in the 

treatment of Make or Take volume when 

calculating the Volume Discount and is 

consistent with previous Commission 

action on similar matters pertaining to 

the allocation of exchange member fees 

and dues.6 Additionally, the Exchange 


dwashington3 on PROD1PC60 with NOTICES